We have encountered a plan that did not sign their 401(a)(9) post EGTRRA amendment by 12/31/2003, or their Mandatory Distribution Amendment by 12/31/2005. What steps do we need to do to fix this?

Participant stopped making repayments to the plan about a year ago. Now, Plan Administrator has JUST determined that the loan is to be defaulted and a 1099 issued, but Plan Administrator is adamant that automatic loan repayments from the participant's compensation are to continue.

Once a deemed distribution occurs repayments can't continue to be made, can they?

If I have a 403(B) that has salary deferrals, match and profit sharing (non elective) contribution on a vesting schedule. Do we need to file the 5500 including schedule I or just the 5500?

Can someone point me in the right direction to find out where in the Regulations does it say that in order to receive a QNEC, you must have worked over 500 hours?

A client wants to offer an insurance product through the cafeteria plan that has a different enrollment year than than the cafeteria plan's plan year. All other insurance products offered through the cafeteria plan have the same plan year. I advised the client that because the insurance product has a different plan year it could not be offered through the cafeteria plan. Are there any alternatives? Thank you.

I have used the search function here, but did not get my answer. I was brought here from http://www.roth401k.com/index.htm

My Father and I have a car dealer partnership. Just us 2, no employees. This is a "side job," we both have full time jobs.

He is 50 years old and all ready has an established retirement account. However I am currently 24. I would like to start a Roth 401k plan under this car dealership, but it seems when I go to financial institutions, they want to get me a regular 401k plan.

Does anyone know what companies would be willing to offer a Roth 401k for our small company?

What would be one of the best companies to go with?

Or am I going about this the wrong way?

The Senate version of the minimum wage bill passed in early '07 contained a provision that would have extended the definition of "covered employee" under 162(m) to include anyone who had ever been a covered employee. Under current law, the defintion only applies to active employees.

If passed, the effect would be to make any annual distributions to covered employees (basically the proxy group) from SERPs or NQDC in excess of $1M non-deductible to the company.

Fortunately, the provision did not make it into the final bill, but I've heard "through the grapevine" that it may rear its ugly head in some bill in the future.

Does anyone out there have better information or an authoritative source that would support this belief?

Thanks,

Joe

I have a calendar year plan that has an effective date of 3/1/2006. What limits do I pro-rate for the year if any?

Is the only available option to exclude bonuses to restate the plan to a Non-standardized prototype and submit to the IRS for determination?

Anyone ever provided diversification rights to an alternate payee? I realize there are a ton of issues here, but I was more curious if anyone is doing this?

Get your copies here:

http://benefitslink.com/taxregs/td_9359_circular_230.pdf

Individual purchased an immediate annuity at age 70, payable over his lifetime, using 100% of his IRA balance. Does this satisfy the minimum distribution requirements rules? Any help is greatly appreciated.

If an employer deposits a contribution late, am I right in saying that the contribution is no longer deductible - in any tax year. We have an employer who contributed his 2005 contribution in July 2007. We understand that the contribution was not timely and is not deductible on the 2005 Corporate Tax Return. Am I right in saying the contribution is no longer deductible - for any tax year - because it did not meet the requirements of IRS 406?

Thank you!!!

Is anyone aware of anything in the new 403(b) regs that would prevent an individual from particpating in both a 403(b) plan and a SEP, or an employer from sponsoring both an ERISA 403(b) and a SEP? I've been searching but so far have been unable to find an answer either way.

Thanks!

Has anyone had to "cancel" a separate interest QDRO once payments had commenced to the AP? I assume that you can request an amended order that supersedes the prior QDRO with respect to future amounts payable, but I'm just not sure how you can return payment to the participant. The parties would have to make up outside the Plan the amount of any previously distributed benefits, so I'm really just worried here about prospective payments...thoughts?

I have signed a prior year schedule B. Having found an error in the prior valuation (my first ever, of course...) I would really like to change the prior interest assumption to compensate, since I am amending the schedule B anyway. I know that the funding method cannot be changed once a schedule B is filed. Can assumptions be changed? I realize my assumptions always need to be reasonable. I want to be correct and ethical, etc in this - just wondering if I have any latitude here. I have always assumed I couldn't make such a change, but just thought I would ask the question.....

Employee on leave, returns to work, and then quits after working a few days.

While on the leave, the employee was on COBRA and paid the premium for the month in which she returned.

What happens? Since a new qualifying event does the period start over again?

I have a tax exempt that wants a 457(f) NQ plan. They will contribute employer money only. if anyone can give me some key bullet points of the issues i need to focus on so i can be sure i have not missed anything. I have done some research and while I know 409A can be complex i believe if the plan is relatively simple it can be done fairly easily.

Regarding the short term deferral exception, does the rule say that if participants take a distribution of the money within 2 1/2 after the lapse of the risk of forfeiture the plan avoids 409A?

I'm designing a 409A plan with elective salary deferrals. The employer wants a dollar limit on the total amount an employee can defer under the plan. I'm concerned that when an employee has elected to defer and is terminated mid-year there might be a prohibited acceleration. For example, what if an employee has elected $1000 in deferals each pay period and is terminated in June? The total amount deferred is about half of what it was expected to be when he made the election in the previous year. Could this be treated as an acceleration? What about an employee who elects to defer 10% of comp, gets a raise mid-year and, consequently, reaches the max deferral mid-year and deferrals are canceled--so 10% of comp in total is not deferred. It seems to me in both examples there will be a prohibited accelerations. -- How do you structure a plan to avoid this type of acceleration for terminated employees?

Thanks in advance for your thoughts.

can you allow full control over the investments in a 457(f) ineligible plan or will this violate the funding rules?