I am an employee of a local county government. I am in the 457b deferred comp program. The correct amount is being with held from my pay each pay period. However, the money is not being sent to my custodian (Nationwide) in a timely manner. The posting to my account is up to three months late.

What rules can protect me from this very late payment into my account? I have read the contract and there is nothing in the contract to state how long the county has to send the money to Nationwide.

Thanks for any help.

Wayne

Should a forefiture account have earnings or not? We have a plan that paid out an employee, there was a forfeiture. The funds were moved into a suspense/forfeiture account. The plan doc says forfeitures are to be allocated after a 5 year break in service. Must the account be earning? Can anyone direct me to where I can find the answer? Thanks

If a participant wants to take a loan in February, is there a specified amount of time when the loan repayments must begin? The participant wants to start repayments in June and the loan procedures are silent on this.

Thanks

OK been reading like crazy about a Roth, but no one really spells out this "tax-free" earnings thing (I haven't flipped through Pub 590 yet). Now lets say I put $2000 in a Roth, and buy 100 shares of XYZ Corp at $20 per share. 10 years down the road, XYZ is trading at $60. Assuming I have made no other contributions, my Roth is now worth $6000 ($2000 Contrib, $4000 earnings). Lets also assume I am over 59 1/2 now. Can I sell my 100 shares of XYZ, and close the Roth, and get $6000 tax free? No paying capital gains? Seems like the IRS would want a piece of those capital gains...

Is there any issue with bonding or fiduciary liability with the following procedure:

Whenever a participant retires and begins monthly payments from a certain plan, the first check is sent from the bank to a retirement (non-actuary) consultant, who then sends that check directly to the participant, with a letter indicating that all future checks will come directly from the bank.

HSAs are not our primary area of business so I only know the basics. I understand there is no formal correction procedure for HSAs. A company implemented a premium only Section 125 plan a few years back. In 2005, they established an HSA account. They have been funding the HSA account on a pre-tax basis. From what I've read, the HSA can be funded on a pre-tax basis (vs an above the line deduction) only if it's done in conjunction with a Section 125 Plan. However, their 125 plan does not mention or address HSAs.

1.) Is there any way other than a 125 plan to fund an HSA on a pre-tax basis?

2.) Does the 125 plan have to specifically address the HSA?

3.) What possible corrections/repercussions might exist for the company if they impermissibly funded their HSA on a pre-tax basis?

Thanks,

Melanie

When will FAS158 be required for us? (We are a non-public company.)

Our fiscal year is the calendar year through 12/31/06, followed by a short year 1/1/07 to 6/30/07, then full years thereafter from 7/1 to 6/30. Our pension plan year remains as the calendar year.

As I understand it, we don't have to adopt until the year beginning 7/1/07. Is that right? Or do we get until 7/1/08?

Does anyone have an answer to my previous question regarding the mortality table to use for lump sums in 2007?

Thanks for your help.

Can an employee take a loan from their Safe Harbor source/account? The document allows it but I seem to remember that source being restricted (example Hardships). Just wanted to double check.

Thx

Controlled group of corporations covered by one 401k plan that provides for a 2% matching contribution. May one of the corporations adopt a separate plan that does not include matching contributions?

When an employer is giving the employees a choice to remain in DB plan or go into DC plan prospectively, what information does employer need to provide participants to make choice? Specifically if lump sum is not available under DB plan would employer still be required to provide a hypothetical lump sum present valueof the DB benefit so that ee can compare that with projected DC account balance?

Has anyone had any claims for Cranial Sacral Therapy? It is one of those strange ones that I am not sure if it would be a eligible expense? Can anyone shed any light on this for me? Thanks

Client needed to take a RMD for $40,000 in 2006...he only took $39,500...what happens if he didn't take the additional $500 that was required?

Thanks

The 2006 compensation cap is $220,000 for a PSP and a 401(k) Plan elective deferrals.

For a Simple-IRA the compensation cap is $unlimited.

What about a Simple-401(k) .... is the 2006 comp cap $220K or $unlimited ?

Form 945 has been filed for a plan in the past due to taxes withheld from distributions. However, no distributions took place in 2006. Should a 945 showing $0 still be filed?

Thanks

Takeover case.

A plan covers an owner, his wife and a previously terminated employee. Owner and wife are not active but the business is still in existence. So they are not getting service/participation credits and hence no additional accruals.

Prior year’s info: Individual aggregate method. Present value of future benefits (PVFB) = $320k and assets = $272k.

In a nationally marketed software, the prior actuary coded the owner and the wife as “inactive”. As a result, the individual normal costs computed by the software are zero, which the actuary used for preparing the Sch B.

I think this is wrong as there are unfunded benefits which cannot never be funded under this calculation method. Anyway, it does not satisfy the funding equation for a reasonable funding method of regulation 1.412©(3)-1:

PVFB = PVNC + Net balance of bases (= 0) + (Assets – Credit Balance)

Do I need to go back and redo the prior year valuation and Sch B and file an amended return? Or can I simply redo the calcs and carry forward information based on recomputed numbers.

A husband and wife have a DB plan that covers only the two of them.

The IRS disqualifies plan for not covering employees.

The IRS states that according to 402(b)(4) present value of accrued benefits are now taxable on personal tax return for the two HCEs.

Say PVAB = 500,000 and plan deductions total $200,000 over the years and current value of assets is $250,000.

Is there anything that would limit the amount subject to taxes to be no more than the value of say the greater of plan deductions or actual value of plan assets?

It seems a bit quirky to b e taxed for amounts in excess of what was contributed into the plan, plus investment earnings.

Thanks.

Participant made $15,000 in 401(k) Deferrals during 2006 and it turns out he had a loss for the year.

Is the correction simply refunding the $15,000 or should earnings on the $15,000 also be distributed?

Does anyone know if a pastor can make a SIMPLE IRA contribution based on income reveiced as a housing allowance?

Thank you for your help.

403(b) plan had language prohibiting any distributions before 59 1/2.

administrator has allowed distributions before 59 1/2.

i have read rev proc 2006-27 and am thinking that VCP (versus SCP) is the way to go.

can you confirm?

thanks in advance for your help.