Husband is a self employed consultant... no EEs

Wife owns travel agency. 4-6 EEs

Wife is closing business before the end of the year... but may drag on into 2007.

Can husband open a Solo 401K and defer himself. Wife will work for Hub but will not defer until 2007.

Any problems here?

Thanks!

I am looking for seminars or information regarding administration of an RRSP.

Any information????

Thanks!

Is the truth in lending disclosure (Reg Z Disclosure) required for a plan loan where the plan has less than 25 loans in a year? I got information from a document provider that the disclosure is not required. Where can I go for a cite for this? Thanks

I am reviewing a 501c entity (Library) that has a document that states that the employer contribution is only given/eligible to employee's that work more than 35 hrs per week. The contribution is 6% non-elective. The 501c is in PA.

Am is missing something in the 403(b) arena that this can be allowed beyond the 20 hr per week or 1000 hr yearly requirement?

I am trying to help someone out but I am more a 401k guy.

Hello All:

Strange question for you all -- My company provides an educational assistance program. For now, let's assume it qualifies under Section 127. The company will reimburse up to the statutory limits. However, if the employee quits within one year after reimbursement, the employee would have to pay back the company with a pro-rata portion of the reimbursement. Under Section 127, it is not discriminatory to require a reasonable condition subsequent with respect to reimbursement (and the Code mentions "such as remaining employed for one year after completing the course"). However, I read that as the Company can "wait" a year before reimbursement -- not pay the reimbursement today (and take a deduction) - and then possibly have income when the reimbursement is repaid at a later date. Also, what happens to the employee who quits? Does the employee get a tax deduction with respect to the amount he/she "paid back" to the Company (as if the employee paid for the course himself/herself?

Any help would be greatly appreciated. There is not much on this topic (at least that I can find).

ERISA Guy

Someone asked me about waiver of customer identification procedures (CIP) for active members of the armed force. I have searched high and low and can’t find anything that provides a waiver of these (CIP) rules for these individuals.

Are we aware of any? If you are involved in the account opening process at your firm, do you have special provisions for active members of the armed force?

Denise

Does anyone know of any software that will import data to fill out Form 8905?

Client is complaining to us, their accountants, about their insurance broker who is stating that all employees who are eligible for the plan (not sure what type it is other than provider who shall remain nameless) are obligated to meet with her and it must be done on company time. Broker is citing "IRS Rules"....

This is new to me...forced attendance on company time? Is she right?

Working with a controlled group has not been too difficult before now. I have a multi-state company that has made a number of acquisitions over the years. All of the divisions participate in the same plan. They have a very complicated ownership structure that leads to four controlled groups. We have always tested these groups as four separate plans.

It so happens that the smallest group will be top heavy as of 12/31/06. They asked if there is any way to avoid the top heavy minimum for this small group. Can I combine this small group with one of the larger groups for testing purposes? The research I have done talks about combining two plans, but I am uncertain if that applies to two divisions of the same plan.

I appreciate any insight.

All of the pre-acquisition subsidiaries of a bank holding company are covered under one discretionary profit sharing plan. The Holding company has acquired a new subsidiary bank that has two plans: (1) money purchase pension plan and (2) 401(k) Plan.

The Holding company desires that all employees of all subsidiaries be covered under the existing discretionary profit sharing plan. The Holding company would also like to establish a 401(k) plan. The current Holding company profit sharing plan's assets are held by a trust. The assets of the acquired bank are all held in insurance contracts.

Even though there is a money purchase plan in the acquired bank, is it corect that the assets of both plans could be (1) merged into the discretionary profit sharing plan or (2) merged into the discretionary profit sharing plan and/or the new 401(k) plan ?

If the insurance contracts have termination fees, could that be mitigated by freezing the plan until those charges are no longer significant, while allowing the acquired banks employees to participate in the holding companies profit sharing and 401(k) plan or would you go ahead and merge while holding the insurance contracts as a seperate assets class until termination fees have lapsed ?

Has anyone ever run a non-discrimination test on a DB plan with a cash balance component where employees hired after 1/1/xx are cash balance only but those employed as of all prior years are greater of cash balance or FAP (grandfathered)? The FAP was safe harbor.

Not sure how to run the test.

All of the pre-acquisition subsidiaries of a bank holding company are covered under one discretionary profit sharing plan. The Holding company has acquired a new subsidiary bank that has two plans: (1) money purchase pension plan and (2) 401(k) Plan.

The Holding company desires that all employees of all subsidiaries be covered under the existing discretionary profit sharing plan. The Holding company would also like to establish a 401(k) plan. The current Holding company profit sharing plan's assets are held by a trust. The assets of the acquired bank are all held in insurance contracts.

Even though there is a money purchase plan in the acquired bank, is it corect that the assets of both plans could be (1) merged into the discretionary profit sharing plan or (2) merged into the discretionary profit sharing plan and/or the new 401(k) plan ?

If the insurance contracts have termination fees, could that be mitigated by freezing the plan until those charges are no longer significant, while allowing the acquired banks employees to participate in the holding companies profit sharing and 401(k) plan or would you go ahead and merge while holding the insurance contracts as a seperate assets class until termination fees have lapsed ?

A c-corp. is adopting a psp for the plan year ending 8/31/06, they want to ultimately have a CODA added. Question is can the document be drafted to incorporate the CODA retroactively to 9/1/05(beginning of first plan year)or MUST it be restated when they decide to add it? I'm thinking that it will need to be restated at least 30 days prior to allowing the participants to defer.

A 401(k) plan has a loan policy that allows a participant to repay missed loan payments within three months. It also indicates that the employer will inform the administrator of the missed payments and the administrator will allow a cure period for repayments.

In this case, the employer did not inform the administrator until eight months had passed after the participant had terminated employment and had made his last loan repayment.

A 1099-R was issued but no cure notice was provided.

What are the consequences of not providing a notice to the terminated participant before his loan went into default? Are there any penalties?

Thanks.

Can a company with 2 employees have a safe harbor match of 6% where the only employee deferring is the owner? The plan will be top-heavy - will they need to make a 3% nonelective since NHCE is not getting safe harbor contribution? There are additional profit sharing contributions going into the plan for both employees.

I am taking over a plan 10/1 that was not managed with a professional recordkeeping system. The trustee kept all the individual participants in segregated accounts and says "the employer (law firm) was responsible for compliance testing".

In creating the recordkeeping back to 1/1/04 (when the profit sharing plan added the 401k and safe harbor features) I discovered that the employer had incorrectly been taking away all employer contributions made on behalf of an employee who terminated before the end of the plan year. Of course, the safe harbor 3% nonelective cannot be subject to a last day rule, so a terminating employee was entitled to the 3% nonelective year-to-date up to termination. Unfortunately, I'm discovering this not only effects 2006 (my initial thought) but evidently there were 2 employees who terminated in 2004 to whom the employer did not pay the 3% safe harbor contribution.

Opening up a can of worms here. Where do we start to fix this? I know these employees have to get these contributions. Other issues? 2004 Form 5500 is wrong (?) 2005 hasn't been filed just yet, it's on extension. I assume I'm looking at venturing into the EPCRS?

Thanks.

If the plan administrator merely forgets to hand a 401(k) enrollment form and spd at time of entry to a new participant, does the IRS view this is an operational failure, subject to the required employer QNEC. The participant didn't know her rights under the plan, but she was never denied the opportunity to enroll.

I think I know the answer, based upon Rev Ruling 2004-13, but need someone to help clarify.

Safe harbor CODA (satisfies with 3% NE), no match but allows for and currently has ee's making after-tax contributions. Based on my research, it appears that the contribution of after-tax $'s would subject the plan to top heavy rules as this is a non-safe harbor 401(k)/401(m) contribution.

Thoughts??

What is the obligation / procedure for getting benefit information from a Pension Plan (this is a Teamster Plan in NY) in order to collect child support arrears?

My CSE agency was refused the information and dropped my case. I expect that I will need to get an attorney at this point, but would like to know if he/she will be able to get this information.

My ex- had disappeared for all the time my children were growing up; he resurfaced after he began to collect retirement benefits. I will not get help from him willingly.

Also, how is the amount to be deducted determined - is there a maximum that can be deducted from a pension benefit for child support arrears?

Assumptions: Salary reductions only. Fixed interest annuity.

Does the amount borrowed come from the general assets of the insurer or the individual's annuity account balance?