Calendar year company has an existing SEP. They have been funding these contributions quarterly. They would like to termionate SEP and start 401k with PS contributions as soon as possible.

Question is: What is as soon as possible? Can they start 401k in 2006 or do they have to wait until 1/1/07 since they have funded the SEP in 06? I am getting conflicting info form several sources.

Commenst and cites are appreciated

This is my first post!

I have a question about changing HDHP plan years. We currently have an HDHP w/ HSA, and the plan year runs from 7/1-6/30. We want to change it to a calendar year without losing HDHP status in the meantime. Does anyone have an idea of how this should be done? Is it allowable to have a qualifying HDHP from 7/1-12/31 so that we can start with a fresh calendar year HDHP in January? The IRS notices do not address whether the minimum deductible can be prorated for a short (6 month) plan year; however, we also do not want to require the full annual minumum required deductible for a plan year that only lasts 6 months. Any suggestions?

Thank you.

The employer took the deduction on their corporate tax return, the 5500 reported the employer contribution but the accountant forgot to actually fund the money. Can they pay a penalty and deposit the funds now?

Thanks!

Employer makes an employer contribution... plan has a SH match... Because of the SH match the plan will pass the TH requirement... correct?

Also, due to the catchup deferral the plan exceeds the 25% 415 limit... but that is OK because it was the catchup that put it over. Right?

Sorry for the basic quesitons...

The daily treasury rates can be found here (last column):

http://www.ustreas.gov/offices/domestic-fi...rate/yield.html

click on 'historical data' and look at '2006'

if you sum up all the rates for April and take the average, you arrive at 5.06 which is the rate just released.

The same holds true for March. you can't go back much further than that because they didn't exist for awhile.

so, while 2 months is not a lot to go on, based on the above date it appears you can get a good idea what the rates will be ahead of time

OK, I'm completely out of my element here....just looking for info to point a client in the right direction (ie who to go to for the real expertise).

Years ago I worked for a firm that offered a flexible benefits plan that provided the employees with a base amount of dollars that could be put towards various benefit options. The base amount would provide the minimum coverage for most of the choices (medical, dental, life, disability). The employee could upgrade by using pre-tax deductions...additionally they could choose to use the reimbursement accounts for health, dependent care, etc etc. Lastly, we had the ability to set aside money to purchase additional vacation days and use for parking expenses.

Client asked about our firm doing something almost exactly like that for them....my answer was "Yes, I could find someone to do that for you... and they'll be better and cheaper too!"

Does all of this fall under a single plan document umbrella or is it piecemeal? Can my client go to a single Health & Welfare administration firm and get the documents and administration for this? Spendy? Client isn't extraordinarily large (100 people) so I would imagine firms like WWW would be out of the picture for cost reasons, but what about smaller firms? My guess is that whatever the cost, they will decide it's too expensive and will want to whittle away at the offerings until they reach the acceptable expense level. So does the typical RFP break down the costs by offering?

Deceased participant's benefit began paying installments to 4 beneficiaries in December 2003. Each received another payment in 2004 and again in 2005, however the 2005 payments were miscalculated due to an error in an overstated account balance. This resulted in the 2005 payments almost being doubled. What are the consequences?

Assuming it is 2005 and the 417(e) rate is 5.5%, how would you calculate the maximum contribution to a Cash Balance Plan for a 50 year old employee?

I am thinking GAR '94 @ 5.5% would come into play for a reduction between age 62 and 50, but nothing jives.

Does the years of participation come into play as well since the 415(b) dollar limit is reduced for years of participation less than 10? Or, do we assume there will be at least 10 years of participation and leave it alone.

For salary, let's assume the individual makes over $200,000 even though salary doesn't come into play for the actuarial reduction below 62 and years of service is more than 10.

Any help would be greatly appreciated.

Under Medicare secondary-payer rules, is there an age limit for actives when Medicare becomes primary?

I have an 80 year old actively employed and benefits eligible

After the two year holding period can a SIMPLE IRA be rolled over/transferred to a SEP?

Can this be done? Are there any rulings or information I can read about this?

I'm not too familiar with 403(b) plan in general and I have someone asking me about switching a current Erisa 403(b) to a Non-Erisa 403(b) plan? Can anyone help me here?

What are you currently running your participant loans at?

I believe a Qualified Disability Benefit can be an unreduced annuity benefit payable at the disability age (say 40) that that would have otherwise been paid at NRA including the future service/participation through NRA. Does anyone have any thoughts or opinions as to whether the present value of such unreduced Disability Benefit (annuity) can be paid out as a lump sum ? If the lump sum exceeds the present value of the current 415 limit, is that an issue ? I'm leaning towards thinking the Qualified Disability Benefit could be paid as a lump sum, even if greater than current age 415 limit, given it's an ancillary benefit not an accrued benefit subject to 415 limits (much like life insurance that complies with the incidental death benefits limits may be greater than the current 415 limit). However, I don't find much discussion or passages in our various reference sources on this topic so I would appreciate any thoughts or opinions on this.

Controlled group 2 Employers maintaining separate plans. Calendar year plan years. Employer A has a non-Safe Harbor 401(k). Employer B has a Profit Sharing Plan (no (k) feature).

Do you think it's permissible for Employer A to merge it's 401(k) into Employers B's plan and at the same time add the (k) feature and safe harbor to B's plan during the current plan year. It will be done with more than 3 months left in B's plan year?

We have a sole participant DB plan, the owner died, having taken one RMD from the plan.

No distributions were taken in '05.

Is the RMD for '05 calculated on his single life expectancy or the beneficiary's? The beneficiary is under 70 1/2.

Would the beneficiary have to take a distribution prior to the rolloveer of the plan to an IRA, on whose life expectancy is it calculated, and why???

Thanks,

Steve

Here is the situation:

An employer has an FSA and wants to add an HSA. Some of the employees who have exaused their FSA, but are still contributing into it, want to sign up for the HSA... Is this possible??!!

We have an employer group that has employees in a service industry. Some times these employees do not earn enough during a pay period to make FSA deductions. They treat these employees as having arrears and when they get their next paycheck, they make up the missed deductions.

My question is... if an employee is "in arrears" on the dependent care deductions, can their participation in the dependent care FSA be terminated? If so, is this an option that has to be given to each participant in arrears or can it be implemented across the board?

Thanks

Hello

I am aware that is is illegal to be broker on a qualified plan for a business whose owner is the broker's mother but can the broker be broker of a SEP or SIMPLE for the client's mother?

Employee participated in Employer's A 401(k) during early part of 2005. Employee terminated service with that employer and was subsequently employed by B. Employee participated in Employer B's 401(k). Employee has excess 402(g) deferrals.

Assuming it would still be timely, from which plan should the excess be removed?

What if employee rolled over his portion of Employer A's 401(k) to an IRA? Does this change the answer?

My supervisor wants me to compile a report showing employers tax savings for their FSA plans. She would like this to be based on total elections and contributions. Any ideas???

Anything I look at on the web are just exapmles of what an employer would save if they offered an FSA Plan.