I am doing research on H1b visa. I am considered "resident alien" for tax purpose although I am not green card holder. According to the tax treaty between my home country and US, my income for conducting research (my only income) is exempted from federal tax. My employer does provide 401(k).

Can anyone please tell me if I am eligible to open Roth IRA? Thanks a lot!

An owner of a company has been receiving an RMD for several years and is now age 77. He is still actively employed by his company.

He is interested in receiving a lump sum now.

To my knowledge, he would either have to retire or terminate his plan in order to do so. This is set forth in 1.401(a)(9)-6 Q&A 13.

Does anyone know of a way he can receive his pension as a lump sum and remain an employee? Conceptually it does not seem like a radical payment form, as long as he takes at least the RMD and rolls over the rest to an IRA.

Any thoughts?

Thanks.

Question 1: We distributed 100% of a participants account balance. Later they receive a true-up of the employer contribution for less than $10.00. The cost of a check and 1099-R is more than $10.00. Can we forfeit or gain/loss the participants account or do we need to send them another distribution check?

Question 2: Plan has distribution fees of $85.00 charged to the participant the day before a distribution is processed. Do we charge a distribution fee if the participants account is less than $85.00?

If you know the answer to either let me know. Thanks!

A defunct professional corporation has two participants in the plan. Once is deceased and the beneficiary is unlocatable. The plan has not been funded in years and we have encouraged him to terminate it. The doctor, age 61, is the remaining participant. He already has one outstanding loan from the plan wishes to take a seond loan for $40,000. We have determined that the amount of the loan is o.k. and the document does allow for a second loan. The current loan is being repaid by automatic draft from his personal account. He is disabled and therefore is not drawing income from the p.c. which is the plan sponsor. What would be the problems associated with him taking this loan?

Company has a SEP and makes contributions on a monthly basis. Employee has been terminated. The way I understand it, under a SEP each employee must share in any contribution the employer makes for a particular year. Does that mean that the employer must continue to make contributions on the terminated employee's behalf? (Employee has already received contributions for Jan, Feb. and March 2006; question is whether he must receive contributions for April - December 2006?)

I have a client (C Corp) who wants to amend their plan for a last day requirement for PYE 12/31/ 2006. The match is discretionary, they fund the contribution after the end of the plan year (before 4/15), and so far in 2006, no one has terminated. Here's the kicker: they do not have an hours requirement.

Currently, the plan document has no hours of service requirement or last day.

Can we put in place an amendment for PYE 2006? Or, does the amendment have to be effective 1/1/2007? I was told it cannot be done for 2006 because it's taking away a benefit, and if that is the case, are there any exceptions?

Thanks!!

What is the due date for PBGC premiums for a multi-employer plan? We generally do prepare the filings for our multiemployers since they don't require an actuarial certification, but one of our clients asked us to prepare the premium forms. Page 8 of the instructions states that "For mulitemployer plans... the entire premium is due by the First Filing Due Date".

Does that mean that there is no room for estimates using an ES-1? The plans generally don't have the census data for two months, are they expected to have a final participant count in 2 months?

How do others handle this?

Company A sets up a Simple IRA in 1998. Utilizing 3% match. 2 owners contribute Max elective deferral each year.

1. Owners never matched calculated a match for themselves. Anything they can do at this point(other then for 2005)?

2. Same owners set up company B in 2002. Automatically include these employees on Co. A's Simple. Not sure that is correct without some type of amendment? Can they set up a 401(k) for Co. B in the same year that Co. A sponsors the simple IRA?

Thanks.

If my wife and I are filing jointly, and we make less than 150 k a year, can we each contribute $4000 to a Roth IRA? (making the total contribution $8000). Assuming we open separate Roth IRA accounts, of course. Thanks!

I have read the 2004 FAB but am trying to determine, for an unresponsive participant with an account balance greater than $ 1000, in a terminating plan can we send him a check (assuming we have a good address) or must we roll his balance to an IRA?

Also, I understand that we can force out participants in a terminated plan even if their balances are greater than $ 5000 - agreed?

Can a SARSEP be terminated mid-year if deferral contributions have been made?

Employer has a SERP that works on top of 401(k) plan. Participants can make elective deferrals and employer will match using matching criteria from 401(k) plan. Employer withheld FICA on elective deferrals, but forgot to do so on the matching portion. Under Reg. 31.3121(v)(2)-1, it looks like the employer can pay that FICA, plus applicable penalties and interest, before the period of limitations expires and it will relate back to time at which that FICA should have been paid. The Employer has discovered that FICA was not paid on these match amounts, but some of those tax years are past the period of limitations. The regulations say that if FICA is not paid once services are rendered and no SRF applies, then FICA is due when actually or constructively paid. I can't believe that the IRS wouldn't go ahead and hit the employer with a 6656 penalty, but I can't anything covering what happens if FICA on the deferred amount is not paid at the correct time and the employer ultimately withholds when the participant is paid. Any ideas?

I have few questions:

Is it true that there are no discrimination testing or 5500 filing if there are only employee deferrals and no match or employer contributions?

Is it true that if there is any employer contribution, including match, a Form 5500 must be filed?

If there is a match, there is no ADP testing, but only ACP testing required?

Thank you.

Does anyone have a PDF copy of the Corbel prototype they wouldn't mind emailing me?

Okay, well I misspoke earlier and what the exact problem is is that both the Plan Doc and SPD say that participants need to submit claims within 75 days,however, the employees were given a flyer that stated that they had 90 days to submit claims. Now we have participants turning in claims after the 75 days and saying they have 90 dyas to submit accoring to the information they were given. We don't know if we should update the PD to reflect the 90 days and have the client back date the document to 12/31/05 or not. What do you think???

I have an employer with mostly Amish/Menonite employees who all have insurance through their churches. The employer is not connected with the church and the insurance plan is not employer sponsored. Can these premiums be reimbursed under a typical cafeteria plan FSA?

I am taking over a plan. The current fiscal year is 1/1/04 to 12/31/04. The plan year is 12/31/04 to 12/30/05. There was a contribution made December 15, 2004 that exceeded the deductible limit for the 12/31/03 to 12/30/04 plan year. These contributions were not reported on the 2003-2004 schedule B. Is it okay to just report them on my 2004-2005 Schedule B or do I need to go back and revise last year's schedule B. (Either way I will need to make sure a form 5330 with excise tax was filed for 03-04.)

The person who was doing the Plan Documents and Summary Plan Descriptions before me messed up royaly and the dates to submit claims for reimbursement do not match between the two documents. We are debating on whether or not to write a new Plan Document and submit it to the client to sign and back date to 12/31/05. Has anyone run across this, or what do you all think of this?? We need help right away!!!

Thank you!

401(k) plan terminated as of 12/31/04; all distributions made in '05. Questions: Part 1, line 2 - leave blank if investment carrier for plan termination sends one check to employer and has employer cut all participant checks based on each participant's request (cash/rollover, etc.)? Line 3, put number of participants that received a distribution? Lastly, leave Coverage test on Part IV blank? Thanks in advance for your assistance.

Co A was bought by Co B. Co A’s 401k plan is being terminated and all participants are allowed to receive a distribution. The plan has GIC contracts with high surrender charges. Co A has been advised by Co B’s financial advisor that the GICs can be liquidated and the charges paid back to the participant’s accounts by the employer so they are whole when the distribution is made. The participants of Co A will then have the right to rollover their account balances to Co B’s retirement plan.

We thought a company could not put the GIC charges back into the plan. Please comment.