I worked for a company through college full time, and in the process earned shares based on the companies ESOP. After finishing college I left that company and found out soon after that the company (which was privatley held) was bought out by a larger corporation. Everyone that I knew that was vested in the original company's ESOP was compensated for the amount of shares that they owned. I wasn't compensated, so my question is "Am I owed any compensation because I was vested with the original companhy?" or "Am I SOL????" Any help or opions on this matter will be greatly appreciated.

I worked for myself for 8 years (actually, I worked for my dad in a family business), but I never began an IRA or any other type of retirement savings account. And if he (my dad) set money aside in some account for me, I am not aware of it.

We sold the business when he decided to retire, and I took time to go back to college to earn M.S. in Operations Management. I got a new job about 3 months ago in management with a very successful manufacturing plant starting at $36,000 a year. Not a hair-raising salary, but a good start. To my understanding, it will lead to better things.

I am 35 and single, although I do hope to marry some day. Currently, I am in a good position to invest the greater portion of the money I make because I do not have much in the way of expenses. I want to begin a retirement account.

My company will match 40 cents to every dollar I place into my 401K after I have been employed with them for 1 year (up to 6% of my salary max), so I will maximize that opportunity as it becomes available. Presently, 3% of my pre-tax salary is automatically placed into the 401K plan, and I have voluntarilary contributed an extra 3%. All of this is going into the Vanguard Prime Money Market Fund, a fund which I know very little about, except to say that it is probably a low-risk, low-yielding, and very stable long-term fund.

To my understanding, because I have contributed an extra 3% of my pre-tax salary, I have decision-making authority to shift the entire amount to any of 15 available funds offered by Vanguard in addition to the (default) Prime Money Market Fund. I would like some help in this area. Questions that immediately come to mind are: Am I under-utilizing this option by not investing more? Should I consider a mix of these funds, or stay in the Prime Money Market Fund, and look elsewhere for other investments?

In addition to this, I am preparing to create an IRA, but I am unsure which is really the better alternative between a regular IRA or the Roth. It seems to me the only advantage of having a Roth is the flexibility the account would offer under various circumstances. Being taxed now rather than later, however, seems to go against the convention that a dollar in hand today is worth more than a dollar tomorrow (more growing power in the former). I do anticipate salary increases and more pay-out in the form of taxes as time goes by.

Because I am a novice at this, I am asking that the more experienced place themselves in my shoes for a moment and run with the information i have provided. If I have left out a key detail, just let me know. As for my goals, the only thing I want at this point is to maximize long-term wealth, but I am open to making some moderate-to-high risk investments at this point in my life.

Can we put FMLA paperwork for employees in theri benefits file?

Or does this violate HIPAA?

I assum putting in Personnel file is a nono as well?

in order to qualify for the substantially equal periodic payments exception in 72(t)(4), must the payments be for the life expectancy of the participant? someone in my office seems to think the distributions can be over a period of 5 years. the code seems pretty clear that it is life expectancy.

Can a SEP change plan sponsors?

Thanks for any help.

Participant wants to take a hardship distribution. The plan allows for loans, but a loan would put him in hardship, therefore does he qualify for a Hardship before a loan?

Also, the hardship would be to pay off some of his mortage he owes on his house?

Can you make Davis Bacon contributions to a SEP plan? If so how would the contributions be calculated? If the SEP has a flat dollar formula and you gave the Davis Bacon contributions would you give the employees who are not working on a public works project the same dollar amount?

Is it okay to use one RPA rate for funding purposes and another for maximum deductible purposes?

A plan sponsor was referred to me today asking if there is an easy way to fix a failed ADP which his payroll service and plan administrator just notified him of recently. Here is the situation:

- straight traditional 401K... no match... no ER contribution

- 14 EEs including himself

- participation: One NHCE, and himself (No payroll info yet to determine who was eligible to participate)

I think the best case scenariois that he has failed the test just barely each of the preceding years. The payroll company told him it will cost him $50K to make the plan right.

My question is... can he go back and withdraw from the plan the over deferral for the years he failed instead of contributing new $ to a plan he really doesnt want. Amend the form 5500s and move forward from there? Is there a specific correction under VFCP?

I know this is vague... simply trying to find out what some options are to suggest when I go to collect information and really see what the issues are.

Thanks

Are there any required participant notifications when an employer withdraws from a multiple DB pension plan? The plan is already frozen so no 204(H) notice is required. The plan will lump sum out participants or purchase annuities. So at minimum, we would need to prepare a benefit package per participant with relative value information as of the date of withdrawal--correct? Any other kind of participant notifications for the employees of the departing employer?

Thanks

Posting here so as not to waste the time of anyone not interested.

Go Sox! And hearty boos and hisses to the Bronx Bombers and their misguided fans.

My wife is a teacher, and her principal is a diehard Yankees fan, so they ganged up on him this morning and decorated his office with Bosox accoutrements, right down to Bosox peanuts and Fenway Franks. I'm assuming they will all be fired by noon.

Good thing it is a night game, or the New England economy would probably take a 50% productivity hit today.

Enjoy the game!

Are redemption fees from mutual fund companies required to be listed on the schedule A?

I hope not, this will be a pain!

Can sponsors of target benefit plans allow participants to self-direct their accounts? Because these are DC plans, I would think yes, but the DB nature of them causes me to doubt if that is the case.

I was wondering if anyone could recommend cost-effective software to do combined plan testing. For example, suppose a small employer (under 20 ees) wanted to adopt a cash balance plan and a safe-harbor 401(k) plan. Our actuary will do the calculation on an internal spreadsheet. I was surprised that Corbel couldn't do this under their Proposal software. I know Datair's software can, but I've never used it before. Any thoughts? Thanks in advance. Ed

A plan has one amortization base prior to running the valuation:

412 balance

1,912

Credit balance 1,043

So far everything is in balance.

The valuation is run and the unfunded accrued liability is negative (approximately $1,000 if it makes a difference).

IF the expected unfunded liability is 1,912, what should the gain/loss base be for the current year??

Can the General Rule be used for amended PBGC Form 1 and Schedule A filings when the initial filings were based on the Alternative Method? Does it matter if the initial filings were all late?

Situation: Takeover cleanup- Current liability on Schedule B's that were used for the initial filings has been determined to be wrong (understated). Four years of vals being revised. PBGC premiums presumed to have been underpaid based upon bad numbers on Schedule Bs. General Rule never used or considered-could be cheaper in a couple of the years in question.

Thanks for any help.

A one participant plan is terminating effective in 2005. The assets will be distributed in 2006 or 2007. A nondeductible contribution of $30,000 was made in 2004. As of 12/31/2005: the assets are $874,000; the PVAB is $934,879 using GATT rate; the RPA current liability, using the lowest rate, is $816,873.

Therefore no contribution can be made for 2005, even though assets are not sufficient to pay out benefits.

Question 1: If all of the assets are distributed before the 2005 funding deadline of 9/15/06, can the employer avoid paying an excise tax again for 2006?

Question 2: Can the client deduct the $30,000 over a 10 year period as a past service cost?

If a sponsor terminates a Target Benefit Plan, and wants to start a PS plan in its place, does the TB have to be terminated or can it be merged/amended into a PS plan? If it terminates then the participant can take distribution of their funds which may not be what the employer wants to do; rather amend it into a PS plan and just keep the assets where they are at.

Hello,

A while back someone had posted an excel file for calculating a basic safe harbor match, but unfortunately the file is no longer available for download here.

Does anyone have a file or formula to calculate? Any and all help is greatly appreciated!!!

When filing form 5330 for late deposit of employee deferrals in part IV question 25a , are must people marking the discrete or other than discrete box?