Is anyone planning on charging more in fees to plans that add the Roth 401(k) provisions? I am looking at this and I don't think it will actually cost me more to administer or recordkeep the plan due to the software handling it. Something I may be missing? Any ideas or comments are appreciated.

are they included in total compensation even though they do not appear on the employee's W2?

i assume since it is not on the w2 you dont use it but do you use it for testing purposes?

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I have a client who owns both a for profit and a non-profit business. There are 3 owners who currently max out contributions for the 401k and are inquiring about their options to increase contributions. My first thought is to suggest a 457 plan for the non-profit, so they can max out contributions to that as well. Any thoughts or suggestions? Any things I may have not thought about?

Hello,

I would appreciate some opinions/advice on the following scenario.

I am 38 and have 13-1/2 years in as an officer on a fire department. I am currently vested to receive 24% at age 60. I presently earn approx. $74k a year with annual 3% raises. If I stay 20 years, I will receive 50% collectable at age 50. Big difference.

I have an offer from a global 50 organaization, which will pay me 20k-30k more than my current salry by year 2. They offer a 401k match dollar for dollar up to 6%, plus a cash savings retirement plan at no cost.

From a retirement/security standpoint - would this be a bad move?

Thank you

I prepared flash cards for the exam based on the required readings and read them every day for several months. I received an 8 on the exam last May. If anyone is interested in these flash cards then please email me. Otherwise they will probably be discarded.

What recourse does the participant have for the following:

Plan allows for loans to be repaid by terminated participant. Participant made erradic payments through the course of the loan due to financial issues but felt they never were in default by more than 3 months

Participant paid the plan for the loan in the first quarter of 2004. The participant was not sure of an exact amount to repay the loan because he never received an annual valuation or a payoff amount. After several unanswered requests to the plan administrator for the payoff amount the participant made a calculation of what he thought the outstanding amount was, paid it, then rolled over the balance into an IRA.

2 years later the participant receives a 1099 for interest on the loan. The participant argues that if there were a loan offset it would have been in 2004, and so the 1099 should be corrected. He also raises the issue of never receiving a payoff amount after several requests from the plan admin, or an annual valuation to make certain the balance was paid in full.

What should the participant do about the 1099 for 2005? Does he have any cause for legal action against the plan administrator?

What recourse does the participant have for the following:

Plan allows for loans to be repaid by terminated participant. Participant made erradic payments through the course of the loan due to financial issues but felt they never were in default by more than 3 months

Participant paid the plan for the loan in the first quarter of 2004. The participant was not sure of an exact amount to repay the loan because he never received an annual valuation or a payoff amount. After several unanswered requests to the plan administrator for the payoff amount the participant made a calculation of what he thought the outstanding amount was, paid it, then rolled over the balance into an IRA.

2 years later the participant receives a 1099 for interest on the loan. The participant argues that if there were a loan offset it would have been in 2004, and so the 1099 should be corrected. He also raises the issue of never receiving a payoff amount after several requests from the plan admin, or an annual valuation to make certain the balance was paid in full.

What should the participant do about the 1099 for 2005? Does he have any cause for legal action against the plan administrator?

Last year under the advice of our investment person my husband and I converted our traditional IRAs to Roths. Find out this year that our MAGI was to high to except the total conversions. From some research it looks like we can accept up to 4000 each of the converted IRAs as a ROTH contribution and would only have to reconvert the excess of 4000 plus the earnings on this. Is this correct? Thanks for any help.

The Disability Income carrier for our association group replaced its own policy in 4/2003. The replacement policy has revised 'other income offset' provisions that are more favorable to a claimant. The coverage is voluntary through salary reduction.

For some reason, the association did not begin to actively market, sell and enroll employees into the replacement policy until January, 2005. The carrier continues to pay claimants benefits under the terms of the old policy, despite the replacement policy's effective date of 4/2003. There is no difference in premiums for the old and new (replacement) policies.

Should the carrier be paying claims under the provisions of the new (replacement) policy? If so, what issues or liabilities may arise from this situation? Thanks.

Company X maintains a 401(k) plan permitting employees to contribute on an after-tax, pre-tax 401(k) or Roth 401(k) basis from 3% to 40% of compensation to the plan, except that HCEs cannot elect to contribute more than 10% on a pre-tax 401(k)/Roth 401(k) basis and up to an additional 3% on an after-tax basis. If an employee contributes a minimum of 3%, the company provides a matching contribution of 4%. Finally, if the employee's pre-tax 401(k)/Roth 401(k) contributions reach the 402(g) limit during the year, the employee is deemed to have elected to contribute after-tax contributions for the remainder of the plan year.

I have read the series of posts dealing with the application of the annual compensation limit on 401(k) and matching contributions. My question deals with after-tax contributions. Are they subject to the annual compensation or are they treated like 401(k) contributions? For example, let's say Executive A elects to contribute 3% of her compensation to Company X's 401(k) plan on a pre-tax basis and during 2006, her compensation is equal to $1 million. Once the employee's compensation reaches $500,000, she will have reached the 402(g) limit and all remaining contributions will be made on an after-tax basis. Can A contribute an additional $15,000 on an after-tax basis?

Assuming that Executive B earns $2 million during 2006 and elects to contribute 3% of his compensation on a pre-tax 401(k) basis. Once B's compensation reaches $500,000, he will reach the 402(g) limit of $15,000. Can B make after-tax contributions on the remaining $1.5 million up to $20,200 (15,000 + 8,800 + 20,200 = $44,000)?

I have a DC plan where benefits are paid in the form of a lump sum distribution. No other distribution options are available. I believe I can apply the 5-year distribution rule in every case where the participant dies prior to receiving benefits, including distributions to the surviving spouse and a designated beneficiary. Is that correct or are these categories entitled to elect the life expectancy option? Some secondary sources seem to suggest that they are entitled to elect the life expectancy option. I can't believe that we would be required to give them the life expectancy option when the only form of distribution under the plan is a lump sum. I was always under the impression that benefits could always be paid out more rapidly than the MRD rules.

Can a Section 125 plan be established for a family's Nanny so that she can use the plan for medical reimbursement pre-tax (medical FSA)?

Can anyone direct me to education classes/ seminars/ conference on 401k? I currently work on the employer side, and have plan assets just over $30 Million. We are an organization in growth mode, and administration of the plan has changed over to my group. I do not want a high level - I am looking for a course that will provide real value. Thanks.

A VEBA serves as the funding medium for 2 welfare benefit plans sponsored by 1 employer. There are 3 entities in this arrangement:

1. VEBA (exempt organization) - Form 990

2. Plan 1 - Form 5500

3. Plan 2 - Form 5500

The assets for both plans are commingled in the VEBA trust and can't be divided or segregated. The asset values are allocated, on a fair and reasonable basis, for Form 5500 disclosure. Each plan reports its own interest in the trust's assets.

The sponsor's attorney insists that each plan's Form 5500 should report all of the VEBA assets. He's saying that Form 5500 should, in effect, overstate each plan's assets to include everything held inthe trust. On a publicly-disclosed document, each plan would report misleading information about its resources, financial position, and ability to pay benefits.

I need to put an end to this discussion, but I haven't come up with any substantial authority. Can anyone point me toward a DOL regulation, IRS instruction, or other cite to back up my position?

If an association health plan returns subsidy payments to plan sponsors who participate in the plan, and if subsidy payments are based on utilization of participants, is the payment of the subisdy a HIPAA disclosure of PHI if employer can determine which retirees used the prescription drug program?

I have a client who is a basketball coach and has a 403b plan and 457 plan through the University. He deferred 14k to each of these plans for 2005. He also has a Profit Sharing Plan for his LLC that he runs his basketball camp through. According to IRS Pub 571, you have to combine 403b deferrals with contributions to qualified plans of businesses that you are a 50% or greater owner of to see if you are over the 415 limit. My question is if the 457 deferrals would count against the 415 limit as well. Thanks for any help with this.

If an employer deposits too much match on a per payroll period, and we need to take the match out at the end of the year (because match is based on annual comp), may we then apply those funds to the employer's obligation to pay a profit sharing contribuiton?

I dont beleive these funds would be considered forfeitures, since they were never supposed to be deposited, and am looking for affirmation that the employer can than use those funds for other plan purposes.

Any Thoughts?

Help...

MPPP requires a 3% employee contribution in order to share in employer contributions. A Participant has just returned from military leave. What does the Plan do now? Does it require the employee to make up the mandatory contributions in order to receive the employer contributions (like you would do with a 401(k) plan that has matching provisions) or does the Plan make the employer contributions without requiring the employee contributions?

Thanks for the input!

The eligibility requirements for a non-standardized profit sharing plan are: age 21, 1 year of service

Plan year ends 09/30/05

Dual entry dates 10/1 & 4/1 after meeting the eligibility requirements.

Employee was hired 1/18/00

Works 1000 hours from 1/18/00 - 09/30/00

Terminates 10/1/00

Rehired 02/14/05

Did this person meet the 1 year of service and should they be allowed to enter the plan upon rehire?