I was just wondering if it is possible for one person to fund more then one IRA. Could I set one up thru Vangurad and also have one thru fidelity so that when I'm 60 I can get my money out of both? I am in this for the long haul and would like to be financiall set. Thanks, Jason

p.s. i know with vanguard u need to start witha 3000 dollar investment while with fidelity i can start one with no balance and pay 200 automatically out of my savings. Thoughts on this??

The 401(k) plan document defines compensation as W-2 wages. Question 1: On line 1 of the W-2, should this figure inlcude or exclude deferred compensation amounts? Question 2: This is an S-Corp, so the owners health insurance gets added back into to the Box 1 figure, but is excluded for FICA wages. Should these amounts be added back into Box 1 for plan compensation?

Thanks for any help.

If a person work for Company A and gets laid off but then gets hired by Company B who is under contract for Company A. This person still performs the same work for Company A in the same office. After a few years, the person gets re-hired with Company A.

Is this considered a break-in-service under the ERISA statute?

Our firm is looking into offering an Executive Physical Program for selected individuals. The firm will pay up to a certain amount and the rest would be paid by the employee.

We are trying to determine the best way to administer the program and hopefully eliminate extra work tfor the executive.

If anyone's firm administers such a benefit, I would appreciate any suggestions.

Thank you.

I am dealing with a 401(k) plan that contains a QJSA normal form of benefit. We are involved in a merger & acquisition situation, and we would like to apply a default election procedure under which a participant's 401(k) account balance will be automatically directly rolled over if the participant does not respond to the distribution election form and notice within 30 days (essentially a negative, or default, election). Is this possible, or must the plan obtain affirmative spousal consent for the direct rollover? In other words, can a default election satisfy the requirement for spousal consent of a direct rollover?

I am dealing with a 401(k) plan that contains a QJSA normal form of benefit. We are involved in a merger & acquisition situation, and we would like to apply a default election procedure under which a participant's 401(k) account balance will be automatically directly rolled over if the participant does not respond to the distribution election form and notice within 30 days (essentially a negative, or default, election). Is this possible, or must the plan obtain affirmative spousal consent for the direct rollover? In other words, can a default election satisfy the requirement for spousal consent of a direct rollover?

Could a MP plan that currently contributes 9% of compensation change the allocation formula to allocating 9% of comp to existing participants and 6% to new participants? If so, would a rate group test on an allocation rate basis be the required test to prove nondiscrimination? I realize the rate group test can be done on an equivalent benefit rate basis also, but I would like to avoid this.

I've worked on PS plans that give different allocation rates per divisions and have performed the rate group test as listed above to test nondiscrimination. I'm just not sure if being a MP plan changes things or if the participation date "grouping" matters.

Thank you in advance.

Birdie birdie

in the sky

do that do-do in my eye

me know care

me know cry

cuz me not in a four-twelve-i

so, while you can sort by name, the sort is as follows:

if {PLANKMTEST.EESORTOPTCD}='2' then ({PLANEEKMTEST.LASTNAM} + {PLANEEKMTEST.SSNUM})

so when it sorts you get by name, but if two people have the same last name then it sorts by soc sec number. so my plan with a flock of Smiths is, well....

you would need to modify as follows if you want the first name to be considered in the sort.

if {PLANKMTEST.EESORTOPTCD}='2' then ({PLANEEKMTEST.LASTNAM} + {PLANEEKMTEST.FIRSTNAM}+ {PLANEEKMTEST.SSNUM})

A participant in a profit sharing plan is deceased and so is the spouse. The company does not have a beneficiary designation on file. What options are available to the administrator for distributing the account balance?

Any thoughts on whether you can treat the following as a "newly eligible" participant for purposes of the 30 day election rule? The employee participates in a deferred compensation plan by making deferrals under the plan during 2006. The participant is terminated in early 2006 and 2 months later is rehired. The participant upon rehire must wait 30 days, but then becomes eligible to participate in the same deferred compensation plan.

Note: Under the plan you must receive your account upon termination of employment and in this case the employee is being treated by the employer as a new hire.

Any other way around this issue?

Where can I find more information on the above Safe Harbor 401(K) Maybe Notice, and possibly a sample?

Thanks.

Steve

A participant received and read the SAR and is now asking for all of the information they are entitled to.

What exactly is the plan required to give to the participant other than the 5500 excluding the Schedule SSA?

How frequently is it required to provide this participant with all of the requested information? (Participant is stating that it is required to provide quarterly.)

How long does the plan have to provide this information after the request has been submitted?

Thank you for any help.

I’m hoping someone here is familiar with administrative obstacles after your area has been declared a disaster area by the President. We are in an area that was declared a disaster area due to Hurricane Katrina and are dealing with a lot of odd situations because of it. One question I have is:

Would it be allowed to permit a participant that had to terminate their employment or go on leave due to the hurricane (main reason is because of relocation of either the individual or the company), to submit expenses incurred after the hurricane for reimbursement under their health FSA plan? The participant either had not incurred medical expenses before the hurricane or has lost all documentation in the flood.

Please let me know if you need more information to help with this.

Thanks in advance.

How do you determine if a new loan is considered a “replacement loan”?

Here are the facts:

Plan allows one outstanding loan per participant. Maximum loan amount is the lesser of 50% of vested value or $50,000 (reduced by….so on)

Participant takes “loan number 1” in 2003 amortized over 5 years. Participant has enough cash and pays off the balance of loan number 1 in 2005. (Maximum allowable term ends in 2008)

Participant then takes out loan number 2 in 2005 amortized over five more years shortly after paying off loan number 1. (Maximum allowable term ends in 2010)

No problem as far as only having one loan at a time as far as the document is concerned. Loan is not for purchase of home. The amount is well under $50k.

So, is loan number 2 considered a replacement loan even though she paid off the other loan with her own funds?

I am trying to determine if we need to take both loans into consideration to calculate the maximum amount of the new loan (50% of vested value).

Thanks.

Plan has 6 mth eligiiblity requirement w/ entry dates of 1/1 and 7/1. Plan amends to provide 1 year eligibility w/ same entry dates. If an employee met the 6 mths before the amendment is effective but not before her 7/1 entry date, can she be exclued?

Is there a recommended procedure for terminating the health plan for retirees? I am working with a small employer who has always provided retiree benefits (paying only 25% of the premium), but they would like to remove the retiree class from eligibility.

Thanks for any input.

It is my understanding the contributions are tax-deductible. I have an individual HSA, file a Schedule C so deduct my health insurance premiums - anyone know if my funding contributions are to be included on the same line on Schedule C where I list my actual health premiums? Thanks.

Hi, I hope someone can help me. I was going through my tax records and realized the person who had prepared my taxes for the year 2000, did not include my Roth deduction (the 4th of the 4 year spread deductions). Do I simply deduct the amount this year, or will there be fines I will have to pay as well? Thanks for any help, Jim

I can't get the user Profile Options section to work... is it just me?

Edit - never mind - just me! My User Agent switcher was on and screwing with it...

Ignore this. Unless you can learn from my mistakes.