Can someone direct me to the actual regulation PTE 77-4. I've tried searching every site I can think of, and I know there is a site somewhere that gives you all of the Prohibited Transaction Exemptions, but I'm looking for the original regulation. Thanks for your help.

Hey Everyone,

I'm 22 and about to open a ROTH IRA. I've decided on Vanguard as my broker, but I am uncertain which mutual funds to run with. I noticed one fund named "MA Tax-Exempt" which caught my eye since I am from MA. Beyond on that, do I want small cap, mid, or large? I am starting with $1000 now and plan on contributing the maximum until I retire.

Also, is it possible to open more than one IRA?

Thanks everyone!

- Justin

Say a participant rolls $150,000 from a 401(k) plan into a DBPP and the present value of his pension plan (excluding rollover) accrued benefit is $50,000.

What are the loan limits in this case?

Is it the maximum plan limit of $50,000 in total?

Or is it $25,000 (50% of pension value) plus the entire $150,000 rollover?

Or something else?

Thanks.

Say there is a plan for 6 partners/doctors and their employees.

Presumably the partnership makes the defined contribution plan contributions (as a company expense) along with other expenses to arrive at net income for the partnership and such net income is allocated on a Schedule K-1 for each partner.

In looking at a client's (one of the partners) 1040 return, it has generated some questions.

One expectation is that the pension contributions are deductible to the entire partnership and not shown or don't appear on the individual return.

However, this client/partner showed $110,000 of income from the K-1 passed to the 1040 and a qualified contribution of $41,000 for 2004.

The impression is that the $41,000 does not exceed 100% of the partner's compensation and in the aggregate, based on the entire plan, the $41,000 plus all other contributions did not exceed the aggregate limit of 25%.

Question is: Is this a correct way of handling this from a tax return perspective or should no contribution show up on the 1040?

Thanks

I am so new to this area that I am not even sure how to pose the question...but here goes: Can a person have an IRA and invest that IRA in an LLC. The LLC will be a new company owned by two entities: 1) The IRA will own 40% of the LLC and 2) a Limited Partnership will own the remaining 60%.

As if that wasn't complicated enough, here is the kicker -- the IRA owner's spouse has a small ownership percentage (less than 50%) in that Limited Partnership.

Is this scenario possible?

If you are easily frightened or easily offended, do not access the following link.

http://www.ucomics.com/nonsequitur/2005/10/31/

Contributions after retirement.  Nonelective contributions may be made for an employee for up to five years after retirement. These contributions would be based on includible compensation for the last year of service before retirement.

Is there any circumstances where this can be extended to 10 -years?

Plan document says effective date must be January 1.

Business established October.

Can we still use January 1 as effective date?

I have a plan sponsor that allowed an employee to participate one year too early (1/1/2004). The employee left in 2/05 and requested a direct rollover to new employer's plan. EPCRS sanctioned correction method is to do a retroactive amendment. I am not clear whethera short-form application for determination (Form 6406) has to be filed for the retroactive amendment of an insignificant operational error, any thoughts? Also, the Plan is a nonstandardized prototype, am I missing any issues with doing a retroactive amendment in the first place?

Any thoughts are greatly appreciated!

I'm currently working on plan compliance for a document that has not been updated since 1984 (gasp!).....Being somewhat new to the qualified plan arena (around GUST), I'm not sure what amendments are needed to bring this plan into full compliance. Does anyone know a website/reference that lists the required amendments in chronological order?

I've seen the VCP checklist but not all legislation has the dates on them!

Many thanks!

A company has a discretionary match formula that it makes by the contribution due date (with extension)each year - no payroll to payroll match.

This year, they made a verbal comittment at an employee meeting (all employees) that they would be making a match based on the profitabilty of the company, but never put anything in writing. Are they committed to that contribution and is there a specific code that addresses this. They are on the verge of bankruptcy? No corporate taxes have been filed.

Company A purchases Company B. Company B has a plan with a 3/31 PYE. Company B's plan is merged into Company A's plan in July 2004. There has yet to be a 5500 filed for Company B's 3/31/05 PYE. From what I've read and know since all of the assets were transferred from Co. B's plan in July 2004, then the final 5500 would be due 7 months from then, correct? I'm having a brain freeze and looking for affirmation.

An employee (not an HCE) was out on disability, so the employer decided to cover the employee's portion of his medical premiums for a few months. I asked if the employer has a policy of doing this for every employee in similar circumstances and the answer was no. The employer decides on a case by case basis whether to cover the employee's payments.

If the the employee was an HCE there would be no question about the answer. But can an employer discriminate among NHCEs?

No ducks were hurt in the filming of this picture

A participant in a DB plan received a large lump sum distribution 3 years ago. Recently, the participant received a letter saying that nearly half of the distribution amount must be returned because there was an error made when the distribution was calculated. After all this time, he is able to return the money.

I know that the plan has an obligation to try to get back the money. However, it is my understanding that the employer is responsible to make the plan whole when it is unable to recoup money from the participant. It is unfortunate that the error was discovered after so many years.

Does the participant have any recourse?

An individual is a sole proprietor 1st half of year and maximizes SEP contribution at 41,000. Becomes a partner in an unrelated entity second half of year. Can he max out ps in partnership. ( Assume comp cap not an issue in both entities).

Can a participant take a loan during the period that the plan is under review for determination of plan termination? There has been no determination received yet?

401K plan is under review for determination of plan termination. Can a participant take a loan from the plan during this process, we have not recieve determination letter yet??

Quick Question:

Has anyone ever ran into the situation where deferral checks were timely submitted to the investment company, and for some reason they sat on the checks for a while and did not post the dollars to the account until the checks were "found"? (about a 3 to 4 month lag - small plan, only about 4 ee's deferring)

I'm specifically wondering the client liability for 5330 excise taxes and late interest due to the participants for the error.

Thank you!

I was wondering what information might be available with regards to considering a plan to allowing highly compensated employees to "donate" money to help offset the costs of the lower tiered staff's health insurance? Some the things I am wondering need further considerations include:

Ø What the tax consequences would be (if any), if a voluntary "deduction" for staff were created?

Ø Would this be an after-tax or pre-tax deduction and/or contribution?

Ø Would it be considered taxable income for the staff that receives it?

Ø Might there be any roadblocks to such a proposal?

Ø Any thought as to any issues that might need to be considered if something like this were enacted?

Thank you!