Partners deferred into their plan during the calander year of 2004. They had a net loss in the partnership. What should be done with the deferrals and match contributions on behalf of the partners?

We were recently informed by our plan administrator that a former employee was paid more than the amount he accrued in our companies profit sharing plan. A letter was sent to the plan participant notifying him of the error and we made a request that he return the overpaid money to the plan. The participant has not yet returned the assets.

A few questions:

1) What law(s) is this person breaking if he does not return the money

2) What is a reasonable amount of time before one takes legal action to get the funds returned.

thanks

Could someone clarify whether it is required that we withhold the 20% for Katrina distributions?

These are being processed as terminations, becasue the company is shutting down. They aren't hardships.

What I am using came from ASPPA, and is below. But, I have heard conflicting opinions....

Thanks!

"If an individual receives a qualified Hurricane Katrina distribution in 2005, that amount is included in income, generally ratably over the year of the distribution and the following two years, but is not subject to the 10-percent additional tax on early distributions. If, in 2007 the amount of the qualified Hurricane Katrina distribution is recontributed to an eligible retirement plan, the individual may file an amended return (or returns) to claim a refund of the tax attributable to the amount of the distribution previously included in income. Under the new law, these qualified Hurricane Katrina distributions are not subject to the mandatory 20-percent withholding."

I need a to-do list, along with due dates, for a merger of two DB plans. For example, file Form 5310 30 days prior to the merger, notify PBGC x days, notify participants, etc.

Any help is appreciated.

Thanks.

I have a PS that terminated 5/31/05. All participants have been paid out except for one new doctor who has a balance of around $42,000. He's going through a nasty divorce and doesn't want to send in his paperwork now. The owner of the practice wants to pay out this doctor and close the plan.

This new doctor only has PS money in his account - no merged MPP money. There is no J&S on the PS money. Can he be paid out without his wife's signature?

If he still refuses to send in his paperwork, is our only option to roll his balance to an IRA?

Help!

does anyone know whether the IRS still uses Forms 668 A and W to levy retirement benefits? And, if so, when it was last updated?

Is it common for the financial group managing the 457 plan to get a commission from the front load of each mutual fund purchased by the particpants in the plan?

I max out my plan at $14,000 a year and the broker gets over $700 from me due to commissions.

Don't some financial companines wave the commissions and get paid by the company to manage the plan?

I would like to start out saying hi to everyone. This is my first time posting on this site and I wish that I had known this site a couple of years back but anyways, let me start where i stand now. I'm 22, self -employed and out of college with a student loan of 16k, car loan of 8k, and no credit card debt. I have little savings ($4,000) and would like to know is it best I pay off some of the debt before i can start an IRA? Since i'm self-employed; which would be better, SEP IRA or ROTH IRA? Thanks for all the advice..

Participant wants to apply for hardship distribution under PSP that uses the 401(k) safe harbors to establish heavy/financial need, i.e., medical expenses, tuition expenses, funeral, purchase of residence, prevent eviction (+) need that would apply to all participants in a similar situation. Participant says needs distribution to prevent having to file bankruptcy. First, assuming participant provides sufficient info. to back that up and assuming other participants similarly situated are later allowed to apply for hardship distribution on the same basis, then need may be OK. Second, the PSP allows for participant loans. Wouldn't the language in the Regs. allow for the participant to not have to first get a loan in the maximum amount available on the basis that doing so would put them in worse shape as to their need? Thanks.

Small 401(k) plan operates on a 7/1 - 6/30 plan year. if the plan is safe harbor (3%) for 04/05 plan year, can the owners (they are the only hce's) make 401k contributions of $13,000 in 2nd half of 2004, and then $14,000 in first half of 05? Then, skip the safe harbor for the 05/06 plan year, in which the owners make $0 401(k) contributions. For 06/07, back to safe harbor, with the owners again doing double 401k? Do you see any problems in doing this?

Thanks

A participant over age 70 1/2, in pay status at the time of his death and has multiple beneficiaries.

In order to calculate the minimum distribution based on each beneficiary's share of the participant's account, do you have to set up a separate asset account for each beneficiary or a separate account just within the plan's report on paper in order to calculate the minimum based on each beneficiary's age?

How do you calculate gain on excess annual additions? Is it only for the plan year for which the excess amount was contributed, or does gap gain also apply?

I am an employment law practitioner with a benefits question . . . . If a HCE retires while still highly compensated, does his or her highly compensated status follow him or her into retirement. In other words, if a retired former HCE receives discriminatory benefits, does that render the plan discriminatory? Are the excess benefits then taxable to the retiree-former HCE?

A client sponsors a qualified retirement plan. The plan has been sued by a former employee over a benefit issue (the former employee is a plan participant)--all administrative remedies have been exhausted. We are the plan's TPA. The client wants all of the defense costs to be paid from plan assets (the defense costs are mounting and will soon equal 10% of the plan's total assets).

My first question is whether a defense cost is the type of expense that can be paid from plan assets (the issue does not concern whether the plan is qualified--the issue concerns whether the participant is entitled to benefit A or benefit B)?

If defense costs may be paid from plan assets, my second question is whether there are any limitations on such payment--e.g., may the defense costs be paid from plan assets only so long as they are reasonable (whatever that might mean)? Thanks so much for your help.

I have heard of new comparability plans and even super comparability plans, but were there ever any "old comparability" plans and, if so, what were they like? Thanks.

Participant terminated service May 03, and still in Anaheim, CA area. We're pretty certain he's married, but wife is presumed to have gone back to Mexico. He came in about 6 months ago with his girlfriend pretending to be the wife, but was outed by one of the office staff who actually knew the wife.

No Divorce, No QDRO, etc. I am not comfortable paying him even 50% since we have no capacity to act as a family law judge. We're thinking about terminating the plan in the next several years, so folding into forfeitures won't really solve anything.

The distribution is $55,000 and 100% vested in a non-leveraged ESOP using a standard Corbel document.

What's a practical solution?

For 2006, a plan wishes to use the safe-harbor match formula, but with two exceptions:

1. 3 Key employees (all HCE's) get no match

2. All other HCE's get the safe-harbor match formula, but subject to vesting.

The plan is not top-heavy.

Does this exempt the plan from 401k/m testing?

A plan uses an expense load for funding a plan.

This expense load would not be included in the calculation of the present value of the accrued benefits.

However, does it / does it not, get included the calculation of current liability and PBGC premium liability.

It is an actuarial assumption, so my feeling is that it is included in current liability but PBGC premiums appear to be a different animal (just basically an unfunded accrued liability number - so I would No on it).

Other opinions are greatly appreciated (my thanks go out in advance)

May a partner deduct both the employee and employer contributions (if the exceptions are met) as an above the line deduction on Form 1040?

We have a plan that has "permanently laid off an employee". They will not say the person is terminated and I'm assuming the person did not quit. Can this be considered a separation of service to allow the participant to take a distribution from the plan?