for coverage testing, two plans are aggregated, and I check "yes" for item 4b on scehdule T. For 4c(5)&(6): number of nonexcludable employees who benefit under the plan: Do I put the number only benefitting in this Plan? or since I am aggregating, do I put the number who benefit in either plan?

Ok. Here goes a really simple question! I just need verification:

If I put in a Safe Harbor match, and the HCE is the only one who defers, will I still pass all testing?

Please don't laugh... just don't wanna get caught next year having to do a plan re-design. And I am having a brain f**t. Thanks!

Company A (which is a dental practice) currently has two partners and a simple ira plan. The two partners each have a spouse and all four participate in the simple plan.

Company B is a new venture that will be making dental crowns. The idea is to remove the spouses completely from company A. The two spouses would then become equal partners in company B. It is anticipated that the revenue will be derived from selling crowns to Company A and other dental offices.

Company B would like to open up a retirement plan which will only have the two spouses as employees.

Is this possible or does it violate control group or affiliated service group rules?

If this employer decides to adopt this plan regardless of control group or affiliated service group risks, how does the irs find out about this?

Also, given that they are the spouses of the owners of Company A, could they adopt another qualified plan other than a simple ira given that Company A maintains a Simple IRA?

Thank you for your help!

Does anyone know where and when the 30-YR Treasury Rate is published these days? It used to be available in Release H- or G-13 on the first Tuesday after the first Monday of the month. Thanks!

We set up a SH PS 401k plan for a solo medical practice effective 1/1/05. The practice is going to incorporate 12/1/05 having a short year of one month.

How will this affect his PS/401k? Do we combine his income from the solo and PA to get his total compensation before calculating the contribution?

The doctor is the only participant for 2005.

Can I withdraw contributions from Roth IRA in the very next year of contribution. I heard that there is 5 year waiting period. Is it true. I am talking about just the contributions, not the gains. Thanks.

So we see the senate committees (Finance and HELP) reached a compromise on their respective bills and the result (S.1783) now goes to the full Senate for a vote. What's going on with the House bill(s) ?? Isn't there a fairly similar bill(s) over there ? Is this on the fast track then ?

client neglected to deduct salary deferral amount as well as make the matching contribution on the final paycheck for several employees. the client's auditor discovered. is it necessary for the employer to make the contribution and the match on behalf of the group of terminees? is this even a qualification failure?

Can a participant withdraw funds from an IRA account to pay fees related to divorce proceedings and avoid the 10% excise tax, since the IRA owner is not age 59 1/2? I have not heard of this, but some people in the office that I work at say they have read articles that indicate that this is an allowable distribution to avoid the excise tax.

Thanks for any replies.

Sole Proprietor has a handful of W-2 employees. Has a PS plan to where he makes a contribution each year, split between his employees (Schedule C expense) and himself (Page 1 Form 1040 above the line deduction). Starting in 2004, he began to pay his spouse on a basis such that she is reporting the income from her husband as her own Schedule C income. Question is can this Schedule C income for her be considered for a PS plan contribution? My belief is that she would need to be paid on a W-2 basis in order to (after meeting the eligibility requirements) become eligible to participate in the plan.

Anyone have any thoughts? Thanks for any help.

Relius users: How many past plan years do you maintain on your system for your "active" plans? I know that if I backup and remove, for example, 2003 and 2004 plan years for a current client and then upgrade to version 10.0, I won't be able to import them back in. I know I can upgrade first, and then export the plan years, but then what happens when I'm ready to upgrade again? I know that if I want access to any past years, I should reimport them prior to the upgrade, but I can't imagine everyone does that for all clients...or do they? Any input is appreciated.

When a person takes a loan from their 401k does any of the interest they pay go to the plan provider or will that interest always be the participant's?

As an administrator of a newly acquired pension plan, we were asked by the Trustees to continue to make monthly pension payments on behalf of the participants, even though we had not received all the retiree files regarding payment records from the prior administrator.

Our concern was that we might be issuing payments to retirees that were in excess of what they were obligated to receive. For example, continued montly payments to a surviving spouse whose five year monthly payment option has expired.

Subsequently, to our misfortune, when records from the prior administrator arrived, this exact scenario played out and we realized that certain individuals had been overpaid. Also, to our misfortune the initial group of Trustees encountered some legal issues that forced their ouster and the new group of Trustees indicated that the overpayments would have to be paid out of our coffers.

We have requested overpayment refunds from participants and some of them have complied. Others have indicated that they will not repay anything.

Does anyone have some thoughts or strategies on how to pursue individuals who have received overpayments, yet refuse to make reimbursement?

Under the new proposed Sec. 409A regs. issued on September 29th, can you accelerate vesting of NQSO without changing (accelerating) the date of exercisabilty of such options ? The options were originally issued at FMV but now are in- the- money options. If such change is deemed to be a "modification" or "material modification" such options would be subject to Sec. 409A.

has anyone ever seen a plan that had a policy to pay the plan's participants in the event of the demise of the trustee/owner? could a key man policy be purchased to effectively do the same thing. plan has appx. $750,000 and 211 shares. i have personally never heard of any such policy.

document says use high 5 consecutive years in last 10.

ee accrued a benefit, quit, and now returns after 9 years. since they have a vested benefit, all service is restored.

going forward what is average comp? just the current year if that is greater than the previous hi 5??

KETRA provides relief to those, who among other things, had a principal abode in the Hurricane Katrina disaster area. Section 2 of the Act defines Hurricane Katrina disaster area as ... "(2) which is determined by the President before such date to warrant individual assistance or individual and public assistance, from the Federal Government under such Act." The phrase "individual assistance or individual and public assistance" appears elsewhere in the Act. The Appendix to IRS Notice 2005-73 lists the counties and parishes that are eligible for Public Assistance and those that are eligible for Individual Assistance. I can find no counties or parishes are eligible for both. It appears that "individual and public assistance" is meaningless. Am I missing something? If so, please advise where that clarification appears. If not, please advise your thoughts on this, e.g., do you think there will be technical corrections changing the phrase to "individual assistance or public assistance"?

Has anyone heard of or used Fort William online document services? They offer prototype and volume submitter documents at what seem to be impossibly low prices. Their website doesn't indicate who is responsible for their product. Buyer Beware of course, but has anyone worked with them before?

These should be simple for the pros out there but a couple of questions on 5500-EZ for 2004 for a one-person sole proprietor 401k PSP...

LINE 10b: The instructions say to enter the contributions owed to the plan at the end of the plan year - if the plan year ended 12/31/04 and a contribution of $10,000 was put in let's say March 1, 2005, is it correct that the $10,000 is considered "owed" to the plan and should be included on this line 10b?

LINE 11b: This line is supposed to show "Total Plan Assets at the End of the Year". Assuming that the plan year ended 12/31/04 but just like above a contribution of $10,000 will happen 3/01/05, should Line 11b include the 12/31/04 investment account balance plus the $10,000 March '05 contribution?

The plan doesn't have loans and doesn't have distibutions at this time. Any other suggestions for the 5500-EZ would be very welcome. Thank you.

ER has a Cross Tested plan with about 10 EEs. Sells the clinic with the EEs and becomes a Public Speaker. After a time his old Admin Assist. comes to work with him again.

So:

2004 AA is rehired 10/15/04 and works only 245 hrs. Plan has 1,000 hrs for accrual. Plan is TH so she gets the TH min. X-tested so she gets to Gateway, 5%.

But she is older than him. Is she in the 401(a)(4) testing? (I think so.) So to get the guy a 20% allocation she has to get a 20% allocation. But the Gateway amendment only allow bumping up the TH to the Gateway.

Am I missing something? I think she has to get a regular accrual but under what authority? Do I need a corrective amendment?

Thanks