Just for fun, perhaps some of you would like to help skew the average results (4 out of 10 answers correct) of this quiz.

Possibly this has been addressed before, but I could not locate it.

Assume NRA is age 65, and NRD is first of the next month (or something similar), and the plan requires one year of service in order to participate. Example, CY plan year, EE is hired on 12/31/2004 at age 66. He/she then can become a participant at 1/1/2006. What is the NRA? NRD?

Alternative 1: NRA = 12/31/04 and NRD = 01/01/2005, retroactively established when the EE becomes a participant.

Alternative 2: Both = 01/01/2006, on the assumption that you cannot have NRA or NRD if you are not in the Plan.

Alternative 3: Other?

Perhaps you think, who cares? But I see relevance under IRC 411(b)(1)(H)(iii).

The Plan failed it's 2001 (no mistake 2001) ADP + ACP tests. Unadjusted ADP corrections of $8,724 and ACP corrections of $633 are required. What should the Plan Sponsor do to fix this?

My future husband and I will be filing jointly for year 2006 and I would like to open up a Roth IRA for each of us. He makes 75K a year and I make 36K a year on long term disability. Now that I've gotten the question of whether my long term disability is considered 'earned income' by the IRS (it is) I've been told that I can't earn more than $10,000 and have my own Roth IRA. My State Farm agent told me this. Can this really be correct? How's a lady supposed to have her own individual account and still be married without a 'spousal' Roth that is basically and appendage of her husbands Roth? Can someone give me a claification on this???

Ok - we're having a debate over the relationship of service providers to the plan. Are all service providers (i.e. recordkeepers, investment managers, trustees, etc.) considered to be parties-in-interest for purposes of Schedule C, line 2d?

Under ERISA Section 3(14), party-in-interest is defined in part as:

1. Any fiduciary (included but not limited to, any administrator, officer, trustee, or custodian), counsel or employee of the plan.

2. A person providing services to the plan.

In #2, does a "person" mean an actual person, or does it also include entities?

Any thoughts would be greatly appreciated!

Laura

The Health Savings Account Answer Book is now available from Aspen Publishers.

For more information or to order on-line click on the following:

Aspen On-Line

To order by telephone, call 1-800-638-8437.

The Health Savings Account Answer Book is now available from Aspen Publishers.

For more information or to order on-line click on the following: Aspen On-Line

To order by telephone, call 1-800-638-8437.

A recent thread prompted me to pose the following questions for those forum members with experience in dealing with the "individual" or "solo" 401(k) plans.

Are most/any of the plan documents used by those entities marketing individual 401(k) plans worded to explicitly exclude employees other than the owner, or is it more common to simply use a standard 401(k) document for a single participant plan and merely call it a "Solo(k)"? If the former, do they accept adopting employers that have employees other than the owner?

Thanks for any and all feedback.

Assume a private company with a leveraged ESOP that is valued by an independent third party once each year (as of the end of the year). Assume that all shares acquired by the ESOP were acquired after 1992.

How is the value of shares released in a year determined for company Financial Statement purposes?

I believe that AICPA SOP 93-6 indicates that the actual fair market value of the shares at the time of the release should be used for this purpose.

How is the fair market value determined if the Financial Statements are prepared prior to the completion of the valuation by the independent third party? Is the share value from the prior year used?

I can't get a clear answer - are one participant plans subject to ERISA?. Interested in plan asset regulations esp., but other ERISA provisions as well.

If someone could advise me on the following:

I have an employee that went on Workers Comp Leave and has an FSA. I know what to do in the circumstances of someone on FMLA but what can be offered (if anything) when someone is on W/C leave?

I have a profit-sharing plan which was amended last year to provide that benefit accurals would cease effective August 31, 2004.

Compensation earned up to August 31, 2004 will be considered in determining the amount of each participant's contribution.

COntributions are allocated pro rata according to participants' compensation.

The 2004 contribution is in the process of being allocated and I have been asked whether the $205,000 401(a)(17) compensation limit should be pro rated in determining the allocation. (This is a calendar year plan year so the pro-rated limit would be 8/12 or 2/3 of the $205,000 or $136,666).

Does anyone have any thoughts?

question retracted.

I don't see Form 1024 on the "Forms and Publications" portion of the IRS website. The most recent version I've found through other sites is dates Sept. 1998. Does anyone know if the 1998 version is the most recent update?

Thanks.

We have our clients file Form 5330 and pay the excise tax, but I'm wondering how many people are using the Voluntary Fiduciary Correction Program. All responses are appreciated.

Employer (construction firm) has about 100 salaried, full-time employees. Hundreds more who work on an "as needed" basis. These are not all necessarily hourly employees. Most will work more than 1000 hours per year. Do not know if they're contract labor or not.

Employer wants options on plan design that will only benefit his full-time staff. The "as needed" employees do not seem to fit any excludable classification. A one-year wait won't really help either, since a lot of them will satisfy that requirement.

Anyone have any ideas that will still pass coverage?

Thx.

Does anyone know where I can find a resource for Erisa Auditing Guidelines for Self Funded Health Plans?

I have recently been using my leave under the FMLA after being injured in an accident. My doctor filled out all forms provided by my employer. On a recent visit to my doctor, I was informed that my employer had called their office to find out what was going on and when I would be able to return to work.

I am upset with my employer for calling this doctor. I feel as if this is an invasion of my privacy. Is this something that employers are allowed to do?

Thank you very much.

What are some of your favorite books to look to for inspiration?

Personally, I keep coming back to "The Wal-Mart Way by Don Soderquist. The fomrer Vice Chairamn & COO outlines the company's 12 keys to success, and while it mainly focuses on examples in a corporate setting, there are also themes that can be applied to every day life.

I haven't been able to find the answer to this question. What happens if you are not expecting to be above the income limit for a Roth IRA but after you have funded one for the year you find that your income has gone over the limit? Thanks for any help.