Is the Roth 401(k) that goes into effect 1/1/06, available as a Roth 403(b)? Sorry if this is a stupid question.

Is there a prohibition against transferring non-employer stock assets from the ESOP portion of a KSOP to the 401k portion? The KSOP in question will not receive any further contributions of employer stock. There is no encumberance. The plan sponsor is a sub-s corporation that pays very significant dividends on the stock.

The plan sponsor would like to get the dividends moved to the 401k portion of the plan to more easily facilitate participants self-directing the investment of these funds and to get away from a future possible problem of the ESOP not being invested primarily in employer stock (knowning this may or may not be a real problem). The question is whether there is any reason making such transfers is not permissible or advisable.

I recently attempted to do a full-amount hardship withdrawal from my 401K (which I undoubtedly qualify for - putting myself through school and attempting to buy a home.) I have been told that I can not withdraw but instead have to take out a loan and that I am eligible for only 50%.

But it gets better. If I elect to do this, not only does it incur an additional payment for me (to repay the loan), it also prevents me from accessing the other 50% should the need arise because it is used as collateral on the 50% loan.

What is wrong with this picture? Doesn't hardship truly mean what it implies? Can anyone address whether or not I can actually withdraw the full amount and if so, how?? My pension fund company is being extremely difficult and insists that there is only one choice - the loan. Then I ask you, if that is the case, what is the purpose of the hardship option??

Thank you for any and all help that anyone can offer.

Anyone know what date a plan would have had to be terminated by in order to avoid needing the mandatory IRA rollover amendment ?

1. It's always been my understanding that assets held for investment (Line 1c) should agree to the investment assets reported on the audited financial statements. If you agree, what do you do with interest-bearing cash accounts that AREN'T classified as investment assets? For example, a plan's general operating accounts might be interest-bearing, but they're not investments. I've been putting these amounts in the catch-all bucket on Line 1e. Does anyone use a different approach?

2. When participant loans are secured by individual account balances, loans in default don't get reported on Schedule G or Schedule H. How do you handle the book/return difference for the defaulted loans? Where do you plug the amount on Line 2?

3. Is anyone else in October 17th hell? At this point, I'm probably over-thinking Form 5500 and not seeing things clearly.

I need help regarding the distribution code for an individual who incurs a deem distribution and is over age 59 1/2. In consulting with two people in my office, one of our experts says use Code 7 and the other one says use Code L. Any advice or arguments someone can lend on this subject would be appreciated.

Thank you !!!

Employer offers STD and funds through general assets and there are over 100 employees covered. Is a Form 5500 required for this. Due to the self funding I am not sure this qualifies as a welfare plan.

Thank you.

What kind of plan is this?

I have a plan that should have filed a Form 5310-A a few years ago, to be considered a QSLOB. They just realized they did not file it though. If they file it now, will it cause a red flag or penalties?

KETRA allows for loans up to the lesser of 100% of the account or $100,000. For loans over 50% of the vested account the plan must receive valuable collateral prior to granting the loan for the loan to avoid being a prohibited transaction and a deemed distribution. Since previously all the plans that I worked with were limited to 50% of the balance, how do you advise clients who want to know what collateral to get and what to do with it once they have it? Also, if the loan is defaulted upon, what is the plan suppose to do with the collateral? It's not like they would convert it to cash and give it back to the account of the participant that defaulted on the loan. Realistically, what are others telling their clients?

DB Plan counts hours. Amending to change vesting and benefit accrual computation periods from employment date and anniversaries thereof to calendar year. Hours worked during "overlap" will be credited in both periods.

Any special pitfalls I should be aware of ? I am aware of the regs for elapsed time to hours, or vica versa, amendment but found nothing like them on computation period amendment.

Thanks.

Terminated welfare plan has paid off all participant claim obligations and the balance remaining in the trust reverts to the sponsor. There were no employee contributions to the plan.

Question: where does the amout returned to the sponsor get reported on 5500 Sch I, Part 1? It does not meet the definition of a transfer for Line 2k because it is not to another plan. Do I just include it in line 2h Other Expenses in order to get the begining and ending net plan assets to reconcile?

What's the EPCRS correction for a plan that violates its automatic cashout rules (plan recently dropped down to lump sum distributions for amounts of $1,000 or less)?

I have often submitted amendments as proposed, i.e. unsigned but will be signed after IRS approval, with no problems. However, I attempted to submit the initial qualification of a plan as proposed, again meaning the plan would be adopted after IRS approval. It was unfortunately rejected by the agent. Anyone ever try this with success or know of a cite that spells out why this is not possible?

The whole idea is for the client not to sign (and be locked into) something the IRS will not approve of, which could then cause some nastyness to spew onto me.

No Andy, it is not a 412(i) plan.

Does 409A or its guidance set a limit for de minimus distributions?

May a participant OVER 59 1/2 rollover the SIMPLE IRA balance to a qualified plan with out having to wait 2 years from participation in the SIMPLE IRA?

My interpretation is that you do not have a wait if you are over 59 1/2 because you are not subject to the increased penalty, but want to make sure I am understanding this correctly.

Thanks!

We use AccueDraft for our clients' volume submitter plans and submit all of them for determination letters. If we have a new plan or an old plan that has been amended since the last determination letter, do we have until the end of the EGTRRA remedial amendment period to submit the plan (at least until 1/31/11 depending on the EIN)? I have read Reve Proc 2005-66. However, I am still not absolutely certain.

What is a "pension trust"? I've come across information on a "pension trust" that provides an entity with a funding arrangement by borrowing from a pension trust. Apparently, money is sent to a borrower's bank, and the bank will purchase gov't instruments to be held in trust. Money is sent to the borrower's account and the borrower pays interest to the bank on the loan.

Does this sound kosher?

I have a traditional IRA from rolling over retirement funds from a company I left. Can I now also open a Roth IRA and contribute to it? (leaving the money and traditional IRA intact.) Also could I contribute to both?

Thanks

Just putting together the 5500 to send out to the client when I noticed that the address and EIN don't match the 5558. I'm not entirely sure what the problem is (probably in someone's vision!), but the 5500 has the correct info. The plan name is the same on both, but I know that the EIN matters more.

The 5558 instructions don't have a mechanism for amending the form. Any suggestions as to what to do? How about an attachment to the filing explaining the difference (computer glitch, most likely)? I figure it couldn't hurt...

On the daring side, I could wait and see if it generates a letter from EBSA, except that the client actually did file 2003 late (in December 2004), and I'd like to avoid any possible flashbacks.