Company owner has a 401(k) plan and wants to rollover about $16,000 in after-tax money into the plan. Assuming that the plan allows for after-tax money and assuming the TPA accounts for this money separately (tracks pre and post money separately), is this a problem? Also, is there any special paperwork that needs to be completed to accomplish?

Thanks

Hi, I am very new to Relius and was wondering if someone could just tell me how to make Relius calculate top heavy contributions and allocate them to the required employees. Right now I am running the ADP test and then manually posting the required top heavy contributions becasue I cant figure out how to get the system to do it.

I am not going to training for a month so have to struggle here for awhile. I went onto the help topics but I cant find it.

I've only used this for 3 days so please in "dummy" language. This is more complicated than I expected!

We have a few qualified plans ( profit sharing and money purchase plans) established by small business owners, and we are unable to reach them or hear from them. Some for more than 2 years , some less.

Can we escheat these amounts to the State? Or should we send the balance to the DOL( someone though they hears that the second option was available).

Thanks very much

Jane

Could someone please assist me with the following question?

I am looking for information on things to watch out for if I were to transfer my retirement plan from overseas to Amercia (from Australia). I assume the taxation of incoming overseas retirement plans is the main concern. Are there any PDF files that I can read about this?

regards

In California state law permits public agencies e.g., school districts, to set up 401(a) db and dc plans. Many agencies have such plans for a variety of purposes. These include early retirement, terminal pay and supplemental benefits (these are mainly db.) Does anyone know if NY law permits such plans i.e., dc and/ or db? What about other states?

A sole prop (she is only employee) had earned income of $100,000 after 50% reduction for SS taxes.

Therefore, the client could have contributed up to $20,000 (25% of 80,000) to her PS plan.

The tax return due date was 4/15 and the contribution was not made by that time.

Clearly the person cannot receive a deduction for 2004, but if the client makes the contribution for 2004 now (7/22/05) does the client also get hit with the 10% non deductible contribution excise tax?

Point being is that it is not above the 20,000 limit, just late.

Thanks.

Employer is applying for the Medicare Part D subsidy for the prescription drug coverage provided under its retiree health plan. Retiree health plans are funded with Code Section 501©(9) VEBAs. VEBA trust agreements include the requisite language limiting payment of trust assets for the exclusive purposes of providing benefits and defraying the reasonable costs of administering the retiree health plans.

Employer wants to know if it can be reimbursed from the VEBA for the expenses it incurs related to the Medicare Part D subsidy - the actuarial certification, supplying participant Rx data to CMS, and the creditable coverage notices.

I'm almost positive almost all of the expenses would not be reimbursable by the VEBA, because the subsidy only benefits the employer. There is no benefit to the plan participants, so the expenses would not be reasonable costs of administering the retiree health care plan.

But I'm not sure about the creditable coverage notices. The notices are a requirement for the subsidy, but the notices do provide some benefit to the participants.

Any thoughts?

Is anyone using debit cards with their QTFB program? If so, and you also have debit cards for your health FSA, do you use one debit card or two?

Can a non-ERISA 403(b) have a vesting schedule for employer contributions?

Is there any reason why an safe harbor 401(k) plan would (or should) set a maximum limit on a participant's elective deferrals? The Plan uses a Basic Matching Contribution to satisfy the safe harbor requirements.

Is there any reason for a one participant plan sponsored by a sole proprietor to NOT have a 401(k) feature nowdays instead of being a basic profit sharing plan?

We are looking for recommendations on DB software. Software would need be able to handle 412(i) plans. Any thoughts?

Thanks in advance for any guidance.

We have a client who received an Audit Letter from the DOL's Office of Chief Accountant in Washington, D.C. requesting copies of all audit workpapers and other documents within the independent auditor's possession that support the audit procedures performed with respect to investments, contributions, benefit payments, participatn data, plan obligations, and prohibited transactions. The letter simply notes that the request is being made as part of an "ongoing program" by the DOL to ensure compliance with ERISA's plan audit requirements.

I am curious if others have received similar requests and this is likely just an ongoing program and the client got audited at random or whether it is likely that something on the Form 5500, a participant complaint, or other issue triggered this request. Other audits we have seen that have been sparked by participant complaints have generally originated from the DOL's Regional Office and the client is not aware of any problems or complaints that would have sparked this. Thanks in advance for any thoughts.

Hello, I was laid off from a company due to a merger for which I had worked for close to 5 years. I was 3 months short of vesting. The merger automatically vested my 401k dollars, but they say not the DB dollars. I have read on DOL website that plan termination mandates immediate and full vesting, but in a merger situation, if the new company assumed the old plan, does this count for vesting purposes? Any advice would be appreciated. Thank you!

A participant in a self directed plan invests in Corporation A. After the purchase, the participant's account will hold less than 10% of Corporation A's stock. The participant later becomes a director of Corporation A and Corporation A subsequently purchases property directly from the participant. This transaction seems fishy. In a rather indirect way, it seems like the plan is purchasing the participant's property. The only way I can see this being a PT would be if the Corporation was considered to be the Plan. Can anyone make that connection? Is there a point at which the Corporation would be considered to be the Plan? 100% ownership of Coporation A through the Plan? Am I missing something?

New Comp plan. I want to give the least amount of PS contribution. I have two non excludible NHCE participants, 1 of which does not meet the accrual rqtmts, significantly impacting my 401a4 test. If I give a very small contribution to this participant, making a corrective amendment, I can pass, but I won't meet gateway. Do corrective contributions need to meet gateway, when they do not meet the accrual requriements for a contribution?

Is 457 the ONLY choice for a state university to offer non-qualified deferred compensation? In other words, unless the requirements of 457 are met, does 457 render an employee unable to defer the taxation of income when he/she has no constructive receipt of the income?

Thanks,

Ken Davis

Client contacted his broker to establish a 401(k) plan. The broker gave him an IRA adoption agreement to complete. The broker says it is his mistake. The assets have been in the traditional IRA since 2003.

Now the client and the broker wants adjust all activity and assets from the IRA to the 401(k) plan.

Is this a correction process that is allowed? If is there not a deadline of the next year-end( the year end after the year that the mistake was made.?

Thanks for your help

I'm trying to determine how the deferral and contribution limits work in this situation. We have a person (Joe) self-employed for the first half of the year with a Solo 401k plan. During the second half of the year Joe goes to work for an employer offering a 403b plan.

We understand that the total deferrals for the year are limited to $14,000 total in both plans combined. We also understand that the limit on total contributions to the Solo 401k is $42,000 including any deferrals in that plan.

Assuming self-employment earnings (after subtracting 1/2 SE tax) were at least $210,000 could Joe forego making deferral contributions to the Solo 401k and instead make only a profit sharing contribution of $42,000 and then make deferrals with the new employer's 403b plan of $14,000?

I suppose he could acheive the same thing by using a SEP plan for the SE income, if the Solo 401k plan weren't already in place. right?

Has anyone looked at this or is anyone willing to hazard a guess?

We have a participant on a leave of absence who wants us to suspend his 401(k) loan repayments. He is receiving worker's comp payments from his employer, and the worker's comp payments are more than the loan installment payment. So far, his loan installment payments have been deducted from his worker's comp checks.

The regs say that you can suspend repayments where a leave of absence is either:

(1) without pay from the employer, or

(2) with pay, but only if the pay is less than the amount of the loan's installment payment.

Does a worker's comp payment from the employer (or from an insurance company on the employer's behalf, for that matter) count as "pay from the employer" that a loan payment has to be deducted from? How about a self-funded disability plan's income replacement payment (not the case here, just curious about what y'all's thoughts might be)? I've looked around a bit and haven't found any specific guidance on what exactly constitutes "pay from the employer", although it seems like this would be a common question.