We have a 401(k) plan that was originally established on a prototype by a controlled group of real estate companies. Due to a change in ownership, 2 of the companies are no longer part of the controlled group.

Do I have other options besides treating the plan as a multiple employer plan requiring a change to a volume submitter document and testing separately for nondiscrimination requirements? Or establish separate single employer plans for the 2 companies that were formerly part of the controlled group?

Is it possible real estate companies can be classified as professional service corps for affiliated service purposes?

I have a takeover plan with a couple of active employees that are past NRA and, as allowed by the prototype doc, took a lump sum distribution at some point after attaining NRA. The plan's late ret. benefit definition is the standard "additional accruals are the greater of continued accruals or the AE of the prior year AB". The continued accruals are based on the average comp and service as of the date of determination.

In the case of these participants that have already received a lump sum in some prior year, the prior actuary was putting an actuarial adjustment on the accrued benefit that was paid out in a lump sum and comparing that to the currently accrued benefit. In this case that will always completely offset any additional accruals. That does not seem right, there should be no actuarial adjustment on the benefit that was paid out. An actuarial adjustment reflects the fact that payments have not been received. I would say that the calculation should be: the current AB minus [the AB at date of LS payment] and then compare that to the AE of the prior year end AB, and take the greater of the two.

I want to know if I am overlooking anything or if there is another way to consider this. Thanks.

Can total contributions including catch-up exceed 415 compensation? For example, participant's compensation is $10k, receives $2k profit sharing in 2005, can he defer $10k?

I am working with a nonprofit entity that is setting up a top-hat 457(b) plan for (at the moment) one executive employee. Since they don't have any experience in administering a 457 plan (even a pretty simple one), I would feel better if they started off with some sort of a "turn-key" approach that doesn't have a lot of moving parts.

Does anyone have any recommendations? Any vendors to stay away from?

Thanks!

I have a client in a school district that is being offered a choice of taking her severance pay as cash this year, depositing a portion (not to exceed MAC) this year and next year or waiting until next year to do either of those prceeding choices. I believe this constitutes an elective deferral and should not be allowed after this year. Am I wrong and what are the applicable code sections of 402(g) and 403(b) to cite?

What are the main differences between Simple 401(k) Plans and Simple IRA Plans?

Can someone advise, as it seems there are NOT many differences.

1. Currently have a 401(k) plan.

2. Want to switch to a Simple 401(k) or Simple IRA.

3. Can you rollover your current 401(k) into a Simple 401(k) or Simple IRA?

4. Are the distribution requirements different.

5. Filing of 5500?

6. When can you begin a Simple Plan if you currently have a 401(k) plan.

Any thoughts would be appreciated. I have read about both the Simple 401(k) and Simple IRA Plans and I just want to make sure I have everything covered before I give a client some advise.

Thanks

can an esop which invests in employer stock of a s corporation include a plan term which limits the stock held in a participant's account (e.g., by investing the "excess" in other plan investment options, if the participant's percentage ownership of the deemed-owned esop shares exceeds a certain "ceiling" percentage such as 9%) so that the participant is not and does not become a code section 409(p) disqualified person?

Can a tax-exempt 457 plan add a matching contribution feature?

I have a cross-tested plan with two groups, physicians and all others. It passes testing with the minimum gateway amount. I have a few HCEs in the "all others" group. Do you think it is possible to give the HCEs in this group the minimum of 3%? I am thinking the contribution to the group could be worded something like "3% plus any amount needed to meet the gateway minimum". Is this acceptable?

I was thinking that it would be acceptable but then I started thinking, the plan doc says the formula for the group allocations for the group is pro rata based on comp. Your thoughts?

I have been asked to value a benefit as of a certain date for a divorce settlement and haven't done something like this one in a long time, if ever. A retired participant is currently receiving $1,000 per month as a J&S annuity. The benefit also provides that if the participant outlives his former wife his monthly annuity would then be $1,100 per month as a life annuity. While it is easy enough to value the J&S portion of the benefit, how do i value the increase if the participant outlives his former wife?? Any help would be appreciated. Thank you.

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I just came across this blog, "John Left's Field". The writer describes himself as a "34-year old overeducated dweeb searching for gainful full-time employment and maybe [him]self." From what I've read, he worked retail for a long time until he lost his last job.

Most of his writings are about job-search-related stuff, but he writes about other things, too. And he's pretty funny. A real dry wit. Check it out:

http://johnleftfield.blogspot.com

Does anyone know who puts out "premade" Retirement Plan Newsletters that I could send to my clients (and how I can contact that vendor)?

Thanks!!

Willow

Ques. 6b - is the full contribution put down even if forfeitures actually reduced the actual contribution made by the employer? My concern is that the amount in 6b won't tie in with the employer contribution amount on Schedule I, 2ai. Thanks.

A 401(k) plan fails the ADP test, but passes the ACP test. Under the ADP test, HCE1 must receive a refund of $5,000. Associated with that deferral is a matching contribution of $1,000. Does the $1,000 matching contribution associated with the $5,000 refunded deferral have to be forfeited? If so, can anyone provide a citation? Thanks!!!

Hi-

I have a client that has a Master Trust. The MT holds the following groups of assets:

Retirement Strategy Funds (5 or 6)

Money Market Fund

Company Stock

Mutual Funds

The client calls each of these groups "MTIAs", and has been filing a separate 5500 for each of them, as well as a 5500 for the MT itself. Schedule H for the MT itself shows one line for "investment in MTIA" and each MTIA's 5500 reports the actual investment on its Schedule H.

My question - is it necessary to file 5 separate Forms 5500? Can the MTIA investments be combined onto the MT Form 5500, and listed as separate line items on the MT's Schedule H? It seems like they are going through a lot of extra hoop jumping by filing under their current structure.

Anyone have any thoughts?

Thanks!

Laura

I have a question on the Roth IRA contribution which I am not clear on.

Last year, 2004, I didn't make a ton of money because of school which I made about $1,500 in wages.

This year, 2005, I am making about $50,000 in wages.

Prior to April 15th, I made a $3,000 contribution to my IRA for the year of 2004.

Am I allowed to do this? If so, can I roll it over to 2005 or do I report it to the IRS and pay a tax on it?

I hear these regulations will eliminate the < 20 hour exclusion currently available for 403b plans. Is this true?

I have just converted a profit-sharing plan to a safe harbor 401(k) plan in the middle of a plan year. The safe harbor 401(k) plan provides for a non-elective 3% contribution based on an employee's compensation for the plan year. The language of the plan implies the compensation taken into account is the employee's compensation for the entire plan year (1/1 - 12/31) even though the plan became a safe harbor 401(k) plan on 6/1.

Has anyone had any experience with this before? What have you advised clients to do in calculating the safe harbor contribution in such a circumstance?

Thanks

What are the EGTRRA requirements for a governmental plan ? EGTRRA has lots of nice, optional features. But if a governmental employer does not want to incorporate them, is there still an EGTRRA amendment obligation ?