Company A and company B both maintain 401(k) plans. Company B wants to buy company A but will continue to keep company B in existance. The regs say that salary deferral assets can't be distributed from company A's plan if company A maintains a successor plan. In this case the successor plan is company B's plan. But the regs also say that the company B and company A are not part of the same controlled group for the purpose of determining if there is a successor plan if company A's plan is terminated prior to the date of the acqusition. Can company A's plan be terminated prior to the date of the acquisition and all assets be distributed, even though company A will be a participating employer in Company B's plan after the acqusition?

Mr. John has a single member LLC. That LLC is partner in Bay Partnership. Bay pays Mr. John LLC for services. Can Mr. John have a pension plan either in the name of the Mr. John LLC or in his own name?

If Mr. John LLc is also partner in other partnerships (always minority partner, if that matters) can the revenue that comes into Mr. John LLC be used in the calculation of a pension plan?

If an employee has medical coverage for himself and the premium is run through a Section 125 plan, can the employee in the middle of the plan year elect to drop his medical coverage without a qualifying event (and therefore stop the premium deductions under the Section 125 plan)?

Does anybody know of a list of which companies do in fact file as a DFE?

Company A has a approx. 150 EE's and sponsors a K plan with match. So far so good. Approx. 35% of the participants have just recently become part of a CBA. The negotiation was to keep them in the plan, keep the match the same, but add additional $ to these members. I beleive it would be in the form of a comp to comp non-elective contribution to these selected members. Non-CBA members would not get this.

Better to seperate into 2 plans or can we segregate under 1? I understand the testing part, but not sure about the extra benefit the CB group receives.

thanks.

I started to supervised my sister inherited IRA from her Husband. How would i know if she rolled it over to herself or she became the beneficiary? i'm a little worried because she is 47 and her husband would have been 71 this year. Does she have to withdraw the minimum RMDs? I'm looking to do the minimun stretch out.

thanks

Does anyone know of a model that will assist in determining how much a profit-sharing contribution should be optimize the tax benefit to the principals? The variables I can think of would be:

1) Marginal tax rate (i.e., how much do I save in taxes for each additional dollar contributed)

2) Valuing the impact of deferral of capital gains taxes, and the impact of taxing as ordinary income versus capital gains income. I guess you would need to know years to retirement as well?

3) Amounts allocated to employees.

So it seems to me that perhaps someone has put together a model that at least attempts to address some of these issues. Has anyone seen anything like it?

I ran 401(k) non-discrim. testing on Plan A for 2003 - plan failed and 4 HCE's recevied a refund - prior to 03/15/04.

In March 05 - ER discovers that 401(k) contribution for 12-26-2003 was never remitted to the trust and they send in the funds.

I retest 2003 and fina out plan still fails but refund amounts would be about 1/2 of what was initally paid out 1 year ago.

What corrective path does plan follow? Can HCE's put money back into the plan and then just amend the 1099's and have them amend their personal returns?

Does anyone know where I can find this oldie?

We are thinking about using the Executive Summary report in Relius' ReportWriter, but want a few modifications. Has anyone done this? Does anyone have a version that I could look at? Any help is appreciated.

We are thinking about using the Executive Summary report in Relius' ReportWriter, but want a few modifications. Has anyone done this? Does anyone have a version that I could look at? Any help is appreciated.

Is anyone aware of something in the Florida that says you must have the employees actual consent before taking any funds from payroll and putting them in a 401(k)? If it exists, I believe there would be a preemption issue but i still need to know.

ps. i did see the earlier thread but it was fairly old and did not mention florida.

Any suggestions on the standards that can be used to evaluate investments? Right now, the investment policy states that the investment committee will use Morningstar ratings as the standard. We are looking to expand on that.

DB plan sponsor receives and sends proposed QDRO to it's law firm who ok's it and it is recorded.

Recorded QDRO is sent to actuarial firm who immediately notices what looks like a problem. The QDRO divides an accrued benefit 50% participant, 50% spouse, without any actuarial adjustment, such that spouse who of course is younger is entitled to collect at same time and same amount as participant. This increases the pension obligation because spouse has a longer live expectancy.

What can/should be done other than notifying plan sponsor of opinion? Can it be changed? Must it be changed?

A 401(k) plan was a safe harbor plan in 2004 using a safe harbor basic match formula to satisfy the ADP. In 2005 the plan switched to a non-safe harbor plan using prior year testing. Can the safe harbor match that was made in 2004 be used to calculate the prior year ACP or is the prior year ACP 0% (no additional match made in 2004)?

Thank you.

One of our brokers is dealing with a municipality and they asked if 257 deferred comp plans could be attached by creditors.

Is there even such a thing as a 257 plan? I am just the messenger.

During my parents marriage, my father worked for a large US based company through which he could purchase stock. When he left that corporation 20 years ago, he and my mother moved back to the country of their birth. The country has a strict community property provision in its laws so as to consider that all stock would be jointly owned. It also has provisions in the estate laws whereby if no will exists, all heirs would have equal rights to the property in the estate. Thus, 50% of the stock would be considered part of the estate of the deceased and that 50% would be divided amonst the heirs.

My mother died three years ago and my father is trying hard not to reconcile her estate. His mistress at the time had moved in with him shortly after my mother's passing (they have not married). She is from a different country which is well known for younger women (in this case 40) finding older wealthy men (in this case 74) and disappearing with the man's money. Because of this, the children have decided to force the settlement so that the estate portion would be "saved" but my father keeps delaying things.

We put an "embargo" on the stock, which is serviced through a company in Rhode Island so that the money could not "disappear" which other assets have done over the last 3 years.

We now wonder if he will file suit against the RI company to cash in the stock, circumventing the laws in the country where the embargo is held and the testimony he gave to the judge in last year's hearing about his use of funds.

So the question is, based on this, in the US are there any "estate" rights to stock purchased under a company stock plan? Do the laws of the country where the individuals live have any bearing on the ownership?

Given the scenario that the corporation over last 3 years is no longer making even enough money to pay salaries and that it does not see it getting out of this recession, what can be done ? The money that was in the trust account already funded the VUL policies for employees.

So somehow can the plan be amended or terminated so that the cash values be rolled over to individual annuities or irrevocable life insurance policy trusts to avoid tax consequences for the employees and shareholders who will now work elsewhere or even retire ?

Goal is to avoid tax for the employees, leave/convert VUL insurance policies in place, & not having to pay any ongoing administration overhead.

The plan is set up for multiple employer trust (Master Trust)

The corporation has its own trust, part of the master trust.

Established in 1997 & funded thru 2001.

Proprietor has a normal SEP. My understanding is that the normal limits are 20% of income.

If instead a Simple IRA is established for 2004, I understand that they get a maximum of 10,000 plus 20% of income.( 11,000 income, over 50)

Maximum deduction of $12,700

Can this be set up now and contributions made before 04/15/2005

My father-in-law died on 6/6/04, he was 83 and had been taking RMDs since age 70-1/2. In addition to the spouse of his deceased brother, he was the only other remaining participant in a Profit Sharing Plan. The plan had a benificiary designation on file that his most recent spouse had signed (waiving her right to plan assets) which named his living trust as beneficiary. The benificiaries of the living trust are his four children (from previous marriage). The pension funds were not broken into separate accounts prior to his death. As the executor of his estate, I am trying to determine the options and requirements we have to distribute the pension funds to the multiple beneficiaries of his living (now irrevocable) trust. Can the funds be separated into respective shares now? Should distributions be made over the life of each child, over the life of the oldest beneficiary, or over what was his remaining life expectancy? Are there any roll-over options for the children? Where do I go to get a comprehensive overview of the issues relating to this situation? I would greatly appreciate any guidance!