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.

Our firm recently sold our TPA client base to another provider. We are interested in selling/transferring our Relius Administration license to another TPA firm. Our license includes the network version of Relius and Participant Web.

If you are interested in obtaining the best TPA system available at a significant discount then please respond in confidence.

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 ?

My sister is no longer working for the school, but she receives contributions, which they say she will continue to get for five years. (They call it post separation amounts).

Can she take a withdrawal from, her 403(b) or will she have to wait until she stops receiving these amounts?

I am being told by my district that because I have a loan against my 403b assets that I cannot continue my monthly contributions. No one at the district can point to that in writing, except to say that the district's Third Party Administrator says so. Does anyone know if this is true or not?

I am aware that a surviving spouse who inherits an IRA from a deceased spouse can roll over the IRA and will not be required to take required minimum distributions until he/she reaches his/her required beginning distribution date.

Does anyone know if the law has changed for non-spousal beneficiaries so that now they too can roll over an inherited IRA and not be required to take required minimum distributions?

Does anyone know the statute or regulations that cover this area?

Thanks to everyone and have a wonderful weekend.

I have the option to start in the begining of July - 401(k) with my new employer . I have an existing Traditional IRA with Mutual Fund with less that $ 5000 in it. What is better in my case? To have both or to rollover my IRA to 401? My employer will match up to 5% of my contributions.

Thanks in advance!

You might be a redneck Jedi if...

1. You ever heard the phrase, "May the force be with y'all."

2. Your Jedi robe is a camouflage color.

3. You have ever used your light saber to open a bottle of Bud.

4. At least one wing of your X-Wing fighter is primer colored.

5. You have Bantha horns on the front of your land speeder.

6. You can easily describe the taste of an Ewok.

7. You have ever had an X-wing up on blocks in your yard.

8. You ever lost a hand during a light saber fight because you had to spit.

9. The worst part of spending time on Dagobah is the “dadgum skeeters”.

10. Wookies are offended by your B.O.

11. You have ever used the Force to get yourself another beer so you didn't have to wait for a commercial.

12. You have ever used the force in conjunction with fishing or bowling.

13. Your father has ever said to you, "Shoot, son come on over to the Dark Side...it'll be a hoot."

14. You have ever had your R-2 unit use its self-defense electro-shock thingy to get the barbecue grill to light.

15. You have a Confederate flag painted on the hood of your landspeeder.

16. Although you had to kill him, you kinda thought that Jabba the Hutt had a pretty good handle on how to treat his women.

17. You have ever accidentally referred to Darth Vader's evil empire as "them damn Yankees."

18. You have a cousin who bears a strong resemblance to Chewbacca.

19. You suggested that they outfit the Millennium Falcon with redwood deck.

20. You were the only person drinking Jack Daniels on the rocks during the cantina scene.

21. If you've ever heard "Luke, I am your father...and your uncle!"

Question-

We have a prospect - has an existing 401(K) Plan.

Seems as if for several prior years, the company has "accrued" a Company

Match, took a deduction on the Corporate Tax Return, but did NOT ever fund

the contributions.

1) Can the client go back and file amended tax returns and revise the

Participant Accounts to eliminate the Match that was never made ?

2) Would this require the use of one of the IRS VCR programs ?

Or is the client "obligated" to make the Match Contributions ?

3) One opinion is that the IRS would consider it a prohibited

transaction - essentially a "loan" from the plan equal to the Match

Contributions.

Do you think that this is the case ?

Any suggestions ?

Can someone please direct me to a site where it indicates which state's do/do not allow for automatic enrollments (or you may refer to it as passive or negative election enrollments.)

Thank you