I know the answer to this but I am hoping there might be something out there I am missing. I just found out that the broker for a plan is the spouse of the owner of the company sponsoring the plan. The broker is receiving commissions for the plan. As far as I know this is a prohibited transaction. Is there anything I am missing here? Any PTEs I am not aware of?

My employer recently informed me that he'd like our 1,100 employee hospital to become self-insured. Lawyers and consultants will be hired but he has charged me with putting this together. Where can I look for more than just cursory information. Thanks in advance.

If a person works for two employers and both employers sponsor 401(k) plans, can they defer $14,000 in each plan?

How does the catch up limit work with a client that has a SIMPLE IRA for his dental practice and a 403b plan at the university ?

Example; He earns 12,000 at the university and defers $5,500 into the 403B plan there. He is over Age 50.

In his private practice he defers $9,000 into the SIMPLE ( he is self employed ).

The CPA's software is not allowing the $1,500 SIMPLE catch up.

I know the deferral limit for both plan is $13,000 for 2004. But could he get 2 catch up contributions from each plan ?

S-Corp organization is popular for small business owners, as a means of avoiding the 7.65% FICA on earnings, which instead are treated as dividends.

My question is maintaining a 401(k) plan within an S-Corp.

If an S-corp owner (sole employee) pays himself $20,000, will the 25% of participating payroll limit his TOTAL contributions from salary deferral and employer contributions to the 25% ($5,000), or does this 25% represent only the employer's contribution and 402(g) salary deferral will be in addition to this, with 100% of salary being the final limitation?

Thanks

We have an amendment that was adopted last year and is effective last year when we get a favorable determination letter. We don't expect the determination letter until later this year, which is way past the 210 days after the close of last year. Do we still have to furnish the SMM by the 210 day deadline even if we don't know whether it will be effective? Is there some rule that says a contingent amendment has not been adopted until the contingency has been met?

Okay, please bear with me:

I have worked for a major dc plan provider for 10+ years, currently I handle Form 5500 filings, however, over the years have had much training in various areas of DC plans. It was recently announced that my job will be moving to the Ohio River Valley area. While I am sure that is a beautiful area, relocation is not the best option for me at this time.

1-How difficult are the ASPPA PA-1, 2, 3; DC-1,2 tests?

2-Are the study materials sufficient?

3-Do you have to purchase the study materials to take the tests? (some co-workers in the same position considering sharing the study materials costs)

4-Does the certification really improve marketability?

I have 5 Roth IRA's in a ladder system. I will only take the interest generated yearly if needed.

If I leave the Roth's to my child or grandchild, can they add to them as if they were the original owner and still take the interest tax free?

Can a Credit Union, chartered by the State, be considered an eligible 457b Governmental organization?

What happens when a participant dies and there is an outstanding loan that the surviving spouse knew nothing about? No spousal signature on the loan doc. Is she liable for the loan? any recourse?

If a DC plan generally provides that all distributions under the plan must comply with Section 401(a)(9) and the regs thereunder, does anyone know if the model amendments found in Rev. Proc. 2002-29 must be adopted? Does every plan have to adopt these model, tack on amendments? If not, which plans are not required to do so?

Thank you for your comments.

I am curious as how others of you have handled the situation of notifying HCEs they can only defer x% on average but if you want to take advantage of the catchup contribution you need to contribute x% plus the catchup limit for the given year.

Client is reducing mandatory distributions to $1,000 or less without Participants consent. Client would also like to allow lump sum distributions of $1,000 to $5,000 with participant consent (to avoid mandatory rollover).

Question: In addition to the lump sum distribution, does a QJSA have to be offered to the partcipant with the $1,000 to $5,000 balance ?

I do not think so because the regs. under 417 and 411 only require consent for amounts over $5,000, but we have a conflicting opinion.

Thanks for any help.

How and when are attributable to match (ATM) forfeitures due to failed ADP test allocated when the plan has immediate vesting for matching contributions? The plan uses the corbel prototype doc, so the item selected for forfeitures of matching contributions is "N/A. Same as above or no matching contributions." The method of forfeiture allocation listed above is "allocated to all Participants eligible to share in the allocation in the same proportion that each Participants Comp for the plan year bears to the Comp of all Participants for such year." Allocating the ATM based on this formula results in several small account balances. Is this the correct method?

Company with DB plan is sold and purchaser wants to cease DB plan. No notices are issued. Under what circumstances is credited service ended, only if it is an asset sale?

To put it another way, if a company is sold, yet employees retained, can service be ceased without a 204(h) notice? And does it depend on whether it is a stock or asset sale?

This is not my area. Thanks.

Are you aware that if we died tomorrow, the company that we are working for would easily replace us in a matter of days.

But the family we left behind will feel the loss for the rest of their lives.

Come to think of it, we pour ourselves more into work than into our own family, an unwise investment indeed, don't you think?

What is behind the story? Do you know what the word FAMILY means?

FAMILY = (F)ATHER (A)ND (M)OTHER (I) (L)OVE (Y)OU

Is there any guidance from California state or federal law which would dictate the number of hours that employers must use to designate part time or full time status for benefit eligibility?

Can an employer use their own discretion in setting full and part time hours? Say, 40 hours is full time and 39 or less is part-time? This is for small group employers, under 50 employees.

Our employee has single coverage in one of our health plans and contributes on a pre-tax basis. His spouse has employee +1 coverage with her employer. She recently had a baby and will change to family coverage at her employer. Our employee wants to drop his coverage and be covered under his spouse's plan. We have said that dropping his coverage is not consistent with the event - birth of a child. Are we wrong in saying that he cannot drop coverage. I've looked through some of the regs and cannot find anything that specifically agrees or disagrees with our statement. Can someone help.

I am preparing the allocation for an age-weighted 401(k) plan. The plan requires a 3% non-elective safe-harbor contribution.

First, all participants that have met eligibility requirements and are eligible to defer under the 401(k) must receive the 3% nonelective safe-harbor contribution. This includes participants that terminated prior to the end of the year and worked less than 500 hours.

Next, the employer discretionary contribution is allocated on an age-weighted basis. The plan requires employment on the last day of the plan year or completion of 500 hours.

We have one employee that met participation requirements and terminated prior to the last day of the plan year and worked less than 500 hours. Should he receive the 3% nonelective safe-harbor? (I believe yes)

Given the 3% nonelective safe-harbor contribution, is the plan still considered an age-based plan for gateway relief?

In a non safe harbor calendar year 401k plan, there is a non-discretionary tiered match formula. The employer would like to modify this formula in mid year (as of 7/1). I have not yet seen his proposed change, but it sounds like the match will be greater on the first 3 percent deferred, and smaller on > 3% deferred. Since the current match formula is written into the document, can it be changed in mid year if a portion of the match will be subsequently be smaller?