Is there any situation in which a non-governmental 501©(3) would sponsor a 403(b) that includes employer contributions and the plan would not be subject to ERISA?

This has probably been suggested before, but here goes.

After reading some posts in various forums, I'd like to propose Today, February 23, as a "Blanket Amnesty Day."

This means that as of today, everyone starts with a clean slate. All prior posts, indiscretions, rude or obnoxious statements, grievances, whether real OR imagined, will hereby be forgotten, forgiven, and everyone will start with a clean slate, and do their darndest to stay civil from this day forward.

I know it would make these boards more pleasant from my viewpoint. I've learned a whole lot from the discussions that take place here, and I'd like to think that we could move forward on a purely professional level without the sniping that sometimes takes place.

If this sounds too sanctimonious, I apologize - it isn't meant to be - just my humble suggestion for more positive and professional discourse. So I'm going to start today - as of right now, everyone posting on these boards is perfect, and I hope others feel the same way - if not, then as always, feel free to ignore my suggestion!

An informative article regarding HSAs and employees of the State of Florida.

Florida HSA - Article Link

Since the HSA allows tax-deferred investing, much like a 401k, but has the added benefit of being used to cover retiree medical costs, if an employee could only fund one vehicle, wouldn't it make sense for them to fund the HSA?

When calculating the "benefit compensation" for self employed or partnerships with employees, at the start, do the employees' salary deferrals get subtracted from the self employed or partner's net income along with the employer contribution to the employees??? Any help is appreciated. Thanks.

We have several HIPAA and non-HIPAA welfare benefit policies and want to wrap them into one ERISA compliant plan document to satisfy the law and avoid multiple 5500 filings. Do you think that HIPAA is enough reason to maintain two wrap docuents going forward?

Also, of course some 5500s "cant be located" (weren't filed) for several of the past years. Assuming that the policies going back several years don't satisfy ERISA, is there any beneift to creating a wrap document now that has a retroactive effective date? Does anyone think that this would give us sufficient basis for filing a single 5500 under DFVC for several of the past years?

Will the IRS let us fix a problem with the HCE Top-Paid Group Election Consistency Rule by plan amendment?

I know it is pretty obscure, but here goes:

Employer sponsors two 401(k) plans for different groups. Demographically, they need to make the top-paid group election to pass testing. The plan that wiould pass without the election has specifically incorporated the election in the document. The plan that needs the election does not mention the top-paid group election. We understand that all plans of the employer need to make the election and we want to amend the non-electing document to correct the problem, but can't get our hands around what the IRS would do with a VCP filing requesting apporval of a retroactive amendment. The problem goes back to the GUST restatement.

Do we file anonymously requesting plan amendment adding the election, hide out and bury the problem in the EGTRRA round of changes, or something in between?

Please excuse the cross-board posting, I wasn't sure which board was most relevant.

I'm hoping someone may be able to guide me to the correct answer.

I contribute to a University sponsored 401(a). These are mandatory contributions in the amount of 7.5% of my gross with 6% employer contribution.

I also participate in an optional 403(b) plan via the University.

Now, I've opened up a self-employed 401(k) for my consulting business.

I've received conflicting responses on the max I can contribute to the SE 401(K).

Answer 1: 14,000 - my 403b contribution - my 401a contribution

Answer 2: 14,000 - my 403b contribtion

Can anyone help clarify this matter or point me to the relevant sections of the IRS code?

Thanks

Hello. I'm hoping someone may be able to guide me to the correct answer.

I contribute to a University sponsored 401(a). These are mandatory contributions in the amount of 7.5% of my gross with 6% employer contribution.

I also participate in an optional 403(b) plan via the University.

Now, I've opened up a self-employed 401(k) for my consulting business.

I've received conflicting responses on the max I can contribute to the SE 401(K).

Answer 1: 14,000 - my 403b contribution - my 401a contribution

Answer 2: 14,000 - my 403b contribtion

Can anyone help clarify this matter or point me to the relevant sections of the IRS code?

Thanks

Has anyone found a good investment solution for a 401(k) plan with 2 - 5 participants? We would prefer not to have to set up separate brokerage accounts for each person because of what's involved in the deposit of contributions from weekly payroll. These plans are too small for most of the daily platforms we use for other plans.

Assume plan (not VS or M&P) has been amended to make major change to its structure not dictated by legislative developments. When should determination letter application be filed? Wait until the new staggered system says to go ahead? Or ASAP?

I am reviewing a plan document which has the "fail safe" provision so that the Ratio Percentage Test must be passed for coverage and you do not have the option of passing coverage by using the Average Benefits Test. The plan as a whole will pass coverage under the Ratio Percentage Test.

If the plan is cross tested, does each rate group also have to satisfy the ratio percentage test?

Any help or advise on this would be great.

PS Plan effective 1/1/04. 401k effective 7/1/04. Deferrals did not begin until 9/1/04. The client made the 3% SH nonelective with each payroll after the 9/1/04 date. Do we need to true up to comp from 7/1/04? Or can we do it from 9/1/04 and 414s it?

Sh notice simply states that the er will contribute 3% of your compesation.

If a member who is purchasing "air time" under an installment payment plan terminates employment before completing payment for the service, does IRC Section 415 prohibit the member from continuing to make payments during years in which he is not an active member of the plan?

For example, the member agrees to make 5 annual installment payments, but he terminates employment after 2 years (only 2 payments made). Under 415©, annual contributions are limited to the lesser of 100% of plan compensation or $42,000. My thought is that because the member terminated employment and is no longer covered by the plan, his compensation is zero. Consequently, the inactive member can't make an annual contribution because of the 415 limitation. Thus, he can't complete his air time service purchase under the installment payment plan.

Any thoughts would be greatly appreciated.

What is the process and IRS penalty if a client can not locate a copy of the signed plan document. I believe we have the original plan document signed and dated from 1997, but the GUST revision appears to either never have been signed or lost. We attempted to go back to the law firm who may have prepared it, but they have since gone out of business. Thanks.

If a partner has negative earned income - but makes 401(k) deferrals during the plan year is there money refunded as a 415 refund?

Would they still be included in the ADP testing with $0.00 income?

Controlled group of many companies, one of which has a DB that must be general tested. Other related companies have DC plans with nonelective contributions.

The DB plan does not pass coverage (or more to the point the NCT part of the general test), so it is aggregated with one of the DC plans that has nonelective contributions of about 3%.

The DB plan has HCEs that accrue more than 35% of pay, which means that the DB/DC gateway would be 7.50%.

Assume that 100 NHCEs benefit in the the DB plan but that plan needs 125 more NHCEs to pass the NCT part of the general test (and 410(b) as well). One option would be to aggregate a DC plan with a nonelective contribution and make sure that all NHCEs get or average an accrual of 7.50%. That would be very expensive.

Question: Instead of providing all NHCEs with the 7.50% gateway, could I do an 11-(g) amendment and provide 26 NHCEs in one of the other companies with a DB accrual for the year? This would make the DB/DC combo have 126 NHCEs with DB benefits and 125 with DC accruals, making the combo primarily DB in nature which avoids the gateway.

Is there anything prohibiting this?

I am preparing a Form 5500 for an ERISA account that has Foreign Investments.

My question is : On Shcedule H, Financial Information, where would I record the amount for Currency Gain / Loss?

I do not see a seperate line item for it. On Part II of Schedule H, section b(4)(A) records the Aggregate Proceeds, and section b(4)(B) records the Aggregate carrying amount. However, I do not see anything for Currency Gain / Loss.

Any help will be appreciate. Thank you.

Anthony Milano

An IRA owner had systematic distribution on a monthly basis from his IRA. he died in September 2004, but the distributions continued.

The Bank was never notified of his death until Last week (February 2005). Now the beneficiary wants us to change the reporting and issue the 1099-R for the September, October, November and December distributions in the name and TIN of the beneficiary (and the name of the deceased- like an inherited IRA).

The Bank is saying they cannot do that, because the beneficiary did not request a the distributions, and that the beneficiary should have their tax person handling any correction on the tax returns.

Is the Bank required to fix the reporting?

Thanks very much for your help.

Jane

PS. Also posted in Distributions Forum.

We re-hired an EE midway through 2004 who had always been classified as HCE. However, since we don't have her salary history for the last years, and in 2004 she didn't make over 90K do we need to list her as NHCE for testing? It doesn't seem right, I like any insights. Thanks.