A profit sharing plan currently exists. Neither the employer nor employees are pleased with the TPA, the investments, the broker, nor the fact that there is no 401(k) feature. It uses a prototype plan document of the broker. The employer and employees want a 401(k) plan.

The employer has located a new TPA/ broker which offers a 401(k) prototype and of course investments. The new broker's investments are more profitable than the current broker's.

The employer was told that if he wanted to switch to the new TPA/ borker's plan, the employer would have to amend (or restate??) the current plan and move all plan assets to the new broker.

The employer however would like to terminate the current plan, distribute (or rollover all assets) to participants and then immediately adopt a new plan (401k)with the new broker.

All participants are already 100% vested in the current plan.

Is it legal to terminate a plan, distribute all assets, and then immediately adopt a new plan ?

I seem to recall that an employer contribution for a dc plan had to be deposited prior to the employer's filing of the corporate return if the corporate return was not extended (e.g. 12/31 pye, 1120 filed 2/15, deposit had to have been made by 2/15).

Can anyone refute or corroborate this recollection?

An employer is considering breaking down heath care costs (including prescription drug charges) by department. Individual depts. would be charged for the actual costs oftheir employees. Some depatments have only one employee. Do HIPAA issues result because Co. in-house accountants could see that a spike in charges could be associated with an employee's health issues. Thanks in advance. Ed

This was forwarded to me in an email today.

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewI...item=6947643175

Is there a regulation that states that all eligible employees are entitled to a QNEC, or can you exclude the otherwise excludables from the calculation?

How much would you bid?

OddEBay.pdf

I have a 401(k) SH plan which excludes overtime, commissions and bonuses. I have to run the compensation ratio test. Does anyone know if Relius runs this as part of the non-discrimination testing? If not, how do I test the compensation for non-discrimination? Thanks.

Is there any type of 5% or 7.50% gateway requirement when general testing a CB plan by itself, i.e. not in conjunction with a DC plan?

my dad is 81 years old and mom is 80 and they have a small farm any way he already is doing the manator withdraw of his Ira what I am wonder would or could he start another some kind of Ira and claim the contrubition for trying to reduce his taxable income ? Thanks for your help Tony

Plan notified AP when Participant began receiving benefits that it would withhold 50% for 18-months to give her time to present a QDRO. Letter explicitly stated that if she provided an order after the 18 months expired and the withheld money was distributed to the Participant, all she could get was a prospective interest.

Her attorney has drafted an order that goes retro to the Participant's pension effective date because she "missed" all those payments. I say, "too bad", but a partner in my office says it's fine. Is that right? If so, then what's the point of the 18-months if the participant is going to have to pay anyway?

An individual owns 100% of 5 different companies. He receives a wage and defers at 1 company only. Out of the 5 companies there are only 2 HCE. When testing for the ADP/ACP are all 5 companies tested together or are they tested separately?

I have been told that you first test together and if the test fails then you test separately.

Does the same scenario hold true for the 410(b) non discrimination testing as far as testing together and if they fail, test separately?

Does anyone (or has anyone) figured out a way to get a report that is a census history report for a plan's participants. Let me explain. I would LUV a report that would show me the hire date, entry date, status and status date, along with the hours and comp for a participant (actually I want it for more than one) for all years that I have on Relius. I know that I can go and print census verifications for each year, but that gets a little tedious. I would like (okay I really, really really want) to be able to glance at a participant's history and see how many years that they worked over a 1,000 hours, etc. without having to work too hard at it. (Is that being lazy?)

Say a plan pays $150,000 in cash from the plan to purchase a piece of land.

However, there are closing costs, commissions, taxes, utilities, association dues, etc.

The plan sponsor isn't sure if this chould be paid out of corporate funds, pension assets or both.

My impression is that if no party-in-interest is benefiting from these payments, then it appears that these payments could be made out of corporate funds, since the pension is supposed to pay for reasonable administrative expenses only.

Any thoughts?

A 401(k) plan fails the ADP test. Participant S has excess contributions of $5,000 which must be distributed to him (he is the only HCE). Recently, however, a QDRO paid all but $1,000 of his account balance to his ex-spouse. His account balance is presently $1,000. Obviously, a portion of the excess contributions have been paid to the alternate payee. What to do?

I'm confused as to the difference between voluntary employee contributions as opposed to employee contributions. There seems to be a difference.

Example, we have a job hopper from academe and the private sector,... say a former law professor... He starts as an atty a gets a 401(k), then becomes a prof and gets a 403(b) -- then leaves to work in management consulting and gets a 401(a) DC plan.

He is still young, could he do a 72(t) on the first account, -- the 401(k) only and keep the 403(b) untouched? Can he still keep getting contributions in his curremnt 401(a) plan?

I tried to remove this topic but did not have any luck. I found out Social Security will provide death information at 1-800-772-1213 (Company Tax ID requried). Now I know what state or county to request death certificates.

1. While sitting at your desk, lift your right foot off the floor and make clockwise circles.

2. Now, while doing this, draw the number "6" in the air with your right hand. Your foot will change direction. .......And there's nothing you can do about it!

All you have to do is type in "Unclaimed property (and the state name)" (Google works great) Several links will be pulled up. I usually click on anything that has .gov in the address. Than I do a search with the states database for free. You will be amazed at how much money is sitting out there. I found out in 1990 I didn't cash a pay check. I moved around so I checked several different state websites. This is also great for looking up deceased relatives unclaimed property. Lousiana, New York, and Texas have very useful Unclaimed Property websites. And of course always check PBGC website to see if you have a pension sitting out there or contact social security. Social Security has a record of pensions that you did not immediately take in the year you terminated from an employer.