Can anyone provide a good source (preferrably online) for Health Reimbursement Account administration forms?

I have a plan that where all of the sudden I see a SEP money in one of the participant's accounts. Now this participant wants to take a hardship distribution from his SEP rollover. Can a qualified 401(k) Plan accept SEP money? I know it can accept IRA money. Is this pretty much the same thing?

Can someone tell me how this money would be taxed? I believe it is still not considered an eligible rollover, so the participant would not have to have federal income tax withheld. Does the 10% penalty still apply because he is under 59 1/2?

Any guidance on this would be appreciated.

Thank you.

Suzanne

While perusing the newly released LRMs for CODAs, on page 3 I discovered a note to reviewer that says: "A plan can permit Ele tive Deferrals fo more than 75 percent of compensation, but in general a plan cannot limit Elective Deferrals to a percentage less than 75 percent of compensation." What gives? Where did this come from?

I have a client who is about $5000 and several months in arrears regarding our invoices for TPA services. We have a signed contract with them that states we will cease services if any invoice goes unpaid for 60 days. When we notified them that we would be ceasing services until we received pmt., they informed us there were on the verge of filing bankruptcy. Also, they had not remitted several months worth of deferrals.

Now, without our prior knowledge, the broker has requested a check from the plan to pay our past due fees. I explained to broker that 1) the plan had to be amended to do this and 2) the amendment could be not retroactive and past due fees could not be paid from the plan. Do you all agree that the past due fees cannot be paid from the plan?

Broker has accused us of holding the plan and participants "hostage." My understanding is that upon filing bankruptcy, bankruptcy trustee will appoint a TPA to terminate the plan and payout participants.

Regarding our past due fees, I realize that we are just in line with the other creditors. But I want to warn the broker and the trustee that in trying to remedy the problem, they are creating others. Agreed?

I'm a little post happy today I guess. I'm having a hard time determining how to decifer and handle the new (2004) k-1 format on line 14 (self-employment earnings) where it has a sub-category A (net earnings from self-employment) and also B (Gross Farming) and C (Gross non-farm income). It's mostly "C" I'm wondering about. If a client has both A and C sub-categories of self-employment income shown on line 14 are both used for the earned income calculation (I realize there's a section 179 expense adj. potential as well). I don't like the term "Gross" income either on the C category as it make me wonder if there are some expenses that need to be subtracted from this figure. Any thoughts/help out there ? thanks.

Has anyone been receiving rejection letters from the IRS on Form 5500 extensions for the 6/30/04 PYE that were timely filed ? We have received a few and would have thought it was just our own issue but now a local CPA who files their own extensions (and does adminstration work on plans) also had a timely 6/30/04 extension rejected. In all cases the rejection letter claims the extension was not timely filed. Just wondering if anyone else has had this happen. Thx.

Here's a situation. A COBRA qualified beneficiary

notifies their COBRA administrator in writing that

they are terminating their COBRA coverage because they

have other coverage. They then learn that they do not

really have other coverage - in this case, it was the

mistake of the administrator of the new plan that

misinformed the COBRA participant. Can the COBRA

participant reinstate their COBRA coverage if they pay

the current month's premium before its due date? Is

there a cite for whatever the answer is?

Thanks.

Tom

I have seen articles on automatic rollovers and articles on seminars where there were indications the IRS was working on a revised model 402(f) notice to reflect the automatic rollover rules. As far as I know, this has still not come out. Has anyone heard anything further on when the IRS might release the updated safe harbor 402(f) notice? Thanks.

Can someone please clarify for me the status of the IRS' new relative value disclosure regulations as they apply to money purchase pension plans (MPPP)?

Specifically, if a MPPP's lump sum is not less valuable than the annuities under the plan, are the regulations currently effective or delayed to 2/1/2006?

Thanks.

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.