I can't believe that I have done every kind of search possible and cannot find a UP84 table anywhere online. Can anyone point me to an online resource for mortality tables?

Thanks.

I am an owner of an S Corporation and I am looking for the best pension plan available for myself. I typically have 2 to 4 employees and the SEP contricutions I would have to make for the employees does not seem to make the plan a good idea for me personally. Does anyone have any recommendation on any plan available where I can maximixe my contributions but would minimize fund outlays for employees. Any help is appreciated.

For 1099R purposes, what is the most approporiate code for a death distribution that was donated to an Endownment Fund? Would we consider this a regualr death distribution (4) or does some special code apply?

Thanks

If an employer provides several different benefits, i.e. a self-funded dental benefit, insured group health and disability benefits, can they all be considered one health and welfare benefit plan and a consolidated 5500 filed for the "plan"?

It would be helpful to have resource material cited if possible.

The consolidation issue does not seem to be addressed in the 5500 instructions.

(I posted this in Welfare Benefit Plans and did not get a response so I am trying here.)

What kind of documentation is needed in order to exclude "Otherwise Excludable" employees from a Safe Harbor contribution? Should it be in the document or Safe Harbor Notice? Plan calls for immediate deferral eligibility and 1 YOS, age 21 for PS and Match.

Thanks!

I am looking for clarification on HSA contributions for people over the age of 55. In this case, the wife (employee) is 52 and the spouse is 63. They are enrolled in an HDHP through the wife's employer and have a family HSA account.

My question is: Can they contribute the additional catch-up monies for the spouse even though the account is through the wife's employer and she is only 52? Their family maximum deductible is $2,000 - can they contribute catch-up funds since the spouse is 63? In this case, since they have an active HSA account effective January 1, 2005, if I am understanding what I am reading, they could contribute $2,000 (for the deductible) plus another $600 for catch-up on the spouse?!?

If they were both 55 or older, would that mean they could contribute an additional $600 for the wife as well, so a total of $1,200 in catch-up and $2,000 for the deductible?

Let me know your thoughts!

Thanks!

In the IRS Announcement for the pension plan limitations for 2005, the 415(b) limit is stated as follows:

"Effective January 1, 2005, the limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) is increased from $165,000 to $170,000. For participants who separated from service before January 1, 2005, the limitation for defined benefit plans under section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2004, by 1.0273."

Can someone clarify the limitation as defined under 415(b)(1)(B) or point me to any published guidance. Does this mean that someone who separated service, say, in 1995 but retires in 2005 cannot be tested under the $170,000 dollar limitation for 2005? Rather, his limitation is the dollar limitation as of 1995 increased by the adjustment factors over a 10-year period?

We administer a 5 participant calender year DB. The company owner, his wife and three unrelated employees participate in the plan. The plan is covered by PBGC.

As of December 31, 2004 the plan was frozen and the plan will terminate 2/25/2005. All notifications (204(h) notices etc.) have been prepared and signed although nothing has been sent yet to PBGC or IRS.

Question: would it be possible to unfreeze the plan and withdraw the termination?

They wish to instead terminate the plan next year.

Thanks.

An employee became eligible to enter the plan 1/1/04. During 2004, he worked for 4 months and earned $11,500 with 650 hours of credited service. He needs to be included in the plan to pass the 410 (b) coverage test.

Benefits are based on Hi 3 average comp during participation. The average compensation is averaged over the actual number of months worked "if the completed Years of Participation" are less than 3.

Given the above, his benefits will be based on his monthly average of $2,875 (=11,500/4). His annualized comp would be $34,500 (11,500*12/4).

For the "current plan year" testing method, what is his annual Testing Comp - $11, 500, the comp actually earned during the year or $34,500, the annualized comp?

Section 1.401(a)(4)-3(e)(2)(ii)(A) reads: ".......... If the measurement period for determination of accrual rates is the current plan year or the plan is an accumulation plan....., then plan year compensation may be substituted for average annual compensation."

I am inclined to use $11,500, since it is irrelevant to testing how the benefits are determined - 1.401(a)(4)-3(e)(1).

An employer sponsors a medical plan and requires that a participant's spouse, who is eligible for coverage under his/her employer's plan, must be covered under that plan as primary coverage. The participant may also enroll a spouse under the participant's plan, but that will be secondary coverage. Any issues with this?

A hospital maintains a group health plan. Other than the administrative headaches, is there any issue/problem with each of the hospital's affiliated hospitals having different eligibility criteria for coverage at a certain level. That is, one hospital may require 32 scheduled hours per week to be eligible for full coverage whereas another may require 36 hours.

IRS just published changes in Circular 230, covering practice before the IRS.

By way of background, some promoters of tax shelters received opinion letters from law firms that a particular program would satisfy requirements for favorable tax treatment. These opinion letters are used in the marketing promotion materials.

The IRS has found that some of these programs did not work as contemplated by the law firm, or simply disagreed on the tax benefit. After declaring that the tax benefits did not exist, the IRS sought to impose penalties unpon the taxpayers for taking an unreasonable position. The taxpayers got penalties waived by reference to the original opinion letter.

The new IRS position is to force the originators of these opinion letters to issue more caveats about their use, or to hold the writers responsible for their action.

for more info: http://www.irs.gov/2005-04_IRB/ar10.html

I know this seems insignificant, yet I was wondering what others would do in a similar situation. An employee in a 401(k) plan who is over age 50 deferred $16,000.14 in 2004. Should I ignore it? Tell the Employer to refund $.14? Where do you draw the line? $.01? $.14? $.50 $1.00?

Are there any restrictions to the limits if you participate in both plans? I am assuming they the limits just offset each other? Is that correct? I know nothing about 403(b) Plans?

Thanks

If a participant had a corrective distribution and is under age 59 1/2, should the 1099r be coded as 2P to indicate that an early distribution exception applies? This exception is not listed as one of the options for code 2.

DOES ANYONE KNOW WHETHER THE IRS WILL BE ADDRESSING THESE ISSUES SOON AND WHETHER PAYMENT WILL BE PERMITTED AFTER TERMINATION OF SERVICE?

Is anyone aware of the status of the proposed regs which were issued late last year dealing with termination of 403(b) plans and whether any statutory changes have been made?

The stock of the employer sponsoring an ESOP will now be traded on the "pink sheets". It is my understanding that the employer is now confronted with an annual valuation and also a "put" of shares.

How is it best to deal with the timing of distributions? For example, if a participant terminates employment in June, with a Dec. 31 valuation, should the plan not do distributions until after the next valuation? If so, should the plan only accept distribution applications from Jan to March 31, and if none received make the person wait until the next year?

I guess my general question is is there a standard or best practice method of making distributions to participants in non publicly traded ESOPs?

Any other consequences of not being traded on the pink sheets?

Hey guys im currently filing my taxes and had some questions on the sarsep withdraw's I made last year.

I hit some financial hardship mid 2004 and had no choice but to pull a large amount out of my sarsep account in order to pay things off. At the time I was not fully aware of the penalties associated with the early withdraw and though the 10% penalty was the only money that had to be paid.

Well now that im filing I have finally learned that the entire amount I took out is counted as taxable income. Yuck... It ends up costing me about 1300 on my refund. My wife and I was counting on our return to keep us afloat as we keep drowning in debt. Anyhow since all the money was taken directly out of my paycheck over the years, and the employer matched it im guessing I wouldnt have a basis? Is there any loopholes or anything I can do to take some of the sting of my early withdraws? Or a way to defer all this until next tax season? Anything would help!

If anyone can give me some advice I would really appreciate it!

Thanks so much,

Mark

Employer had only 1 key employee and has maintained a SEP for about 8 years. SEP was not funded in 2004 since a PS plan was adopted in 2004. All SEP participants rolled money from SEP into the PS plan in 2004. Key employee rolled over only a small portion of his money.

Should the SEP rollover money be counted towards determining top heavy for the new PS plan in 2004? If so, should the money not rolled over by the key employee be counted towards top heavy as well? For how many years?

If we count only the rollover money, the plan is not top heavy. If add in the key employees money not rolled over, then it is top heavy.

Thanks