Does anyone have experience with filing the 5500 for a Master Trust? We are considering an arrangement for multiple employers to invest in one and are not familiar with the level of reporting on the separate Form 5500 required. I'm just looking for feedback on a personal experience more than anything.

Thanks in advance.

Participant has $1,010 account balance. Participant accounts are charged $20 for distributions. Is that a cashout or automatic rollover?

I'm curious if other TPA firms will maintain an annual summary of accounts when this information is already provided by the investment company.

It takes so much time!! And client's don't care (the vast majority anyway)!!

If a Sole Proproietor has a SEP plan established but dies before funding it for the current year, can a contribution be made by the estate?

My gut reaction is "no" but can't seem to find anything in writing to back up my position (checked the Answer Book, ERISA Outline Book and IRS Pub 560).

Would the same hold true for a sole proprietor who sponsors a profit sharing plan?

Thanks in advance

Bob

I have a matching safe harbor plan - 100% on the first 3% and then 50% on the next 2%. The TPA said that I have to true up the contributions based on annual deferrals and annual compensation at year end.

Question: Is this how most of your plans are done in your firm ? Is it possible to only match as you go per pay period without the year end true up ? Which is better ?

A participant makes a TEFRA election to delay his minimum distributions from the DC plan. The participant has now died. How do we calculate the MRD for the participant/beneficiary? What account balance do we use - only benefits accrued prior to the TEFRA election?

Somebody please tell me I'm missing something...

The DOL/EBSA faqs on the VFCP, found here:

http://www.dol.gov/ebsa/faqs/faq_vfcp2.html

give an example where deferrals for the first week of June 2000 were not deposited until October 2000. They say that the correct rate, the federal underpayment rate under 6621, is 8%.

Yet, when I go to the most recent chart of rates, here:

http://www.irs.gov/pub/irs-drop/rr-05-15.pdf

it looks to me like the rate should be 9%.

Am I misreading the table or did they pick up the wrong rate?

A calendar year corporate profit-sharing plan has a matching contribution through 6/30/2004. Then, effective 7/1/2004, it eliminates the match and replaces the match with a nonelective contribution. Let's say you have someone who makes $150,000 in the first half of the year and $250,000 in the second half. Let's say the plan document doesn't address this, either. Do they get the matching contribution based on compensation of $150,000 or on $102,500? Do they get the nonelective contribution on $55,000; $102,500; or $205,000?

Am I correct in that the maximum for this plan is $42,000? Thank you for your input.

In a controlled group situation where 2 of the 3 entities adopt a single nonstandardized 401(k) plan, for contribution allocation purposes would you have to consider compensation from all three entities for employees who receive compensation from more than one entity?

My experience is almost primarily with DB plans to this point, but have a couple of fundamental points I would like to verify regarding a 401(k) plan that I am working with.

Background - This plan has only provided profit sharing allocations and 401(k) elective deferrals. The plan has 1 owner/HCE and 18 NHCEs.

Questions for verification -

1. Is it correct that the profit sharing allocations are tested for non-discrimination under 401(a)(4) and the 401(k) elective deferrals are tested under the ADP test? That is tested separately and independently of one another based on their respective testing procedures.

2. Can the profit sharing allocations section be amended to provide an allocation to a few groups where one of the groups has the names of 3 specific NHCE individuals?

Thanks.

Does anyone know if it is possible to obtain a listing of who the SSA currently has as being due benefits from a pension plan (as reported on Schedule SSA)? Can the plan administrator request that information from the SSA?

Sure, living on Earth is expensive, but it does include a free trip around the sun every year.

I have 2 clients-both declared bankruptcy in January 2005. Both companies were then purchased by another company effective March 1 in an asset only sale. The companies had an affiliation but were not in a controlled group. Both maintained separate 401(k) plans.

Company #1 is top heavy. For 2004, the 2 key employees had deferrals and match. These are the only contributions to the plan. The match for other employees was not enough to cover the required top heavy minimum, so an additional contribution of about $4,000 is required. I suggested that the 2 key employees be refunded their 2004 and 2005 deferrals and forfeit their match so that no top heavy minimum would be required for 2004 or 2005. The bankruptcy attorney said their is no money to make the top heavy contribution and endorsed that solution, but, surprise, surprise, the 2 key employees were not happy about it. Can anyone think of another solution? The plan has fewer than 10 participants and the goal is to terminate the plan ASAP.

Company #2 is not top heavy. The plan contributions are deferrals only. The new company has said that they can continue to maintain the 401(k) plan, but the cost to the new company must be $0. The new company has not formally agreed to assume sponsorship at this point, but their formal approval is being sought. The matter should be resolved in the next month or so. Apparently, the fate of the plan was not a part of the purchase agreement. My question-should deferrals continue to be withheld from employees while the plan is in limbo? What are the possible ramifications if the new company decides to terminate the plan? What else should I be considering in a situation like this? I have not dealt much with bankruptcies and am interested in learning what to look out for.

A plan that we administer is top heavy. The client makes a 3% Non Elective contribution and also makes a profit sharing contribution. Will the 3% still satisfy the top heavy min even though a profit sharing contribution is made?

What is the correction method if an employer does not stop taking mandatory contributions when an employee's compensation reaches $205,000 (for 2004)?

This is a 403(b) plan with a 2% mandatory contribution (mandatory as condition of employment). Since mandatory contributions are generally treated as employer contributions, can any excess be forfeited and then paid as additional compensation outside of the plan? Cites?

Regarding Rev Proc 2000-40 Section 4.02 - Fully Funded Terminating Plan, what does the term "benefit liability" mean for a non-PBGC DB plan covering only a husband and wife? At DOPT the assets are 1% less than the 417(e) lump sum. I want to switch to a BOY val.

I am generally aware of the various methods of handling the val and FSA in the year of plan term. I can still go back and revise 2004 to a BOY val but I just want to focus on the "benefit liabilities" term and to see if there is any wiggle room due to the circumstances?

Hi-

I'm new to this board and haven't been able to find the exact infomation I've been looking for.

I am drawing very little income in 2005 and, therefore, will be in the lowest tax bracket. I live in Texas. I am 58 and married, wife is also retired and without income.

I have about $500,000 in a mostly pre-tax 401K. How do I determine if it is a good idea tax wise to convert this money to a Roth? Can I even do it?

Thanks,

Tony

Can the Plan Document or Amendment say that Accrued Benefits less than $5K "may" be paid out, does it have to be "will" be paid out?????

Basically, can the document give the option of Mandatory Cash-outs, without making them a requirement???

My company has wrapped many of its welfare benefits. The basic plan document is the wrap shell, with the individual benefit programs SPDs as attachments to the plan document.

Now the company needs to amend some of the individual benefit programs (i.e., we need to change the elimination period for long-term disability). How, logistically do you create such an amendment? The wrap shell doesn't go into elimination periods, but the attached LTD SPD does describe the elimination period. So, would my amendment be to the overall Wrap Plan, but just reference the portions of the LTD SPD that are being changed?

Please help.