I have searched this forum and found this question asked before, but nobody answered it the first time.

We have to amend a 5500 for an incorrect Employer EIN. Amended returns are to include Form 5500 and any affected schedules. Since each schedule has the Employer EIN on it, should I conclude that all the schedules filed with the original 5500 must also be filed with the amended return?

Thanks.

Kate Smith

Hi,

I have a partnership with no other employees that maintains a profit sharing plan 3 years old and a 401k plan just started last year whereby I am the only one contributing to the 401k. My partner (much older than me) always pulled out his profit sharing contribution every year except for about $100. We have not had to fille a 5500 because the plan assets were less than $100,000. I am about to make Profit Sharing contributions for both of our accounts for 2004. I am also in the process of terminating the partnership as my partner died in 2004. My questions are as follows:

1. I will be paying out his plan balance after I make the contribution and paying mine out to be rolled over into an IRA in 2005. Do I need to file a 5500 EZ terminate the plan?

2. If so, would it be a 2004 5500EZ or a 2005 EZ as the contribution and withdrawals will happen in 2005?

3. Anything else I should be aware of?

Thank you for your help.

Steve.

Company matching contributions to a 401(k). This is from the FAQs on the company website.

You gain ownership in the Company's matching contributions at the rate of 20% for each plan year of service you complete. That means you will be 100% vested after five years of service. You will be credited with one plan year of service for each complete calendar year that you work for the Company, beginning with the calendar year following your date of hire. All years of service are credited on the last day of each plan year (December 15). If you are actively employed on that date, you will receive vesting credit.

Qustion:

If your DOH is 11/26/2001 and DOT is 12/6/04 then according to the above you are only 40% vested (credit for 2 years of service 2002 and 2003). You get no credit for 2004 - even though you worked more than 1000 hours that year. Does this definition of YOS violate ERISA?

thanks

Would a person's normal W-4 withholding information apply to a 457 plan distribution from a tax exempt org, or does the person have to complete a separate form?

I was wondering how practitioners in general are doing rate banding for DC 401(a)(4) testing (non cross tested) for large plans. Is there a standard way of doing this? How much flexibility is there in setting up the rate groups?

For example, do you take the highest HCE allocation rate as the starting point and use that as the minimum of the top rate group or as the midpoint of the top rate group? And then, for the next rate group, do you repeat this procedure based on the next highest HCE allocation rate that does not fall within the first range? Let's say I have HCEs with accrual rates of 3.0%, 2.8%, 2.4%. Would my first rate group be 2.75%-3.25%? And then would my second rate group be 2.25% to 2.75%? Or, could my first rate group be 2.5% to 3.0% and then my next rate group go from 1.9% to 2.4%?

Has anyone looked at something called the "Rainmaker Plan" that is being promoted as a way to use qualified plan assets to finance a small business? It doesn't appear to be an ESOP. Thoughts?

We recently came across a money purchase

plan that offers both loans and hardship withdrawals.

The process is identical to that used by a 401(k)

plan.

Is this legal? I thought these plans were not permitted

to make in-service withdrawals.

Once a participant takes a hardship withdrawal, should his salary deferral start back up automatically after 6 months, or should the participant be contacted to complete another election form? Is there any problem/issue with the administrator starting the deferral back up automatically?

Hi,

I rarely have plans that use the prior year testing method so I want to confirm that is there was NO match made in the prior year, all match amounts for the current year must be returned to HCES? Seems like a faulty document design. Can anyone confirm? Thanks so much

Can a cafeteria plan be effective prior to formal adoption by the corporation? For example, can a cafeteria plan be effective (i.e., the written document executed by an authorized corporate officer) as of January 1 but not formally adopted by the board until February 1? I'd appreciate any insight.

I understand that a "wrap" plan can be advantageous to an employer who's been filing several 5500s every year. However, I have a plan sponsor who wants to create one plan for their self-funded health and dental, life, LTD and flex benefits. The only problem is that the health, dental, life and LTD are 10/31 plan year ends, and the 125 plan has a 12/31 plan year end. They have not been filing on the Health Reimbursement Account as it did not meet the participant threshold. It will however, for the 1/1/04 - 12/31/04 plan year. Is it allowable to keep the 125 plan on a 12/31 basis and yet report on it as a 10/31 if it is included in the wrap plan? Which document overrides, or does the 125 plan just have to have the same plan year end under the wrap plan provisions?

I understand that a "wrap" plan can be advantageous to an employer who's been filing several 5500s every year. However, I have a plan sponsor who wants to create one plan for their self-funded health and dental, life, LTD and flex benefits. The only problem is that the health, dental, life and LTD are 10/31 plan year ends, and the 125 plan has a 12/31 plan year end. They have not been filing on the Health Reimbursement Account as it did not meet the participant threshold. It will however, for the 1/1/04 - 12/31/04 plan year. Is it allowable to keep the 125 plan on a 12/31 basis and yet report on it as a 10/31 if it is included in the wrap plan? Which document overrides, or does the 125 plan just have to have the same plan year end under the wrap plan provisions?

Form 5500 - Schedule I - Line 4i - Trustee Directed. Does anyone know the DOL's position for single security. Do they mean mutual funds? I would consider a mutual fund a single security.

When a plan terminates and distributes benefits, are the distributions mandatory distributions subject to auto rollovers to IRAs?

Money is withheld from participants' 401(k) accounts due to investment transfers directed by the participants. The money withheld is invested in a stable value fund within the 401(k) plan until it is remitted to the appropriate mutual fund company. (Money is remitted on a monthly or quarterly basis.)

What needs to be done with the interest earned on the participants' accounts during the time between the investment transfer and remittance to the mutual fund companies?

If an ineligible employee was let into the plan and deferred, do the deferrals have to be forfeited if the plan document does not specifically address the handling of ineligible employees or can the deferrals be refunded and distributed to the ineligible employee? If forfeited, can the deferrals be used to reduce either the match or profit sharing contributions to the plan?

We had an ee return from disability leave. The claim ended up denied by our TPA as the ee's provider did not turn in documentation. I spoke to the ee several times during their LOA and ee stated that the provider was too busy to sign the paperwork.

Upon returning to work, the ee spoke to his manager about this and asked us (the employer) to get involved. We told the manager no, it was the ee's responsiblity to resolve this with his provider. At the ee's request, the manager still called the provider regarding the documentation, explicitly after he was told not to get involved.

Do his action put us in any jeopardy? Or was this simply bad judgement but not hurtful to our company? Any insight is appreciated.

Thanks, Greta

A client has a child that receives income on a 1099... she turned 16 in 2004. If she files as a sole proprietor and files a schedule C, can she have a plan?

Can anyone run down the general format of how they run a X-tested plan in relius. I am more interested under the general non-discrimination testing of what boxes you check. For example, SSRA or impute disparity. What tests they run and what to look for.

Tom any suggestions?

an hce, is the sole hce participating in a deferral only 401(K). of the 1200 eligible nhces only 98 are participating for a whopping 8% participation rate. overall nhce adp is a miserable 0.38%. which is par for the course for this plan. aforementioned hce is age 64 and does the catch up but obviously not much more than that. outside a roth, any suggestions on what he could do? i really feel bad for this guy.