1964 Commissioners disability table that was updated in 1985

Does anyone have a copy of the original table (1964)??

How about the updated one??

I searched SOA and other areas and could not find the tables. Thanks in advance for any assistance.

A brain cramp. A design-based safe harbor db plan requires 1000 hours for accrual. The plan covers 1 HCE and 2 NHCE.One of the NHCE goes on a reduced schedule and only works 698 hours. She needs to get an accrual for 410b. As long as she gets the regular formula accrual, or t/h min if greater, the safe harbor is still maintained, right?

when determining the top heavy minimum, what comp limit is used for 2001?

In 2001 the comp limit was 170,000, but EGTRRA allowed you to retroactively use 200,000.

Does the answer depend on whether you actually retroactively amended the comp limit for those prior years?

A qualified plan's TPA made delinquent deposits of taxes withheld from participant/beneficiary payments. The IRS slapped the plan with a whopping penalty + interest.

First, can the plan pay the penalty+interest from its own assets? Or, are the plan fiduciaries responsible for paying the amounts assessed?

Second. The plan, and not the fiduciaries, paid the penalty+interest. If this is a no-no, there must be a reportable nonexempt transaction that's subject to an excise tax (plan loaning money to a disqualified person)? The plan booked the penalty/interest as a receivable from the TPA, and the plan trustees intend to sue the TPA to recover the money.

What's a typical price range for a limited scope audit for a 1000-1500 participant defined contribution plan with about $30 million in assets? Is there anywhere that I can find benchmarking information?

Has anyone ever heard of a plan administrator using a combined COBRA General and Election Notice?

I assume this is okay as long as the notices contain both sets of notification content requirements and is provided within the applicable time frame for each notice.

Thanks!

30% of the stock was sold, and the ESOP loan has been paid back for 2 years now, therefore no loan balance remains. However, the company has experienced profit this year and wanted to know if they could make a contribution to the ESOP plan? Is that possible? Can the ESOP accept profit sharing contributions?

I currently do testing for an old SARSEP. In performing the 1.25 test, the wife of the owner has an excess contribution in the amount of $4.50. Are there diminimis amounts as it relates to this excess? I advised the client to remove the excess, with earnings, in a conservative application.

Thanks for any thoughts.

The plan document provides that loans are payable upon termination of employment. However, neither the document or loan policy defines the time for repayment. What is a reasonable time frame for allowing a participant to repay the loan in full upon termination of employment. I don't think the cure period applies to termination.

Is it reasonable to give the participant until the next payroll when their payroll withholding would have occurred?

Will retire next year at 55, have a 403(b) with my school district. What are my options?

Owner of 2 companies (A & B) offers a pension plan in which the employees of both A & B participate. Plan follows controlled group rules and files 1 5500 with 2 Sch. Ts. Owner now wants to set up a separate plan for the employees of B. Plan provisions will be the same. Assets will be transferred. The only change is 2 plans instead of 1. Why you ask....owner doesn't want to pay for a plan audit. The number of eligible participants employed by B is greater than 20% of the total eligibles. Might this be considered a partial termination of the AB plan? Appreciate any guidance anyone can offer.

When terminating a PBGC covered DB Plan with insufficient asset it is obvious that only the >50% owners can take a “cut” in their benefits. In a case where the Plan has insufficient assets and is not covered by the PBGC, I cannot find definitive guidelines.

My instincts say that only owner(s) can take a “cut”, but I see in a Defined Benefit answer book that 411(d)(3) allows a plan to terminate and pay benefits “to the extent funded”. The answer book seems to suggest that after taking care of some priority benefits, it is permissible to prorate the assets of the plan by each participants PVAB, essentially decreasing the benefits of all participants and not just the owner(s). Others that I have discussed this with say that it would not be allowed under 411(d)6 anti-cutback rules.But 411(d)(6) seems to specifically talk about cutting benefits due to a Plan amendment.Here we are talking about reducing benefits due to a Plan termination to the extent funded.

If we file such a termination with the IRS showing each Participant receiving a prorated piece of his/her PVAB, will the IRS approve it? Has anyone tried?

We have a participant who terminated in 2000 with an outstanding loan balance. They are now rehired and requesting a new loan, however the first loan had never been defaulted.

We are going to default this loan from 2000 effective this year (2004). When processing the new loan right now, do we take into account the outstanding loan balance when figuring their availability or do we consider them having no outstanding balance since we will be defaulting this year?

Hope this makes sense. Thanks for the help.

I have a client with a small business (he is the only employee) who has a self-employed 401(k) plan that provides for deferrals and a 3% employer contribution. Assume he makes $10,000 in 2004 after all deductions. He also made $3,500 in Roth IRA contributions for 2004 (he is 60 years old). He is married and his wife also puts $3,500 in a Roth IRA for 2004. She earns about $70,000 in W-2 salary in 2004.

My question: does the $3,500 Roth contribution have to be included in calculating his deferral and 3% contribution for 2004, so that his $10,000 is divided up as $706-1/2 SE deduction + $3,500 Roth + $5,625 net earned income and deferral + $169 3% employer, or can the $3,500 Roth contribution be considered a spousal IRA so that his $10,000 can be divided up as $706-1/2 SE deduction + $9,023 net earned income and deferral + $271 3% employer? Or, is a different calculation required here? He, of course, wants to shelter as much of his income from taxes as possible.

I'm not very familiar with these rules and would appreciate any help anyone has to give.

If loan payments are withheld from payroll but are not submitted to the trust, is the loan in default after six months (including the grace period)? and a taxable event to the participant? Is there any recourse for the participant.....

Is it true that you can only take a hardship w/drawl from 401k deferrals for the safeharbor reasons (medical expenses purchas prim. resid. etc), but that you can open up other money sources (match etc.) to non-safeharbor reasons as long as it suits financial need?

Or can both deferrals and match be opened up for financial need other than 4 safe-harbor reasons?

Does it matter if you are on prototype or not?

Thanks

How is everyone proceeding, are you adding an additional source to house the deposits posted after 1-1-05? Or are you setting up a new plan and freezing the old?

Either way, what are you doing with December deferrals posted in January? Which bucket or plan will you post this deposit to?

Thanks,

WHY

I'd like for some to weigh in on this issue. Thanks.

The Dorsey & Whitney Summary of new legislation purports that, although not disallowed by 409A, the deferral of stock option gains is now "impractical" because the deferral election would need to be made in the year prior to the year in which the award of the option or grant is made. It would seem to me, though, that one would "earn" the income of an option in the year in which it becomes vested, and that an election to defer could be made in the year prior to vesting. What am I missing?

Have any heard of this from other advisors? Do you differ in your interpretation?

Here's the link to the Dorsey article:

http://www.dorsey.com/publications/legal_d...pubid=172644603

Thanks,

Joe

Hi,

Does anyone know if specific rounding rules apply for 401(a)(26)? If there are 13 nonexcludable employees, 5.2 would need to be covered. We have a plan that covered 5. Could we arguably pass by rounding down? Does the IRS require us to round up to 6? If anyone can help, that would be great.

Thanks

Suppose you have the following situation:

(a) You have a DB plan (small company, say 10 employees) that was funded by employee contributions and the plan is terminated.

(b) The plan assets at termination exceed the sum of the lump sum distributions calculated from the benefit formula (all employees elect lump sum payments).

© Moreover, each employee individually has put more into the plan than his/her individual lump sum distribution payable at termination based on the benefit formula (e.g., employee X has contributed $150k and the lump sum distribution is $100k).

Question: How much should employee receive at termination? Should employee X receive $100k, $150k, or some other amount? If employee X is only entitled to $100k, what happens to the remainder?

Thanks.