Please help. I can't find any guidance about this matter.

First, an individual is now allowed to roll over funds from an IRA to an eligible retirement plan (including a qualified plan or a 403(b) plan).

Second, the beginning date of minimum required distributions from a retirement plan, but not an IRA, can now be delayed until the individual's retirement after age 70-1/2.

My question: What's the correct treatment of IRA funds that have been rolled into the eligible retirement plan? Does the rollover retain its IRA character, and are distributions required to begin at age 70-1/2? Or, does the rollover acquire the properties of the eligible plan, and can distributions be delayed until a later year?

I've found just one bit of guidance about this matter. The Panel (Aspen) Pension Answer Book - 2004 Edition states that "IRS representatives have opined that an IRA owner may roll over funds from an IRA to a qualified retirement plan and delay required minimum distributions until retirement..." But, who are these "IRS representatives", and where have their opinions been circulated? I really need more guidance than this one passing reference.

Thank you.

I need the purchase rates for ages 45, 46 & 47 for the 1971 Group Annuity Mortality Table Projected to 2000 (Male). Help please.

We received a QDRO that says Alt Payee gets 50% of a participant's plan account balance as of 12/31/03. Participant's total account balance as of 12/31/03 was 10,000, including $5,000 of vested 401(k) deferrals and $5,000 of a 50% vested match, so that his vested balance is $7,500.

Do we give the Alt Payee $5,000 and pull it from the participant's vested amounts (the $7500 vested pool) or do we give her $3,750 (50% of his vested balance)?

I know the Alt Payee's amounts must be 100% vested and I know we can't give her more than he had by giving her any of his unvested amounts and just vesting them.

If we give the Alt Payee $5,000 (50% of total account, vested and unvested), where do we pull it from? All from his 401(k) deferrals or do we pull a portion from his vested match?

Can a participant of a Sec. 125 plan that offers health insurance premiums as a nontaxable benefit, include COBRA payments withheld from the participant's pay for premiums on behalf of a dependent who was dropped from the employer's plan as a result of no longer being a full-time college student?

In an non-ERISA 403b plan, is adp/acp testing required?

A 2 parnter, 0 ee LLC's profit sharing contribution reduces income applied towards the SE tax. Why doesn't a Sole Pro's PS work the same way?

Also, since the sole props profit sharing does not reduce schedule C income (reported on page 1 of 1040) why would we use the 20% circular formula? Since the contribution is not a deduction towards SE why couldn't we use 25% of schedule C income?

Say you have an age weighted PS plan. The plan never gets to the average benefits test. And gateway doesn't apply.

Now you add a 401(k) plan. And let's assume that it is a safe harbor nonelective, so there are employer contributions that are not 401(k) or (m) contributions.

Does this move the age weighted plan into having to pass the test for gateway?

2 businesses, A and B

Company A:

Dave 50% owner

Dave's dad 50% owner

Company B:

Dave 49% owner

Dave's wife 51% owner - Dave considered 100% owner, attribution

Controlled group? I dont think so (hashes out with someone), comments welcome

Company A is going to put in place a Simple (has other EEs). Can Company B establish a Solo 401 for Dave and his wife (no other EEs)?

Although the DOL has not finalized the automatic rollover regulations, I was wondering how recordkeepers are planning to administer these rules. For example, if the qualified plan is being recordkept by a large financial services company (ie - Fidelity, Vanguard, T Rowe, Putnam), will the participant's cash out be moved to an IRA with that financial institution?

What about those recordkeepers that are not financial institutions (ie - Hewitt, TPA's, etc) - - who will be the IRA recipient for cash out from those plans?

Thanks.

This is not my area of expertise....so I would appreciate any and all input I can get from you experts out there!

We have a client that purchased a business. The client does not sponsor a Section 125 plan, but the business it purchased does. What needs to be done in this situation? Do the Contolled Group rules (as in the case of qualified plans) pertain to 125 plans?

Thank you.

Any thoughts on designing the benefit of a MERP based on the number of hours worked per year (or expected to work)? For example, for employees working 1751-2000 hours would receive 100% of the benefit; 1501-1750 hours receive 75%; and 1251-1500 hours receive 50% of the benefit defined in the plan.

Realize that 105(h) would apply re: highly compensated employees - any other issues? Cites appreciated.

Anyone know of where I can get a list of states that have mandatory withholding on retirement plan distributions?

Can someone please provide a brief description of what a KSOP is and how it works?

Can you have a premium only plan for staff employees and still have the employer pay full premium for the owners/shareholders of the business?

After all this time, I'm still confused about plan language necessary for safe harbor 401(k) plans. We use a lot of Corbel docs and the plan doc says it's SH. yet we just took over a client with a Datair doc and that plan says that a resolution has to be done each year to make it SH. Is either way permitted?

A nursing home is owned 100% by father. Father also owned 51% of an assisted living facility. His adult son owned the other 49 %. Since father is deemed to have owned son's 49%, the two entities were a controlled group. The nursing home sponsored a 401k plan, which the al facility also adopted. The plan document is a standardized prototype. On 1/1/02 the father sold his interest in the al facility to his son, so no more controlled group, now a multiple employer situation. The protoype cannot be used for a multiple employer plan, so unless the two entities are now an affiliated service group, I have a document failure. Questions:

1.Can a nursing home or an assisted living facility be considered a "service organization"? I think the answer would be yes, because capital is not a material income producing factor. How much equipment is required to run a nursing home or an assisted living facility? I have no idea.

2.Significant portion of business? I don't know, trying to find out, but they do refer patients back and forth.

3.Common ownership? The B-Org must be owned at least 10% by persons who are HCEs in the FSO, using the attribution rules of 318. Under 318 there is no exception to parent-child attribution, so father and son are each deemed to be 100% owners of both entities. Am I runderstanding this requirement correctly?

4.The son is on both payrolls and effectively runs both facilities. Does this have any bearing on asg status?

Hi,

I participate in a defined benefit plan which allows me to accrue a benefit for the year after I work 1000 hours. If I terminate (assume fully vested) August 31, 2004 after working 1000 hours to be eligible for an accrual, I would receive 8/12 of my benefit for the year. If I take a leave of absence and return in 2005, I would receive 12/12ths (full) of my benefit. Is this an issue?

Thanks

Teddy

100% corporation owner and spouse participate in a DB Plan. Two other unrelated employees participate in DC Plan. Plans are aggregated for coverage and non discrimination.

There is concern that the DB plan is not covered by ERISA (and participants not afforded the antialienation protections of ERISA) since the plan doesn not benefit employees other than the 100% owner and spouse. Agreed?

If the child of the owner becomes a participant of the DB Plan (she is the only other employee of company besides owner, spouse and two unrelated employees), is the DB plan now covered by ERISA (and the participants afforded the antialienation protections of ERISA)?

A strict reading of ERISA Reg §2510.3-3 seems to indicate that only an individual owner and spouse are not considered employees for purposes of determining coverage under Title I of ERISA.

Can a roth ira be levied by the irs

Any thoughts on PLR 200430013? This seems to be a very strange ruling to me. Also, in the IRS Priority Guidance Plan for 2004-2005 it says one of the priorities is guidance under sections 457(b) and 501©(1) on plans established by federal credit unions.

Did anyone even know this was an issue? I didn't until yesterday.

I know of several federal credit unions with tax exempt 457(b) plans.