We have a PS plan where we are using accrued-to-date for 401(a)(4). One participant reached NRA and took an in-service distribution of all but $10,000 of his account back 3 years ago. I assume we need to add back his distribution to his balance when testing correct?

Thanks much

When the IRS revised the Schedule Q with their August 2001 version of the forms, they added a new #1 and renumbered the rest of their list of requirements for the Demo 6 submission. The first item in the list now requires plans to "provide the portion of the nondiscrimination test that provides the data for each participant and demonstrates that the plan satisfies 401(a)(4)."

A review of the IRS website indicates a possible response to this item is to just reference the Demo 6 itself -- but they go on to imply that you should send all the data that would be necessary to complete the general test.

In the past, I just sent in a few sample calculations without the full blown test results. I'd be curious to know what others typically send to the IRS as part of the Demo 6 filing.

Doctor is 100% owner of medical corp with one employee.

Doctor's wife has a trade or business that operates as a sole proprietor that established a DB plan and covers the doctors (husband) as an EE.

My reading seems to imply that the group is a common controll group and that the spousal exception rule does not apply (since the spouse is an EE).

So, both businesses would be 100% owned by the the doctor (he is deemed to own 100% of his wife's sole prop) and failing to cover the EE of the doctor's corp would be a problem.

Does anyone see this analysis as wrong?

If so, please tell.

Thanks

Have not done one of these in the last 3 years. Any new developments, regs, etc ?

Does anyone know where the basic requirements are located for the establishment of a type of benevolence or hardship fund?

Employees want to set up a fund that employees could contribute to. If an employee suffers some sort of hardship (i.e. death of spouse, house burns down, etc.), a committee would evaluate and provide funding assistance to that individual.

It seems to me that this type of fund would be a welfare benefit plan under ERISA.

I am looking for someone to share the following:

A participant statement program that will combine on one statement a 401(k) profit sharing and Money Purchase account information under the same plan.

I would greatly appreciate it if someone has such a statement.

Can a Multiple Employer Plan be on a prototype document? Simple question but I am a little confused. Thanks.

The teachers' association wants to know if they need to file a 5500 for their VEBA. Since it's a public school, I'm thinking that they meet the government plan exemption for filing 5500s. Can anyone point me to a site that will help to determine what meets the criteria for "government plan?"

My wife and I are planning on purchasing our first home in the next few months. I have been contributing to a Roth IRA since 2001, so the account is not old enough to withdraw any of the earnings. My question is, can I still withdraw my contributions to use toward a down payment for the house without paying additional taxes or the 10% penalty? Thanks for your help.

Can participant loans be limited to participants who are actively employed by the employer at the time the loan is requested? Client does not want to make loans to terminated employees, alternate payees andor beneficiaries. Loan is payable in full at terminatin of employment and payments must be made by payroll withholding.

Thanks

An employee terminates employment and chooses 15 year installment payments from a 401(k) plan. The employee can choose to receive an additional payment (or cash out the remaining balance) at any time.

1. Are these substantially equal periodic payments rendering them ineligible for rollover?

2. If so, are they periodic payments subject to wage withholding, or nonperiodic payments subject to 10% withholding?

I believe the answers are (1) yes and (2) nonperiodic, but I'm having trouble finding conclusive guidance with respect to (2), other than a 2000 private letter ruling which says that, because of the "on demand" feature of the installment method, these are "amounts not received as an annuity." Therefore wage withholding would not apply.

I researched this several years ago, and had concluded then, based on the section 72 regs, that installment payments for a fixed period were amounts received as an annuity, and payments of this type would be subject to wage withholding.

Anyone know of any official guidance?

Thanks.

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Can I test on SSRA and have a different NRA in the plan?

We have a control group that consists of several partnerships. The partners are constent through the companies. For compensation puporses for the plan, do I start with the NET of all K-1s, some are negative - or do I disregard the negatives like it was zero?

Working on IPSP. Can someone explain definitions/differences of the following roles: Investment Manager, ERISA Investment Manager, Investment Advisor. Also, what would be the "role" of the Recordkeeper who is providing investment performance, etc. at the quarterly investment review?

The plan only allows those employees that have satisfied the age and service requirements (21 and one year) to make rollover contributions into the Plan. However, there were two employees that made rollover contributions into the Plan shortly prior to meeting the one year service requirement - - the rollovers were made a couple months prior to meeting their entry date. Both employees have now met the service requirement and are currently participating in the Plan.

Although a strict interpretation might lead one to distribute the improper rollover contribution, it would seem counter-intuitive to distribute it now since both employees are now eligble to make rollover contributions. Any suggestions?

Does anyone have a weighted average formula (or any other formula) you use when determining earnings for a QDRO split?

An ER has had a SIMPLE IRA operating for 5 years. He has made contributions to it for January 2004. He notified all his EEs that he was terminating the plan after January 2004. He wants to establish a 401k profit sharing plan for 2004. Can he do this? If he can, what is the effect of the 401k psp's implementation on the SIMPLE's January contribution?

Here I go again....

I have a plan where the investment company does not do the 1099's, 945 or 1096. Can the federal withholding checks be sent directly to the United States Treasury, or do we have to go through the EFTPS bull? This client hasn't had any distributions for 8 years (since the plan's existence) and probably won't for another 8 years.

I read that the EFTPS is not required....what are my alternatives? I don't want to have to tell the client that they have to set up a special account just for this. What steps need to be taken?

Thank you so much for all your help!

We have a participant that was terminated, and then rehired 6 months later. Does he have to wait until the next entry date or does he come in to the plan right away?

Are the rules different for a terminated participant that has already taken a distribution and then months later be rehired?

Have a situation with a client that has a PS plan and still maintains a Money Purchase. PS plan has a Hardship provision that allows distribution on all vested balance. By a great mistake, participant was given more money for the hardship then actually has as an account balance. Approx. 2,000 to much.

Any suggestions on what to do would be appreciated. FYI, participants Money Purchase balance has plenty of money, not that this will help?