How many times can a plan be amended before a restatement should be

done. For instance, a traditional 401(k) plan was restated for GUST

effective 1/1/02. The plan was amended, effective 1-1-03, to a SIMPLE

401(k). Now I need to add two participating employers, change the

name of the plan and amend the plan for quarterly entry. This seems

a lot of change for just a simple amendment. The three companies do

not constitute a controlled group so it wouldn't be a multiple employer

plan. Thanks to everyone who provides a response.

If an employer has a DB Plan effective 1/1/04, can i use accrued to date testing based on service prior to the effective date if i only have current compensation or would i need compensation to match the prior service?? Thanks.

Individual (age 51) is receiving periodic payments from their IRA in order to satisfy the exception from the 10% tax under 72(t). They now want to roll over the remaining amount in their IRA to a 401(k) and received advice that as long as they continued with the series of periodic payments they could - just include as ordinary income and no 10% penalty.

I can't find where this would be prohibited (unlike the prohibition of periodic payments qualifying as an eligible rollover distribution from a qualified retirement plan) but if they did do this, all distributions made in the form of the periodic payments prior to age 59 1/2 would now be subject to the 10% penalty (and ordinary income). Am I correct? Anything else?

is the interest a participant pays back on a loan deductible on tax return?

I have an employer looking to start a new plan, effective 4/1/04. They want to exclude union (cba) employees and also want to have all non-union people employed on 4/1/04 to enter the plan immediately. Is this provision permitted in most prototype documents?

Does the penalty for 'early' disbribution still apply if IRA funds were simply converted to a Roth IRA? 1099-R states Code 2 which means no 10% penalty (in my opinion) but accountant seems to think there is....thanks

Company A is making a cross-tested contribution to thier plan (15% to hces/5% to all others). Company B is not making a contribution. Company A and B are considered a brother/sister control group.

Does Company B need to make a 5% contribution so as to pass the minimum gateway requirement?

Thanks.

Our Plan Document defines Dependant as "within the purview of Code Section 152". My question is it permissible for a medical reimbursement plan to allow reimbursement of medical expenses for children that do not meet the support test.

Actually, the "woe" is on my part, as I routinely turn family ownership mole holes into controlled group mountains. Any help on the following is appreciated:

I was given the following information: mother/father/adult son own 100% of company A (C-Corp). Same father & son own 70% of company B (S-corp). The other 30% is owned by 12 other individuals, all of whom have roughly equal ownership stake, and none of whom actually perform services for the company. Do I have a controlled group, and do I need to know the actual ownership percents of the mother, father & son in each company to make the determination? I looked at this as a parent/subsidiary and saw less than 80% and thought no controlled group, but I'm not certain of that. Mother/father/son want to start a plan for the company A and want to know if company B needs covered. They wouldn't be too bothered if they did have to include them.

Thanks.

I'm interested in opening a self-directed Roth IRA account for myself, but I had a couple of questions that I hope some of you can help me with.

If I trade primarily individual securities (listed stocks on the exchanges), how are capital gains taxes handled within the account? Do I have to pay capital gains taxes if I sell a stock after a sizeable gain? (obviously, provided that I keep all money within the Roth account).

Ex: Purchase a stock within Roth at 50 a share, sell the entire position at 60 a share, put that money into money market account or something equally liquid until buying the next stock. Provided that all of this money is kept in the Roth Account itself, is there ever a 'taxable event' here?

Thank you for your help!

We have a situation wherein an ex-spouse has submitted a QDRO. The formula, however, provides for a benefit distribution in excess of the benefits due the participant. The attorney for the ex-spouse is dragging this out. Is there any case that has the fact pattern of a formula which produces a benefit higher than what the participant herself is entitled to? I have found cases dealing with increased benefits that discuss the fact that a current spouse vests upon the participant's retirement, etc. Any more insight? Unfortunately, the attorney on the other side is not satisfied with the language in the statute. Suggestions? Comments?

Thank you

Since "deferral only" 403(b) plans are not ERISA plans, can they be offered to only certain groups of employees in a fashion that would normally be considered discriminatory in a qualified plan? Perhaps only to a HCE group, for example?

If I transfer money into bonds in a ROTH and recieve payments, can I opt for collecting that payment without paying the 10% penality tax? OR can I invest in dividends stock and take the money out that way?

Thanks for any references and anwers

If I were to pay medical expenses (health insurance premiums) for a non-dependant child (I do not provide for more than 1/2 the support) would the expense be covered under a cafeteria plan

Have searched and can't find anything similar on the boards.

Scenario is this - company A has 401(k) plan and company B has 401(k) plan. A and B are control group.

Employees job is to be eliminated at company A in next couple of months. Employee takes job with company B.

I need site that says employee can not roll funds from company A plan to company B plan.

Can anyone help me out here?

My current employer (a nonprofit) offers me 7% of my salary to be allocated to an employee-directed non-ERISA retirement plan. My employer also withholds taxes from this amount, so that the actual amount invested is less than 7%.

My previous employer (a university) had an ERISA 403 b plan in which no taxes where withheld, but I could choose only from the investment options that the employer offered. This was not bad as there were many options to choose from.

Is there anyway that my current employer can legally not withhold taxes from my existing plan? Or would it be necessary to switch to an ERISA plan? Are ERISA plans more "expensive" for an employer than a non-ERISA plan?

I hope to approach our finance director about this, but wanted some guidance or information first.

Thank you.

Can anyone tell me about the new health savings accounts? Mainly pros and cons I guess.

Thank you

The following facts were presented to me:

A person is a 1% owner in a LLC and as a results receives a K-1.

The same person is a common law employee in the same LLC and receives a W-2.

The amount reported on the W-2 is sigificantly larger (70 times more than) than the amount reported on the K-1.

The question is whether this person can participate in the companies cafeteria plan.

I am a retirement plan practioner and would appreciate any guidance as to what additional information is needed, or guidance that allow or doesn't allow this person to participate.

Thank you for your assistance.

A client of mine, law firm, merged with another April 1, 2003. Each has their own plan. The CPA told them they didn't have to worry about the plans so they have no documentation for termination, merger, assumption of one plan by the new company or anything else.

It appears to me that:

a. No contribution can be made to either plan for the three month short period ending March 31, 2003. (Employees worked maybe 520 hours.)

b. It's to late to amend the plans to lower the allocation requirement from 1,000 to something less. (12/31 year end).

c. both plans are ongoing without plan sponsors at this time.

d. The new entity has no plan in force for the 4/01/03 to 12/31/03 period.

Any ideas?

A client sponsors a 2-person plan, an LLC company with the owners being the only employees.

Can I prepare Form 5500-EZ under the instructions that the plan only "covers one or more partners (or partner(s) and spouse(s)) in a business partnership" or do I have to file Form 5500 because the entity is a corporation?