I need a second or third opinion. sponsor has a class of equity shareholders that have voting rights but due to a side agreement among the class of shareholders and the majority shareholder, they are not allowed to vote the shares for the next ten years. do you think these shareholders must still be considered owning 1% of the combined voting power under 416?

Facts:

Husband (H) is sole owner of his dental practice limited liability company. LLC sponsors a safe harbor 401k plan. Wife (W) is employed by the LLC, as is one NHCE employee (E).

W earns 402(g) limit + enough to handle FICA w/h + enough to leave 415 room for the 3% QNEC; and defers the 402(g) limit annually. Assume W performs valid services (eg no sham employment). E earns $30,000 annually and elects not to defer. H earns approximately $100,000 (earnings from self employment).

Safe harbor contribution is 3% QNEC. H grants profit sharing annually in addition to the QNEC (please ignore possible design flaw issues for purposes of this discussion).

Question:

What I am concerned about is the profit sharing. E gets the profit sharing but W doesn't because she'd go over 415.

This seems okay on its face - but is there any problem with W never getting profit sharing. In other words does 415 override the requirement that the profit sharing percentages be uniform (assume a plain vanilla profit sharing formula)?

Thanks for any help.

A plan's benefits are based on Service using average comp during "Participation".

Since avg comp on the plan's effective date is zero, would it be correct (or reasonable) to say that on the plan's effective date the accrued benefits, PVABs and the Current Liability etc are all zero?

The terminology on line 14 of 5300 (line 12 on 5307) has always left me pondering....

1. Are there any "non-design" based safe harbors? Aren't all safe harbors design based? What would be an example of such a non-design based safe harbor?

2. Isn't a safe harbor plan by definition "nondiscriminatory"? Why make the distinction of Design-based Safe and Design-based "nondiscrimination" Safe?

3. Other than the permitted disparity integrated formulas, what would be an example of a design-based "nondiscriminatory safe" harbor formula?

I just opened a ROTH IRA and had two basic questions that I cannot find answers to:

1. What mechanism exists to restrict me from contributing to the ROTH if I'm over the 150,000 limit for a Married Couple? e.g.: I've just made a $3000 contribution for 2004 - what happens if my income this year exceeds the allowable limit? Did I do wrong to make the contribution this early? Is that why the deadline for contributions is the same as the tax filing deadline?

2. Can a married couple with combined income less than the $150,000 limit open TWO ROTH accounts...one in each name?

Thanks!

I have a prospect that is a Non-Profit and I am looking for a good comparison of 401k's vs. 403b's and I don't want to reinvent the wheel. Does anyone have a good comparison or a link to one.

We are a small health plan sponsor attemptign to comply with HIPAA Privacy by 4/14/2004.

How many are utilzing the OHCA ?

We have 1 health plan anyway since all are covered under a wrap document (i.e. medical, dental, vision, health FSA, and EAP)

For those forming an OHCA with the plan's carriers, have the carriers agreed in writing to this?

any insight on the value of an OHCA?

we have self-insured medical and vision plans so must comply with all of HIPAA Privacy requirements anyway

I have a client that added a 401(k) feature to his Plan effective 1/1/03. Several participants completed an enrollment form stating that they wished to begin making salary deferral contributions. No deferral contributions were ever withheld from the employees for the 2003 plan year. I've never encountered a situation like this and am not real sure of the consequences (if any) of the employers reluctance to comply with the employees instructions. Any insight would be greatly appreciated!

I have a 401(k) plan going through the termination process. Everyone in the plan has sent in their distribution paperwork to either rollover the money over or take a lump sum distribution.

I have one participant in the plan with an account balance of about $90,000.00. He has not responded to letters or phone calls to fill out the distribution paperwork and return. We know where he lives, and contacted him in a reasonable amount of time. Can he be forced out of the plan? If not, what can be done to remove him from the plan? He is holding up the entire termination process.

Has anyone qualified a U.S. established DB plan in Puerto Rico? Looking for information about the process, and any tips or suggestions someone might have. Thanks.

A participant has accrued a top heavy benefit. For 2003, the participant does NOT earn an additional year of accrual under the normal formula OR for top heavy.

Are they considered benefitting???

1.410(b)-3(a)(3)© references how a participant could not experience an increase in benefit but still be considered benefitting.

Would the answer be different IF the participant had already had 10 years of top heavy service and did not earn an additional year of accrual under the formula?

One more, 10 years of top heavy and he earns a year of accrual but experiences no increase in benefit because the top heavy is larger??

Thanks for any and all responses.

The trustees of a multiemployer plan want to make it mandatory for union members to participate

in the union's health and welfare plan and want to amend the trust document for the Fund to provide that

union members working for covered employers can not opt out of the plan.

Can this be done?

If so, does it matter whether the plan is funded by both employer and employee contributions?

Also, if this can be done, can the members be required to sign any document which would authorize payroll

deductions for the employee portion of the contribution?

I am new to this board and trying very hard to get a correct answer to this question. IF I make a loan from my Roth Ira through the custodian, etc. can I charge 15% for example and be exempt from my state's usury law of 10% BECAUSE this is being done by and within my Roth IRA? I know that I am not wording this very well. I would appreciate any possible information back on the relationship of these two items..... one's ROth IRA making a loan and usury laws in a state...Thank you for your time and attentions to this question in advance. Sincerely, LL

Not related directly to Relius, but . . .

We are looking for a service to provide fund performance information / ROR on a quarterly basis in an importable format.

Is anyone aware of an economical service for this? Have checked with Morningstar and Lipper for datafeeds, but they are extremely costly.

Any information out there as to whether estate planning documents, such as Powers of Attorney, Living Wills, Revocable Living trusts, and Medical Directives need to be amended for HIPAA (to authorize disclosure of PHI)? I am seeing commentary out there that previously-executed and new documents of these types must take HIPAA requirements into account, or will be "rendered useless."

Company A has a 401(k) plan. A former employee who still maintains an account in Company A's plan is about to receive a distribution from Company B's (unrelated to Company A) plan. Is there any reason why Company A's plan cannot accept a rollover distribution from Company B's plan?

I have a question for those who import investment account data using Allocated Link. We have a lot of clients who have investments at American Funds. Currently, however, American Funds is not one of the investment companies that is available on the Allocated Link function. Someone at Corbel suggested that we might be able to import the American Funds investment file using another investment company's format in the Allocated Link. Has anyone tried this? If so, how did you do it?

A participant in a DC money purchase pension plan wants a payout.

He has provided a foreign divorce decree from Africa.

The divorce decree makes no reference whatsoever to finances or any distribution of property.

The participant states that there are no settlement agreements in his country.

As there is no settlement agreement or mention of distribution of property or finances,

I don't think the Fund can authorize payout to the participant without a notarized waiver from the ex-spouse.

Am I correct?

How should the Fund proceed?

Has anyone ever encountered this problem???

Can someone tell me how to find a lost terminated EE? Doesn't the IRS have a service where you provide the SS # ?

Thanks!

I'm just wondering if anyone has any comments about loan setup fees and usury limits. If a plan imposes a $100 setup fee on all loans, a $1,000 loan for a one-year period could run up against usury limits. I cannot find much information about this and am hoping that someone can comment. Thanks.