I converted a small amount from a traditional IRA into a Roth. Does this amount affect the total contribution for the year?

In other words, does this contribute to the total $3000 contribution?

thanks,

Pinkcory

I am having trouble (as are many others) finding a thread that I know has been beaten to death on this site.

The employer forgot to start taking loan payments out of the participants check in repayment of the loan. It has been almost 6 months since the loan was issued (so we're past the cure period). Can the loan be reammortized to increase the payments so it's paid off within the original timeframe of the loan? Or, is the participant stuck with a deemed loan and the tax consequences because of the ER's goof?

Any, thoughts would be helpful or if someone else can find the prior threads that discussed this and let me know where to find them I would greatly appreciate it!

Performing an affiliated service group analysis. Has anyone looked into the issue of whether an insurance agency is considered to be "performing services" for an insurance company whose policies it sells? Assume that there is no cross- or overlapping ownership between the agency and the insurance company.

Thanks.

Hi,

I can't find any regulations that require an ESOP to actually hold ER stock, although not holding stock in an ESOP seems strange. A company set up an ESOP in 2001, but hasn't yet bought stock so no participants actually hold stock in the ESOP. Currently, participants own shares of mutual funds pending the purchase of a large block of stock from the owner. Currently, the plan is building up cash through contributions and then plans to purchase the block without an acquisition loan. Do we need to be worried that for 3 years the ESOP has actually held no stock? I'm thinking no, but any thoughts would be greatly appreciated.

Thanks

An employee has not met the 1250 hours of service requirement to be eligible to take leave under the FMLA. She will be going on maternity leave shortly. Is it safe to assume that since she is not eligible for FMLA, the employer is not obligated to hire her back?

Terminating DB plan with excess assets. Sponsor wants to allocate the excess based on a % of comp times YOS, however, they want 4 different groups with each group getting a different % of comp. Since this is a non-safe harbor formula, I'm using the general test to test allocation of excess. Sponsor also has a 401(k)/PS plan, so I know that if I use the ABT, I'll have to include the deferrals and PS allocations in my ABPT. Sponsor doesn't want to wait until the end of the year when these amounts are known, so I'm trying to pass a4 using the ratio test. I have 1 HCE rate group and have determined I'll need at least 13 NHCEs in his group to pass.

I'd just like some assurance I'm on the right track with this, make sure I'm not overlooking something, and get any ideas anyone has for passing the test.

Thanks!

Hi all...

I have a situation where the college has a 403(b) and a 401(k) for all employees. The employer wants to make contributions to the employees and allow the employees to determine which account recieves them. Any problems?? I guess the real issue is whether there are "employee directed employer contributions"?

A small client with a 12 participant plan has a large payroll and is required to make 941 deposits by EFTPS. In 2003, three participants were paid out with two rolling and one cashed out with $ 3000 mandatory withholding. The Trust maintains all funds in a Brokerage account. On distribution the issue arose of how to make the 945 deposit. The client does not have authority to initiate EFTPS payments from the Brokerage Firm's account. Having the brokerage firm issue a check for the 945 deposit payable to the plan sponsor could be construed as an illegal reversion of trust assets to the plan sponsor. There is no provision for the plan sponsor to recover 945 tax deposits paid from and processed through the company's EFTPS processing, so the only viable alternative seemed to be for the brokerage firm to issue a check for the 945 withholdings payable to a Federal Depository and make the deposit on an 8109 coupon. The deposit was made the same day the check was received from the brokerage firm.

The IRS issues a Federal Tax Deposit Notice suggesting that because the $ 3,000 deposit was not made by EFTPS and as the result, a 10% penalty tax is being assessed.

The 941/945 commingling seems to be diametrically opposed since the trust funds are not employer assets and therefore should not be commingled or required to be aggregated for depositing purposes. In fact IRS regluations preclude such commingling of Trust assets with employer assets. Certainly I can see if the State of New York pension plan distributes for instance $ 500,000,000 in benefits and has $ 100,000,000 of 945 withholdings it would be reasonable to require EFTPS for the this Trust in that instance. A plan of this size typically uses an independent trustee who makes distributions and has facilities to withhold and EFTPS deposit 945 withholdings. On the other hand, a plan with less than $ 1,000,000 total assets held in a brokerage account and has no plan checking account and never distributes gross more than $ 30,000 in a year and only has $ 3,000 of 945 withholdings, aggregating and requiring those deposits by EFTPS is unreasonable and is overkill.

Not only is it unreasonable, it is impractical, and I simply don't see how in a typical small balance forward plan not utilizing the services of an independent trustee penalties for failing to use a sysgtem that will not work is enforceable. It sounds as if one division of the IRS EP/EO and the Tax guys are getting their IRS regulations confused.

Has anyone encountered a problem of this type? If so, how did you handle it?

Are there any rules, guidelines, etc. on when the first payment for a plan loan must be made? For example, within 30 days of the distribution, 45 days, any "reasonable date"...

As always, thanks for any assistance.

A client asked if they had to file a 5500 for their cafeteria plan. They have AFLAC who takes in premiums to pay the employee portion of health insurance and other pre-tax benefits. Sounded to me like it's a basic premium only plan and doesn't require a filing. But, since I'm a pension guy and not a Health and Welfare guy I thought I'd check with the experts. File? Don't File?

Please forgive me if this is a silly question, but it is Friday and my brain isn't working as well as it did on Tuesday.

When you charge the QDRO determination fee directly to the participant, do you have to withhold taxes on the fee?

If the fee is say, $800, is the $800 considered a "withdrawal" and subject to taxes? I have a feeling the answer is no, but I would like confirmation.

Thanks!!

Lets assume for all purposes that the child involved has enough earned income (i.e. wages, not allowances) to support an IRA contribution:

1. For children who are under age 21: can a parent make a Trad/Roth IRA contribution on behalf of their child? (This question also assumes that if the parent can do this, the deduction for the contribution (if any) appears on the child's return). Does your answer change if the child is included as a dependent on their parent's return?

2. For adult children - assume older Mom & Dad want to reduce their estate and decide to make Trad/Roth IRA contributions for their adult children and/or grandchildren. (Again, assumes that if older Mom & Dad do this, the children will take the deduction on their own returns).

For some reason I have trouble with these two transactions, but cannot really put my finger on why (except that the paper trail between the contribution & the deduction isn't exactly nice, neat & clean).

For #2, I have assumed that these contributions fall below the annual $11,000 gifting rules. I am not aware of any interplay between the annual $11,000 gift rules and the rules for making the Trad/Roth IRA contributions.

I am interested in your thoughts......

I have a governmental employer that cannot meet minimum funding standards for their MP plan in the foreseeable future. The question is, can they freeze their plan until such time as they are financially stable, and then unfreeze the plan with the intent of remaining solvent to the point that they will not have a problem meeting minimum funding, or would they be better off by simply adopting a PS plan, and merging the two.

If they freeze the current plan, does anyone know of any authority rregarding unfreezing the plan in the future?

I have searched the boards and cannot find my exact scenario and I need HELP! Cross-tested safe harbor top heavy plan using safe harbor match.

Eligibility: 12 months of service

1000 hours

age 21

dual (Jan & July 1) entry dates

Calendar year plan

Employee: hired 03/23/2002 & is over 21

2002 worked approximately 400 hours

2003 worked approximately 1000 hours

Client allowed participant to defer late in 2003 (about 1 month) and gave her safe harbor matching contributions on those deferrals. Her actual entry date should have been 01/01/2004. I understand that we can amend the plan and change the eligibility for deferrals to fix that error (we would leave the PS eligibility 1000 hour YOS, age 21, dual entry). The plan is top heavy. Does she need to receive a top heavy benefit for 2003 even if she will not enter the PS portion until 01/01/2004? I think since she is a participant and did not terminate, I must provide her with top heavy benefit. I'm pretty sure I can also apply the SHMAC she received toward the total top heavy contribution. Now - let's move to the cross-tested piece. It is my understanding that since she received a SHMAC and will be receiving a 3% top heavy, she will be required to receive the minimum gateway...is this correct?

Any help is greatly appreciated and I'm sorry if the topic is a repeat........

Client chose a 3% SH contribution when the SH 401K plan was established. He was sure everyone would contribute. Plan has a 3/31 year end. Turns out he would have saved $$ if it was a matching SH contribution.

Can the formula be amended for the 3/05 year end ? and must it be done before the 3/31/04 year end?

I see on many posts "search the boards, that topic has been discussed MANY times before". I thought I was at least average intelligence, but I seem to fall down miserably when it comes to searching these boards and finding what I need. Usually when I try a search, lots of posts come up but many are unrelated because they only contain one of my search words. I tried using more detail in my search to no avail, I then get practically nothing to come up. What am I doing wrong? Any help is appreciated.

I worked for a place for 5 days, then I got in an accident when I was delivering for them. Which is illegal I found out since I was only 17 at the time. He shouldn't have been letting me deliver. I didnt know this since I just started working for him and hadnt got paid yet, but he paid under the table. I was in the hospital for a month, in a rehab for a month, and then went home but was still in therapy until January. He should have helped us, and if he didnt pay under the table social security and workers comp would have helped. I want to inform social security, the people who gave him this business license, and whoever needs to know because it's illegal what he's doing. And also he hasnt paid me for the 5 days that I worked there. I filled out the papers I needed to the day before I started working there so I did what I should have to work there legally. What should I do? How do i get the money he owes me for working there? Shouldnt he help on the doctor bills? Or does he get off scot-free even though he is doing something illegal? Please write me and let me know and pass it on to others who might be able to help me do what needs to be done. My email address is: adale04@juno.com .

Please help me give justice. -April

Is there someone out there that would be willing to discuss with me how they go through daily reconciliation on the AST/Security Trust platform? It takes us so much time on a daily basis to reconcile all positions. It seems as if we have made this harder than it should be. I would appreciate any help on this.

I'm not sure if i put this in the right category, but here goes. A client based in Georgia has a division in San Fransisco where there are participants with same sex marriages. Are those marriages recognized for retirement plan purposes since the employer is based in Georgia?? Thanks.

The company administering our health claims, does the 1st level of appeal

Our company does the 2nd level of appeal

Our Health Plan SPD also indicates a vountary arbitration process addiitonally

Is a 2nd level of appeal allowed by Company or must this arbitration process be the 2nd level of appeal

woudl anyone have language they could share on the 2nd level review process to put in an SPD

thanks