What is an acceptable correction for this situation?

1) Can the sponsor (with the participants consent ) double up on the next few contributions to make it up?

2) Do the missed contributions have to be made up?

Any suggestions would be appreciated!

Thanks

Confused in non-qualified land!

We've taken over a 401(k) plan. Sole proprieter also participates in an unrelated 457 plan. It is my understanding that after EGTRRA there is no interaction between the two plans. I know very little about 457 plans, so I am hoping to get some confirmation.

Thanks for any guidance.

existing Partnership consisting of partner A and Partner B plus commom law employees, have an existing SafeHarbor 401(k) with Safe Harbor Match Contribution(SHMAC). On 3/14/2004 they will dissolve partnership and on 3/15/2004 will form new Partnership with Partner C and his employees. They want to terminate SafeHarbor Plan and start new SafeHarbor plan with Safe Harbor Non Elective Contribution (SHNEC) for newly formed partnership.

Do I have a successor plan issue?

Would it be better to have new Partnership assume sponsorship of prior Plan?

I'm researching Darrin Watson's "Who's the Employer" to no avail!!

Employer has a "nurse service program" where the employer pays an annual premium for employees to visit nurses --usually at a clinic off-site --for reduced rates. This program also enables a nurse to come to the office of the employer and administer flu shots. The employer has no involvement except to renew its annual contract to pay premiums and to distribute a brochure created by the clinic to employees. Employees are responsible for calling the clinic and no information about participants (health or otherwise) passes through the employer. I am concerned about ERISA, HIPAA, etc.

Does an employee's filing status on their Federal tax return have any effect on the maximum amount the employee can contribute to a dependent care FSA?

We are looking into establishing a wellness program wherein employees will receive health screenings. Would this wellness program be subject to ERISA?

While preparing to send 2003 info to me, client discovers 2002 5500 in his file.

Do you:

Advise him to send now with an excuse.

Advise to go the DFVC program route.

Advise not to file. When (if) the client gets contacted, tell him to say "Here's a copy of the return I filed".

Thanks

My fairly narrow question is this: What SEC rules/regulations govern E-mails and other electronic communications that are sent, received, and stored by TPAs in the daily valuation environment? Specifically:

· Security Requirements. When a TPA transmits an electronic communication that contains information on trades, what are the security requirements?

· Archive Requirements. When a TPA stores an electronic communication that contains information on trades, what are the archive requirements?

· Authentication Methods. What authentication methods must a TPA use to verify that an electronic communication came from a specific, valid source?

I am assuming that the TPA: Only serves as a recordkeeper; and, trades only through a trading partner. The rules/regulations I’m looking for are in addition to the IRS and DoL rules.

Thanks in advance for any insights!

A client made a QNEC during the first year of the plan (2002). They are on prior year testing in 2003, so does the QNEC that they made last year increase the NHCE percentages for this year's test?

If an employee's last check is in the new plan year, but terminated last day of previous year (usually vacation pay) and there is 401k/match taken from that check, how is it to be treated in the new year? Is the 401k/match to be considered in the ADP/ACP testing for the new year? Too late to back and change the prior year obviously. This this is true, for you Relius users, how should an employee be coded, Terminated or Cont to Participate?

Much Thanks!

The new HSAs cannot invest in life insurance contracts. Code § 223(d)(1)©. Are there group annuities out there that don't offer life insurance in which an HSA could be invested?

E/er has 401(k) plan which e/er said would be terminated as of 12/31/03. E/er wanted to set up safe harbor 401(k) effective 1/1/04 but did not want to amend the earlier 401(k) plan. Now e/er says that the old 401(k) was never terminated. Clearly there are operational issues with the old 401(k) if the e/er has not been following the plan document. Assuming a proper resolution to terminate was adopted, is there any way to address the "successor plan" issue in 98-52 in regards to setting up a new safe harbor 401(k) effective as of 7/1/04, e.g., set up new profit sharing plan effective 1/1/04 and then amend that PSP effective 7/1/04 to add safe harbor 401(k) provisions....??

If there is a calendar-year 401(k) plan in which the salary deferral contributions were limited to 15% for 2003, but by mistake amounts in excess of the 15% were deferred, would it be possible to retroactively amend the plan today but effective on Jan. 1, 2003 to increase the salary deferral limit to 75% for 2003?

I can't find anything that would prevent this. 411(d)(6) shouldn't apply. I assume there would be an operational failure for 2003, but if the retroactive amendment is made would that still be the case?

Hi there,

Quick survey: what does your financial institution/custodian typically do?

ER establishes SIMPLE IRA, ee establishes SIMPLE IRA at your institution. EE quits and closes account. ER sends in SIMPLE IRA deferral [on a timely basis] after the account has been closed.

What is your financial institution practice? Do you:

1. Reopen closed account, deposit funds, then close account & issue check?

2. Open new account, deposit funds, then close account & issue check?

3. Forward funds directly to ee? (If so, do you handle 1099R reporting)

4. Return funds to employer?

I am interested in anyone's input. thanks, jlg

I have a plan that is failing the ADP test. The client wants to know the refund amount. I was about to calculate the refund and the earnings, but after a discussion with a colleague, I now have the following question: Are the earnings to be calculated on the 401(k) monies only or each particpants total account balance including other money types. My opinion is to use only the 401(k) money type. My colleague think it should be total account balance. I checked the ERISA outline (Good Old Chapter 11) and it says that there is no definite answer, just be consistent. I still do not know which method to use.

Any help would be greatly appreciated.

Hypothetical: Joe Schmo is in two different 401(k) plans with two different recordkeepers. He exceeds his ED limit. Are there any rules or guidelines on where the excess deferral refund should come from? He is active in both plans.

I've printed off the PBGC website material about distress terminations. The material includes a note that the contributing sponsor(s) are liable to the PBGC under ERISA section 4062(b) for the total amount of unfunded benefit liabilities under the plan. It was my understanding that if the company has a negative net worth, the sponsor would not be liable for the unfunded liability. Is that correct?

The employer will be demonstating that the distress termination is necessary because otherwise it would not be able to stay in business due to the financial strain caused by the DB plan. Any pointers anyone can offer would be appreciated.

Has anybody had a situation where a CPA filed a client's tax return in March, but the cleint won't have the money to fund the retirement plan until the extension date? Apparently, the CPA didn't realize that the client didn't have the funds available now, so the return was filed. How would you fix that?

Has anyone experienced a situation where no test was done for 2002 because the plan had no highly compensated employees eligible? In 2003 the plan was amended to allow highly compensated employees to participate. Since no test was run during 2002, as the plan was deemed to pass, how should we handle the non-highly average for the 2003 test using the prior year testing method?

Okay - obviously this is a medical practice.

Plan Sponsor has pre-funded the contribution for the plan year for 6 groups and has specified the allocation for each group (it was specified by the plan sponsor on the check stub each time a deposit was made). Plan fails nondiscrimination testing based upon this specified allocation.

Is it permissible to reduce the allocation for a specific group or groups until the nondiscrimination testing passes and hold the amount of contribution not allocated for that specific group in suspense to be used for the next plan year?

415 and 404 are ok. I'm just concerned with the fact that each time a deposit was made, it was specified for each group.

Thanks!