ok, here is an attempted version at top heavy.

now that the 5 year lookback no longer applies it makes it a little easier.

I think (that is a debatable statement to start with), but I think I now have it set that anyone who "Key current year" > 1 will show as former key in all my calculations, but I might have missed one. It used to be set to >5 for the 5 year rule.

The last few plans I have run have matched Relius. There have been times in the past the numbers have differed a little, but not enough to make a difference in indicating if the plan was top heavy.

There is also a % indicating the top heavy % after elimnating the account balances of all terminees - sort of a crude projection for the following year.

This report does not include any in-service distributions.

I suppose that would be easy to use if they were entered as a user defined field in plan specs, but since I am lazy, etc I leave that to anyone who really wants to fool with the report.

Ineligibles do not show on the report, and ees with 0 balance do not show, so at the minimum this cuts down on the amount of paper vs the standard report that comes with the system.

Always compare results to Relius just to make sure of things. There could always be some things I missed in the totals that I don't come across often - e.g hardships and stuff like that. just never tested for everything.

Does anyone have a spreadsheet that can figure net earned income when you have 401(k), safe harbor match and an integrated profit sharing calculation. This is a parternship with 6 partners and 10 employees.

We have a volume submitter plan that was amended but not signed and submitted to the IRS by the January 30th deadline. One of the Trustees has been asked to sign the Plan and wants to know what, if any, risks might be there if the Trustee signs the document. Trustee is no longer with the Company but has not been removed or resigned(yet). The Company will need to deal with the issue of failing to adopt the plan on time and could still use EPCRS for this?(yes?)

If a 501 ©(6) organization wanted to provide an employer provided retirement benefit to one of its key executives, what would be the tax implication to the participant? Would the "promise to pay" be governed by section 457? Everything I read on section 457 plans describes deferrals by the participant. What are the tax implications to the executive from an employer provided defined beneift plan?

How do I code this in Relius?

Client A has a calendar year profit sharing plan. Client A has not made the profit sharing for 2002. However the client has claimed the deduction for 2002. What are the consequences of not depositing the profit sharing amount into the plan? How can it be corrected? Do you have to pay an excise tax? What is the time frame by which the profit sharing needs to be deposited?

Any help would be appreciated.

Thanks.

A deferred vested EE who attains age 70.5 in 2004 (RBD = 4/1/05) requests a rollover distribution to a new IRA to occur in March 2004.

Question 1? Since the 2004 RMD is technically not required to be taken until 2005, the plan can rollover the full benefit amount - not required to pay the RMD portion in cash?

Question? The Plan must still calculate the RMD for 2004 since it is based on Plan account balance as of 12/31/03 and communicate this to EE - so EE knows how much must be distributed from IRA in 2005 for 2004 (in addition to the EE's 2005 RMD).

Am I thinking correctly?

Thanks

I rarely deal with IRA's so I don't know a lot about them.... however, question has been asked from a smaller employer (w/terrible employee deferral average) as to how they can increase their (HCE) contributions for retirement. They are thinking an IRA (maybe a Roth?) but I cannot figure out what their limits would be for contributions. Obviously, for their 401K, they must pass the ADP/ACP test. They are not interested in changing their plan design (i.e. Safe Harbor).

Can anyone help me with the max contributions they could do for an IRA?

Thanks,

Rachel

A multiemployer health fund is funded by both employer and employee contributions. Employee contributions are deducted from the employee's wages via a payroll withholding authorization to the payroll department.

Can the employee be compelled to participate in the health plan?

If yes, can you point me to a law, case etc that will back this up?

Thanks.

Can someone give me the new limits for both deductible and non-deductible contributions into an IRA?

Any help would be great.

Thanks!

When calculating the maximum deduction, interest may only be credited to the end of the fiscal year. However, the full funding limit is calculated at the end of the plan year.

For example, a valuation date of 12/1 for a full plan year BUT the employer has a fiscal year of 12/31.

IF the full funding rules do not apply, the maximum deduction can be increased by interest for the 1 month.

What happens if they do apply - is there a problem because the full funding limit includes interest to the end of the plan year?? Does it have to be adjusted backwards??

Thank goodness OBRA goes away in 2004.

Speaking of 2004, are we now just stuck with old full funding limit (EAN in most cases) with a floor of the RPA???

Employer wants to establish cafeteria plan that would offer participants a choice between health insurance and a cash benefit. Employer wants to exclude from the plan any employees who are NOT covered under a spouse's health plan. Any problem with this? Thanks for your input.

Hello all, i have a few questions.

1.) Can you have a Simple 401(k) Plan and regular 401(k) Plan at the same time?

2.) If you have a 401(k) Plan established, can you rollover the Simple assets

3.) Can you just amend a Simple to become a regular 401(K) ? Or do you have to establish a new plan document all together?

Bottom line, I have a client who currently has a Simple 401(k) Plan, but they are making a lot of money now, and would like to start up a 401(k) Plan, so he can put away more money....I don't know the best plan of action of here?

Any thoughts?

Thanks

In a calendar year plan, is it possible to adopt an amendment on 3/15/04, 2-1/2 months after the end of the 2003 plan year, which substantially reduces future accruals (and requires a 204(h) notice) and recognize it in the 1/1/03 valuation?

Employee A is laid off in July and reports in Sept. that he is going on medical leave for an unknown amount of time. He is on workmans comp. He has not been on payroll since July and does not know when he will be able to return. He is asking to be terminated from the plan. Can he do this if he is on workmans comp? Thanks

does anyone know an ira "trustee" who will accomodate restricted stock? most brokerages, perhaps all, will only hold stock that is a "member" of the depositoy trust corp. would appreciate help.

does the irs have a list of rgistered trusties? thanks

1. Can an owner put a cap on the compensation used in determining the Profit Sharing contribution, that will only affect himself, even though they are using a standardized document that does not address this issue??

2. The vesting for matching contributions is restricted to a 3 year cliff, but can the Plan still allow a 5 year cliff on discretionary contributions?

Thanks!

A participant in a defined contribution plan has elected to receive $700 a month. She is eligible for a total distribution. She just prefers to do it this way rather than rolling to an IRA.

It's a series of substantially equal payments but not calculated on her life expectancy.

So which withholding rules apply? Is it the rules for periodic payments which are like withholding on wages, the 10% on non-periodic payments or 20%?

Is the specific type of situation discussed in the IRS Code? Reference?

Thanks!!

Under the post EGTRRA rules, we are to add back the in-service withdrawals that occured for the the determination year and the previous 4 years. This does not distinguish between Key and Non-Key, so I read this to mean you add back all in-service distributions for the period regardless of their status as key employee or non-key. Did I read this wrong? And is it still a grey area regarding ADP and ACP corrective distributions? I see where the IRS made a comment at the ASPA conference, but has there been any other clarification on this issue?

Thank you for submitting your responses.

Before I start, I have already referred the client to their attorney, I'm just looking for opinions. I have a 401(k) plan with 14 HCEs due deferral refunds due to a failing ADP test. I advised the client of the refund amounts (along with the QNEC amount - however, the client doesn't want to contribute the QNEC). A broker is telling the client that each HCE due this distribution can have the Employer put the refund in a deferred comp plan AND AVOID TAXATION. This just isn't possible according to all I have ever learned! These $ were already reported on the participant's W-2 forms as deferral, and FICA may have been withheld on some. Has anyone heard of this? Seems to me that if this were a way to avoid taxation on a failing test refund, it would have been all over Pension news in the 14 years I have been an administrator. All opinions welcome!