Employer's fiscal year is May 1, 2003 through April 30, 2004. They sponsor a calendar year 401(k) plan (January 1, 2003 through December 31, 2003). What is the due date for depositing the top heavy and profit sharing contribution? Thank you.

While it's fun to communicate online, it's also nice to actually meet people face to face [at least once in a while ].

Since many of us will be at the Enrolled Actuaries Meeting, let's plan to meet at the bar in the hotel lobby on Monday afternoon right after the end of the sessions. No need to RSVP, just show up!

Dear Carol,

What are the chances of this bill becoming law this legislative session?

Thanks,

Joel L. Frank

I've seen this twice in the last two weeks, and I don't understand it. You have a LLC, taxed as a partnership. But the 2 "partners" are reporting income from the LLC both on W-2 and on a K-1. Can somebody explain to me how this works, or even if it is possible? I'd have said that if you are being taxed as a partnership, then all income would be K-1.

Is what they are doing correct? Anybody else dealt with this issue? Thanks!

Situation:

Allen and Barbara are each 50% owners of Company A&B. Barbara's daughter Claire works for the company as well.

In 1990 Allen and Barbara each sell 15% to the ESOP and elect 1042 on their sale. Since Allen and Barbara (and Claire by attribution) were 25% shareholders at the time of the transaction they can never share in the allocation of shares from loan #1.

In 2001 Barbara retires and sells her remaining 35% to the ESOP (Loan #2). She does not make a 1042 election this time. Thus, Allen and Claire can share in the allocation of these shares.

In 2005 Allen is planning on selling his remaining 35% and electing 1042 (loan #3). As was the case with Loan #1 Allen is a 25% shareholder and will never be allowed to share in the allocation of these shares.

Question:

Can Claire share in the allocation of the shares from Loan #3?

Is a car allowance included for compensation purposes under code 3401(a) and 415 compensation?

Can someone please clarify when it is okay to reamortize a loan and when a refinance is needed?

For some reason I always thought that you could only reamortize to change payment frequency, but now I am being told that I am wrong....Which is very possible.

Plan Sponsor discovers that 2 loan payments (in 2003) were deducted from Participant A's pay, but submited to recordkeeper under Participant B's SS#. Recordkeeper most likely returned the payments because Participant B did not have an outstanding loan.

Is this a prohibited transaction since money was withheld from Participant A's pay, but not deposited into his account? How would you correct? Have the Plan Sponsor submit the loan payments for Participant A along with earnings? Would they have to report this to the DOL, or is submiting the payment and earnings enough?

Thanks

Is third party sick pay included as "compensation" when determining the employer contribution for the plan year?

Can an employee make deferrals from third party sick pay?

Bottom line: Is third party sick pay included when determining an employee's compensation for the year?

Thanks!

Testing the Profit Sharing Contribution under a 401(k) Profit Sharing Plan using cross testing, is it permitted to impute permitted disparity or does the 401(k) feature prohibit this?

I am currently in the market for a KSOP record keeping system. Anyone have any experience with this company and its software?

a 401(k) plan has immediate entry. there is a participant who never has 1,000 hours in a plan year, yet he participates. Can I put him in the "otherwise excludable" group for ADP testing even though he's been employed for several years?

Should the participant and or trustee complete a rollover form (other than a beneficiary and/or fund election form if a new account or a service provider form if applicable) when a participant rolls into a plan? Thoughts????

If a 100% owner and his spouse (who is an employee of the corp.) are divorced during the current year, is the spouse considered an hce for the current year? I would think so, because even though the stock attribution rule no longer apply after the divorce, they did apply before the divorce.

When does stock attribution no longer apply after a decree of divorce?

Client has employee who participates in dependent care 125 plan. Wife of employee (who does not work for same employer) is on maternity leave. Couple decides to keep kids at home during maternity leave, thereby no daycare costs are incurred during leave.

Employee continues to work for employer full time during leave.

TPA for cafeteria plan has advised employer that ee must cease dependent care deferrals during time wife is on leave because there is a requirement that dependent care deferrals take place during same time daycare costs are incurred.

Does anyone know of any reg or other documentation which supports this interpretation?

I believe TPA is incorrect.

A guy dies

He is not married

He has a Trust as the beneficiary

Can the full value of the account be rolled to the Trust with no withholding (since, as there is no spouse, the benefit cannot be rolled over)?

What if he is married and has a Trust as a beneficiary? Since it could be rolled over are taxes required to be withheld?

Thanks

As inducement to leave employment, employer promised small number of employees certain benefit features under plan that plan document does not provide for. If employees leave employment b/c of such promise, can the plan make such benefit features available? Could the promise be considered a de facto amendment available only to those employees induced to leave employment?

Participant made excess contribution over the 2003 $12,000 limit. Contribution and earnings refunded by March 15. Form 1099-R for 2003 prepared for excess contribution. Form 1099-R will be prepared for excess earnings for 2004. Does Form 1096 have to be filed by March 1, 2004 for the Form 1099-R for the 2003 Form 1099-R?

Does anyone have any information about accountable plans? For instance I have a client that wants to reimburse his employees for tools. Do i need a document? What are the filing requirements, etc.

Company A acquires Company B in a merger April 1. All employees of Company B will be employees of Company A and integrated into A's payroll system on July 1. Company A has a flexible spending account (FSA) with a limit of $2,500. Company B's FSA limit is $5,000. Does the $5,000 limit have to be preserved for Company B employees when they are integrated into Company A's plan a based on two senarios: 1 - If Company B's plan merges with Company A's plan or 2- The employees of Company B are terminated as of the effective date of the sale.