If a split dollar arrangement is an ERISA welfare plan, does this mean that there must be a SPD? I do not recall having seen a split dollar arrangement that had a SPD or that incorporated the SPD requirements into the agreement itself, but I wanted to get folks thoughts on this. Put another way, is there an exemption to all or some of the SPD content requirements for a split dollar arrangement that constitutes an ERISA welfare plan?

Thanks!

Reportable compensation is used in determining 401(k) deferrals.

For corporations, it is W-2 compensation. S-Corp. distributions are not includable.

For partners in a partnership, it is K-1 earned income. Unearned income (such as interest, dividends, royalties, etc.) are not includable.

For a sole proprietor, it is Schedule C income.

My question involves payments, (to an LLC), that are due on a quarterly basis but are not actually paid (due to exigencies of business anticipated by all parties to the contract) until year's end. These payments are guaranteed and part of the K-1 earned income. My question is, can these guaranteed payment amounts be used as compensation basis for 401(k) deferrals throughout the calendar year or must the LLC partners base there deferrals on the k-1 compensation when it's actually paid at yearend?

An employer sponsors a money purchase pension plan (volume submitter), which it amended and restated for GUST on September 30, 2003. The MPPP is a calendar year plan. The employer would like to terminate the plan as of 12/31/03 and then apply for a determination letter speaking to the termination and the GUST amendment prior to the deadline for submitting for a GUST determination letter of January 31, 2004. Pending the receipt of a favorable determination letter, the employees would start rolling their funds out of the plan as soon as is administratively feasible. Subsequently, the employer would file a final Form 5500 for 2004 (short plan year).

When does the employer need to issue ERISA 204(h) Notices to Plan participants? Is the plan really terminated as of 12/31/03 because there are consent minutes of directors saying that the termination of the Plan is effective as of that date and that the employer won't make any further contributions? Or is the "termination" effective when all of the participants funds are rolled out of the plan? Appreciate that there are no employees who will qualify for a contribution in 2004 (end of the year requirement).

1. Did MSAs survive?

2. If yes, better to be MSA (grandfather now if necessary?) or HSA?

3. If you're an S Corp, is answer affected?

I am searching for regarding fiduciary liability and imprudent investment decisions. Specifically, a one-fund dc plan has a "satisfactory" rate of return over its life or any certain long-term period, but for one year, the assets tanked.

Any help in pointing me towards citations about whether the plan's rate of return and investment policy can be looked at over time, or whether the one calendar year can be disassociated from the rest, would be appreciated.

Is a plan sponsor required to give ERISA 204(h) notices to participants in connection with the termination of a profit sharing plan? What if a money purchase pension plan was merged into the profit sharing plan at some time prior?

I have a question about withdraw of principal from my Roth IRA for Higher Education.

I have a 13yr old daughter that we enrolled in Sylvan Learning Center for additional tutoring for school. Would this be considered Higher Education?

Sylvan has an accreditation by the Commission on International and Trans-Regional Accreditaion. (CITA).

Thanks!

The only wording in Reg 1.414©-4(b)(6) and Sec 1563(e)(5) addresses grandchildren and grandparents. Can't find anything that addresses "great" grandchildren or "great" grandparents.

Has anyone ever encountered this situation?

Company A has a profit sharing plan. Company B decides to adopt Company A's profit sharing plan. Therefore, both A & B are depositing employer contributions into one account, filing 1 5500, but 2 separate corporate tax returns......is this considered a multi-employer plan????? I don't know what to do about marking the 5500???

Thanks.

If my spouse is benefitting in a QP, am I also considered to be benefitting for purposes of making a deductible IRA contribution? Our income is over the phase out limits.

Also, is she considered benefitting if she is only receiving an accrual in a DB plan?

Thanks.

The Rev. Proc. that included the IRS model "good-faith" language for deemed IRAs states the Trustee signing the amendment must be a Trustee authorized to be an IRA trustee. Does this means the trustee must be a bank or other financial institution that has received approval to be an IRA trustee ?? if true, and given most of our clients are small clients with self-trusteed plans, are deemed IRA likely to be attractive to these small clients ? Could they have a bank be the trustee for the deemed IRA account(s) and still self-trustee the other qualified plan accounts ? I'm just trying to see if the logistics and restrctions are worth the trouble for small clients. Thanks for any input.

I know I'm just not seeing it, but if the ER has made the top paid group election for determining HCE status, how do I get Quantech to use this when running ADP/ACP test?

New solo 401k plan... SE individual establishing the plan... When does he (she) have to have the deferral contribution paid to the newly established trust?

As-soon-as administrativly possible?

Within 15 days of the year end? (Jan 15)

Schedule C filers may not know exactly what they have for income before year end.

When Congress wrote into the Social Security Act that States cannot receive federal Medicaid funds unless they have laws that require an insurer to enroll children under a parent's health insurance regardless if the child lives with the parent or is claimed on a parent's tax return, was that meant to only apply when enrolling a child due to a QMCSO? Or are health insurance plans not to have those eligibilty requirements for any child?

Corporation sponsors a SEP which only covers the owner since the other employees are not yet eligible. Corporation makes contributions for 2000, 2001, and 2002 which comply with all legal limits (i.e., no excess contributions). Now the corporation is saying they never took the deductions for the contributions and they want the contributions refunded to the corporation.

Can otherwise legally allowable contributions be returned to the sponsor if the sponsor later changes its mind? If so, how are gains/losses treated?

If a cross-tested top heavy 401(k) plan has 2 yr eligibility for the PS, but 1 YOS for the 401(k) and top heavy, do the 401(k) only people need to get the gateway even though they are not eligible for the profit sharing? I am slightly confused on this. It would seem no, but since they are not otherwise exludable and are benefitting under the ER contribution, my mind keeps saying maybe yes. Any help is greatly appreciated.

Many thanks

I have a client who makes its matching contribution quarterly. They haven't had a good 4th quarter and want to not make a 4th quarter match. The match is discretionary, but they feel obligated to notify participants that no match will be made. Is there any sample language out there?

Thanks!

We have been appointed Agent of Record for a new client; in completing our initial research of their retirement program several issues arose.

1) 5500 has not been filed since 1999

2) No amendments or updates have been prepared for the plan document since 1999

3) No testing has been completed since 1999

As you can see everything revolves around 1999, this client was in a TPA environment and thought they had changed to be fully bundled with the provider. The TPA has a notice terminating their service in 1999 but the plan was never converted to be fully bundled (i.e. testing, 5500, plan doc) with the provider (who was also the provider in the TPA environment).

Has anyone ever experienced this type of blunder and can shed any light on how bad the IRS is going to whack them for fees? Once the details have been identified where do you start with the corrections? Can I assume the plan is now in a non-qualified status?

I know we can't but I'll ask the question anyway: Can we simply amend the plan to be compliant with the latest and greatest rules and hope for the best when we submit this year 5500?

Any help you can offer would be great.

Hopeless in pension land!

Suppose GroupA is to receive a 40k ps allocation. Joe Smith, a partner is group A doesn't want to reduce his income for the contribution, so he elects $0, or 20k.

Can a partner in Group a elect a different amount?