A participant who died earlier in 2003 with her daughter as sole designated beneficiary had deferred her RBD for RMDs. Can she use the Uniform Life Table or does the Single Life Table have to be used with the daughter's life expectancy?? Thanks.

Here are some situations that I would appreciate clarified:

A. Safe harbor 3% plan with cross tested profit sharing ( owner getting 20% allocation and employees getting 5% ( 3% safe harbor plus 2% PS ). An employee enters 7/1/03 on a 12/31/03 plan year end. The plan is top heavy. What compensation period do they pay on and what %?

B. Same as A. above but not top heavy.

C. Same as A. above but no profit sharing contribution this year.

D. Same as A but an active participant terminates 6/1/03 with 900 hours ans the plan has a last day / 100 hour rule. Since he gats the 3% safe harbor up to 6/1/03 does he also get 2% gateway minimum ?

Thank You

Is a child (over age 21) of a majority owner considered a majority owner through attribution for PBGC purposes? Can they waive benefits?

We've got a whole bunch of multi-life profit sharing plans sponsored by sole props and partnerships being amended at this time to 401(k) and safe harbor 401(k) plans effective January 1, 2003. The rank-and-file, if they want to and can defer, really only have one or two payrolls left in 2003 in which to do so. But the self-employeds have all of 2003 on which to base their deferrals. To me, this seems inherently discriminatory, and I'm wondering if these types of amendments run afoul of BRF.

Could anyone tell me in relatively plain English what 1.417(a)(3)-1©(2)(i)(B) means when it provides for "Stating the amount of the annuity that is the actuarial equivalent of the optional form of benefit and that is payable at the same time and under the same conditions as the QJSA." They don't seem to provide an example of this approach. Thanks!

A participant from one of our clients requested a loan. He had an

outstanding loan balance of $27,000 in December of 2002, the loan was then

paid off in March 2003. The participant then took another loan in April of

2003 for $13,000. Now he is requesting another loan and the amount being

calculated is being reduced by both highest outstanding balances

($27,000+$13,000 = $40,000) in the last year. Is this correct? Or should

the amount be reduced by only the highest outstanding balance ($27,000)?

How do we address this issue?

My one HCE is 71, accruing the 415 max, and this is a new Plan. Can I consider my HCE's accrual rate to be 8% at a testing age of 65, even though his benefit is much higher, as a percentage of pay, due to the post-age-65 actuarial increase in the 415b limit? The actual accrual rate for him is 32000/200000 = 16%.

Any good design ideas to maximize efficiencies with a 71-year old owner and a 40 year old employee?

Hi,

I am currently working as a temporary employee with a company since March 2003 on W2 basis without benefits.

I am not eligible to participate in the company's 401K program, due to temporary employee status.

I would like to set aside pre tax retirement savings out of my 2003 year income.

How do i go about this ?

Please suggest a pre-tax retirement savings plan i could participate in and invest a maximum amount (IRA or Individual 401k or SEP or any other) ?

Thanks

Raj

Employer has maintained a MPPP with a 25% formula. Contributed 25% for PYE 8/31/03. Effective 9/1/03, employer wants to "amend" MPPP to a PSP. 401(k) deferrals will also be allowed effective 1/1/04. Participants will get 204(h) Notice about change. Can employer adopt the 401(k)PSP as a restatement of the MPPP -- i.e., no final 5500, no new trust ID, no new Plan #?

A Client with a SIMPLE IRA has a fiscal year ending 9/30/02. The elective contribution for the owner was made in Feb of 2003. Can that contribution be deducted for the fiscal year ending 9/30/02 or must it be deducted for the fiscal year ending 9/30/03?? Thanks.

Participant is not a 5% owner and is still actively employed. He took RMDs in 2001 and 2002. He decides he no longer wishes to take RMDs. Can he discontinue the payments? Here is my logic (or lack of): (Assume plan allows participant to begin RMDs when he hits 70 1/2. Also assume plan allows 59 1/2 withdrawals.) Participant techinically has not hit his required beginning date because he has not retired and is not a 5% owner. Could we classify the 2001 and 2002 payments as 59 1/2 withdrawals and not issue him any additional payments until he retires from the company?.

Thanks for you help.

Could someone please tell me what happens to a 403(b) when the employer no longer qualifies as a 501©(3) org? Is there some sort of termination process? Is the loss of 501©(3) status a distributable event for the employees? Would a direct transfer to the employer's newly adopted 401(k) be permitted? Can the 403(b) accounts be maintained by the employees indefinitely? Any help would be appreciated. Thanks!

If a profit sharing plan does not have a last day or hours requirement, is it still possible to change the number of groups listed in the plan document?

how do you handle people on H1B1 visa's. I think they are resident aliens which means they must be excluded under another classification besides the stautory nonresident alien exclusion.

I know of a greater than 2% owner of an S-corp who running his insurance premiums through an affiliated employer's 125 plan. He is a non-owner employee of that employer. I do not know if both employers are covered under the same

plan or if they each have a separate document. On the surface I am uneasy with this arrangement but cannot find any documentation that would dispute this strategy.

Does anyone know of issues that I should be concerned with?

HELLO! I DONT KNOW A LOT ABOUT 401K AND I HAVE 1 BUT IT ONLY HAS ABOUT 100.00 DOLLARS IN IT FROM A OLD JOB .I HAVE A NEW JOB NOW AND I CAN;T START THE 401K UNTILL MARCH. I DONT KNOW IF IT IS A ROTH OR NOT ?I WOOD LIKE TO KNOW CAN I HAVE TWO 401KS' IF SO SHOUD I BE PUTING MONEY IN TO THE OLD ONE UNTILL I CAN DO THE OTHER ONE. NEED HELP WITH ALL THIS 401K STUFF...... THANK YOU

are involuntary cashouts allowed in 403b plans?

does anyone have any sample language for an RIA service agreement for participant directed plans?

X sponsors a cafeteria plan for its employees. Employees who are regularly scheduled to work 1,000 hours or more are eligible to participate in most coverages as of the first day of the month after they complete 30 days of employment. Employees who almost never complete 1,000 hours, must first complete 1,000 hours to be eligible. A was a part time employee who first completed 1,000 hours in 2000. However, A was improperly not permitted to participate in the plan. A became a full-time employee in 2003. What can X do to correct this situation back to 2000? X's cafeteria plan has default coverages for new employees failing to enroll and a default for existing participants who fail to enroll for the following year. Although pre-tax premiums are not available, can X charge A for his/her share of the premium on an after-tax basis for 2000-2002? Your input on this would be most appreciated.

I have been reading quite a bit information on asset allocation, and all I have read so far talks about dividing among large cap, large cap value, small cap, small cap value, and foreign funds and so on. Does that mean one should skip mid cap funds? Reason I'm asking is that my 401K plan has mid cap fund in it.

should mid cap funds be avoided? Thanks.