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?

Can an employee who has a Solo 401k with compensation of $112,000 receive a total contribution of $40,000 for 2003?

$112,000 x 25% = $28,000

Maximum 401k = $12,000

Thanks.

Our company is considering changing our plan provisions to terminate

all dependents upon reaching age 19 regardless of full time student status

or disability. We are a self-funded plan subject to ERISA. Are there any

issues with this? We would of course offer them COBRA upon attainment

of their limiting age.

I only deal with this situation about once a decade. The retired employee was receiving RMD, dies. In year of death, do you calculate using her life expectancy or that of her designated beneficiary (assuming DB is younger)?

When there is an ADP test failure and excess contributions are returned, generally it is after the Plan Year ends, the correcting distributions are made and 1099's issued.

However, if it is determined that the ADP test will fail prior to the end of the year, but deferrals have already been made, is it possible to handle this in a different way? For instance, since the contributions could be returned before the end of the year, is it possible to return to funds to employer as a mistake-of-fact and thereby not have to issue a 1099? The funds would then be given to the HCE's and their W-2's adjusted accordingly. It seems "cleaner" for the HCE, but is something like this allowable or do you have use the actual excess contribution rules no matter when the money is refunded?

Thanks.

BTH

I have a companies 401(k) plan. There currently is no match and no profit sharing contributions. They own a company based outside the United States. That company has a 401(k) plan in Europe. (Or whatever a 401(k) plan is called in Europe). The company currently puts money into the plan in Europe. My main question, is the company discriminating its employees in the U.S.? If so, how can it be corrected?

Also, this is a controlled group. Would Top Heavy and 410B need to include the employees in Europe?

Let me know your thoughts. Thanks....

An employee of ours only sees a N.D. physician. This physician is licensed, however, not covered by health insurance companies. Are visits to this N.D. covered under the Section 125?

Has anyone else run into this situation?