Is there a program for the 5500 EZ that is similar to the DFVC program?

Anyone taken over a one person plan that had never filed 5500 EZ's? He has had more than 100k in the plan since day 1 since it has rollover money in it.

Our company has a formal tuition reimbursement policy that includes graduate work. However, associates seeking a graduate degree must also obtain executive management committee approval. We are looking for common practices for master degree approvals from other employers.

Does your organization reimburse master's programs under its tuition policy? If so, is the eligibility criteria the same as for bachelors or are other factors considered, such as tenure, job performance or career growth potential? Is the maximum annual benefit higher than for undergraduate programs?

When the FSA Administrative fees are paid by the employer, can the cost be charged to the employee withholding account? Or do the accounting records have to somehow reflect that only forfeitures were used to pay the admin. expenses?

Does anyone have any information on if it is still allowed in plan documents to have a "bad boy clause"?

I am looking for software that is relatively simple to do proposals for cross tested plans. Any recommendations? I appreciate all input.

I'm working on testing, etc. for a controlled group and would appreciate any input on the following controlled group testing/allocation issues:

Company 1 PS Plan - Covers only salaried employees

Company 1 401(k) PS Plan - Covers all employees

Only NHCE's get Non-Elective

Non uniform PS allocation formula. %'s differ per division

Company 2 401(k) PS Plan

100% owned by Company 1

Uniform PS allocation formula within plan

Company 3 401(k) PS Plan

100% owned by Company 1

Uniform PS allocation within plan

Coverage Test - can run per plan using the whole population as denominator. If one plan fails with this method, an Average Benefits test on the whole group of plans would need to be performed.

ADP/ACP Test - can run per plan if Coverage tests pass the same way, otherwise all plans need to be combined for ADP and ACP testing.

Non-Uniform PS allocation for Company 1 - A rate group test, for this plan only, would need to be performed since the allocation rates are not uniform. Since this portion of the plan only benefits NHCE's, wouldn't this automatically pass or would the other plans need to be considered due to controll group issues?

Thanks!

Laurie

Is there a specific time requirement within which an employer has to forward payroll deducted amounts for repayment of a loan from a participant's 401(k) account? The employee reports that the repayment amount is taken out of each pay check but that it is not forwarded to the plan administrator for weeks making the posting of the repayments several pay periods behind.

Thanks for your help.

looking at a plan where the owner died in 1998. Daughter becomes eligible to participate in the plan in 1999. She had no actual ownership since her date of participation but was included as hce due to attribution. She will acquire no ownership of the company until 2005. The current administrator is showing her to be in the hce group which I know is not valid based upon her current ownership (0) and her wages are not in the hce classification range.

the adp test is using her to pass the tests because she isn't deferring. moving her into the nhce group will fail the test in the first year she is being considered a former key employee.

My question is when did she become a former key employee? 2001?

If this plan has been using prior year testing what year did she fall into the nhce group, 2001 or 2002?

The plan has not been updated for gust or egttra yet either.

Is there a minimum age to be in a DB plan in the 1970 & 1980s? Any legislation? Or was is just based on the plan rules?

A client desired to install a 401(k) plan effective January 1, 2003 (the plan year will be the calendar year). This is a new plan and the client's only plan. The client consulted with "Attorney A" in November 2002. Consistent with the client's wishes, Attorney A prepared a deferral election form which the client passed out to all of its employees in late November 2002 (the plan provided for immediate eligibility). A trust account was established and participant's began making elective deferral contributions shortly after January 1, 2003. Attorney A told the client that the plan document does not need to be completed or signed until December 31, 2003. Since then the plan document has been completed and was signed by the client on September 3, 2003. Another attorney, "Attorney B", just reviewed the client's 401(k) plan. Attorney B asserts that a 401(k) feature cannot be retroactively installed and that all of the deferrals made by participants between January 1, 2003, and September 3, 2003, are impermissible deferrals. Attorney A, on the other hand, asserts that there is no problem with any of the 2003 deferrals since the 401(k) plan was signed no later than December 31, 2003, and is retroactive to January 1, 2003. Can anyone help me figure out whether Attorney A or Attorney B is correct? Thanks.

We did a number of involuntary cash-outs (accounts < $5,000) in 2001. As it turned out two of our participants had bad addresses. It was not discovered that they never received their checks until 2002. The checks were never cashed; we stopped payment and reissued them in 2002. We are thinking there's no constructive receipt here (they didn't expect these checks).

Of course the 1099Rs reflect withholding and distribution in 2001 so the IRS is now saying they made ineligible rollovers. One of the participants put in his own money to make up for the withholding.

Our payroll says they will reissue a 1009R for 2001 showing only the withholding and a 1099R in 2002 showing only the distribution. This puts the participant who put in his own money in the position of making an ineligible roll of the amount equal to the withholding.

I wonder if this would qualify under Rev. Proc. 2003-16 for waiver of the 60-day rollover requirement .

Or, does the IRS prefer that the amended 1099R be handled differently ? We are not sure about showing the withholding in 2002 since it actually went to the IRS in 2001.

Surely this has to happen in other companies. What's the best way to handle this?

I've asked this under 401(k) board, but its more of a document question. so I will ask it here.

I've got a Parent/subsidiary controlled group. Two employers A & B; each maintain its own Plan. B can't pass coverage on its own, so we aggregate. Now here is my problem, since I aggregate for coverage, I've got to aggregate for ADP/ACP. A uses current year testing; B uses prior year testing. Can B retroactively be amended to use current year?

B has already amended for GUST, but I am hoping that since we are still within the remedial amendment period that its permissable to do that retroactivce amendment.

Taxpayer maintains a mutual fund IRA account and names a trust as beneficiary. The trust provides that part of the trust will be paid to several charities and part will be paid to a friend. After the death of taxpayer, can the friend take a distribution from the trust over his or her life expectancy provided that the distributions to the charities are made shortly after death? Or would the beneficiary designation have to be rewritten to provide for two trusts as beneficiaries, one trust with the charities and one with the friend as beneficiary (with no other nonperson as contingent beneficiary)?

Can anyone provide a good reference for Master Trust filing instructions?

X corp is owned equally by 25 shareholders. Y LLC is owned equally by the same 25 shareholders. The way I read the regs this is not a controlled group. However, if X owned 100% of y, it would be a controlled group. Am I missing something? I would like for the first example to be a controlled group so I can file a 5307 instead of a 5300. If I get a letter for both companies, the user fee is $700 for the 5300 as compared to $125 for the 5307. Any thoughts?

Does anyone know what the process and tax results would be if a VEBA becomes disqualified ? Would the employer receive back any money from the VEBA or would VEBA proceeds be distributed to the actual participants. What would be the tax results (if any) ?

Client sponsors a cafeteria plan under which health insurance premiums are covered. The insurance company raised its rates last year. Employer did not increase the amount of salary reduction to reflect the increase in premium. Therefore, the employee had to pay approximately $1,100 after taxes. Can the employee write a check to the employer for the $1,100 for the increase and still have it considered as "before taxes". (I would think not.)

Should the employer just increase the amount of current salary reduction to cover the amount of the difference for the rest of this year?

I'm hoping someone can help me. I'm brand new to the DB world and have a tax question:

Is the lump sum portion earned after January 1, 1994 of a distribution subject to Social Security and Medicare taxes?

I know the answer is here somewhere--I just can't find it!

Thanks in advance!

I could use some help with this one.....

Company A is owned 100% by Husband. Wife and son both work there. Husband get a divorce from wife and she continues working at Company A (why, I do not know) with son and ex-husband. Is she a highly comp employee after the divorce???

Any help would be appreciated.....

Carson

Here are the questions I have regarding assumptions used by multiemployer pension plans when they determine employer withdrawal liability.

1. How are the interest and mortality assumptions chosen? Is the interest rate generally tied to some index so that it "floats" as interest rates float? Or are interest rates fixed and changed periodically to reflect the current interest climate? I would suspect that the mortality table is fixed and changed periodically as needed, but would like imput on that also. Are the assumptions used to determine withdrawal liability typically put in the plan document?

2. What value of assets is typically used to determine the value of unfunded vested benefits? Market value or the actuarial value used to fund the plan?

Thanks for any help you can offer!