My husband contributes 4% of his salary to a 401K, but the company doesn't match funds. I've been told that if your contributions to a 401K are not matched, that a Roth IRA is a better deal, since earnings are tax free and you don't pay any taxes on your withdraws. Our CPA, recommends that we continue to contribute to the 401K even though it's not matched and put extra retirement money towards a Spousal IRA or Roth IRA, for me and a Roth IRA, for my husband. My husband isn't qualified to do an IRA, because of his income and since he has a 401K. I'm wondering if our CPA is basing her recommendation for participating in the 401K from tax advantage, since the contributions are taken out of salary, before taxes. I'm wondering if a Roth IRA isn't a better deal, than a IRA, or a 401K that's not matched, because you won't pay any taxes on the Roth IRA when you take withdraws, where as you pay taxes on the amount of contributions and the earnings, 100%, when you withdraw from an IRA, or 401K.

1st employee would enter SEP 1/1/05. Would enter 401(k) 1/1/04.

3 owners have a SEP and want to have a 401(k) to max out.

In 2004 could they have a SH 401(k) and the SEP so that the employee would get only the 3% Safe Harbor Non-Elective to satisfy ADP & Top Heavy and then max out the owners in the SEP?

Thanks

What happens if the plan fails compensation test for excluded comp?

For 2003, on a Spousal IRA, is the full amount of the contribution, up to $3,000, deductible, when spouse is covered by a Retirement Plan at work, 401K?

The situation is as follows: A terminated employee, 100% vested in a 401(k) profit sharing plan wants to rollover their account to an IRA. The plan document says that "distributions will be made on the sixtieth day of the first plan year beginning after you terminate, or as soon as administratively practicable following that date".

The question: With all the new law is the plan document still legal? Is there a law requiring a plan to be timely or "as soon as administratively possible" on distribution and rollover requests from terminated employees? If the 401(k) plan is in a daily valuation environment, why would they not be able to cut checks more often than once a year?

I have been back and forth with this issue. This question has to do with the definition of restricted employee under 1.401(a)(4)-5(b).

Is it true that the "high 25" highly compensated employees and former employees are determined on a controlled group basis for purposes of this restriction? If true, then even if a plan is severely underfunded, the HCEs in the plan may still be able to take an unrestricted lump sum (that is, if the plan offers large lump sums) as long they are not part of the highest 25 within the controlled group?

Thanks.

Several of our large plans transferred their entire plan assets from Fidelity Investments to Manulife Financial during 2002. Is a custodian to custodian transfer considered when determining the 5% figure for line 4j?

The plan basically switched recordkeepers along with asset holder, are we required to report the transactions that were done to accomplish this?

Please help me--what does OPEB actually stand for? I'm working on a presentation and want to be sure.

Thanks so much!

A client with a Profit Sharing plan with about 25 participants is considering terminating his plan and shutting down his business. We are trying to help him keep his retirement plan money protected. I think he's going through some litigation of some sort. His son owns his own business, but our client would not be considered an employee and therefore couldn't roll his profit sharing money into his son's plan. Any ideas on how to keep his profit sharing money protected from litigation/creditors would be appreciated. Thanks.

A 60 year-old participant in a DB plan has been receiving annuity payments for the last 10 years after taking early retirement. The question is how to determine the maximum distributable benefit under the laws of the land under 2 different scenarios.

1 - The limiting factor is the dollar limit

2 - The limiting factor is the compensation limit

Specifically, are the past annuity payments subtracted in determining the figure?

If a participants terminates prior to retirement age, but leaves fully vested in a company's pension plan are those benefits protected and covered under PBCG in the event the plan is taken over?

I'm looking at a hardship request based on dire medical need and am concerned that if I tell the PA to obtain evidence of the need, it would contain personal medical information protected under HIPAA. Has anyone set up a structure to deal with these types of requests? I haven't been able to find much on the interplay between the hardship distribution rules and HIPAA privacy requirements. Anyone else encountered this before, and if so, can you point me in the right direction . . .

I have a client that would like to know what type of policies can be ran through a cafeteria plan. I have researched EBIA and Flex Answer Book and it does not cover the following; Cancer Expense Protection Policy, Intensive Care Policy, Hospital Confinement Policy, Specified Health Event Policy, Voluntary Life Insurance. Any help would be GREATLY appreciated!

I hear arguments on both sides as to whether the 2nd 1040 extension to 10/15 counts toward extending the contribution deadline for a PS plan. I know 1.404(a)-1( c ) says "extensions", but some folks are nervous because that gives sole proprietors one more month to fund than a December FYE corporation. Help! Thanks!

We have had several changes in our HR department and we are confused, who has the authority to approve withdrawal requests? Does it have to be a trustee? or can it be any of the authorized signers?

Thanks in advance for your help!

i'm looking for recommendations for a good seminar on HRA's. I need to attend one quickly. I will consider any geographical location.

If a participant takes a distribution due to an unforseen emergency must the participant suspend salary deferrals? If so, how long is the required suspension?

Cites would be helpful.

I have a question regarding receipts claimed on the medical reimbursement claim form. I have an employee who was charged a fee for no show/ late cancellation on an appointment. Has anyone seen this before and is this an allowable expense?

Any help would be appreciated.

May a 403(b) plan be set up as a 413© multiple employer plan?

Where is the IRS guidance for the following situation:

A non-union employee is eligible and participating in a qualified plan. He terminates employment and two months later is re-hired as a union employee at another division. As a union member, under plan terms, he is not eligible to participate in the plan.

Can he take a total distribution from the plan at any time now because he had a separation from service?

He had an loan outstanding at the time of his termination. If he does not take a distribution, am I obligated to resume withholding loan repayments from his pay?