A participant had a 401k loan with a previous employer and wants to roll it over into the new employer's plan. Does the participant need to rollover enough cash to collateralize the loan?

Example: Account balance is $30,000 ($15,000 in cash and $15,000 loan) Can the participant rollover the $15,000 loan balance to the new plan and then only rollover $5,000 in cash?

Any thoughts, ideas, cites are appreciated.

Here is my situation. Client is a family owned S corp with only two family member employees, both of whom are highly compensated. Goal is to provide an ESOP, but the ESOP would be subject to the 50% excise tax under Code Section 4979A. This is a shot in the dark, but is there anything out there that would exempt this ESOP from the excise tax given that ALL employees are highly compensated? TIA

Is there any prohibition that prevents an erisa plan from having a portfolio based solely on the purchase and sale of options and futures?

extension of credit issue?

leverage risk issue?

loan isse?

its totally ok?

We administer COBRA for a large national client and we receive the QE information via an electronic file.

Originally, the plan was set up that all employees are covered through the end of the month in which the qualifying event occurs. We recently discovered that the benefit term date as an active employee can be different between participants. Some participants' active coverage is starts mid month. Unfortunately, we set our administration system up based on the original logic (everyone covered through the end of the month).

The good news is that we discovered it. The bad news is that some Qualified Beneficiaries were notified in the Election Notice that they were covered through the end of the month, when in fact the coverage terminated the day after their qualifying event. Some of these participants incurred expenses between their QE date and the date printed on the election notice (i.e., last day of the month in which the qualifying event occurred).

I need to determine how we should handle this situation. We start by making sure that all future dates are accurate. However, I cannot find any guidance in the regulations or in the publications we subscribe to that addresses how to handle this situation.

Does anyone have any suggestions? Thanks for your help

Can someone tell me if there is a required limit of time in which a former employer must provide written notification of a deferred vested pension benefit following the employment termination date?

The plan provides that the plan administrator may forfeit a missing participant's account balance after reasonable time and effort spent trying to locate the participant.

What is considered reasonable time? Where can I find guidance on this issue?

Thanks

Where in the regs does it say that pre 87 distributions from after tax can be taken from principle first and then from the earnings, whereas post 86 has to be taken pro rata between principle and earnings?

Does anyone have a clear definition of what makes a plan fall under the guidelines of ERISA? The new HIPAA privacy guidelines state that an employer may be a covered entity if they fall under the ERISA guidelines. Does the fact that an employer deducts their employees' premiums on a pre-tax basis make their plans an ERISA plan?

Employer sponsors two (non-multiemployer) profit sharing plans. The plans are required to be aggregated and are top heavy. The employer also contributes to a number of different collectively bargained plans. I believe the multiemployer plans can be permissively aggregated with the two profit sharing plans for top heavy determination IF contributions or benefits under the multiemployer plans are comparable to the contributions or benefits provided under the other two plans (1.416-1, Question T-8). The employer says that benefits/contributions under the collectively bargained plans are MORE than under the profit sharing plan. Do you think I can permissively aggregate? Since the contributions cover different populations (pipe fitters, plumbers, etc), it would be a project to actually gather the balances to include in the top heavy test. Any suggestions?

I appreciate your input!

A participant died and willed his 401k benefit to a friend. The friend subsequently died and left no will. At the time of the friend's death, she had 3 surviving children and a grandchild of the a deceased child who predeceased the parent. The "Affidavit of Heirship" includes the 4 children as heirs (3 living and 1 deceased) and the one grandchild. If their is no designated beneficiary for the pension plan (i.e. just the estate), should the plan administrator rely on the "Affidavit of Heirship" in allocating the pension?

Thanks

When considering the max amount for a 401k loan, I know that you take into consideration the highest outstanding loan "balance" in the past 12 mos. My systems uses the highest principle and interest balance in the last year, but I thought it was just the principle that counted.

Which is it? And do the regs anywhere define what a loan "balance" is? I just know the client will be wanting it explicitly spelled out.

We are a self-insured "Health Plan" HIPAA Privacy Rules requires Health Plan to account for uses and disclosures of PHI not related to TPO, or related to a signed authorization. Has anyone develop a list of situations that would require to be accounted for in a log?

We have just converted from a SIMPLE retirement plan that ended in 2002 and have started a 401K plan for 2003. The owner of the company has a partner and we have an S-Corp. They are treated as employees and draw a paycheck, but they also take cash disbursements and receive K-1 forms at the end of the year on that income. Does anyone know if the 401K money that they want to defer MUST be run through payroll, or can they just take it out of their cash disbursement money which avoids FICA and unemployment taxes? Thanks for your help. One partner wants to defer the full 14,000.00 at this time.

Does anybody have a sample suspension of benefits notice (i.e. for employees working beyond normal retirement age) or know where I can find one?

I am filing for a Determination Letter for an Age Weighted Profit Sharing Plan. We used one of Corbel's volume submitter plans and made so significant modifications. The plan has to pass the General Non-Discrimination test each year. Do I have to file a Schedule Q or not. I have read different opinions and am confused.

i have a client that is a sole proprietor. he has set up a 401(k)/ps plan for 2002-he is the only participant. he os over 50. can he contribute $12,000 in deferrals as well as make a 25% profit sharing contribution using his sch c info? if so, do you take deferrals out of sch c figure when calculating the 25% ps contrib? sch c info is approx $91,000 (line 31). we have mixed opinions in my office and cannot find any answers in our resources....

thanks for any help.

Hi:

I made excessive contribution to Roth IRA in 2001. Instead of 2000$ max I put in 4000$. I removed excess contribution in December, 2002. How do I report this (penalty etc.) to IRS.

which form should I use?

thanks,

M D

I am planning to open an Roth IRA accounts. But I don't know what financial Institute offer this service. Would you please advice

Thanks

7777

My kid is going to college and I'm looking for ways to fund it. I've got a regular IRA with a LOT of money in it and a Roth IRA with a little money in it.

Can I use the funds in my regular IRA to pay for college and not have to pay taxes on the $?

Can I use the funds in my Roth IRA to pay for college and not have to pay taxes on the $? Does the 5 year rule apply?

Can I convert funds from my IRA to my Roth and then withdraw them from the Roth to pay college costs?

Thanks

I am pretty confused on the procedure. A 2002 adp distribution completed by 3/15/03 is taxable in 2002, correct?

The 1099 for the 2002 excess would show a distribution code of P and be issued in 2004?

Since the distribution is taxable in the prior year, does the 1099 suggest that the recipient of these distributions amend their 2002 individual tax returns?

The distribution company erronously withheld 20%. Does this need correcting?