Given that the plan document states: "Plan benefits will commence on the first of the month coincident with or next following the fifth anniversary (and at least age 62) of the date of hire."

What would be the date of the first age 70 1/2 required minimum distribution for the following individual?

Date of Birth = 7/12/1924

Date of Hire = 11/1/1994

Age 70 1/2 = 1/12/1995

5th anniversary of hire = 11/1/1999

there is a descrepency regarding proxy voting procedures btw the trust agreement and the proxy statement (and potentially the plan document). which prevails.

The Trustee was directed in the trust agreement to vote as directed by each participant However, the proxy statement states sent out by the sponsor states that any unvoted shares shall be voted by the Trustee in the same proportion as votes received.

I converted my Retirement Savings into a "qualified" Roth IRA 4+ years ago & paid the four years of taxes.

Now I am advised that the company holding my IRA instrument is in financial straits. I am being advised to move my $$ from the existing Roth instrument to a Allianz Annuity. I want to assure that when transfer is complete, that I still have a Roth IRA. How can one be assured? What are the rules that govern this?

Appreciate guidance before I complete the transfer.

Thank you.

Lyle Turner:confused:

Are medical malpractice insurers that receive PHI from their insureds (doctors) considered to be business associates under HIPAA's privacy rules? If so, what health care functions or services would such BAs provide to the covered entity? Thanks.

I'm back for more...hopefully you don't get tired of all my questions!

This time it concerns the Schedule I of the 5500. How should forfeitures be recorded? They have not been distributed from the plan and they are from distributions in the current year so they would still be plan assets, right? Previously, I believe we just reduced the losses to make the numbers tie out. I didn't have the most thorough (or correct) teacher the first time around and want to make sure I am doing it right! (BTW, I plan on going to a seminar soon so hopefully that will help with some of these basic questions in the future).

One last question for now... in the past I was told to put any gains/losses in "Other Income" (Line 2c) but cannot find anything in the instructions regarding this line! Is this common practice?

Thanks again for your help!

Rachel

hopefully I knocked off a few of the problems.

(though I have hardcoded the limits)

Good luck, as always if you dare to use one of my reports verify the data! I offer no guarantees, only humble attempts at producing some extra useful reports

This report will list def / match/forf/profit sharing, and some % data

It will tell you if someone is at the limit

It will give you 25% deductibility - you have to include zero activity accounts for those that don't defer and have no balance.

Therefore it is designed for 401ks not for profit sharing plans.

If you use census user field number 1 it will even produce grouping totals.

It will indicate the ees status and # of hours

dang, I think it will butter your toast and walk the dog as well.

I have several governmental 401(a) plans with 414(h) "pick-up" provisions as clients. They are being overwhelmed with comments from tax preparers about why their "employee contributions" are not shown on their W2 form so that they can take advantage of the new credit.

It is my understanding that these plans are not included in the language as eligible for the credit. Does anyone have any suggestions as to where I can refer the tax preparers to confirm my position? I am trying to draft a memo to explain the situation, and was wondering if anyone else has come across this problem.

Does the effective date of the GUST restatement matter for the election of current/prior NHCE %'s?

Here is the scenario:

We have clients who are leaving our firm and going to another firm effective 01/01/03 (calendar plan years). All plans were previously on a non-GUST restated prototype documents and the new firm will use their GUST restated document going forward. The GUST restatement will provide details on the current/prior NHCE % election for the plan years 1997-2001 and the permanent election chosen by the plan sponsor.

When completing the 2002 ADP/ACP testing, do I need to use the permanent election as stated in the GUST restated document? Does it matter if the effective date of the GUST restated document is not until after the 2002 plan year.

If there is flexibility on the current/prior election for the 2002 plan year, how is this handled under the GUST restatement section. Should an amendment be completed showing the election used for the 2002 plan year?

Whew! Thanks in advance for any assistance or advice.

Brian

Does anybody know the 1099R code for an excess IRA contribution?

We are looking into vendors who specialize in personal benefits statements...any referrals???

I have a plan that allocated forfeitures, for previous plans years (1999, 2000 and 2001), in year 2002. They sent us the spreadsheet on who got what. My question is now if those dollars need to be tested for the 415 test in 2002?

Hardship withdrawals are not eligible for rollover, thus federal tax withholding is voluntary. If a 401(k) plan allows in-service withdrawals from a rollover source, 20% mandatory federal withholding applies to payments made to the participant because the rollover is eligible for a rollover. I understand the 10% penalty if no exception apllies under age 59 1/2.

My question: may a participant request a hardship withdrawal from his rollover source of money? Let's say the plan does not allow in-service withdrawals, except for financial hardship. Would he be eligible to take a hardship withdrawal of the rollover source and not be required to withhold 20% in taxes.

What if the plan permits in-service withdrawals from a rollover source? Is he required to withdraw the rollover source first as an in-service withdrawal and pay the 20% in taxes? Or can he request a hardship withdrawal and avoid the mandatory withholding.

EGTRRA Laws: A DC plan with a plan year end of 9/30/02, so 9/30/02 is the determination date for TH for plan year ending 9/30/03. This is not a first year. The 9/30/01 determination date TH ratio was less than 60%, but according to old laws 2 participants would have been considered key employees based on the rule for Top 10 holding ownership and earning more than $35000 for the 10/1/01 through 9/30/02 plan year. Then comes the plan year beginning after 12/31/01, so the new EGTRRA laws apply. We calculate the TH ratio for 9/30/02 based on these new laws and the key ee status for allocation for the plan year 10/1/02 through 9/30/03. Using the new laws the rule of top 10 ownership disappears and these 2 participants are no longer key employees under any other rule. I determine they are former key employees, hence their account balances do not come into play in the calculation of the ratio for 9/30/02 determination date. Others say then are non-key employees. Would anyone care to comment on this and explain their perspective, please?

Here's something I have not encountered before. I received the 2002 census from a plan for which our firm took over record-keeping services at the end of 2002. The owner's wife receives about $30,000 in compensation but has no hours of service. I spoke with the HR person and she told me that the owner pays his wife W-2 wages from the company but she never does any work for the company. Basically, according to this person, he pays her to be a wife and mother.

Now, I don't care whether or not this woman is paid for not doing anything. I suppose that happens all the time. However, this plan failed discrimination last year. Since the wife has no hours of service, she is not a plan participant. If she had been considered an employee last year, and if she did not defer into the plan, the plan would have passed discrimination.

I guess I am wondering, can she be credited with hours of service since she is paid W-2 wages, even if she doesn't work at the company?

I have a situation where an employer has a DC plan and a DB plan. The benefits in the DB plan are offset by the account balance in the DC plan. For all but the owner of the company the DB benefit ends up being completely offset. The two plans are general tested.

Can anyone think of a problem with passing 401(a)(26) if highly compensated employees, other than the owner, are excluded from the DB plan. I think under 1.401(a)(26)-5(a)(2)(iii) this is OK, but am looking for confirmation or condemnation.

Sometimes I wonder if we are the only guys not using Crystal Reports, but I was curious if there were any other firms in CA not using Crystal Reports and how they were handling the issue of no SSNs on participant statements.

I'm wondering if this is going to be the thing that finally pushes us to break down and get Crystal Reports.

As an 20 year employee of a public school that does not contribute to my 403(B), is there a provision that allows participants in a 403(B) to make catch-up payments for FIVE years or is the limit three years? Is the max per year or per 3/5 year period?

Is there a remedy when someone mistakenly allocates deductions to an account for which she is not eligible or has no use? A client put $1300 in a dependent care account thinking that she could use it for her disabled husband's medical expenses. She didn't realize that it is for "day care" type expenses. Can she get the money back as taxable income?

what is the personal liability of individuals acting on behalf of trustee or custodians.

can they get fined for willful breach of duty.

I think we all agree they could potentially go to jail?

Hi-

I administer a plan that has terminated due to the Co. closing. The 5500 was due Feb 1, 03. The plan needs to be audited (for Sch H). Two questions:

1. Can I put the plan on extension?

2. If the Co. doesn't have the money to pay for an audit should they just submit the 5500 without the audit?

Thanks!