Does anyone know whether 403(B) plans are subject to the deadline for adopting the model EGTRRA amendments by the end of their plan year beginning in 2002 (meaning 12/31/02 for calendar year plans)? Thank you.

I have a plan that would like to give a profit sharing contribution to the employees but exclude the owners of the company. This is a standardized plan. I do not see any reference to this situation in the document. If the plan was giving a QNEC the HCE's would be excluded, but this is not a QNEC, just a normal profit sharing contribution. Any help would be appreciated.

It seems that the two leave periods run consecutively and cannot run concurrently when a female employee goes out on pregnancy disability.

In effect, an employer has to protect the job and benefits of any woman who goes on an LOA for the birth of a child, for as much as 24 weeks. Does

anyone have experience with this?

I have seen many instances where an asset held in a retirement plan, such as an individual life insurance policy, is purchased by the individual owner, with the cash surrender value of the policy being remitted to the plan in exchange for the policy.

I have a situation where a plan owns a partnership interest, and the owner of the company would like to purchase this interest. I know no reason as to why, if the owner remitted the "fair value" of the partnership interest to the plan in cash, the partnership interest could then be re-registered in the name of the individual.

Am I off base? I do not believe this to be a prohibited transaction.

Thanks for any assistance.

Is it reasonable to treat ADP/ACP corrective distributions to HCEs as in-service withdrawals for the plan year the distributions were actually made for post-EGTRRA top-heavy purposes?

I believe it is, but guidance I have looked up on the matter is a bit unclear.

Plans testing results are as follows:

ADP ACP

HCE 6.42% HCE .81%

NHCE 4.17% NHCE 1.71%

For testing purposes only, is it possible to "move" 1% point from the ACP to the ADP to satisfy the test?

I know that you can "move" from ADP to pass ACP.

Thanks,

Ronnie Wasel

Oh no! Jack Nicholson plays a retired actuary.

http://www.aboutschmidtmovie.com

I know this has been discussed before and I have read the posts, but I am still not clear.

I have a plan with a plan year beginning 10/1/2001 and ending 9/30/2002. Would catch-up contributions of 1,000 be allowed for the period 1/1/02-9/30/02 or would the contributions be for plan year 10/01/02-9/30/03.

And if they are allowed for 1/1/02 to 9/30/02. When would the plan have needed to be amended.

anyone have the actuarial formula for a modified cash refund benefit? when the death benefit is contributions at death less a % of the payouts between retirement and death

We are seriously considering the 3% safe harbor design for 2003. Does anyone know of any survey or statistical data indicating the effect this has on participation.

Current design includes match of 25% on first 6% - that will continue.

Plan Sponsor wants to freeze the 401(k) and start a SIMPLE-IRA in 2003. (Can't figure out why they just don't terminate the 401(k)) Is this permissable? I don't see why not since no one would benefit under the 401(k), but just wanted to check.

We have a potential owner-only 401(k) plan who estimates his compensation for 2002 will be approx. $100,000, but will not know for sure until early next year when his taxes are completed.

A CODA states the contribution is deemed available on the last day of the sole prop's taxable year. My question is does he have to deposit $11,000 by 12/31/02 or can he deposit $11,000 as an elective contribution early next 2003 when he knows what his compensation will be for sure? He would prefer to wait until next year (before the tax return is filed).

If he earned enough compensation (over $160,000) I would advise that the whole contribution be considered an employer contribution, but he knows for sure it will not be that much. If anything, he is assuming a high figure this year.

Thank you in advance for your assistance.

A 403(B) sponsor has not filed 5500s in past years (and was required to) and wants to use the DOL's Delinquent Filer Voluntary Compliance Program.

As the 5500 does not require a 403(B) to fill out lines 6 or 7, which set forth the number of plan participants, how does the DOL determine how many participants the plan has for the purpose of determining whether it is a large and small plan? My guess is that the plan sponsor should indicate it in their cover letter, and use the definition of participant used in the 5500 instructions to determine how many participants there are, but I am not sure.

The definition of participant used in the 5500 instructions specifies that individuals that have separated from service and who are or will be receiving an annuity are not considered participants. Does this apply to annuities from a 403(B), where a participant can have an account balance, or only to traditional annuities purchased for a fixed sum in which there is no account balance?

Any help would be appreciated!

I need some help from those of you in NC. Rumors are flying that there is an issue about TPA's who sponsor their own protoype document. (Prototype written by major document provider) Has there been / is there any definite answer to whether or not NC law would consider this practicing law?

It seems that this would have been dalt with years ago if it were true but I have heard that it is being discussed again and some TPA's may have rec'd some sort of letter regarding this issue. I have bot seen the letter and do not know if it comes from the attorney who is upset , the Bar Assoc, the State, etc. Any thoughts? Comments? Is this just more stupid scuttlebut that gives me something to do besides restatements?

Thanks for any comments

Has it been superseded by any more recent IRS Notices?

Does anyone have a report that will print the addresses that are keyed on the census/personal data screen in Relius?

Do you know of any web sites that contain Form 5500's for other than non-profit organizations?

I have a plan where normal retirement is defined as age 65 with 5 years of plan participation. I have a plan participant whose normal retirement age is 69 and whose social security retirement age is 65. How do I increase the 415(B) limit for the fact that his retirement age is past his social security retirement age?

Do I take the lesser of (1) the actuarial equivalent 415(B) limit using the plan actuarial equivalence or (2) the actuarial equivalent 415(B) limit using the GATT rate as of the first day of the plan year ???

HELP! How would you fix the following.

Welfare plan adopted in 1980 for group of union employees (under 100). Had trust that paid claims - so it was self-funded. 1996 the plan opted to start buying insurance rather than pay claims. Now benefits are fully provided by insurance. Trust is still there and growing. Employer contributions are more that the insurance premiums.

Plan has never been amended, Plan has never filed 5500, Plan did not file to be VEBA.

Any suggestions?

We have a client that wanted to implement the safe harbor plan for 2002, however it was too late so he is implementing a traditional 401(k) profit sharing plan in 2002 and amending it to a safe harbor plan for 2003. His concern is how much the HCE’s will be able to contribute to the plan this year. Is there any relief for the HCE’s in the first plan year? I think there is, but am not sure. In addition, how is the ADP/ACP testing completed? The effective date of the plan is 10/1/02, so is the testing based on the whole years income or just the past few months AND/OR how is the Top Heavy testing come into play?

thanks.