Does anyone know what happens if an IRA account registration is in one state but resides in another and then dies?

Thank you

What rates of return are required to be reported to plan participants in a 401(k) plan with mutual funds and unitized company stock?

I was wondering if an IRS regulation exists giving define to how fee reimbursements apply to IRA accounts. Fee reimbursements such as: closing costs, annual fees or even previous Custodian's tranfser fees. Can the registered representative on the IRA account take these fees for their IRA clients.

Thank you

What rates of return are required to be reported to plan particiapnts in a 401(k) plan with mutual funds and a unitized company stock fund?

I've read and re-read the research on this and I'm still confused. If anyone can shed some light, I would certainly appreciate it.

Client borrowed $11,500 in January, 2000 at 10% to be repaid in five years. June, 2002 outstanding loan balance is $8,200. Vested account balance as of June, 2002 is $15,000. He wants to refinance at a lower interest rate.

1. I calculate the maximum additional amount to borrow to be $1,800: (>$15,000 x 50% or $10,000). Maximum is $10,000 less $8,200 outstanding = $1,800. Does this appear to be correct?

2. How do I account for this on paper? Here's how I think it should work: Submit request to investment company for $1,800 and rerun the amortization schedule at $10,000 at new interest rate from this point forward for five more years. Does this sound right?

Thanks in advance for the help.

Does anyone have a used 2002 PA-1A book they would like to sell. I had the 2001 edition but did not have time to take the exam last year. I would like to take the december exam. (Could we have a Shopping Booth/Thread for used resources?)

Send me an e-mail or post a reply on this thread. Thanks.

A person needs to make over $85000 in the previous year in order to be a HCE for the current year, correct? That means 85000.01?

An employee who made $85000 exactly would not be considered highly, is what the question boils down to?

Situation:

- 401(k) safe harbor plan, 1/1 - 12/31 plan year

- Company sold 6/02, plan terminated

- Notice of elimination of s.h. 3% ER contribution provided timely

My ERISA outline talks about s.h. plans and the reqr for a 12 month plan year, and mid-year elimination of the s.h. contribution. It does not specifically address a plan termination.

So, in this scenario, can we still take an automatic pass on the ADP/ACP tests?

Thanks. Maverick

p.s. Of course, the ADP test fails miserably, and most of the people have already been paid out.

I first searched the archives to see if this question had been answered. It had been asked, but no one gave an answer!

If because of the lousy market we've all been enjoying a terminated participant's vested balance drops below $5,000, can the Sponsor affect an involuntary distribution from a DC plan? Let's assume for the discussion there is no rollover balance in the participant's account.

My memory has it that if the balance was ever over $5K, the involuntary distribution was not possible. But something tells me that was changed (although I can't find a source.) Everything I read now refers to the "present" balance being under $5K.

I suspect that the answer to my question is Yes.

I have a plan who gives there employees a match once a quarter, and you must be employed on the last day of each quarter to get the contribution. Normally, when a last day rule exists, you can exclude that group of people who termed prior to the end of the plan year, from the ACP test (if they match once a year).

Can I exclude those people who termed in that first quarter of the plan year from the ACP testing if this were the case?

EGTRRA changed Code Section 416(E)(2)(A) to allow matching contributions to be considered when determining the satisfaction of the DC 3% of compensation top heavy minimum allocation.

The seemingly outdated 416 Regs indicate that matching contributions (if used in 401(m) test) cannot be considered in determining the satisfaction of minimum benefits.

Question:

What is your comfort level with using matching contributions to satisfy the alternative 5% of compensation minimum allocation requirement where there are both DB and DC Plans?

Situation: Participant (A) wants to purchase Co. Stock for his self-directed 401(k) account from Participant (B) who has Co. Stock in his self directed rollover account. Shares are segregated in the plan and not subject to trustee direction. They were purchased by Participant (B) from a minority shareholder outside of the plan and are within participant (B)'s self-directed rollover account. Questions:

1. Is this allowed? If so, is this done strictly with in the plan, or is it possible to use funds outside the plan to make the purchase?

2. What value of the stock is to be used for the sale, the last appraised value or can the participants negotiate a value? Participant (B) wants to sell at a greater rate than the last valuation due to earnings since last valuation.

3. If this is an acceptable transaction, is there any concern if one of the participants is a party-in-interest?

Please also respond to dbrockway@kidderbenefits.com. Thank you.

Any pro's and con's of whether the definition of plan compensation should/should not include salary reductions pursuant to 125, 401(k), etc....... other than the fact that including will yield a greater contribution and excluding will yield a smaller contribution? Employer maintains a PSP and a welfare benefit plan (health/dental).

We have a client who uses their professional association's retirement plan administration package. We do compliance testing, calculate their profit sharing contribution, and review the 5500, as drafted by the association.

For purposes of calculating the PS contribution and compliance testing, we request basic payroll information after the end of the year, and we make some assumptions . . . we assume that the match is being made on a payroll by payroll basis, and it is being calculated properly . . . rather than asking them to send us the annual match information, we calculate it ourselves, run ACP, let them know they've passed, and ask them to confirm these numbers.

Unfortunately, the client has a new person working on the 401(k), and she was not properly trained on how to calculate the match. What's more, it didn't dawn on her to double check her final match numbers with our reports.

The association just sent the client the draft of the 5500 last week. I reviewed the Schedule I, and thought, "where the heck did these numbers come from?"

After much back and forth on the phone with the new person, we have essentially uncovered the fact that the match was not properly calculated, and for most participants we fall short.

This late in the game, what are our concerns in truing up the match? Are the participants entitled to any applicable gains (if there are any)? Is there any penalty because the deposits will be made after September 15? Can these amounts still be included in our 2001 ACP test if they are made this late in 2002?

Oh, so many questions . . .

Does the law allow you to use IRA funds to buy stock in a private company that you control?

If so, would it be difficult to find a custodian that would be flexible enough to allow you to do this?

If so, does the law allow you to use ROTH IRA funds to buy stock in a business structured as a Sub S corp or partnership (pass through entity for tax purposes).

Thanks.

A broker that I work with on a regular basis has called to ask whether or not he can merge the assets of a "frozen" Money Purchase Plan with those of a Safe Harbor 401(k) Profit Sharing Plan. I realize that the QJSA rules would follow the MPP assets and that an "active" Money Purchase Plan cannot have a cash or deferred feature. Can anyone think of why these two plans cannot be merged into one trust as well as under one document?:confused:

The following article notes that CMS released FAQ's to help determine "receipts" for purposes of the "small health plan" extension of the effective date for the HIPAA privacy rules.

http://www.mcguirewoods.com/news-resources...asp?article=360

The article states that employer or employee contributions to the plan would constitute receipts, but notes that "the following would NOT be considered receipts: Amounts paid out BY THE EMPLOYER for insurance premiums."

The FAQ that I found on the CMS website indicates that, when calculating receipts, "Fully insured plans should use the amount of total premiums which they paid for health insurance benefits during the plan's last full fiscal year."

http://cmshhs.custhelp.com/cgi-bin/cmshhs....bHQmcF9wYWdlPTE*&p_li=

I'm trying to reconcile these points. The SBA regs aren't much help. If an employer with a fully insured health plan pays a portion of the premiums and the employee pays a portion, it seems to me that the employee is making a contribution "to the plan" (which would be counted as receipts), while the employer is paying a premium for health insurance (which would not be counted according to the 1st article if they are paid "by the employer," but might be counted under the CMS FAQ if the insurance premiums are considered to have been paid "by the plan").

Before I researched this, I assumed that "receipts" would be the combined employer and employee contributions for the cost of the insurance, but now I'm not so sure. Any thoughts? Also, I'm not sure the CMS FAQ is the same one noted in the article (the date is different). Has anyone seen other CMS guidance on this?

I have an employee who worked for a member (Company A) of a controlled group. She terminated employment in May and did not get hired by another member of the controlled group (Company b) until after July 1st (the next entry date). In fact she did not get hired until Oct. 15th. I am not allocating a profit sharing contribution for her for that year since she was not in the plan of Company B until January 1st of the next year. Any comments? Cites?

Does anyone know if there are any provisions that would preclude a defined benefit plan from having two short plan years in a row?

I need a letter to send to participants with <$5,000 to get their distributions going. Does anyone have one that I could make use of?