Can a 401(k) non-electing church plan use a prototype document? The plan has no unusual provisions. The primary problem I see is the inclusion of ERISA language in the document. Can anyone cite a private letter ruling that addressed a similar situation?

Does a church plan still have to submit a request for ruling on church plan status to both the IRS and DOL?

Is their a requirement that the employer of a non-electing church plan NOT serve as Plan Administrator? The IRS ruling regarding church plan status my client has seems to suggest that a committee, "operating independent of the corporation", must be appointed as Plan Administrator. I don't know why. Nor do I know how to interpret "operating independent of the corporation," - does this mean the committee cannot be employees of the corporation? This corporation is a hospital.

Thanks to anyone who replies.

I have a new client that is a hospital that maintains a 401(k) plan. This is a non-electing church plan. Where can I find something in the IRS code that indicates they are required to perform discrimination testing? Is both ADP and ACP testing required? Thanks for your help!:confused:

I have an individual who is over age 70.5. The question I have is that she is an ascendant of a 5% owner. Although still an active employee, is she required to take a RMD for the year? The client has elected the new regs, so since she is active, she does have the option to defer, unless the fact that she is an ascendant to a 5% requires her to take the RMD.

The Thrift Plan of a company allows 4 types of periodic payment distributions (sometimes called installment payments) of which 2 avoid the 10% pentaly for early receipt of before-tax (BT) money. A participant terminates from the company (good-faith) and begins to receive periodic payments which may include BT and after-tax (AT) money. Two years later, for example, he returns to the employment of the company (re-hire). In such situations, the Plan allows the choice of either continuing the payments and not contributing to the Plan for this period of employment or discontinuing the payments and contributing to the Plan via employee contributions. Is it consistent with legislation/regulation that he may continue the periodic payments (to include BT contributions) during this second period of employment?

The above Plan is later amended to allow rehired retirees to both continue receiving periodic payments and make BT and AT employee contributions to the Plan? Is this consistent with legislation/regulation?

Any general guidance on these matters is appreciated.

Can anyone help me understand how net gain/loss for SChedule H Part II 4a,b,c are calculated. I have outside brokerage accounts that I have calculated realized and unrealized gains and losses for. Is that the number they are looking for? The instructions say something about the beginning, the value sold and the ending. I use a spreadsheet to calculate these individually and only have a total number for realized and unrealized gains. Unrealized I have reported on (5)(B). This is my first time doing a 5500 for this plan with o/s brokerage accounts and I am really confused. I posted before about this and received a response, but I am still confused.

Thanks

Client, was a sole proprietor from 01-01- through 10-10-01 then PSC for the remainder of the year. Both have profits, both with same employees.

How do we allocate the SEP. Does it get a prorata allocation between both entities during the year. Or do we allocate the SEP contribution based upon actual earnings until the wage base is used up from the beginnning of the year.

I dont believe we had SE income to the extent of 170,000 and I know that he didn't pay himself wages in the PSC during the remainder of the year. He will need to fund either by 09-15-02 or 10-15-02. Thank you

As the Enron pension hearings progressed, we became concerned about whether plan sponsors are sufficiently prepared for the challenges of the "post-Enron" environment. We have created a series of master classes designed to address fiduciary responsibilities and how today’s ERISA plan fiduciaries can best manage the changing landscape of liability and litigation.

http://plansponsorevents.com

As the Enron pension hearings progressed, we became concerned about whether plan sponsors are sufficiently prepared for the challenges of the "post-Enron" environment. We have created a series of master classes designed to address fiduciary responsibilities and how today’s ERISA plan fiduciaries can best manage the changing landscape of liability and litigation.

http://plansponsorevents.com

As the Enron pension hearings progressed, we became concerned about whether plan sponsors are sufficiently prepared for the challenges of the "post-Enron" environment. We have created a series of master classes designed to address fiduciary responsibilities and how today’s ERISA plan fiduciaries can best manage the changing landscape of liability and litigation.

http://plansponsorevents.com

I have a company in a multiple employer plan that failed last year's top heavy test. Now, in September of the following year, this company has terminated services with this PEO and the participants are going to be taking distributions from the plan. Does the company still need to make the top heavy minimum contribution? Does anyone have any documentation regarding this? The top heavy employees have deferred more than 3%. Also, what compensation would you use (compensation up to the time of termination of services or compensation for the full year)? Any info that you have would be great. Thank you in advance.

Is there a requirement in the code, regs or any other authority that requires a plan sponsor to actually perform a top heavy test when they know from prior years the plan is far from top heavy?

Company A is a wholly owned subsidiary of B, and has been for several years. On July 1, the employees of A are no longer paid directly by A (using A's EIN), but are paid directly by B (using B's EIN). Should B recognize the year-to-date Social Security earnings and tax already paid by A's employees?

A plan's funding method is changed as per Rev. Proc. 2000-40. Is it sufficient to answer "yes" to item 7 on Schedule R,along with his signature on the return itself, to signify the sponsor's agreement to the change? Or must there be a separate signed statement attached to Sch. B as well?

Are pre-K costs covered by an Education Savings Account (formerly known as an Education IRA)?

I think this will be a fairly simple question for you experts.

When coordinating benefits, insurance companies will not "double" coverage. What other reason would someone have coverage from two insurance policies?

It makes sense if one insurance policy has a higher level of coverage in one area but the the secondary might be higher in another (IE better coverage in dr. visits but secondary having better coverage for hospital). I didn't know if there may be other reasons to do this.

Thanks for your help.

I have a takeover client whose 5500 was due 7/31. We didn't get her until August and previously her plan was "handled' by the broker,who didn't realize that the first two employees entered the plan in 01,so she was no longer exempt under the "one participant plan with assets

Thank you for any help.

I'm interested in purchasing or merging with pension consulting and administration firms. Does anyone have a resource for finding such firms?

Company A is a member of a controlled group with 3 other affiliated employers (B,C,D) all of who have adopted Company A's plan. B has both union and non-union employees. The non-union employees participate in A's plan. The union employees are covered under a separate plan sponsored by B.

Company A has recently unionized. The union contract states that A must provide retirement benefits for union employees. Must company A set up a separate plan for the union employees?

If so, is the union plan for company A and union plan for Company B tested separately or must they be aggregated?

Employee hire's in with company in 1973, works until 78 or 79, is laid off with 5 yrs recall rights. In 1984 he rehires in with same company, but at different plant, with different union. employer has same EIN# but different plan #.both plans have same break in service rule and same 10 year cliff vesting. since he never vested in first plan, will he be able to use the break in service to get his layoff time back. getting layoff time back is different in the plans.

Plan loan granted w/first payment due 2/20/02. The company forgot to start payroll loan deduction payments, and it took the participant 6+ months to ask why. I think we'll be okay if the loan is paid back by the end of the payment period (3 years), but I'm wondering how to handle the approx 600 in back principal and interest. Our loan notes are worded to not allow partial payments (you either make each periodic payment, or can pay the entire loan off early) Any ideas?

I know there was a post similar to this, but I could not locate it in the distributions and loans area.

Thanks. Maverick