are there instructions regarding the IRS's desire to receive multiple determination letter requests together? The plans being submitted use the same basic plan doc and adoption agreement, but have different elective provisions w/in the adoption agreement.

thanks for any guidance

I understand that govt. 457 plans now report distributions on a 1099-R while Tax exempt 457 plans still report distributions on a form W-2.

Is this correct ? and is there any guidance on specifically what codes to use in box 7 on the 1099-R for distributions from Govt. 457 plans?

How long on average do large (>$400MM in assets or >10,000 participants) 401(k) plans stay with a record keeper before changing?

What are the issues of closing a SarSep and starting a 401(k) Plan? How is the SarSep closed down and will there be a sucessor plan issue when starting the 401(k) plan?

This client has six participants, all salesmen, located throughout the country. These fellas aren't happy with where their money is right now, and each has their own idea of a great place to transfer the plan funds.

The participants currently have individual accounts at Loser Institution, and this is a straightforward Profit Sharing Plan.

Because these salesmen can't come to an agreement on where to move the plan assets, they are wondering if they can each move their assets to their individually selected institutions . . .

As far as I can see, the only issue is providing each institution with whatever plan/document information they need . . . At the recordkeeping end of thing it doesn't change my life a bit.

So, are there any IRS/DOL rules for or against this kind of arrangement?

Since Notice 2002-24 removes the requirement under IRC 6039D for cafeteria plan sponsors to file annual reports unless otherwise required by ERISA, it appears 125 plans maintained by governmental employers are no longer required to file 5500s, since it was the 6039D requirements that caused governmental plans to have to file 5500s in the first place. Does anyone analyze this differently?

Does anyone know how to find out the life expectancy of a quadraplegic (sp) who is currently 60?

We have an employer who sold the assets of the Company to a "person" in 2002. However, this "person" was already an employee of the original entity (since 2000 but not highly compensated). There is a new plan under the new Company, but we are involved in termination of the old plan. Here's the question...original owner was paid in 2002, but did not defer. No problem there...0% for ADP test...but new owner (formerly a regular employee) did defer into the old plan for the first two quarters of 2002. He did NOT have any ownership in the original sponsor (the plan we are terminating). Is the new owner considered highly compensated for 2002 testing purposes?

I am looking for a source I can go to that would provide details on acceptable proof for hardship withdrawals. I was thinking about incorporating specifics into the written hardship policy for my plan.

I am currently reviewing a hardship application for mortgage foreclosure where the participant has provided a note from the mortgage company that says "due to this delinquency, your loan may be reviewed for a foreclosure action". The use of the word "may" concerns me.

I am reviewing a second application where all the participant has provided is a current mortgage invoice statement that shows a current amount owing and an amount past due. I don't think an amount past due necessarily constitutes a foreclosure. It seems like a fine line.

Does anyone have any insights, links, etc?

Thanks~

I have a deceased participant who participated in a DC plan, who did not designate a beneficiary and has an account balance as of the end of the plan year. Do I need to report the deceased participant on Form 5500 Schedule SSA?

Logically, it doesn't make sense to report him since the deceased participant would not receive the Social Security Administration notification letter, but death is not an exception in the instructions.

I assume that normally it would be the beneficiary of the account that would go on the SSA.

Thanks!

A profit sharing plan elected not to allow distributions, for any reason, while the participant is employeed did allow 3 distributions from the plan. The plan reasoned that after age 59 1/2 anyone could withdraw their money. Each of the 3 participants rolled their money to IRAs.

May this "operational failure" be satisfied by only a retroactive amendment the plan? The plan has not been restated for GUST or EGTRRA yet.

Do after-tax contributions count against the 25% limit (formerly 15%) under the defined contribution deduction limit rules of 404? Where does it say this?

What are the ramifications/limitations to adding yearly contributory amounts to a Roth IRA that has been converted from a regular IRA?

I realize there is a five-year period that has to be met from the time the regular IRA is converted to the time the conversion amount (not earnings) can be withdrawn penalty-free.

Am I allowed to mix annual contributions to the same account, or should I open a second Roth IRA account for annual contributions? What if I had an additional regular IRA to convert; should I open a separate account or convert it into the existing account?

Is there additional paperwork that must be maintained if the monies are combined into one account?

Can anyone point me to an article that displays the advantages of having post-tax contributions in a failing 401(k) plan?

We have a Sole Proprietor MONEY PURCHASE plan. For 2001, there were approximately $4,000 in forfeitures which, according to the plan document reduce the contribution.

Determining SP's net income for the plan is normally not too complicated. This plan is integrated so a bit more complilcated, but it still works to solve for salary while integrating. The total allocation comes to about $44,000 - after deducting forfeitures the net tax deductible contribution is about $40,000.

What figures do we use in determining the SP's net compensation on which to base the allocation? Do we deduct the total allocation of $44,000 or the net deductible contribution of $40,000? (I know we also deduct the self-employment tax)

The answer to this seems logical, which always scares me. So I have to ask the experts. If a 401k Plan must make refunds due to ADP testing and the participant has requested state withholding as well as Federal - Does state withholding come out of the gross amount or the net amount after Federal?

According to the news story on this site, Gephardt introduced a bill to do away with Roth's and to make all retirement account distributions taxable. This is not going to make young investors save.

I just know that sometime between now 30 years in the future when I retire, Congress will get greedy and change all of my Roth tax exempt savings to taxable.

Anyone ever heard of this? Potential client says that last year they issued a combined SAR to save on mailing costs. They had all the standard language, but added a separate paragraph for each plan with details on participants, assets, etc.

For some reason, this doesn't "smell" right to me! (And I don't know how it would really save on their mailings, anyway, since all the participants would have to receive it, but that's another issue.)

Any thoughts/authority on this? Thanks!

We have a client who terminated their SEP June 30, 2000 and began a 401(k) plan August 1, 2000. The plan document for the 401(k) plan says the limitation year is the plan year. We believe the the compensation limit of $170,000 needs to be prorated for 5/12ths of the year. We also thought the annual additions limit of $30,000 needed to be prorated for 5/12ths of the year. Can anyone gives us some guidance as to the proper treatment here?

A 401(k) plan participant is deceased and had directed his account to be divided between 9 beneficiaries. Four of the beneficiaries are minors. The guardian of the four minors has legal counsel urging him to rollover the funds to a Stretch IRA. I cannot find anything to support this action. Is this legal?