I am planning to move my ROTH from annuity to possibly Vanguard total stock index fundI am not really intesrested in investing in any stocks right now due to slow market and time involved in researching. Have anyone been doing well with index funds like Vanguard or other leading mutual fund companies? Can you recommend some good ones?

Thanks,

James.

I know govt. plans aren't subject to IRC 412, but are they subject to Full Funding limits?? This is my first govt. plan and it's funding method is PUC, and the full funding limit is $80,000 and the Normal Cost is $130,000. Thanks.

We have a participant who just took a $15,000 loan for a primary residence. However, his individual account is invested in B-shares from which there was a penalty on distribution. He received few hundred dollars less than the $15,000 he asked for on the loan request form. Which amortization schedule is proper to use, the net figure or the $15,000 figure? I would think this happens often enough that there is a simple answer, although I don't know what it is. Thanks.

Many of our clients are interested in using matching contributions to satisfy the top heavy requirements, particularly in safe harbor plans. I understand that for top heavy, non safe harbor plans, the employer must make an additional contribution for any participant not participating in the 401(k) plan or receiving a match of less than 3% of compensation.

Wouldn't this also apply to safe harbor plans? If a safe harbor plan uses the safe harbor match, and only 4 of 6 NHCE's defer, doesn't the employer need to make the minimum 3% contribution for for the 2 non-deferring employees? Thanks.

We frequently encounter adolescent plans which, as a start-up plan, fell victim to “deferred sales charge” investments (i.e., back-end loads). They now want to switch investment vehicles but the employer does not want to pay the DSC and does not want the participants to take a one-time 3-5% hit to their accounts. I understand some plan recordkeepers/trustees will “reimburse” the plan for the DSC in return for a higher fee (charged to the plan). I’m interested in learning how this works and what fiduciary and/or prohibited transaction concerns arise. Also, any other solutions for solving DSC problems?? Thanks.

Is anyone aware of a circumstance where a 65 year old resident alien could be considered an eligible dependent on her daughter's group plan ? Quite a stretch... but I was asked to pose the question. My impression is that insurers will normally only cover eligible children and spouses.

Hi, Has anyone heard of a proposed loosening of the corporate ownership diversity requirement fo non-bank trustees under 1.408-2? Thanks

If a person owns a small biz as a sole prop with no employees and his wife owns another small biz as a sole prop in a totally unrelated business with 2-3 employees, is this situation subject to the attribution and controlled group rules. The spouses' businesses have no connection at all other than the marriage.

If so, am I right in concluding that both retirement plans must be treated as one?

Since SIMPLEs and SEPs are IRAs and not qualified retirement plans would using them avoid those rules?

Plan X has been exempt from PBGC premiums because the only employees of the company are husband and wife. Now they have an employee. The employee first became a participant at 1/1/2001. The participant count at 12/31/2000 is 2.

I thing the 2001 PBGC premium is $38. What am I missing?

Does anyone know anything about the laws in different states concerning authorizing payroll deduction electroinically for a paperless plan loan?

I was wondering if anyone has insight into the following:

Company sponsors a DB plan. The plan was frozen July, 2000. The Company is in the process of filing for a GUST determination letter. The Company would like to file with the 1998 Form 5300 forms and not with the proposed forms. The question is must the entire Schedule Q (including demonstrations) be completed?

The instructions to Schedule Q provide that only Parts I and II need to be completed if "the plan does not benefit any highly compensated noncollectively bargained employees. " It seems reasonable to take the position here that this is true and that no further information is necessary.

Is this a position that the IRS will buy?

Thanks in advance!

Someone is telling me that a small business can have 105 and 125 plans in place that the same time. Can anyone say for sure (citing the source) if this is true or not? The company has employees other than the owner and spouse.

If an individual contributes to a 457 plan with the understanding the individual will be retiring in April 2005 and has a DOB of 1/31/1939 can the individual use a catch-up provision in 2001? Why or why not? Likewise, what catch-up options would he have starting 2002 with the new regs and the potential to also participate in a 403(B) with the same employer?

I am starting a small business and haven't decided between LLC, S-Corp, etc. I may have a couple employees besides myself, or may use independent contractors. Does my choice of entity effect what type of retirement plans I can choose from - 401k, Simple etc?

I am starting a small business and haven't decided between LLC, S-Corp, etc. I may have a couple employees besides myself, or may use independent contractors. Does my choice of entity effect what type of retirement plans I can choose from - 401k, Simple etc?

Does anyone know of a study of survey done that can give some general information concerning SDA's? Looking for basic info.

1) how many plans offer as an option?

2) what are the major issues, liabilities, etc.?

3) industry specific info.

I've searched the board and have come up with very little. Any help appreciated.

Jim J.

Can a third party administrator also serve as the plan administrator (ie. approve loans, hardship withdrawls, sign form 5500)? If so do many TPAs take on the the plan administrators role? Does fiduciary liability increase greatly for serving as the plan administrator with sign off authority?

I heard Suze today talk about a 22 year old that saves $100 a month in a Roth Ira would have a little over a million by the time they were 65 and that the same person who waits uintil they are 32 at that amount would only have $700,000. Does anybody know how I at 32 could have a million by 65 or where I can go to help me figure out what I need to do?

A DB plan requires participants to contribute 2% of pay, in order to receive a benefit of 1.2% of Final Avg Pay x Service. If the participant does not contribute, he only recieves a benefit based on the formula $10 x Service (max 10 years considered). The plan covers all employees of the employer; however, only 56% of the participants have elected to make contributions. All the HCEs have elected to contribute.

I am not sure at this time if the plan would pass 401(a)(4) testing if all employer-provided benefits were tested together. It had been my belief that a plan having multiple formulas such as this would need to be restructured and tested as separate plans. However, the contributing formula can not pass 410(B) on its own (fails ratio test, since <70%; and fails Avg Benfs Test, since their is no classification that can be used to satisfy the reasonable test of the Nondiscriminatory Classification Test).

I have heard several people say that since the more generous benefit formula is available to all employees at their election to make the contributions, there are no coverage issues. I am having a hard time accepting this, and I would appreciate hearing how others would tackle the 401(B) and 401(a)(4) testing issues for this type of plan.

Anyone have any advice on taking on a Puerto Rican Retirement plan, a section 165. Ive just started looking in to whats involved but I don't want to have to commit significant time of training for someone, for a single 50 life plan, but if it can be run smoothly with reasonable training time We'd look into it. Any advice would be welcome.

Thanks