We are making a QNC to restore a participant's account. Deferrals were suspended in 1998 due to the 402(g) limit and were not started again in 1999. The error was discovered in 2001.

The QNC will include make up for missed pre-tax deferrals, company match, and earnings.

Can we use our matching forfeitures for this if the plan document says that forfeitures are used to reduce "Company Contributions"?

Do you have to file one Form 5500 for a multiple employer welfare plan? If so, what should each participating employer file to satisfy their reporting requirements?

I am looking for the average expense nationally for 401(k) administrative and investment services. Does anyone know where such statistics might be?

When calculating the 15% deduction limit for a PS plan in 2001, can I include the full-year comp of a new participant who enters the Plan on July 1, 2001? The Plan will only recognize this participant's comp from July 1, 2001 on for purposes of allocation of a benefit.

Do the provisions of EGTRRA relating to elimination optional forms of benefit in a DC plan apply at all times, or only when a participant's benefits are transferred from one plan to another?

Do the EGTRRA provisions override the fairly recent regulations that allowed elimination of optional forms if you met certain requirements, including special notification of participant requirements?

i noticed that the revised 5500 series does not include a question re: 5310 filing in the event a plan is terminated. the 5310 question used to be an audit trigger for terminating plans.

i have a client that wants to know the risks of not filing form 5310. i'm trying to get a handle on the potential audit risk. anyone have any experience terminating a plan but not filing it via 5310 during or after the 1999 plan year (when the 5500 was revised)?

any input is greatly appreciated.

I am working with a document that limits contributions to the HCEs in order that they receive no more than 1/3 of the contribution. It dawned on me that since the 415 limit will now be 100% rather than 25% of copensation per individual, does it make sense to have that feature in the document? I suppose if you were going to have mega-forfeitures or mega-dividends it might make a difference, but any other scenarios, or am I missing something.

In 2002 the §415© percentage limit will increase to 100%, but the §404 deduction limit for target benefit plans will remain 25%.

Assume a target benefit plan where there are several participants who have been limited to 25% due to §415©; but without the application of the §415© percentage limit, their normal cost could be much higher (even higher than 100%).

In 2002, if the normal cost is allowed to go up to 100%, and as a result the total cost exceeds the §404 25% deduction limit, what do you do? Or should I ask what should you have done?

Does the existing plan language limiting total cost to that which is deductible prevent the nondeductible contribution? If yes, how should the document allocate this limitation amongst participants?

Can you leave the §415© percentage limit at 25% even though the law allows it to be 100%? (Or is it required to be raised?)

Can you raise the §415© percentage limit to 100% but specifically limit each participant's normal cost to 25%? If you do so but the only participants who are limited to 25% are Non-HCEs does the plan violate §401(a)(4)?

I have been asked to head a project committee that will investigate the possibility of implementing a compressed work week -- where do I begin and does anyone have a policy? thanks

I have a multiemployer situation; benefits were retroactively enhanced & a few participants went over the involuntary threshold upon re-calc. ; they've already been paid lump sums based on the former benefit level; does anyone know what the recommended or even legal way of handling this is ??

A company at the end of 1999 had 10,000 in forfeitures which were used to reduce match in 2000. The company contributed 90,000 to the plan in 2000. Our report would show a total contribution of 100,000 (90,000 cont. + 10,000 forfeit) The question is: On question 2a(1) of schedule "I" when listing the total contributions, would we list 90,000 or 100,000

I have been asked to head a project committee that will investigate the possibility of implementing a compressed work week -- where do I begin and does anyone have a policy? thanks

We have a client who, in his late seventies, started a business that is now sponsoring a DB plan. There are no other employees. His NRA is 83. Will putting 83 on line 6b of the Schedule B practically guarantee an audit? The doc defines NRA as 65 and 5P, but it's my understanding that you have to put the actual average age on line 6b. Does anyone have a different interpretation?

When an employee has a status change and elects to change coverage in a Section 125 plan, is backup documentation required? If not, do we have any leeway? If we choose not to require backup, what negative consequences could this present?

If a participant has a 403(B) and a 401(k) with the same employer, can the participant roll assets from 403(B) into 401(k)?

A Canadian company purchases a U.S. company that has a 401(k) plan. The Canadian Company becomes the plan sponsor.

One of the employees participating in the U.S. 401(k) plan is a Canadian citizen living in the U.S. (resident alien).

If that employee leaves the U.S. company to live in Canada and work for the Canadian parent company, what happens?

Can a distribution be made to the participant?

Does service with the Canadian parent company (and plan sponsor) count towards vesting service in the U.S. plan?

Can the plan document specify the answers to these questions (is there a choice)?

Are 403(B) plans required to be amended for GUST?

With a KSOP, is the entire plan (both ESOP and 401(k) portion of the plan) required to be primarily invested in employer securities? Is it alright to only have the ESOP portion of the plan primarily invested in employer securities and allow multiple investment options for the 401(k) portion of the plan? I was under the impression that it was okay to treat the 401(k) and ESOP portions of the plan as two separate plans for purposes of the "primarily invested" rule. However, I came across a treatise which says that a KSOP must be designed to invest primarily in employer securities and that all benefits under a KSOP must be distributable in employer stock. Thanks for your suggestions.

We are in the process of implementing a commuter reimbursement plan and are trying to determine the required audit requirements.

POsted this in distribution thread and didn't get any help - so I will try it here!

Without our knowledge, an owner-employee S-Corp shareholder took a loan from his plan in 2000. The new EGTRRA regs would exempt this transaction from the PT rules if it were to happen after December 31, 2001. In write-ups on the new rules, I have seen it said that the IRS will also waive penalties for these transactions made before 2002 if the loans would have been allowed had the new law's change been in effect throughout the period of the loan. However, I can't find any official documentation of this. Can anyone help point me in the right direction to determine if I have a problem