Can a safe harbor 401(k) plan allow participants to take loans from the safe harbor matching and/or nonelective contribution sources?

If not, can the safe harbor required contribution sources be used in determining the maximum loan amount?

I am waiting for disability through my employers insurance. My doctor signed for long term disability. My husband has group insurance that covers me with Kaiser. However, the doctor that signed for long term disability was the doctor I went to under my primary insurance that I received at my job. This is a small credit union of only 12 - 13 employees. I was told I would need to continue to see that Dr., however, I am now no longer covered by the plan that allows me to go to this doctor. She was the medical dr. at a Healthcare center where I also went for chiropratic treatments. My employer said they are having to let the insurance we had go because of a hefty 61% increase in cost and a considerable decrease in benefits even with the high increase. Is there any way I can still continue that insurance through COBRA? If not, what can I do in light of the circumstances where that doctor is the signing doctor for long term disability? Kaiser doesn't cover that part of my treatment. I would appreciate very much any guidance you can give me. Thank you.

I have an interesting fact situation. A public school district currently maintains a contributory MPPP for its non-teaching administrative employees (teachers are covered by the state dept of education plan). Eligible employees may defer up to 4% of after-tax pay. The school district will match 100% up to 4% of pay. (This is a very old plan!!)The only investment vehicle is deferred annuities. (I said this was a very old plan.)

The district would like to establish a section 457 plan for the same employee group. Due to back loads, etc. it will not terminate the MPPP. It wants to make the two plans available so eligible employees can participate in one or both.

Has anyone seen an arrangement like this? Can they maintain both? I think so, but would like someone to confirm it. If an employee participants in both plans, does his or her after-tax 4% deferral into the MPPP count against the 457 $8,500 and general 415 limits? Thanks.

Should Schedule H, line 4a, be answered based on DOL Reg 2510.3-102(a) or 2510.3-102(B)? That is, is the 5500 Schedule H question answered based on the "15th business day of the month following the month in which the participant contribution amounts are received" or is it answered based on "the earliest date on which such contributions can reasonably be segregated from plan assets?"

I know there have been other threads saying that the DOL has focused on the "earliest date" language for determining whether or not a 5330 was required, but I have not seen a thread on which standard should be used for the 5500 question.

I am in a SIMPLE IRA. It is invested in Vanguard Asset Allocation Fund. I am 45 years old. Is that fund aggressive enough (or too aggresive) for someone my age? I am willing to take risk.

Is there a technique for using excess pension assets to pay for group life insurance coverage for ACTIVE participants? If there is, are the death benefits from the group policy taxable to the beneficiary? Does it make any difference if the plan in question is a church plan? I see in the Code a section 7702 that seems to permit this but I've never seen this in operation before.

In order to "fill" first a "B" Trust and finally an "A" Trust following the death of one then the other of a married couple for purposes of Estate Tax exclusion, we will have to include at least some or finally maybe all of the Roth IRA resouces. Is there any way other than withdrawal from the Roth and placing ownership in the respective Trusts to obtain the Estate Tax exclusion for both spouses?

After an internal audit of a 401(k) plan, it was discovered that in 1997 a top-heavy corrective contribution was made in error (the plan was not top-heavy), and in 1999 a top-heavy contribution which was necessary was made but it was less than what it should have been. Any suggestions as to how to correct?

Sub-S owner takes a plan loan, which, of course, the Plan and Code do not permit. The loan has been repaid. We know this is a prohibited transaction, but how is it determined when a "mere" PT becomes a disqualifying event? There are other issues of concern, but none dealing with discrimination against Non-HCEs. Is there a laundry list of offenses that would disqualify a plan? How can one determine this?

Thanks.

A Plan participant terminates employment and completes all required paperwork necessary to get her distribution as a lump sum. She had a $12,000+ loan at the time of her termination and decided to not pay it off. Trustee cuts her the check and mails it to her.

She receives the check and it dawns on her how much she loses in taxes. She has not done anything with the check.

She now wants to send the check back to the employer (over $5,000) and also came up with the money to pay off her loan. She wants to send that check in too.

Can she do either of these? Is it up to the Plan administrator to decide whether or not to accept either?

Thanks for any comments.

This may be too obvious of a question, but I have to ask anyway:

A new plan is established, effective 1/1/00, and there are 10 employees employed on that date who do not have to satisfy eligibility requirements, and enter the Plan on that date. For 5500 purposes, I presume I should report 10 participants at the beginning of the year, not zero, is that correct? Would it matter if the document was signed after 1/1/00?

If there were 101 participants, would Schedule H be required, instead of Schedule I?

Thanks

I am looking for examples of a salary continuation policy that we offer our exempt employees. Things like what are the # of days paid, limits, exclusions, etc. We want to be sure we are keeping with industry standards. Ours simply states that is an exempt employee is sick they get paid for up to 90 days and then qualify for LTD. We want to add more definitive guidelines and wording. Any ideas of samples is greatly appreciated. Thank you!

Can a plan be written so that amounts in excess of the 402(g) limit are returned to the employer rather than deposited in the trust? If so, how are the 402(g) excesses returned? To the employer to be included in the participant's next paycheck? To the employee via 1099-R? If not, is the recordkeeper acting in a fiduciary capacity by returning the funds? DOL regs are pretty clear on the fact that amounts withheld from a paycheck are plan assets when withheld. Any thoughts?

If a NON-SPOUSE beneficiary inherits a Roth IRA that has NOT been in existence for 5 years, what is the taxable implications for the beneficiary? Will the distributions (excluding contributions) be taxable as ordinary income or will they be received to the beneficiary income-tax free?

Can a participant in a 401(K) Plan be prohibited from contributing to the plan if his job status changes to an excludable classification? I believe the only requirement is that the participant continues to vest in his account while still an employee.

In a general tested profit sharing plan where an HCE who meets the eligiblilty requirements waives participation, is he/she in the general test as a 0% (as opposed to being out of the test)?

Can his comp be used for 404?

I think the answers are yes and no. Agree? Disagree?

But if so, if he/she were instead to get a contribution of $1, the comp could be used for 404, correct?

What needs to be done to reinstate a 401K plan?

The engineering company I work for makes it's money by the hours that the employees work. When the employees don't work we in turn are not making any money. We offer a four day work week and then in turn don't pay our employees for any holidays or sick time. They are basically paid for the time that they are here. Does anyone have any suggestions I can take to the President of the company to get better benefits for the employees?

a client has been making contributions to his company retirement plan but does not have compensation to justify the contributions. He has K1 income and thus is not entitled to make contributions to the Plan.

What should he do to remedy the situation?

should this be handled in one of the correction programs?

Participant has taken a loan from her 401(k) for eighteen months, and is later terminated. Plan allows her to continue making repayments, rather than making the entire balance payable right then and there. Does it seem wise or practical to allow the participant to re-amortize the loan to spread out the payments, say, to the five year maximum, at a lower per payment amount? More importantly, since the plan allows active employees to do this, does it *have* to allow the ex-employee (who, rumor has it, may return to work for the employer in a few months) this option?