Still having difficulty figuring maximum contribution.

Been with the same district 19 years.

9% of salary is tax deferred and sent to state teachers retirement system on my behalf.

when figuring employer contribution does that 9% get included on line 6? Is that an employer contribution for purpose of figuring the 25%

On a 50,000 salary:

50,000 minus 4,500 (9%)=includable compensation

x 20%=9100.00 plus 3,000 (over 15 years same dist).

Does this look right?

Can you tell me where to get a sample of a waiver of beneficiary?

An employer contribution must be made by the due date of the employer's tax return, but does that mean a check must be cut by that date or does the money have to be deposited into the plan by that date?

If a loan offset is the entire balance and the participant wants to roll the offset amount (using other funds) to an IRA within 60 days of the offset, what documentation will the participant have to provide to his IRA custodian? There will be no check, and by the time 1099's are issued the 60 days will have expired.

I am not in administration, but hopefully, someone who is can help me.

Can an employer allow loans from only employee funded accounts if there are other money types in the plan? For example, if an employee has an $80,000 balance; $20,000 in deferrals and $60,000 in profit sharing, the employer wants to limit the loan request to $10,000 (50% of the deferral account balance only).

I know that you can establish a heiarchy of money types for loans, (deferral money first, rollover next, vested match third, etc.) but I don't think that you can ignore the total vested account balance and other money types.

Also couldn't you have a potential discrimination problem if loans were available to HCE's on a greater basis than to NHCE's. In the most extreme example say that only HCE's defer in a safe harbor plan. Loans would only be avaialble to HCE's. You are also requiring that employees defer in order to get a loan.

Does anyone administer any plans with a loan policy that restricts participant loans to one money type?

Thank you.

The second paragraph of the Section B of the Explanation to the proposed regulations states "...if an employer also provides a 401(k) plan...then to the extent the HCEs are electing contributions under that plan, the highest HCE allocation rate may be lower than it would otherwise be, which in turn would lower the minimum required allocation for NCEs under the plan..."

Can someone give me a somple example of what this means? Thanks.

Dad owns a company. Son and his wife are employees. Son is a Key Employee, wife is not. Wife quits but account balance stays in plan. Two years later Dad retires and son becmes owner. Wife is still not an employee. Does her account balance become includable as a Key Employee balance for Top Heavy?

She is "Key" but is she "Employee"?

Would it help to pay her out before ownership change? Or would she be added back in and converted to a Key Employee balance for 5 years?

My position has been outsourced as of a wek ago. I am doing the same job as I was before the outsourcing, but now receive a pay check from another company. Only 200 of about 40,000 employees have been affected by this change. I want to rollover my 401K into a self directed IRA. My former employer says I cannot take a distribution because there has not been a separation in sevice. Can anyone advise me as to whether I am entitled to rollover by 401 K into an IRA?

I am showing a loss on my schedule C income ( line 12 of my 1040). However, for my overall 1040- I have earnings. Can I make a SEP IRA contribution ?

In other words, is a sole proprietor required to have a net profit in order to be eligible to make a contribution to a SEP IRA

WHEN CONVERTING TO A ROTH FROM A ROLLOVER IRA ,DO I NEED TO CONVERT THE TOTAL ACCOUNT OR CAN I JUST CONVERT A PORTION OF THE ACCOUNT?

Assume a lump sum distribution amount is calculated for a DB distribution as of a certain date. There is a delay of two months before actually writing the check to pay the former participant. The participant claims she is owed two months worth of interest earnings on the lump sum value as of the valuation date. Can anyone tell me what statutes or regulations govern the requirement to add earning to a delayed distribution? Any court cases out there on this topic?

My understanding is that shareholders of a sub S corporation essentially cannot establish a nonqualified deferred compensation plan for just themselves due to the pass-through taxation rules that apply to sub S corporations (i.e., that the shareholders would be currently taxed on the deferred amounts anyway). Can anyone confirm that this is the case?

A plan files a 5500, is publicly traded and is in or associated with the railroad industry or may be a railroad plan. Is this plan subject to 411 minimum accrual rules?

Can a selling shareholder's Sec. 1042 treatment be jeopardized by any actions of the ESOP or the sponsoring employee?

Has anyone struggled with the taxation of employee contributions distributed from a db plan before the participant's annuity starting date?

IRS Notice 87-13, Q&A 11, provides that, in the case of a db plan, you calculate the present value of the participant's accrued benefit using the plan's factors if the plan provides for a "total distribution". Otherwise, you use the factors set forth in Reg Section 20.2031-7.

What does "total distribution" mean? An actuary friend of mine interprets this to mean that the plan provides a lump sum distribution option for the P's entire benefit. What about a lump sum distribution option for a cash out or plan termination? In othere words, could the plan specify that the factors to use under Notice 87-13 are the same as for cash-outs or plan terminations?

I'm going to be wrong somehow on this - as I'm only aruging with myself on this point.

It was generally held around here that a qualified plan was one that:

- was tax deductible

- was eligible to be transferred to another qualified plan

- was eligible to be rolled over into an IRA

A 457 can only be moved from one 457-plan to another. It can never be rolled into an IRA (though there were two recent attempts to change that which were vetoed by President Clinton) and it's contributions, while tax deferred, are not tax deductible.

So when we say that a Deferred Comp Plan is "Qualified"......help me out here...someone...

I have a plan that grants 1 year of vesting credit if worked 910 hrs and 1 year of credited service if worked 1820 hrs. Partial credit for credited service is granted if worked less than 1820 hrs and is determined as hrs/1820.(If worked less than 910 hrs in the plan year, then no partial credit for benefit accrual is granted for that full year. On the other hand, partial credit is given in the 1st yr and last yr of employment if not a full plan year)

Question: Is it okay to grant partial vesting credit in 1st yr or yr of termination based on hrs /1820? or should the calculation be based on hrs/910? I'm thinking that either approach is acceptable since it is more generous than statute. Any comments?

Can anyone recommend a recordkeeper for a Puerto Rico based 401(k) type plan with approximately $2.0 million in assets?

A 401(k) Savings Plan has a non-leveraged ESOP portion which is made up of an old PAYSOP. If the dividends were distributed to participants under that portion of the plan on an annual basis, would eliminating dividend payments (and instead reinvesting the paymens) raise any 411(d)(6) issues? How does this square with the 411(d)(6) rules on stock distributions?

I've had two instances (of two I've reviewed) where the Quantech pre-SBJPA refunds are too much. In other words, where the ADP and/or ACP tests would be satisified by bringing the HCEs to 5.00%, Quantech has brought them down to 4.97% or some other amount less than 5%.

Has anyone else had this problem? And informed Quantech and gotten a response?

I do not think this is due to rounding. We're using 6.0.

I sent the info the Corbel yesterday, but haven't gotten an answer.

Thanks.