If a participant properly rolls over an amount well within 60 days, but the company receiving the rollover does not cash the check for 4 months because the company did not realize it was a check (evidently thought it was a receipt), is the rollover still proper (can the check be cashed now as part of a "60-day" rollover)?

A large plan recently recognized that it has 350 participant loans in default. Some defaults go back 4 years. None have been treated as a "deemed distribution" as of yet. Some of the defaults occurred because of employer payroll errors, such as the loan withholding from compensation was stopped prematurely, others due to confusion as to the proper handling of loans when a participant goes on disability, etc. The employer has made the decision to "clean up" the situation at this time and is looking for available alternatives. I know that the straight forward answer is to treat these outstanding loans as "deemed distributions." I have also heard of situations where the employer has made a "walk-in" CAP filing and has negotiated other possibilities. I am interested in whether any of the readers have had experience along these lines relative to a "walk-in" CAP in this situation. I would also be interested in learning of other solutions that employers may have used in this situation recognizing tht they may be on the more aggressive side.

A large plan recently recognized that it has 350 participant loans in default. Some defaults go back 4 years. None have been treated as a "deemed distribution" as of yet. Some of the defaults occurred because of employer payroll errors, such as the loan withholding from compensation was stopped prematurely, others due to confusion as to the proper handling of loans when a participant goes on disability, etc.The employer has made the decision to "clean up" the situation at this time and is looking for available alternatives. I know that the straight forward answer is to treat these outstanding loans as "deemed distributions." I have also heard of situations where the employer has made a "walk-in" CAP filing and has negotiated other possibilities. I am interested in whether any of the readers have had experience along these lines relative to a "walk-in" CAP in this situation. I would also be interested in learning of other solutions employers may have used in this situation regognizing that they may be on the more aggressive side.

I am trying to find a prototype 401(k) plan document sponsored by Continental Benefit Administrators, Inc. of Atlanta. I understand that that corporation is currently in the process of dissolution. Does anyone have a client who may have adopted their document and who would have a copy of the prototype document and Opinion/Notification Letter?

We have a client who has commited to using the 3% QNEC safe harbor method to avoid ADP/ACP & Top Heavy testing. But he is loathe to give this 3% to employees who leave before 3 months. the plan entry dates are quarterly after 3 months. Is it possible for him to exclude employees who never become eligible for the plan from getting the 3% minimum?

I belive this relates to definition of compensation. Per Treas Reg 1.401(a)(4)-12, plan comp can be limited to that which is earned while a participant, but only if nondiscriminatory. (Would I have to test it each year?) Also, he's willing to give the 3% on full year compensation, but only to those who stay on more than 3 months. Is this legal? thanks.

We have a safe harbor 401(k) plan utilizing the 3% nonelective contribution. The plan has quarterly entry dates and includes only wages earned for the portion of the year in which you were a participant.

It is my understanding that the 3% contribution can be used to satisfy top heavy. It is also my understanding that the top heavy minimum contribution must be based on compensation for the full plan year. If I have mid-year entrants, do they get the safe harbor contribution for the portion of the year in which they were a participant and a 3% subject to vesting contribution for the portion of the year prior to participation?

Is a 5500 required for a premium-only cafeteria plan? If it has more than 100 participants, is an audit required?

Company A has a 401(k) plan. Company X acquired 100% of Company A in 1999. The intention was to close Company A's operations and terminate Company A's plan in 1999. However, as of today, Company A is still in operation (& still fully owned by Company X) and the plan was never terminated. Furthermore, newly eligible employees at Company A were not allowed to enter the Company A 401(k) plan during the latter portion of 1999 and for all of 2000 (and thus far in 2001, for that matter).

So, basically, despite being acquired in 1999, nothing has changed at Company A...except that Company A has not been operating it's plan in compliance with it's terms.

What is the best correction method/approach for failing to allow otherwise eligible participants to join the plan?

In 1993 the company I worked for filed Chapter 11. At that time I received an annual report. Since then I have received no other information on my ESOP. The company terminated the ESOP and since then has sold most of it holdings. I quit working there in 2000 and have not heard anything about the ESOP. I was told that the IRS was holding everything up because they were auditing the company. I don't know much about the ESOP or what to expect. I would appreciate any help I can get.

Thanks D Crantz

I have a plan that defines compensation to include commissions. Commissions, however, are often paid well after termination of employment (based on sales prior to termination). The employer would like to continue deferrals from these dollars, regardless of the length of time after termination, in order that affected employees do not lose the company match (I know, most would like to take exactly the opposite position...)

Can deferral elections continue after termination of employment if the amounts paid are earned prior to termination?

How do you handle recurring commissions after termination of employment?

Thanks-

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I have a plan where the plan administrator prepared the ADP testing with error. Due to these errors the ADP test fail and deferrals were returned the one of HCE. However I discovered the error and recalculated the ADP test and found that the plan passsed. I am not finding alot of information in how to correct this. The participant was not 59 1/2.

My question is regarding the assets that have been leftover in the trust of a governmental retirement plan after the distributions have all been paid out to the participants.

How do you determine if the Plan Document allows you to revert the left over assets to the employer/agency? Is it supposed to be specifically stated somewhere in the plan document?

And if we can send the assets back to the employer/agency, what are the procedures in doing so?

The Internal Revenue Code requires a 402(f) notice for all elligible rollover distributions. 1.402© notes that a loan offset distribution is an elligible rollover distribution. How do you comply with the 402(f) requirements if you don't know the distribution will occur 30 days ahead of time? Remember, I am not talking about a deemed distribution, which is definitely not an elligible rollover distribution, I am referring specifically to a Loan Offset Distribution. Am I missing something here? Please advise. Thank you.

My client has a DB plan that has been ignored for a number of years. His record keeping has been, to be kind, extremely limited. According to his records, his TPA (who ceased operations in 1993) prepared a PBGC form 500 in 1992 for plan termination. There are no records that the form 500 was actually filed with PBGC. The plan was fully funded at the time. My question is, if the plan was actually terminated, and the sponsor elected to continue the trust and distribute the benefits when due, is he required to continue filing 5500s? The last 5500 was filed in 1992.

Anyone dealt with Continental Benefit Administrators Inc. out of Atlanta?

Can a participant receive a mathcing contribution if he took a hardship withdrawl during the year that included his current year deferrals?

The document is individually drafted and does not address the issue.

A professional corporation is considering establishing an ESOP. However, in our state (Cal.), shares of stock in a professional corporation may only be issued to licensed persons. This of course begs the question "Can a professional corporation have an ESOP?" since non-licensed employees would be participants under the ESOP and would, arguably, "own" shares of stock in the corporation. If the terms of the ESOP provide that only licensed persons may serve as trustee of the ESOP (reasoning that the shares are actually "owned" by the trustee, not the participants) and that distributions will only be made in cash (not stock) (corporation's articles restrict ownership to employees or 401(a) trust), does ESOP comply with this state law restriction?

After 14 months on the job, covered by company insurance plan, I raised a question about the premium amt. This inquiry revealed that the employer was in error and that no premium was ever deducted from paycheck. The manager presented me with a memo suggesting we discuss how to repay. This discussion never took place, although I responded with a memo. The following pay, the standard amt was deducted. The next 2 months I discovered that the employer took 3 times the std. amt. from my paycheck without ever consulting me. Is this legal? He is also refusing to reimburse my expense reports to recover this "debt" which he strongly feels I owe.

I'm the one who pointed out the error, and was willing to discuss how to resolve it. Does a time limit apply to how far back he can try to take repayment for HIS error?

Please share, thanks

I have recently been told about roth ira and I am trying

to find information about rules regulating rolling over

a 401k plan then withdrawing the funds for the purpose of

first time home buyer. I am very new to this and know

nothing at all about roth ira. Any help with this would be

greatly appriciated.'

thanks!!!

Am looking for providers of an "integrated" SEP (which must be on a prototype SEP document versus IRS Form 5305-SEP) with which readers have had experience.

Thanks for any and all responses.