Is a 401(k) plan sponsored by a union aggregated with 1 401(k) plan sponsored by the employer? For example, suppose the the union employees participate in both plans - do the 415 limits apply to the combination of the plans or to the plans separately? How is deductibility affected? Are the plans aggregated or treated separately for other purposes?

Employee is complaining to employer on 3/15/01 that there were no 401(k) deductions from his paychecks during 2000. Employer is unable to find written modification of his deferral election. But employee isn't concerned until tax time. Employer argues that because (1) employee didn't "notice" this for 24 pay periods and (2) he was invested aggressively and would have suffered market losses anyway and (3)there was no match applied to the deferral that the employee has not suffered. What, if anything, to do?

I have a profit sharing plan (no 401(k) provisions, etc.) with year end 12/31/99. The profit sharing contribution was not decided until 3/1/00. It is my understanding that in determining top heavy status for 2000 I only consider invetsment account balances at year 12/31/99. I would not consider the profit sharing contribution for the 1999 plan year because the BOD did declare by the dtermination date (12/31/99).

I have been told that I am wrong and that I should include the profit contribution in determining status for 2000. Is this alternative view correct?

Thanks in advance for any guidance.

We have a 401k plan and the employer is looking to increase his profit sharing contribution for 2000; problem is, it is knocking 2 nhce over the limit. I assume if i keep these two employees at the limit it's discriminatory because they get a lower psp contribution rate. Is the solution to use a lower psp contribution percentage for all. I am exceeding the aggregate 25 % limit and the 415 limit. Where can i go online to read more on these limits? The plan has deferrals, match & employer psp contributions.

I have a client with two IRA's as well as three separate 401(k) balances. He turned 70 1/2 in 2000. He is not employed. His broker told him that he could aggregate all of these accounts, for calculation purposes, and pull one RMD out of just one of the IRA's. The information that I keep reading is that he cannot combine his IRA's and 401(k)'s to calculate the RMD. I think he can combine his IRA's but that the 401(k)'s must be calculated separately. Does anyone know the answer?

I know that this has already been discussed. However, I am looking for any cites which contain detail as to how many decimal places you need to carry out, in order to determine a plan's top heavy status. I.e.- my client's plan has a top heavy ratio = 60.07%. He is arguing that it should be 60% rounded down, but I took the conservative approach that anything >60%, without regard to rounding down, is considered top heavy. I informed him of my findings but he wants me to consider the plan not top heavy.

I told him that I would send him the testing results and he needed to let me know how he wanted to proceed, in writing. Any thoughts as to how to indemnify myself and my firm from any future backlash if the IRS determines through audit that the plan is top heavy?

Thanks in advance for any thought.

It appears that if a participant elects out of a 403(B) plan, he or she is included in coverage testing. Are they also included in ACP testing?

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?