-A partnership is sponsoring a 401(k) on a calendar year basis.

-The partnership has a fiscal year end of 4/30/2000(yes, it is not a mistake, I found out that it is possible even though until recently I did not know it)

-As every year, the partnership is on extension and will file the partnership income tax return just before 2/15/2001.

-All participants deferred during 2000 excepting the parteners. As every year they will make the deferrals close to the fiscal year end.

In a nutshell thy were told by previous TPA that is OK to defer in February 2001 for the plan year end 12/31/2000. This is 2 1/2 month after the plan year end.

Any comments about the legitimacy of above situation?

PS: The partnership is an accounancy firm. They claim that they never know the partnership income until close to the extension date

Thanks.

We have an employer who adopted a money purchase pension plan effective November 1, 2000 with a 5% contribution. When the Company computes its 2000 contribution does it take into account only salaries since November 1, 2000? the plan defines compensation from the first day of the plan year, not just when the employee became a participant. In addition, is the $30,000 limit prorated for 2 months of the year?

Can i enroll for cobra on-line? What is the adress?

I have a cross-tested 401(k) profit sharing plan that failed the ADP test. We are returning excess contributions to the HCEs. Do we have to include the returned amounts in the HCES benefit percentages when running the average benefits test?

Pros & Cons of differences between 401(k)s and 403(B)s? --Comparison Chart

I have heard that C-Corps who have a 401(k) plan and an ESOP are entitled to a deduction limitation of 25%. I thought it was 15%. Can someone explain to me why the limitation is 25%? Is it because an ESOP is a MPP? Also, would the fact that the ESOP is leveraged make any difference?

Does anyone have some helpful information on converting FDP DOS to Quantech 6.0?

I'm having some problems with participant loans as well as vesting.

Annuities will be purchased in conjunction with terminating a DB plan. The plan has the early ret provision of age 55 and 10 years (1000 hrs= 1yr) The participants are not being terminated from employment.

Must the annuity contract contain the same early retirement provisions of the plan so that all participants can eventually reach ERD via age and service? Does the answer depend on whether or not there are ER subsidies? There will be no employer reversion.

Right now the annuity contract states that ER is available but only based on age 55 and 10 yrs of service. Service is the service earned as of the plan term date.

In an integrated Profit Sharing Plan it is possible for a participant with compensation >$170,000 to get a contribution larger than $25,500. Is it also possible to do this in an integrated SEP? Thanks for all input.

This is a follow up to the thread started last Fall on the Plan Terminations board regarding "un-terminating" a DC plan (thread started 10/2/00). BACKGROUND: the plan sponsor of a 401(k) plan has executed board resolutions "terminating" the 401(k) plan as of Date X, vested plan participants 100% as of Date X, amended the plan for legislative changes and received a determination letter, BUT has made NO distributions yet. The plan sponsor would like to "un-terminate" the plan before making distributions and begin allowing deferrals, etc. again

I was hoping that someone might have some additional insight, cites, or have had informal or formal comunications with the IRS on whether or not this presents a qualification problem for the plan (assuming the 100% vesting in benefits at "termination" is not going to be changed).

What is the risk in "un-terminating" a 401(k) plan for which there are board resolutions authorizing the termination, but where no distributions have been made at all and all participants will remain 100% vested?

This is a follow up to the thread started last Fall regarding "un-terminating" a DC plan (thread started 10/2/00). BACKGROUND: the plan sponsor of a 401(k) plan has executed board resolutions "terminating" the 401(k) plan as of Date X, vested plan participants 100% as of Date X, amended the plan for legislative changes and received a determination letter, BUT has made NO distributions yet. The plan sponsor would like to "un-terminate" the plan before making distributions and begin allowing deferrals, etc. again

I was hoping that someone might have some additional insight, cites, or have had informal or formal comunications with the IRS on whether or not this presents a qualification problem for the plan (assuming the 100% vesting in benefits at "termination" is not going to be changed).

What is the risk in "un-terminating" a DC plan for which there are board resolutions authorizing the termination, but where no distributions have been made at all and all participants will remain 100% vested?

Sps election to treat a decedent's IRA as inherited or as sps' own IRA is irrevocable and must be made by year following date of death (assuming sps rbd is not later).

So if sps elects to treat IRA as inherited there is no way to do a sps rollover from that account.

Is this true?

I am trying to get clarification on who is responsible for the tax liability of an offset of an outstanding loan balance upon the death of the participant who has named a beneficiary? Any guidance will be appreciated.

Defined Benefit Plan. Pensioners receive monthly installments. A portion of their installments is used to purchase medical insurance and/or dependent life insurance, if elected by the pensioner.

How are these insurance premiums reported on the 1099Rs?

We have a 401(k) and an ESOP. I understand that normally if you have two or more trusts you treat them as one for purposes of the 404 deduction limitations. However, what happens if you have a 401(k)and an ESOP. Are you limited to 15% or can you still utilize the 25% deduction limitation under 404? How does this work?

A DB plan participant is taking early retirement at age 55 and will be receiving monthly payments as calculated by the plan's actuary. What is the proper code to use in Box 7 of the 1099R? Should it be a 2, early distribution - exception applies, or 7 for normal distribution?

Anybody have a cite for the due date for a profit sharing plan sponsored by a non-profit organization?

A plan with pooled investments pays out a participant 100% of her account balance even though she is only 20% vested. In addition, the distribution was a lump sum to the participant and no taxes were withheld from the distribution. How do we handle this? Should we try to recover the 80% she is not entitled to (probably a lost cause) as well as the 20% that should have been withheld for taxes. Then, deposit the 80% back to the plan, forward the 20% withholding as taxes and amend the 1099-R for 2000?

Does anyone have any comments?

Under a Dependent Care Reimbursement Program can we reimburse for household care for a dependent over age 13? I know that for services perfomed outside the house, the age limit is 13 years.

Any help would be appreciated.

Other than a couple of articles, I haven't seen anything on DROPs. From the articles, there appear to be qualification and ADEA issues relating to this type of arrangement.

Am looking for official pronouncements. Are there any? If so, where can they be found?

Has the concept of DROPs been approved by the IRS? Have plans been written using this concept and if so, has the IRS issued favorable determination letters?