An employer would like to give a safe harbor non-elective contribution to all NHCE's in the plan. however, he also wants to give a 3% non-elective contribution, subject to the plans vesting schedule, to only the HCE's. I know that this would be permissable if the employer gave the additional non-elective contribution to all the employees but is it ok to just give it to HCE's? Does it have to be tested if it is not be given to all participants? If it is ok, I would also like to know the legal basis or rationale.

I am rephrasing this since no interest has been shown. I think my concern is a follows. If you do not make the GATT amendment, and the funding calcualtion is based upon the document provision (it is my understanding that itis the IRS posisition that you must do so) then when you retroactiviely amend, have you not created a non-deductible contribution for 2000 since you have perhaps used a benefit in excesss of the limit?

The GATT and 415(e) amendments appear desirable to do as soon as possible, however, are there required amendments prior to the extended GUST compliance date?

I have an owner only that has over $100,000 in his plan and hasn't filed a 5500EZ for 1997,98 and 99. He is planning on filing the 5500s currently but has some questions. Who would assess the penalties for the pre-99 filings?? If it's the DOL, is it too late to go through their VCR program?? For the 1999 filing, what kind of penalties can be expected?? Will it be similar to the IRS or will it be just handed down, no ifs ands or buts??? Any help would be appreciated. Thanks.

Does anybody have a cash balance trust that I could look at? I'm really in a bind. Thanks for your help. Ed

Has the IRS set forth any guidelines concerning a participant's ability to change a distribution option under

an unfunded nonqualified deferred comp plan. The current plan document states that a payout election may be changed if notice is provided to the Plan at least 90 days prior to separation. Is it permissable to amend the plan to reduce the notice period to 30 days prior to separation and not trigger any constructive receipt issues.

This multiemployer (collectively bargained) defined benefit pension plan has an accumulated funding deficiency. Does each employer participating in the plan have to file a Form 5330 Return of Excise Taxes Related to Employee Benefit Plans or can the board of trustees that act as plan sponsor file one 5330 on behalf of the participating employers. I know each employer has to pay their fair share of the excise tax- but does that necessitate individual filings of From 5330?

Thanks

Can Notices to Interested Parties be sent by email?

Hello Cathy,

Blaze SSI--- RTS System

When we have a test that is separated into subgroups due to excludable testing (Less then a year of service or age 21, or whatever the circumstance may be) Some of the employees are also coded with a 3 in field 61(because of different eligibility requirements). When we encounter this situation the tests includes the individual with the code on the ADP test despite the subgroup they may be in.

For example if Bob should be in subgroup 01 only, And is not eligible to receive a matching contribution but is eligible for an elective contribution a code 3 will be placed in field 61. We run a test based on subgroup 01 and he appears, as he should.

Now when running a test on subgroup 02. He also is listed on this test which he is not a member.

Is there a solution to this problem that we may be overlooking?

When excludable testing is performed is there an easier way that you know of to separate the data into two different test? (Over 21 and greater than a year of service) and (less than 21 or less then a year of service.)

Blaze confirmed that the field #61 is used regardless of sub-group. They say the only solution to this problem is for them to add an additional field doing the same as #61 but would not take precedent over any subgroup. There would be a charge if this were done. I would think this would be a common problem amongst users. The said they can not adjust the field 61 because some users may want it that way. Is there any circumstance that you may know of that you would run a test on a subgroup and want these coded employees to be added on?

Have you encountered this problem before?

Do you have any suggestions that may help?

I'm looking forward in hearing back. I'll keep you busy on this board. I'm surprised you don't receive many questions. Blaze is not the easiest program to use and there is so much that can be done that not many people know about.

Thank you for all your help,

Denis

Denis

I have questions concerning the IRC 529 program, the qualified college tuition plan that Schawb is offering to the public effective Dec. 15, 2000. It appears to say that the pre-tax contribution is allowed. Do you have any ideas of what kind of contribution limit imposed by the Code and how does it work?

Sorrry I have to post this question in the 401(k) section.

1. Can a plan terminate its loan program and call in all outstanding loans, deeming distributions to the borrowers who do not choose to pay the entire outstanding balance?

2. If so, are there any time restrictions?

3. Finally, if the plan terminates its loan program and deems distributions to those participants who do not pay, what becomes of the plan asset that is the loan note? There is no longer any loan program through which a participant could pay it back (even if he/she wanted to) but a "deemed" distribution is clearly not an "actual" distribution per the IRS regs. This leads me to think that the note has to hang around as a "plan asset" even though it can never be paid back. Any advice?

Has anyone had any expeience dealing with the new "Kansas City" office position of the DOL on plan expenses in a DOL audit? I'm interested in how rigid their approach is, are they willing to compromise, given the more lax standards they previously announced publicly? How about 502(l) penalties? Your experiences are appreciated.

Has anyone been through a recent DOL audit where expenses charged to the trust was the focus? I'm particularly interested on those that have experience the "Kansas City" office view on this subject. How flexible is the DOL in this area, given the more lax standards they previously announced publicly? Are they assessing 502(l) penalties? Etc. Your experiences are appreciated.

Question, does the 415© limit only apply to after tax contributions? Reason for the question is the mass Teachers Retirement Board has taken this stance when they improved their DB pension plan and long term employeees have to contribute another 6% of salary for a 5 year period to be eligible to use their "Retirement Plus" plan. Teachers that are retiring on July of 2001 they are allowing to put up to 100% of their salary into their DB plan to qualify for the extra benefit. This will mean some of my clients will be contributing almost 80% of their salary earned from 1/1/2001 to 6/30/2001. Their stance is the 415© limit of 25% of salary is only for after tax contributions.

Can a participant, age 76, still make salary deferrals? He is a full-time active employee and has not yet begun his RMD.

Self employed employer contributes to a multiemployer pension fund. The fund gets a judgment for past contributions against the employer personally. The self employed employer also participates in the plan. Can the fund get around the assignment and alienation provisions of ERISA and set off the participants benefit?

I HAVE A DR. GROUP. 5 DRS. 3 ARE OWNERS AND I WANT TO MAX, 2 ARE NON OWNERS ONE I WANT TO MAX, ONE I WANT AT 0%. HOW CAN I WORD THE GROUPS SO I SEPARATE THE TWO NON OWNER DRS.? CAN I JUST USE THEIR NAMES, CAN EACH GROUP BE ITS OWN DR WITH HIS OWN NAME?

THE DR AT 0% IS WILLING TO PERM. WAIVE OUT OF THE PLAN.

HOW WOULD THAT EFFECT THE TESTING? WOULD HE BE EXCLUDED FROM THE TESTING - WHAT ABOUT THE 404 LIMIT? DO I ALSO EXCLUDE HIS COMP?

THANK YOU IN ADVANCE...

IF YOU NEED ADDITIONAL INFORMATION PLEASE LET ME KNOW....

Does anyone have experience drafting nonqualified "wrap-around" arrangements combined with a 401(k) plan? As I understand it, prior to the beginning of a plan year, a HCE participant enters into a salary reduction agreement with respect to the nonqualified plan. He or she also elects to have the maximum permissible elective deferral under the 401(k)plan, after testing is done, transferred from the nonqualified plan to the 401(k) plan.

Could someone lead me to some sources describing the fundamentals of KEOGH plans? They are a new pension plan creature to me and I am looking to understand how they are similar and different from other qualified plans. Alternatively, prehaps you could give me the name/address of a company which offers a M/P KEOGH plans? Thanks.

Has anyone had any experience recently with the PBGC regarding timing on the distributions in a plan termination? We had a client who missed the date by 6 days and I'm wondering if they nullify the termination what does that really mean? The plan was frozen so there are no additional accruals.

What are the main differences between a 403b & a 401A? I work mainly with 403(B)& 457 plan. Is it mainly for employer paid accounts for highly compensated employees? I work in a school district & need to establish one for our Superintendent.