We have a client who uses self directed brokerage accounts. In the infinite wisdom of the client, he (owner of the company) started transferring assets from the qualified plan brokerage account to his personal taxable account. These were done by the same brokerage firm so they simply journaled the $ from his plan account to his personal account. Problem is that he did not tell us he was doing this and consequently no withholding was done. And also no 1099.

What is the penalty for not withholding? He did include the income on his taxes so he did pay all taxes due. Do we have a major issue here? (besides the issue of a client doing what he pleases without asking/informing us)

Thanks

Can someone explain to me in laymans's terms what IRC Section 414(k)(2) means when there are employee contributions involved in the D/B plan.

I'm involved with a City that participates in a Municiple Retirement System that claim they have a hybrid D/B Plan, even though it looks like a matching D/C plan (EE picked-up contribution plus ER "match"). They want to establish a supplemental D/C plan, which is allowed by State law, but have been told this section may limit them to the D/C 415 limits even though the State statutes refer to D/B limits.

What are the chances of being paid by the Plan for CPA audit fees when the sponsor has declared bankruptcy. We have been told that there is very little chance of receiving anything on the outstanding bill from the sponsor. Is there anything preventing me from billing the plan directly, and what do you think my chances of collecting are? Thanks.

1 guy is a key employee in 2 companies. no other common ownership or ASG issues.

Can both companies maintain a MP plan and get $30,000 to the guy in each company? ($60,000 total)

Can't find a reason why not, just seem to recall something...

Thanks

Can anyone recommend a website where a participant could check on the annual tax advantages (by plugging salary and deferral %) of participating in a 401(k) Plan?

Thanks

My client sponsors a 401(k) plan currently. He's interested in "adding" or "converting" the plan ... he's not sure ... to include an ESOP provision so that his employees can acquire stock and ultimately own the company. Thus, providing an "exit" strategy for his ultimate retirement.

Can someone help me accomplish this??

There is a new product being marketed called "Personal Care Accounts." These accounts effectively skirt the issue of "use it or lose it" by swapping employer and employee contirbutions when funding things like FSA's. Are these PCA's governed by the terms of Section 125? Section 213?

Can someone confirm the following? Is it true that GATT interest rates are not required for purposes of determining the maximum lump sum payable under a non electing Church pension plan? I believe that GATT mortality is required for adjusting the maximum dollar limit, but that is all.

How do you handle the discrimination testing for a plan that has only HCEs (no NHCEs)?

I took a distribution from my Roth with the understanding that I would pay it back within 60 days. This, I was told, would allow me to use the cash for the specified time period and return it to my Roth IRA without any penalty or tax ramifications.

The kicker is that I did this 3 different times within a 45 day period.

Can I redeposit the money I withdrew to avoid any taxes or penalties if I am still within the 60 day period.

Does anyone know a good source for benchmarking Retirement Plan fees such as actuarial services and investment advice?

If, after a DB plan terminates, there is a surplus that is distributed to participants, are alternate payees under QDROs entitled to a share of the surplus?

How would I design a cross-tested plan where the shareholders/partners want to receive different profit sharing contributions but there is no reasonable business classification in which to differentiate them. can they be classified by name? can they be called class 1 shareholders, class 2 shareholders, class 3 etc.

Quick question, I think:

Client has a DC money purchase pension plan and it wants to adopt a plan amendment decreasing the percentage contributed to the plan. This amendment would be prior to the end of the plan year but client wants to make it retroactive to the beginning of plan year.

I have searched and searched but cannot find the legal authority in ERISA that gives them the ability to retoactively amend the plan.

Can this client retroactively amend their plan and, if so, can you please point me to some authority for this proposition? Thanks very much!

Charles Griffin

Do you know of any companies or reference materials that utilize "full flexible compensation?" By this, I mean, have any companies tried to take salary, incentives, benefits (medical, dental, etc), perks, time-off, and everyother component of total compensation, and pool it all in a fully flexible spending account. FOr example, if you don't want dental coverage, you can take extra days off or get a higher paycheck. I am looking to benchmark-- any leads on companies or resources that detail this process?

I am working on a takeover plan and am trying to find out if the Plan, which was adopted 11/21/94,was ever submitted for a Determination Letter. Years ago, I had a contact at IRS who would locate the latest DL and FAX it to me, but he is no longer available. I am hoping that someone has a contact at the IRS for this purpose. Thanks for all input.

What is the prevailing approach for distributions when a DC plan is terminated with favorable determination letter, all searches, IRS & SSA letter forwarding requests completed without the participant being found? I'd like some feedback from practitioners on whether the preferred approach is to use the forfeiture approach approved by the regulations (although the regs appear to specify that the participants be 65) or to try the 100% withholding option? Does the approach vary depending on whether the account balance is greater or less than $5,000?

Can a non-spousal beneficiary simply maintain the inherited IRA in the name of the decedent without taking a distribution thereby avoiding a taxable event? I believe the answer is Yes, just hoping for some verification.

I have a resident alien participant in an ERISA plan that died intestate. He was married and divorced twice. The beneficiary designation that we have is for the second wife while he's married. On that designation he selects his son from the previous marriage as the beneficiary but new wife does not consent. Neither divorce settlements provide for any plan benefits and the plan document says to pay to spouse if married or other beneficiary if spouse consents. Is the beneficiary designation denoting the son as beneficiary a valid designation now that they are divorced or does it remain invalid since it was invalid at signing? We know that it wasn't valid at time. Can we pay the balance to the estate of the individual? Any insight for the 7th circuit on court cases would be great.

If a participant completes all the paperwork to receive a distribution such that he/she elects a specific form of beneift (single sum, installments, etc.), tax withholding, and whether to make a direct rollover, what options does the plan sponsor have if the participant receives another contribution at the end of the year? Can the plan sponsor rely on the written election that pertain to the previous distribution even if those signatures and elections are more than 90 days old?