Last I heard (Oct) on this one, that they were still working on adding the ability to use 35,000 for non calendar year plans.

The only work around I know:

Plan Specs: code other plan type as DEFINED CONTRIBUTION

(1st screen in plan specs)

Census: other plan(s)[benefits/Contributions Screen,Plan YTD Amounts] enter a negative value.

employees with comp

employees comp > 140,000 enter -5000

otherwise take (comp -120,000) * .25

sorry, its the best I can come up with.

It's a bother, but it works, and I guess there are not a lot of ees you have to worry about.

..........

with service pack 2 they added a report 415.rpt

it is hardcoded at 30,000.

replace the 30000 figure with PLANSTAT.MAXANNADDAMT

you will have to add PLANSTAT to the report.

I have a custom allocation report that will check for 415 (however it will indicate ee is over 415 limit because I can't pull 35000 for non calendar plans. for calendar year plan it should work properly - depending on what the limit is) I have to get the guy in house to add them to our web site if any onbe is interested in using this report.

I have a plan, 50/50 owners of company covered, no employees. They have split up. One partner starts a new corporation and wants to start a new plan. I want to include service for old co. in the calculation of benefits for new co. plan. Using service for eligibility or vesting is moot, new co. has no employees either, only owner.

Is 50% ownership of old co. sufficient to allow incorporating for years of participation? Seems likely to me, but i don't know where to look.

Is 50% ownership of old co. sufficient to allow incorporation of salary history? Seems unlikely.

Thanks for any hints anyone might have.

Can contributions to an Roth IRA be pre-taxed

A profit sharing plan covering both HCEs and NHCEs is being restated for GUST. The Corporate Resolution and the signature page of the new document were signed December 28, 2000. The effective date of the restatement was set as January 1, 2001 because the employer wanted to add a 401(K) feature for the whole of 2001. Are there regulations mandating that a certain amount of time elapse between the adoption of an amendment and its effective date in such a circumstance, i.e., will the timing of the above execution allow the new document to be valid as of 1/1/2001?

Our Company is interested in beginning a PTO program (sick leave, vacation, personal days). I've looked all over the web for a simple plan based on assigning X amount of hours on the EMPLOYEE'S ANNIVERSARY DATE instead of the normal accrual policy. Does anyone out there do this? Thanks!

My agent represents both Oppenheimer and Nationwide. He says i should put my new 403b contributions into Oppenheimer because even though their funds are load, it will end up costing me less than Nationwide's variable annuity fees. Can this be true?

A stock option plan for a publicly-traded company provides that 5,000,000 shares are reserved for options, and that no more than 1,000,000 shares can be granted to any employee during the 10-year term of the plan. In order to comply with Section 162(m), the plan was approved by the shareholders shortly after it was adopted.

The company wants to amend the plan to increase the number of shares reserved to 10,000,000. The maximum number of shares than can be granted to any employee will stay the same. Is shareholder approval of the amendment required under Section 162(m)?

In the case of a person who has a balance in a plan because the person is an alternate payee of a QDRO, the required minimum distribution rules apply. Whose age is used, the original participant or the alternate payee?

When 415 excesses are returned, is a 5330 required?

I have a two part question:

If a newly hired employee does not enroll in medical benefits during the first 31 days, can they in any instance be allowed to enroll after that if they provide evidence of insurability (this is a sec 125 pre-tax plan)? This is also assuming there is NO change in family status. I read the new HIPAA regs do not allow the use of evidence of insurability but not sure if it applies to this scenario or is just used to keep employers from discriminating from allowing coverage altogether.

Can the employee enroll after the 31 days if they pay for their benefits post-tax? Is there any way that an employee can enroll without violating any regs after the eligibilty period has passed (and outside of annual enrollment)without having a change in family status?

Thanks!

In a Profit Sharing Plan where there are many terminated participants with very small balances (i.e., under $1 to just under $20) and the cost assessed by the investment manager to process a distribution is $40 per distribution, can the small balances be forfeited instead of processed as distributions?

403(B)- My account is now being serviced by a new vendor. There was a blackout period for 5 months, from 6/30/00 thru 12/1/00. The new company now enables you to track your account on a daily basis thru the internet. My question is when should I see capital gains posted to my account? The funds I am invested with paid capital gains on 12/14/00 and 12/21/00. My account balance dropped thousands of dollars and I have yet to see my gains re-invested. When I called the company they were unable to give me a date as to when the gains will be re-investaed. Is there a law as to the time it should take to invest someones capital gains. I am going on a month now, is this par for the course ? Thank You,

I am doing a 5500 Schedule T for a plan which is made up of 50% collectively bargained employees (all NHCEs) and 50% non-highly compensated employees. Should I check both 3(B) and 3© or just 3(B) or file two Schedule T's (one for collective bargained piece and one for the NHCE's).

I'm leaning towards checking only 3(B), although I don't think this is technically correct since the collective bargained piece should be disaggregated from the non-collectively bargained piece, but I don't see anything in the instructions telling me that I have to do two Schedule T's.

Any one have any ideas?

Can anyone tell me if the following could be considered discriminatory and if so, what the site is?

1. Different waiting periods for eligiblity for hourly paid and salaried employees (i.e., salaried employees eligible for health care from date of hire, hourly employees must wait 90 daye)

2. If coverage ends on the last day of the pay period in which the employee terminates - hourly paid employees paid weekly, salaried employees paid 2x month. The salaried employees would probably get a longer period before coverage ends.

Employer changed an employee from salaried to "per diem" and somehow admin/payroll or someone accidentally "coded" this person as terminated for the plan purposes. This participant was provided the opportunity to receive a distribution from the 401(k) plan, and, of course, took the money (only about $1,000 or so). There is no specific correction for this qualification failure in Rev Proc 2000-16 (EPCRS), but we have advised the client to seek repayment from the participant in the manner described for overpayment due to vesting error or 415 overpayment. The employer will probably have to put the $$ back (plus interest)--they already know that the participant won't do it. We have also advised them that they can reduce future payments to this participant to recoup the amount (as allowed for 415 corrections). Does anyone see a problem with this for a 401(k) plan self-correction? Any input would be appreciated.

We currently have an ESOP client (bank holding company) that we just discovered also has a SIMPLE IRA. Both plans were established in 1999 and contributions allocated under both for 1999 and 2000. What happens in this situation? Are the SIMPLE contributions disqualified?

If a person is diagnosed with End Stage Renal Disease, thereby entitling the person to Medicare, will Cobra coverage be terminated?

Employer with several hundred employees has group term life with one insurer and has been filing its 5500s. The employer is adding optional 100% employee paid group term life with another insurer. What is the general practice:

1) Take the position that the OGTL is not a Plan and simply ignore it for 5500 purposes.

2) Assign the same Plan number for the OGTL as you do for the GTL (even though they are through separate insurance companies) and treat it all as one Plan and simply include two Schedule A's.

3) Get a separate plan number for the OGTL and file a separate 5500.

4) Other?

Employer with several hundred employees has group term life with one insurer and has been filing its 5500s. The employer is adding optional 100% employee paid group term life with another insurer. What is the general practice:

1) Take the position that the OGTL is not a Plan and simply ignore it for 5500 purposes.

2) Assign the same Plan number for the OGTL as you do for the GTL (even though they are through separate insurance companies) and treat it all as one Plan and simply include two Schedule A's.

3) Get a separate plan number for the OGTL and file a separate 5500.

4) Other?

If a participant in a stand alone DC plan has annual additions in excess of the 415 limit, it seems clear that Code Section 404(j) and IRS Notice 83-10 do NOT permit the employer to take a tax deduction for the amounts in excess of the 415 limit.

Assume the primary limit under Section 404 is $100,000 and the employer makes a profit sharing contribution of $25,000 in order to bring total contributions to exactly $100,000. Further assume that an employee has a $1,000 415 excess after the profit sharing is allocated and before the 415 test is computed.

If the employer refunded the $1,000 of salary deferral contributions as a 415 excess, would you agree that the company could only deduct $99,000 on its corporate tax return?

Is the 415 excess deductible under a different Code Section? I find it hard to believe it simply wouldn't be deductible at all.

Thanks.