I have a question on the definition of compensation used for calculating a match in a SIMPLE plan -- Do section 125 contributions reduce the compensation used to calculate the match?? When I follow the references from 408(p)defining compensation I cannot find any place that authorizes us to add back Section 125 contributions. Can you help??

A plan participant wishes to rollover the full amount of his plan distribution to an IRA. He has had a life insurance policy in the plan.

Am I correct that:

1) He can (providing it is not prevented by the plan document) choose to purchase the life insurance policy by writing a check to the plan in the amount of the cash value of the policy.

2) The total of the PS-58 costs that have been reported in the past will have to be paid directly to him as a non-taxable distribution.

3) The non-taxable distribution will not be subject to the 10% premature distribution penalty.

4) The remaining money after distribution of the PS-58 costs must be paid in an eligible rollover distribution?

Defined Benefit Plan: States that payments won't be made at age 65 unless you elect to take the money (ie, deemed deferral until minimum distributions). What do you do when:

Vested term. reaches age 65 and does not return distribution forms; thus, deemed deferral; time comes for mimimum distributions; you do not have current info. on the participant (ie, participant terminated 10 years ago and you do not know whether the participant is married, and if so, the age of the spouse)to allow you to calculate the mimimum distribution and you cannot get participant to respond to your request for the info. (or, in some cases, you can't find the participant). What should you do? In the case of the participant who simply won't give you the information, do you simply warn them of the excise tax and not pay the min. dist.? What about the case of the missing participant?

I suppose in the case of the missing participant, after making diligent effort to locate the missing participant (e.g., participating the in the DOL program), you can segregrate the funding attributable to that participant's benefit in some type of suspense account, subject to reinstatement if the participant resurfaces. ????

Has anyone run into these problems? Any suggestions would be appreciated.

Client has two sole proprietorships. One, a medical practice, has a MPPP. The other, a hotel, has a SEP. The medical practice has Net Schedule C income in excess of $200,000. The motel, however, has a Net Schedule C loss. How is compensation computed for each of the plans, the SEP and MPPP? Does the client get a contribution from each plan based on comp of $160,000?

In reviewing 5500 returns from takeover clients, preparing this years returns, I've noticed many times where receivables were not listed on the form 5500. As a result, I'm trying to back into what was a receivable from the prior year against the deposits in the current year so I can reflect the receivable still due. I beginning to wonder if I'm missing something here. My understanding is that receivables should be shown. Can someone comment on this! Please!

Can a plan with a profit sharing contribution feature be amended during the last part of the year to exclude HCEs from the profit sharing contribution? If the only current requirement for the profit sharing contribution is a 1000 hour requirement and the HCEs have already earned 1000 hours for the year, but the discretionary profit sharing contribution has not yet been decided upon, can the plan be amended to exclude the HCES?

Here's another study that has turned up the issues/problems we discussed earlier in the "Warning High Explosives" thread. This highlights the problems that lie beneath the glowing reports of higher participant allocations to equities in recent years and better "educational" efforts are given the credit. Some education!

If this URL does not turn up as a link, copy & paste it.

http://www.indexfunds.com/articles/2000091..._iss_alo_RF.htm

Is anyone else experiencing age discrimination regarding their Pension Plan? After changing jobs to my new employer 6 year ago, I have been involved in high risk & high visibility positions that were successfully executed, resulting in large salary increases. Last year, due to cost cutting activities, I was told that my position was being terminated. This year I was refused any COLA increase due to my high salary level. I was also advised that the company was trying to eliminate older high salaried workers to minimize benefits payouts at retirement. The personnel manager has indicated that I should not expect any futher salary increases and possibly a reduction in salary. Bottom line advice was that due to my experience I could probably get a better position outside the company. With 8-10 years left until retirement, I don't feel very secure but am taking a wait & see attitude before contacting legal help. It appears that the courts are changing the ground rules for proving age discrimination by employers. Any suggestions??

Can a spouse who inherits an IRA by will (because the deceased failed to designate a beneficiary and therefore the estate is beneficiary) establish a beneficiary IRA? roll the assets to an IRA in his/her name? If not, what are the spouse's options reagrding the inherited IRA assets? Cites would be helpful. Thanks.

Are distributions from non-Title I plans subject to the spousal consent rules? Is spousal consent required for loans? hardships? Cites would be helpful. Thanks.

If a non-ERISA Title I plan permits loans and hardship safe-harbor withdrawals, is the custodial obligated to advise participants that they must first take a loan from the plan?

In regards to RMD, participant has a balance in a ps plan and also an ira account. For the last 2 yrs calculation has been done to determine rmd total taking into account both plans, however distrb has come only from IRA for this total.

Is this ok? I don't think so, 1.401(a)(9)

I am currently taking graduate courses towards an M.S. in Accounting and I need to do a paper on Accounting Theory. I was wondering if anyone knows of any sites that deal with Defined Contribution plans (I chose DC plans because mostly everyone in class are in their mid-late 20s and participate in 401(k)s). I would want a site that deals with what GAAP or FASB has to say about Accounting for DC plans. Thanks in advance.

If you use Quantech and Hyperprep you may enjoy this!

We have a terrible time printing SARs in a portrait format. We have discovered that if you go into Quantech and change your print to portrait and then go into Hyperprep the portrait information holds and you can easily print your reports.

What are the requirements of taking a distribution from an IRA without the 10% penalty. The example in question is a person that cannot work due to an auto accident and is 41 years old. What qualifies as disabled?

A participant has an existing loan in a University 403B plan and voluntarily terminates employment. Contract between University and TPA states that loan payments may be made upon separation. TPA automatically defaults loan even though participant requests that loan payments be continued. TPA sends back remaining loan payment received through payroll deduction to participant which is received after TPA defaults loan.

Question is:

1) Is TPA required to allow participant to continue loan payments. If so, by law, by contract or both. If by law, any references to section.

2)Recommended recourse (DOL, etc.) if any.

Thanks for your time

TCAT

How do you calculate the 20% top-paid group of employees? Is it as follows:

(1) First list all officers and owners and then all employees in order by compensation.

(2) Calculate 20% of total employer compensation.

(3) All officers and 5% owners are automatically included in the top-paid group.

(4) If officers and 5% owners do not make up 20% of total employer compensation, then you include the highest paid employees until you reach 20% of total employer compensation.

A defined benefit plan that I work on is considering an investment in parking spaces (this is in Chicago, where parking is at a premium, don't ya know...). They will charge rent and the rental income will go to the plan. There is no relationship between the plan and the parking spaces, so from this aspect it doesn't fall into Prohibited Transaction territory.

Would you allow the plan to have this investment? I am wavering....

Thanks.

Hi Everyone,

Can anyone advise on the availability and eligibilty of IRA's for Citizens of the Commonwealth of Puerto Rico?

Does it depend on whether earned income is from Puerto Rican sources or from mainland USA company sources?

Any insight into this matter will be appreciated.

The tax code for the Commonwealth of Puerto Rico and the mainland USA are different I am told.

Regards,

Dave H.

Let's say I have a plan with PS, 401(k) and 401(m); 100% benefit on the 401(k) and 401(m), but less than 100% benefit on the PS side. I'm not clear as to how to complete page 2.

What if I have a PS only, and less than 100% benefit?