Does a qualified plan have to file a 5500 with an audit attached for it's first plan year if the participant count is over 120?

Is anyone answering "yes" to questions 27e & 27f on Form 5500, attaching a Schedule, filing Form 5330, and paying the prohibited transaction excise tax for 401(k) monies deposited more than 15 business days after the month-end withheld?

[This message has been edited by Kelly R (edited 07-21-99).]

Notwithstanding the cross-references in section 414(B), ©, (m), and (n) back to section 408(k), is it possible to use an individually designed SEP to limit the participation in a SEP to less than all of the employers within a controlled group? While this seems to fly in the face of a literal reading of the participation requirements in section 408(k)(2), why are the instructions on Form 5305-SEP worded the way they are in item 5 of the "When Not to Use Form 5305-SEP" section?

Has anyone come across any authority that would allow a limited liability company to grant options to employees for its LLC units that would be taxed as incentive stock options under Code Section 422? A strict reading of Section 422 leads me to the conclusion that an ISO can be granted only by a corporation and only with respect to "stock." Thanks for any help.

the recordkeeper for my company's 401(k) plan incorrectly allocated the ER match 2 years in a row. on both occasions, they have corrected those participants who rec'd too little match. those who rec'd too much match, who were not HCEs, lucked out.

my question is: can my company, the plan administrator at my company, or the plan be held responsible for these mistakes by the recordkeeper/TTEE? what would the IRS or the DOL do to us? thanks for any light shed on this subject!

For church organizations which may be trying to compare the advantages and disadvantages of 401(k) and 403(B) plans , I've posted a chart comparing the two types of plans.

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Employee benefits legal resource site

For governmental and other tax-exempt organizations which may be trying to compare the advantages and disadvantages of various types of plans which provide for voluntary pretax contributions, I've posted a chart comparing the three types of plans.

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Employee benefits legal resource site

[This message has been edited by CVCalhoun (edited 03-06-2000).]

For anyone who may be trying to compare the advantages and disadvantages of various types of plans which provide for voluntary pretax contributions, I've posted a chart comparing the three types of plans.

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Employee benefits legal resource site

This item asks for transactions or series of transactions that exceed 20% of plan assets. From the "exceptions" in the instructions it is not clear to me if you count transactions or series of transactions in mutual funds. If you do it seems that most plans that have a money market fund would have a reportable item here because it would not be hard to have the aggregate trades exceed 20%. Is this what the service is looking for in this question?

Will change of Profit Sharing Plan's plan year, which will result in a short plan year, have any effect on the allocation of the employer's contribution on a cross-tested basis????

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For anyone who may be trying to compare the advantages and disadvantages of various types of plans which provide for voluntary pretax contributions, I've posted a chart comparing the three types of plans.

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Employee benefits legal resource site

DOES THE ACT CLARIFY THAT: "ELIGIBLE ROLLOVER DISTRIBUTIONS" OF SALARY REDUCTION CONTRIBUTIONS, within the meaning of sections 402©4 and 403(B)8, ARE NOT SUBJECT TO THE EARLY DISTRIBUTION TRIGGERING EVENTS OF SECTIONS 403(B)(7)(A)(ii) and 403(B)(11)?

[This message has been edited by jlf (edited 07-21-99).]

[This message has been edited by jlf (edited 07-21-99).]

We are terminating a 401(k) plan with the IRS. The Plan has participants that terminated years ago (nothing to do with reason for plan termination). Can funds be distributed to the terminated participants during the IRS review of the Plan to determine qualification upon termination?

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We have a facility in San Francisco and the city will allow bus fare as a pre-tax benefit. We have a section 125 plan. How do we handle this new pre-tax bus fare? Can we do it? Any thoughts out there?

Are employees limited to 15% of salary or can an employee designate a fixed amount each payroll (eg $500 per check)that maybe more than 15% but still within the annual 99 limit of $10,000

I am revising our company car policy. Specifically, we want to define either a class of vehicle, a specific vehicle, or cost range for a vehicle. This benefit is for the President and Vice Presidents only. I am interested in hearing from people who have set this type of guideline and would be willing to share them with me.

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Stuart Marcus, SPHR

Manager, Human Resources

NEC Research Institute

Which is it for application of various testing options?

Again, recently told my job would be "advertised"...and that I should begin "looking for other employment".

This happened 3 weeks ago, and I was told at the time, I would be "kept abreast" of how hiring for my position was going.

This happened 3 weeks ago, today! Today (7/20), at 3pm, I was told that Friday(7/23) will be my last day of work, that my replacement will begin on the following Monday.

Seems to me, that if I would have "QUIT", I'd have had to give a company, as a courtesy, 2 weeks notice. In this case, sure, they TOLD me 3 weeks ago, that my job would be replaced, and that while I'm working for them full time, it would be good to begin looking for other employment.

Does 3 days sound like "keeping abreast"?? Should this company be required to pay me ..something?? Or, am I being bitter?

Terisu

posted 07-20-99 20:00 ET (US)        

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I use Quantech and am moving to cash basis statements (eventually to daily val) but am uncertain how to handle discretionary contribution receivables. On the one hand, I need to allocate the contribution based on compensation from one year. On the other hand, with cash basis statements, it seems like I don't want the contribution to show up until it is deposited, usually in the following year. I can't visualize how to accomplish the allocation based on one year's data yet not have it show up until the next year's participant statements.

I'd appreciate insights from those of you who are doing cash basis statements.

I am moving to cash basis statements (eventually to daily val) but am uncertain how to handle discretionary contribution receivables. On the one hand, I need to allocate the contribution based on compensation from one year. On the other hand, with cash basis statements, it seems like I don't want the contribution to show up until it is deposited, usually in the following year. I can't visualize how to accomplish the allocation based on one year's data yet not have it show up until the next year's participant statements.

I'd appreciate insights from those of you who are doing cash basis statements.