A participant takes a hardship distribution under the safe harbor rules, but the employer does not immediately suspend future deferrals as required. Subsequently, the employer also makes a matching contribution based on the ineligible deferral (which is a relatively small dollar amount). When performing the ADP and ACP tests for the year, are these ineligible contributions disregarded if they are corrected via APRSC? Any cites would be helpful.

Is anyone aware of any authority for the position that the CEO of a privately held employer who is the trustee of its ESOP breaces his fiduciary duty to the participants by causing the employer to engage in activites which benefit him and are detrimental to the employer?

Most of the documentation I've read on the nonelective contribution safe harbor method says "equal to 3% of each eligible employee's compensation". However, I've seen one place "of at least 3%...". Does this mean that the nonelective could be more than 3%? If so, what is the max %? Thanks in advance for the help.

just wondering how common it is to allocate forfeitures to those participants who have terminated and are also entitled to a contribution (assuming forfeitures are allocated the same way as comp ...).

in our old firm, 100% of our plan documents did not allocate to terms. in this new firm, its 50/50.

thanks

Can an employer that maintains a non-ERISA 403(B) arrangement actually prohibit a certain annuity provider from having access to its employees? The employer was "burned" with this company before and is telling employees that they cannot maintain annuitys with the company.

(Profit Sharing) Plan Year runs July 1, 1998 - June 30, 1999. Can the plan year be amended to July 1, 1998 - December 31, 1998? Or, is it too late?

I'm trying to get a handle on how much of a TPA's business uses a corporate trustee. I know that much of a TPA's business is self-trusteed, but is using a corporate trustee very common? You can also send me an e-mail if you'd prefer.

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Carol J. Ringwald

Is there a place where I can find out the level of protection from creditors offered to an IRA on a state by state basis? Mississippi in particular.

COntrolled Group of Corporations(Auto Dealerships) erroneously omitted a Corporation (Bank w 8 employees) from the Nationally Sponsored Plan. In fact the Plan could not accept the Bank because it was not an Auto Dealership.

Provided the plan passes 410(b)with the inclusion of the Bank employees are there any problems with their exclusion.

If the Bank decides to sponsor a Plan, is there any way to test it seperately or would I have to look to average benefits test to pass 410(B) because ratio test will probably fail?

Is ADP & ACP testing done on a Plan by Plan basis for COntrolled group or are they aggregated?

Controlled Group of Corporations (Auto Dealership with 15 30 Participants) eronously ommited from a Nationally Sponored Auto dealership plan a third Corporation (Bank with 8 employee) based on SLOB rules. Provided the aggregated group passes 410(B) are there any other problems ( ie document not specifically excluding Bank).

If the Bank was to sponsor a Plan it could not pass 410(B) on a ratio test so I believe we would have to look at average benefits test. Is there any way to pass coverage separately without aggragating the plans? Would setting up the plan identical in provisions to Auto Dealership Plan be a Safe Harbor approach to compliance. Do these groups need to be aggregated for ADP & ACP testing of a 401(k) provisions.

Any thoughts?

Are companies collecting arrears for medialc beneifts and so forth when the employee does not have sufficent net to sustain a deduction? How are arrears recovered?

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ajc

Can someone confirm if there is a regulation, and provide a specific cite, regarding the treatment of non-active participants in a US qualified dc plan who transfer jobs to work in another country (in this case Canada) for an Affiliate of the US Company sponsored plan. The specific question posed by the plan sponsor is whether regulations would mandate that the account of the non-active ex-patriot participant be distributed in full no later than 5 years following non-residence in the US.

Your assistance and knowledge are appreciated.

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AMT

I'm interested in learing more about this feature of a plan, the pros and cons. We're considering whether this option is viable and would like to know other's experiences.

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Does anyone have experience with company contacts/hr staff that just seem incapable of understanding the plan process? We have one contact that calls at least once a day (frequently more often) to ask the same question she asked the day before. We pride ourselves on delivering high quality service but we're spending an inordinate amount of time with this one contact and are extremely frustrated. We met with her at our office when she was hired and explained how the plan works, and now, over a month later, she's still every bit as confused as ever. Not sure how to handle this without making the owner mad but we're a small firm and this lady is eating into time we just don't have. We don't bill by the hour and we're wondering if this is just one case where we're going to have to accept the loss as part of doing business this way.

[This message has been edited by Crystal (edited 03-11-99).]

[This message has been edited by Crystal (edited 03-11-99).]

I converted from traditional IRA to ROTH IRA in late Dec 98. The MAGI limitation for married taxpayers is $100k. Does the MAGI include taxable income from ROTH IRA??

I'm attempting to determine the maximum contribution to a Roth for my self-employed son. He was 1099 (Misc.) for 2000 for modeling which is his total earned income (He had some dividends as well.) Can he contribute 2000 to a Roth? or can he only contribute his AGI? He must pay 283 in self employment tax which 142 (half) is deductible, reducing his AGI. Turbo tax seems to be using the AGI.

We've heard a lot about electronic HR/benefits communication, but I'm curious to know who is really doing it and how. What companies are using it with their employees and what exactly are they doing? What firms are able to effectively help companies do electronic HR/EB communication and what and how are they actually doing it?

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Vicki L. Dungan, ABC

The Adobe Group LLC

Washington, DC

vicki.dungan@adobegroup.com

We've heard a lot about electronic HR/benefits communication, but I'm curious to know who is really doing it and how. What companies are using it with their employees and what exactly are they doing? What firms are able to effectively help companies do electronic HR/EB communication and what and how are they actually doing it?

I'm really looking for specific companies and specific applications. Thanks.

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Vicki L. Dungan, ABC

The Adobe Group LLC

Washington, DC

vicki.dungan@adobegroup.com

[This message has been edited by Vicki Dungan (edited 03-13-99).]

In plan year 1998 an EE contributed $12,500 in Salary Deferral. He must remove the $2,500 + gains of the deferral. The match went in per pay period. Does the match relating to the additional $2,500 (excess deferral) also have come out of the plan with the gain on the match? How many 1099R's?

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To protect against a stock market decline between the original due date of the tax return and the due date including extensions it is important to advise a client of the benefit of extensions. Failure to do this could cause your client to pay more tax than necessary with no hope of recovery except from his tax preparer!

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DAVID SNYDER, CPA

[This message has been edited by DAVETAX (edited 03-10-99).]

[This message has been edited by DAVETAX (edited 03-10-99).]