Is there a web-site from The Hartford or Travlers, etc. that I can provide clients where they can fill out a short form on line and get a fidelity bond? It seems to me if it was that easy it would be easier on me instead of telling them to call their agent, getting them involved etc. I'm sure the agents would love me for it.

If an employer already has a EACA, at 3%, but wants to change it to 4%, is there any problem doing this mid-year with appropriate notice? I know you can't "implement" a EACA mid-year unless it is just for newly eligible employees. Would modifying the EACA percentage mid-year be considered as establishing a new EACA, impermissibly?

I think it is ok, but wondered if anyone has other thoughts?

Is this scenario feasible?

Plan company owner has all union employees and is also paying union dues on his salary.(to get in the union health plan?)

Can that owner employee receives his compensation in two parts:

(a) compensation subject to union dues and

(b) compensation not subject to union dues

and be eligible to maintain a separate plan for himself alone using that part of his compensation not subject to union dues?

A small plan has a loan policy that restricts new loans no sooner than one month after the prior loan was repaid. A participant paid off the loan via payroll deduction as of the end of Feb, but it did not post to the trust until 3/19. Could the new loan be issued around the first of April or would it be a month from the date the last payment actually posted?

thanks.

The maximum accrual in a year is 1/10 of the 415 dollar limit.

For a person well below the 17,500/mo 415 dollar limit, are they limited to 1/10 x 17,500 or 1/10 x 100% of their pay?

Employee has loan. He is injured at work and is out on a leave of absence. He is receiving workers compensation. Plan allows loan repayments to be suspended during unpaid leave of absences. I'm thinking plan sponsor can suspend payments. Workers comp, doesn;t count as wages for other plan purposes; I don't see why it couldn;t be disregarded for puproses of laon repayments either.

Am I missing something?

Thank you in advance for any guidance.

I am a new Relius user and am unsure about a warning I receive when running the ADP test. I'm using the prior year testing method, and shifting. The warning says:

Warning: The prior year NHCE percentages stored in Plan Specifications differ from the values computed using the prior year data. Shift corrections will be processed on the data computed using the previous plan year. Test(s) affected are:

Year to date ADP, Year to date ACP

Does this mean that there is something wrong in the database and when Relius re-calulates the NHCE rates based on the prior plan year data, the group average does not agree to the rates rolled forward in the plan specs when the new plan year is created OR does it mean that the calculated percentages are different because Relius has shifted contributions resulting in new NHCE rates and there really isn't anything to worry about?

May a Traditional IRA be used for the stated purpose?

Can a Traditional IRA be used for the stated purpose?

Vanguard is insisting that they will code the 1099R for an excess 2012 contribution of $17,000 as both an excess contribution subject to the 6% penalty, taxable, and code 1, early distribution subject to the 10% penalty. I think this is wrong, and that it is only subject to the 6% excess contribution excise tax.

The client has amended her 2012 tax return to remove the excess SEP contribution, will pay taxes on the amended return, and paid the 6% excise tax. So she will be taxed on that $17,000 again in 2014 PLUS pay a 10% penalty?

Does anyone know if there is a spreadsheet out there that I can use to calculate the earned income for the plan from the Self Employment earnings for a partnership? I have 2 spreadsheets that I use but neither one addresses the Section 179 expense. At what point does the Section 179 expense get deducted?

Dr. X has a 401k plan - he's the 100% owner of his practice (he's an eye doctor) and has had his plan for a good 10 years

Dr. X's wife is also a Dr. - she has started her own practice (she's a dermatologist) - their practices are entirely separate except that the docs are each 50% owners of the derm practice.

They would like to have the derm practice adopt the eye practice's 401k plan to contain cost (plan doc, investment platform, etc) - Is this permissible? and then do I have some sort of MEP that requires me to do any special work?

Based on ownership, they are not a controlled group (not more than 50% identical ownership)

Clearly, a separate 401k plan could be set up for the derm practice since the derm and eye practice's are not a controlled group.

Thanks for your help anyone - it's always appreciated

An employer sponsors a 403(b) and 401(a) for hospital employees, and a 401(k) for their "for-profit" division employees. All have 1/1 plan years. For the hospital employees, the 403(b) took the deferrals and the match was made to the 401(a).

On 4/22/2013, the 403(b) plan was amended to begin accepting the match. It will no longer be made to the 401(a). So the hospital employee's matching contributions were made to the following plans for 2013:

1/1/2013 - 4/21/2013: 403(b) match made to the 401(a) plan

4/22/2013 - 12/31/2013: 403(b) match made to the 403(b) plan

When it comes to testing the 2013 match for nondiscrimination (ACP), is it allowable to prepare a 12 month test, adding the contributions together? Or, does that constitute permissive aggregation - which is not allowed with a 401(a) and 403(b)? Would it be better to prepare separate 2013 ACP tests?

I have a client that has a SIMPLE IRA, and they want to start a 401(k) plan this year.

I know that the two are not supposed to coexist in any particular year.

However, could I just start the 401(k) plan up and just say the contributions this year to the IRA were ineligible? Return the funds to the employees and pay the excise taxes? (We are only in March. It may be worth it to the owners to do that).

If a Plan pays out a participant wihout the participant filling out any distribution paperwork is this a PT? No election forms, no spousal consent, etc. they just sent the participant a check. Lots of issues here we're aware of but my only question is, is this a PT?

It appears there is no special treatment for RMD's from Roth accounts.

So for example, if a participant has reached their RBD and they have $10,000 in a Roth salary deferral account and $5,000 in a traditional match account, the entire $15,000 is used when determining the RMD. Suppose the RMD is $600. Can they choose to:

1. Take it all from Roth?

2. Take all of it from Traditional?

3. Take some of it from Roth and some of it from Traditional?

Thanks.

We have a client that has a number of union employees, and does not cover them in DB. One employee gets both union and non-union income (non-union income is from another company in controlled group). Can he be included in the DB to the extent of his non-union earnings?

If so, does it make a difference if he is the owner?

It is my understanding that the tax on early distributions from a 457(b) plan only apply on monies rolled into the plan from plans subject to the 10% additional tax. One of the exceptions to the additional tax applies to distributions from qualified governmental defined benefit plans to a public safety employee (state or local) who separated from service on after age 50.

With that in mind, what if a public safety employee, rolled his distribution from a governmental DB plan into a 457(b) plan and subsequently took a distribution of these dollars - would this distribution be subject to the 10% additional tax?

A client (and RIA) just told me Kiplinger sent out a mailing saying that the IRS will be matching the deduction for ER Contributions on the 1120's with the Er contributions on the 5500. Apparently differences of > $1,000 will receive a letter.

Let's ignore for a moment the number of false positives cash basis/accrual will generate.

Does anyone have any literature on this? An IRS announcement, or perhaps a link to the Kiplinger letter?