dmwe

I agree on the opt out feature for those who don't want to participate. Besides, I've heard that some wait staff can make some pretty big tips.

There is an exception to the attribution rules for separate husband and wife businesses, but you have to meet certain criterion. See Sal Tripodi's 2005 edition, page 1.35. It refers to IRC section 1563(e)(5).

Sounds like this guy just needs a better 401(k) plan. Have his employer give me a call.

I've seen notes payable to participants who put their stock back to the company that pay a representative rate of interest but I've never seen then backed by any collateral.

How do we tackle the issue of trying to figure out which states require withholding, at what rates, and how to remit? Doesn't appear to be cost effective.

We have a prospective new client that feels that any distributions made to former employees who have moved to another state must have withholding taken out of their distributions for that state. Other than a new rule effective Jan. 1 in Nebraska for mandatory state withholding we don't want to have to comply with that suggestion and/or have to research into each state we may have a payee address for to determine whether or not we have to withhold income taxes for that state, set up a state tax id number, and comply with remittance instructions. Does anyone have any suggestions or guidance on this issue? Thanks

And is it correct that if you remove deferrals for a 415 failure you do not go back and rerun the ADP test?

Box 15 on a W-2 must be checked if the employee is an "Active Participant" in a retirement plan of the employer. Leading to the elimination or cutback of deductible IRA contributions. Is simply being eligible for participation enough to check box 15, or as some instructions state, the employee or employer must contribute on behalf of the employee or they receive forfeitures? If the plan only has a 401(k) with a match and the employee doesn't defer, is he/she an "Active Participant"? I'm having trouble finding this example in the regs. Thanks

Do you know where I can find that in the regs? Thanks

This is a crazy twist. I have an employer who would like to put a lower dollar threshold for force outs in their document. Does anyone know of a reason why they couldn't?:confused: