betheeg

i'm interested in greggi39's question as well because the owner is the only participant in the plan....

we have a client that is asking advice on his DB plan. He is a sole proprietor (100% owner) of a psychology practice and has a DB plan in place. He wants to purchase a nursing home with plan assets. He would be 100% owner of that, too. Is this permissable? and if it is , does this create a control group or common control situation where he needs to cover ee's of the nursing home? or would the nursing home just be an asset of the plan? thanks for any help...

my employer is thinking about starting an FSA. I have little experience dealing with cafeteria plans. i know this will require a plan document, but what other concerns should I have? who handles the admin, recordkeeping of plan contributions? the employer? we are looking to include co-payments for office visits under the medical plan, dental, dependant care, vision, disability insurance, perscription costs...are all of these allowed? is there a maximum on claims? or a maximum on contributions to the plan? anything else i am missing? any help is much appreciated....thanks

wonderful suggestion!! i forget about the top-paid group election sometimes. when calculating the 20%, do i use all employees or just participating employees? i have 6 participants for this year, but 8 total employees. if i use the top paid election, how would you name the groups then? if one of my owner hce's becomes an nhce by using the top paid election, won't it hurt my testing if he is listed in his own class by name and chooses to not contribute for the year? thanks for your help, tom.

hello- i have read some other posts on classifications, but did not find the answer i was looking for. i have a law firm that would like to set up a plan where each hce has the ability to max out, put in nothing, or anything in between. assuming the only way to do this is with a new comp plan giving them each their own class, any suggestions on what to use for the name of each class? 4 hce's- 1 owner 80%, 2 owners 10% each, the 4th hce not an owner but compensation makes him an hce. thanks for any help.

if a plan participant is over age 59 1/2 and is taking an in-service withdrawal from a 401(k) plan of her elective deferrals, what is the mandatory fed tax withholding? 20%? any way around this?

thank you for your help everyone...i appreciate it.

how about the testing? that's what i needed the most help on.... does this pass? i went to a seminar and have materials that state that if the group passes the classification test and the plan as a whole passes the average benefit % test, then the rate group satisfies 401(a)(4).

sorry! forgot the ages! HCE is 51 and NHCE is 42.

i am trying to figure out if a new comparability formula works for this plan. i have done my calculations and testing, but i am new at this, and would like someone to check my work. brand new plan, 2 eligible employees. 1 HCE and 1 NHCE. HCE comp $200,000. NHCE comp $25,000. i am using the UP-1984 table at 8.5%. contribution to HCE is 40,000. contribution to NHCE is 1,700. i am calculating the HCE's EBR to be 7.88% i am calculating the NHCE's EBR to be 5.58% by my calculations i am showing that this passes the general nondicrimination test "rate group test" by passing the nondicriminatory classification test and passing the average benefit percentage test. i just want to make sure i'm getting this right before i go any further. thanks for any help.