WDIK

I agree with Belgarath. What if the ADP testing was done on a current year basis rather than a prior year basis? The HCE's would not be limited to a 0% deferral to pass the test just because no NHCE was eligible.

Additional thoughts... http://benefitslink.com/boards/index.php?showtopic=33194

The Schedule Q instructions are associated with Form 5300. Start on page 2 of these instructions for "Guidelines For Certain Demonstrations". http://www.irs.gov/pub/irs-pdf/i5300q.pdf

Are they paid for being on call, or are they only paid if they answer questions?

Some possible consequences of disqualification: 1) Loss of deductions. 2) Plan contributions are included in participants' income. 3) Plan earnings become taxable. Have you looked into the IRS's corrections programs?

In the case of a safe harbor 401(k) plan, the first plan year must generally be at least three months long. This period can be shorter if the employer was not in existence. I do not think any such restrictions apply to other 401(k) plans.

http://benefitslink.com/boards/index.php?showtopic=24537

Code Section 318(a)(2)(B)(i) - "Stock owned, directly or indirectly, by or for a trust (other than an employees' trust described in section 401(a) which is exempt from tax under section 501(a)) shall be considered as owned by its beneficiaries in proportion to the actuarial interest of such beneficiaries in such trust."

A plan could be designed to limit the amounts available for participant directed investments by contribution type, by vesting or other criteria. It is also possible that under some circumstances, such limitations could be deemed to be discriminatory.

First, are you certain that there were no eligible participants on 01/01/2006? It is possible for employees to be considered participants in a plan even though they are not deferring. Second, the Form 5500 instructions indicate the following (emphasis mine): Generally, a return/report filed for a pension benefit plan or welfare benefit plan that covered fewer than 100 participants as of the beginning of the plan year should be completed following the requirements below for a ‘‘small plan,’’ and a return/report filed for a plan that covered 100 or more participants as of the beginning of the plan year should be completed following the requirements below for a ‘‘large plan.’’ Use the number of participants required to be entered in line 6 of the Form 5500 to determine whether a plan is a “small plan” or “large plan.”

Is the document a prototype? What language does it contain with regard to a controlled group situation?

http://www.clown-ministry.com/index_1.php?...eville_routine/

Just one old. http://benefitslink.com/boards/index.php?showtopic=26936

http://benefitslink.com/boards/index.php?showtopic=15654

What about a spin-off plan?

One of many. http://benefitslink.com/boards/index.php?showtopic=23366

If I understand the situation you describe, and the contribution was appropriately made and invested as a 2005 contribution, the allocation should be made for the 2005 plan year, which at this point would involve amended returns, reports and disclosures.

I applaud your effort to become well-informed on the subject. I try to do the same thing before I get advice from various professionals (doctors, lawyers, plumbers, etc.) so that I am a better judge of those I may need to trust. In the end, however, I consider myself better off allowing someone with training and experience to perform surgery on me, represent me in court, or repair my gas furnace.

See DOL Reg. 2520.104b-30.

The guidelines for using the DFVC Program indicate that you must "file with EBSA a complete Form 5500 Series Annual Return/Report, including all schedules and attachments, for each year relief is requested." (emphasis added) I have no personal experience, but suspect that an incomplete filing would not be accepted.

It depends on your filing status and your modified adjusted gross income. See Table 1-2 in Publication 590.

You may want to refer to IRS Publication 590, specifically to "Limit If Covered By Employer Plan" on page 13.

A couple of similar discussions: http://benefitslink.com/boards/index.php?showtopic=31801 http://benefitslink.com/boards/index.php?showtopic=31350

That is my understanding.

http://benefitslink.com/boards/index.php?showtopic=32697