WDIK

As one who can empathize... Number 34 - Hollywood had it coming. Number 50 - Wesley Snipes, Woody Harrelson and a basketball

My favorite is number 48. Alternatively, number 80 makes no sense at all. (Those critters are definitely a mouse, a racoon and a rabbit.)

Should we make a list of other things people do "all the time" that may or may not be OK?

Thank you for the kind and patient clarification.

"nasty little elf" At least you are complying with the truth in advertising laws.

How is the change in vesting schedule worded? Is it specific enough to draw a distinction between old versus new contributions, active versus terminated employees?

I have not had any "specific interaction with the IRS" on this topic, but from my perspective it seems clear that you have a failure to withhold an elected amount. It does not make any sense to me to try to correct this based on ADP or ACP percentages. How would it be equitable to participants that affirmatively elected to defer 10% of their salary if they only received 5% based on the ADP? If you haven't already, you may want to review this thread.

QDROphile: Please excuse my inexperience with 409A, but how do you reconcile your statement with the reporting requirements for Form W-2, which indicate for Box 12, Code Y that "[a]ny earnings during the year on current year and prior year deferrals must also be reported here." I've also hear that there are no such things as - a free lunch (and yet I've eaten without paying), bad publicity (and yet the court of public opinion is easily swayed), or a stupid question (and yet I've probably just asked one).

Qdrophile, did you mean sophisticated in the sense of: a) made complicated or complex; or b) altered deceptively; ...or did you purposefully prefer to leave it open to private interpretation?

Try the following thread. http://benefitslink.com/boards/index.php?showtopic=29653

I love all of the heartwarming stories that surface during the holiday season.

This is a great word. Thanks for improving my vocabulary.

The rules for depositing these taxes can be found in the Form 945 instructions.

From the summary of IRS Notice 2002-4: "The notice also provides that, beginning in 2002, for a plan that uses a safe harbor hardship provision, the amount of elective contributions that a participant is permitted to make in the year following a hardship distribution is no longer limited to the amount of elective contributions permitted under section 402(g) for that year minus the amount of the elective contributions made in the year of hardship."

I would also be interested in learning more about this organization. (I thought perhaps I could locate a pertinent website, but instead ended up learning about The Coalition Opposed to PCB Ash in Monroe County, Indiana. [www.copa.org] Did you know that you should eat no fish from Clear Creek, Pleasant Run, Salt or Richland Creeks?)

At least in the case of summary plan descriptions, it is my understanding that there is no requirement that materials be translated into a foreign language, but in certain circumstances (based on the percentage of participants that are only literate in the same foreign language) a notice must be provided (in that language) which explains that help is available in understanding the rights and obligations under the plan. See DOL Reg. 2520.102-2(c ).

Not as crucial as refrigerating the Thanksgiving turkey before making sandwiches the next day, but more crucial than staying awake for the Atlanta/Detroit blowout. Personally, I probably wouldn't file an amended return, but I may not be a reliable source as I have developed some animosity toward Schedule A over the past several years. One other thought is that the "additional expense" may be negligible as all that is required is to change a few boxes in your 5500 software, reprint, sign and mail. (Only the Form 5500 and Schedule A would be required in the amended filing.)

Things for Which to be Thankful The spouse who complains when dinner is not on time, because s/he is home with me, not with someone else. The teenager who is complaining about doing dishes, because that means she is at home & not on the streets. The mess to clean after a party because it means I have been surrounded by friends. The taxes I pay because it means that I'm employed. The clothes that fit a little too snug because it means I have enough to eat. A lawn that needs mowing, windows that need cleaning and gutters that need fixing because it means I have a home. All the complaining I hear about our government because it means we have freedom of speech. The space I find at the far end of the parking lot because it means I am capable of walking. My huge heating bill because it means I am warm. The lady behind me in church who sings off key because it means that I can hear. The piles of laundry and ironing because it means I have clothes to wear. Weariness and aching muscles at the end of the day because it means I have been productive. The alarm that goes off in the early morning hours because it means that I'm alive.

Distributions can only be made as indicated under the terms of the plan document. If participants have reached retirement age, died, become disabled, or terminated employement, they would certainly be entitled to receive distributions under the form and timing provisions for those events. Filing for a determination letter upon plan termination is not required. However the statement that along with the application the sponsor should "ubmit a statement that all distributions have been or will be made in accordance with plan provisions and proper spousal consents will be secured, when applicable" seems to imply that the timing of distributions is not necessarily tied to the filing of the application. (See Line 19 instructions of Form 5310 [emphasis added].) If partially vested participants leave employment and their vested account balances are distributed prior to the plan's termination date, they probably would not need to become fully vested. However, especially in the case where the company is going out of business, such participants may be required to become fully vested based upon the partial termination rules.

To determine if the plan truly is an orphaned plan and what steps should be taken to terminate the plan, you may want to review the proposed rules. A summary can also be found here.

In my opinion there should already be in place a nondiscriminatory policy that indicates when the plan administrator would perform an interim valuation. In this specific instance, I would look at how prior distributions have been handled and be consistent.

Post #22 on this thread by Tom Poje gives a hint for numbers 12 and 57. For number 17, think comic books. For number 19, have the time of your life. In number 22, a Pacific nuclear research facility denies the rumor that a case of missing plutonium was stolen. Number 44 has a character named Orval the Dog Man. Number 56 gives further proof that we should stop atomic bomb tests in the South Pacific.

I believe the plan document could read either way. 1) The eligibility requirement is satisfied as soon as the hours requirement is met during the time period; or 2) The eligibility requirement is satisfied at the conculsion of the stipulated time period if enough hours were attained. Hopefully, the plan document is specific enough to clarify the situation. (Edited for either poor spelling or poor typing.)

What I was trying to say, in my typically obscure way, was that the father and wife are highly compensated employees because of ownership. It does not matter whether they are in the top-paid group or not. The 5% owner test supercedes the top-paid group test.

The top-paid group election does not allow exclusion of five percent owners.