WDIK

For a highly compensated employee, refer to Code Section 414(q). For a key employee, refer to Code Section 416(i).

If the Schedule P has been filed the limitation on assessment and collection under Code Section 6501(a) is three years. As a practical matter, however, I have found it helpful to keep copies of the returns and other valuation materials for substantially longer.

http://www.dol.gov/ebsa/FAQs/faq_DFVC.html See the sixth question from the top.

What kind of starting point are you looking for? Click here for a DOL overview. Or click here for a slightly more legal overview with some reference material. Or search any number of directories for a competent attorney.

You will not find a specific code section. If the document that would be adopted was specifically drafted to cover only owners and their spouses that is the language to which you should refer. It should address under what circumstances the plan can be adopted and what the result would be if employees other than the owner later become eligible. A standard 401(k) document could be adopted and the plan function as an "individual 401(k)" if only the owner meets the eligibility requirements. If other employees later meet the eligibility requirements, the plan could continue to function under this scenario.

"Solo 401(k)" is more of a marketing term than anything else. They are covered by the same regulations as other 401(k) plans.

http://benefitslink.com/boards/index.php?s...opic=16641&st=0

Delinquent Filer Voluntary Compliance Program See pages 12 and 13 of the 2004 Form 5500 instructions for a good summary.

You are already doing the two smartest things, namely saving 10% of your salary for retirement and taking full advantage of the plan's matching contribution. Opinions as to whether one option is better than another for the additional 4% savings are as varied as an individual's circumstances, so it is difficult to say what is best for you. It would depend on a variety of factors (such as fees, investment options, etc.) that are specific to your situation.

Why answer the question myself when I can provide a link to some of the smarter board members posts? http://benefitslink.com/boards/index.php?s...t=0entry51765

The additional information is appreciated, but the terminology "non qualified" you are using is still ambiguous. Please refer to the summary plan description or other plan documentation to get the exact name of the contribution type in question. These boards should be able to help you much easier with that information.

In a 401(k) setting I've heard the terms non-elective contribution and qualified non-elective contribution. Could you mean one of these?

I'm not aware of any updates to 29 CFR 2520.104b-30(b)....

From Notice 98-52: VII. TIMING OF PLAN CONTRIBUTIONS A. In General As provided in subsections B and C of this section VII, matching and nonelective contributions under a plan using the safe harbor methods must be made to the plan within the same time period that would apply if these contributions were made to a plan using the current year testing method for ADP or ACP testing purposes (that is, no later than 12 months after the close of the plan year). Matching and nonelective contributions also may be made from time to time during the plan year, instead of at one time after the close of the plan year. Regardless of the timing of employer contributions, however, the total amount of matching or nonelective contributions for the plan year still must satisfy the requirements of sections V and VI, taking into account the total amount of compensation for the plan year, in order for a CODA to satisfy the ADP test safe harbor. B. Contributions Under the ADP Test Safe Harbor A CODA will not satisfy the ADP test safe harbor for a plan year unless safe harbor matching and nonelective contributions needed to satisfy the safe harbor contribution requirement of section V.B are made in accordance with the allocation and timing rules of section 1.401(k)-1(b)(4). C. Matching Contributions Under the ACP Test Safe Harbor Matching contributions are taken into account for a plan year under the ACP test safe harbor of section VI in accordance with the allocation and timing rules of section 1.401(m)-1(b)(4)(ii)(A). Notice 2000-3 makes the following clarification: Q-2. Can a 401(k) safe harbor plan match elective and employee contributions on a payroll-by-payroll basis (instead of on an annual basis) without making additional contributions at the end of the year to take into account the total amount of an employee's compensation for the plan year? A-2. Notwithstanding section VII.A. (or any other provision) of Notice 98-52, the requirements of sections V.B.1. and VI.B. of Notice 98-52 that relate to matching contributions may be met for a plan year by meeting such requirements either (1) with respect to the plan year as a whole, or (2) if the plan so provides, separately with respect to each payroll period (or with respect to all payroll periods ending with or within each month or plan-year quarter) taken into account under the arrangement for the plan year (the "payroll period method"). If the payroll period method is used, however, matching contributions with respect to elective or employee contributions made during a plan year quarter beginning after May 1, 2000 must be contributed to the plan by the last day of the following plan year quarter. Accordingly, in the case of a calendar year plan that uses the payroll period method, matching contributions with respect to elective or employee contributions made during the calendar quarter beginning July 1, 2000, must be contributed to the plan by December 31, 2000. The payroll period method applies only for purposes of satisfying the ADP safe harbor matching contribution requirements of section 401(k)(12) (section V.B.1. of Notice 98-52) and the ACP safe harbor matching contribution requirements of section 401(m)(11) (section VI.B. of Notice 98-52).

I believe that the Accudraft prototype allows for such an hours requirement.

From Notice 2005-5: Q-1. To what distributions do the automatic rollover requirements of § 401(a)(31)(B) apply? A-1. The automatic rollover requirements apply to any mandatory distribution that is more than $1,000 and is an eligible rollover distribution that is subject to the direct rollover requirements that are in § 401(a)(31). Q-2. What is a mandatory distribution? A-2. A mandatory distribution is a distribution that is made without the participant’s consent and that is made to a participant before the participant attains the later of age 62 or normal retirement age. A distribution to a surviving spouse or alternate payee is not a mandatory distribution for purposes of the automatic rollover requirements of § 401(a)(31)(B).

Why not just have the sponsoring employer that adopted the plan execute the model amendment by June 30th? Perhaps the following excerpt from IRS Notice 2005-5 will be of some help. Included in the Appendix is a sample plan amendment that individual plan sponsors and sponsors (or volume submitter practitioners) of pre-approved plans can adopt or use in drafting individualized plan amendments. This sample plan amendment, or a plan amendment that is materially similar to this sample, will be a "good faith" plan amendment. The adoption of this sample amendment by a sponsor (or volume submitter practitioner) of a pre-approved plan will not cause such a plan to be treated as an individually designed plan. If a plan is amended by a timely good faith amendment reflecting the automatic rollover requirements, a plan amendment to a disqualifying provision related to the automatic rollover requirements can be made within the plan's EGTRRA remedial amendment period to the extent necessary to satisfy the automatic rollover requirements, as interpreted in published guidance.

katieinny: Please refer to mbozek's 10:00am post on 9/11/2004 in the thread that I linked to. (Sorry, I should have linked directly to that post instead of the entire thread.)

http://benefitslink.com/boards/index.php?showtopic=29141

http://benefitslink.com/boards/index.php?s...opic=25992&st=0

The Schedule A instructions for lines 6a through 6f indicate that you should "not include portions of these contracts maintained in separate accounts" for those purposes. Although a similar statement is not found in the Schedule H instructions, such an approach would seem logical. It is possibile is that your situation could have something to do with the following caution and note from the Schedule H instructions for line 1c(10). CAUTION! The plan’s or DFE’s interest in CCTs and PSAs for which a DFE Form 5500 has not been filed may not be included on lines 1c(9) or 1c(10). The plan’s or DFE’s interest in the underlying assets of such CCTs and PSAs must be allocated and reported in the appropriate categories on a line-by-line basis on Part I of the Schedule H. Note. For reporting purposes, a separate account that is not considered to be holding plan assets pursuant to 29 CFR 2510.3-101(h)(1)(iii) does not constitute a pooled separate account. Another option (although most likely fruitless based on personal experience) is to try and get a clarification from the insurance company that issued the information.

One prior discussion can be found at the folloing link. http://benefitslink.com/boards/index.php?s...opic=29099&st=0 There are a number of other similar discussions that can be found.

http://benefitslink.com/boards/index.php?s...opic=27286&st=0

http://benefitslink.com/boards/index.php?s...opic=21009&st=0

The plan document specifies the determination period to be used. While I have seen prototype documents that allow different definitions of compensation for distinct purposes, I am not familiar with any that allow multiple determination periods.