WDIK

Since you do not mention any government correspondence, I will assume that there were no deposits made and no 945 filings for the two years in questions. Although my experience is somewhat limited compared to other forum members, I believe that you must deposit the withheld amounts, file the 945 forms and pay the penalties and interest (or get a waiver of the penalties and interest if a good enough excuse exists). On a separate note, you may also want to verify that the 1099-R forms reflected the correct withholding.

Why not define the determination period for compensation as the fiscal year for all purposes?

Some of the options available to you may be affected by such factors as the size of the plan, the source of the residual assets, missing participants or terms of the buy-out. Perhaps a starting point is to look at the Delinquent Filer Voluntary Compliance Program.

So if you don't want to get your hand caught in the cookie jar, a carrot works better than a stick.

I came to the same conclusion, but I've been shown frequently on these boards to be off base.

Sorry. It is my understanding that the EGTRRA rollover rules do not cover 457(b) plans of nongovernmental tax-exempt employers.

Take your pick from some of these prior discussions.

The notice indicates the following: "An employer may adopt a grace period as authorized in this notice for the current cafeteria plan year (and subsequent cafeteria plan years) by amending the cafeteria plan document before the end of the current plan year." (emphasis added)

See Notice 2002-3.

Two of the prototype documents that I work with contain language similar to the following: INCLUSION OF INELIGIBLE EMPLOYEE: If any person who should not have been included as a Participant is erroneously included in any Plan Year and discovery of that incorrect inclusion is not made until after a contribution for that Plan Year has been allocated, and such ineligible Employee has not received a distribution of the amount erroneously allocated to him or her, then the amount erroneously contributed with respect to the ineligible Employee cannot be refunded to the Employer and will be applied as a Forfeiture for the Plan Year in which the error is discovered.

If you take as an example the EGTRRA sample amendment found in Notice 2001-57 for changes to the vesting schedule for matching contributions it appears that an employer can be more liberal that the hour of service requirement. VESTING OF EMPLOYER MATCHING CONTRIBUTIONS 1. Applicability. This section shall apply to participants with accrued benefits derived from employer matching contributions who complete an hour of service under the plan in a plan year beginning after December 31, 2001. If elected by the employer in the adoption agreement, this section shall also apply to all other participants with accrued benefits derived from employer matching contributions

First, if memory serves me correctly, voluntary (after-tax) contributions are subject to nondscimination (ACP) testing. Second, Section 402A indicates that Roth contributions "shall be treated as an elective deferral for purposes of [that] chapter". Becasue of this, some opine that such contributions will be subject to the same testing and safe harbor exceptions as regular deferrals.

It would be an error to make a general application of any religious practice, but I found the following exchange on the Muslim American Society website of interest. I hope it will be of some use to you. Question: I like to know the rulings about retirement plan and life insurance, halal or haram. In the retirement plan there is increase (interest! or profit!), I like to know what I will do with this increase or interest. Thanks. Answer: ...Dear Sister Mina, 1- Retirement plans are permissible, but you must choose funds and investment that are all permissible in Shari'ah (for instance, avoid bonds, stocks of banks and entertainment industry, etc.) if you manage your own retirement plan, or select funds and investment that has the least of the Haram it it is a company plan. Also when you make any withdrawal you need to calculate the percentage of the return (income) that is generated by non permitted posrtions of the funds and the companies you invest in their stocks, and give away to Muslim charity the same percentage of the amount you withdraw. Remember not all the profit/return of such investment is interest or forbidden for other reasons.

Are the costs to mail a check really $100? (Sorry to duplicate the responses of Blinky and RButler made in a "sister-thread." At the time I posted, I was unaware that a duplicate existed.)

22. That "disturbance in the Force" was just last night's baked beans. 23. You call your young apprentice, "Junior". 24. Your landspeeder has a gun rack. 25. You think the best use of your lightsaber is picking your teeth. 26. You can find no grammatical errors in the way Yoda talks. 27. You think Stormtroopers are just KKK members with really good sheets. 28. You wore burlap even before you started your Jedi training. 29. You call Hank Williams, Jr. "master". 30. You've got a stuffed womp rat from Begger's Canyon on your mantle.

The first question I would ask is "Were these individuals correctly classified as independent contractors to begin with?" This particularly seems a pertinent question because they all suddenly become "W-2" employees. If the IC designation does not pass muster, they may actually have been eligible to defer, or as ineligible employees, the matter may be resolved under the EPCRS Plan Amendment Correction Method. Please ignore this post if the individuals are assuredly and without question independent contractors.

http://benefitslink.com/boards/index.php?showtopic=25247

Two scenarios come to mind. The first requires an improbability drive, and the second involves rubbing a certain Arabian oil lamp. (It seems I always run amok because of such pesky details.)

But since $2,000 is attributable to profit sharing contributions, do you agree that total annual additions could exceed salary?

Rollovers elected by plan participants are still distributions. http://benefitslink.com/boards/index.php?showtopic=4183&st=0 I would look a spinoff/merger type of approach, but you need more reliable advice than I am able to offer.

Catch-up contributions are not considered for purposes of the annual additions limit. However, I believe that the maximum catch-up contribution is the lesser of the applicable dollar amount ($4,000 for 2005) or the participant's compensation for the year reduced by other elective contributions made. If I'm not mistaken, in your example, the contributions subject to the annual additions limit would be $10,000 consisting of $2,000 profit sharing and $8,000 deferrals. The maximum catch-up contribution would be $2,000, ($10,000 salary less $8,000 deferrals).

???? I'm heard of the founding fathers, Uncle Sam, Big Brother and even Aunt Jemima, but am uncertain how this new relation fits in.

It would seem to me that if forfeitures reduce "the amount required to be contributed for the year under the formula set forth in the plan document" (Line 6a instructions for Schedule R), then the amount reported on the Schedule R would tie into the actual contribution shown on the Schedule I.

The issue of a successor plan is pertinent if distributions of elective contributions are being made to participants in a terminating plan. Midas, are you trying to determine whether or not the successor plan rules apply because there is an attempt to make the distributions? If so, it appears to me that distributions should not be made. As I interpret dbvail's comments, there hasn't been a termination at all, just an amendment and restatement (I am not sure I am in agreement with this view, but am not an expert, and this is not relevant to the point I am trying to make.), so no triggering event for distributions. It also appears to me that links provided indicate that distributions are not appropriate in such a scenario because of the successor plan rules. If there is another reason that you are asking about successor plans, please elaborate.

The following link may be of some use. http://benefitsattorney.com/modules.php?na...=showpage&pid=2