Lame Duck

Has this post degenerated so much that we aren't even attempting to provide guidance to the original poster? In a preceding post, dh003i mentioned that he is 23 years old, and is fully funding a Roth IRA and a 403(b). He also intends to open a owner only 401(k) or SEP IRA for some self-employed earnings. It should be noted that any salary deferrals to the 401(k) will be offset dollar for dollar by his deferrals into the 403(b). If he is funding that at a $13,000 level (for 2004), he would not be able to make any deferrals into his own 401(k) plan. In that case, the SEP might be a better bet since it has none of the filing requirements of the 401(k). Additionally, in some cases, the 403(b) could be considered to be his own plan and would need to be taken into account for purposes of the annual addition. dh003i, the only real advice you've gotten here is to sit down with a qualified professional and set out your entire situation to them. The advice you get there will be a lot more valuable, since it is specifically tailored to you.

I know that Universal Pensions, prior to their acquisition by BISYS had a prototype SEP that they sold to a number of providers. You may be able to check with them to see if it is still offered and through what institutions.

I didn't think the Expos had any fans.

And the winner is Mary C. ! I could have taken it, but I shun the glory.

We have a good idea when, but who is the real question. Any guesses on who that lucky 100,000 poster will be? I still say Blinky.

Banality, I hadn't been following this message string for quite a while so I missed a lot of the things you said earlier. I have some suggestions with respect to the facial hair that you may want to consider. First, not all laser treatment programs are the same. There are a number of different machines and methods of treatment. There are also different skill levels among the technicians. I would suggest you speak with other laser clinics and describe the equipment that was used, as much as possible, and your adverse reaction to it. There is probably one treatment method that will work. You may also want to consider electrolysis. While it is a more time consuming and expensive process than laser, it has better overall results. Laser will remove certain hairs but not others. It is very good as an intitial process as it will remove hair from large areas at one time. Electrolysis will remove hair permanently, but the electrologist generally works over a small area at a time, so it takes a much longer time to show real results. A word of caution - there are differing levels of competence among electrologists and the wrong one can permanently deaden your skin, giving it a gray color. Before you settle on a person, ask to see the results of his or her work. Check the person's skin to see if it has a rosy, healthy color. I have been undergoing electrolysis for almost two years to remove a full beard and am finally almost finished. It's painful but worth it. Finally, tweezing is one of the worst things you can do. It irritates the skin and does nothing to prevent regrowth. You would be better off shaving and using a heavy foundation to cover the shadow. Most good cosmetic stores can help you with the right foundation.

I was unable to use the royalties from the sale of my book to set up a qualified plan, but that's only because I couldn't find a provider who would set up a plan with annual contributions of $7.

There are also vendors, such as Larkspur Data or Judy Diamond, who will compile and then sell the information contained on the 5500 forms. This is often more effective than freeerisa.com, although the data is usually a couple of years old. This is a frequent tool of financial advisors searching for new markets with existing assets.

That would leave 735 posts remaining to reach the magic number. Without knowing the average number of posts per day, I will guess that it is somewhere around 150. This means we should reach 100,000 posts on October 6th. An actuary could probably calculate the exact minute and who the poster will be. for the 100,000 poster, I submit Blinky.

Since 1990, 14 teams have appeared in the World Series. In Atlanta's 5 appearances (the last in 1999) the Braves have won 1 and lost 4. The Yankees have appeared 6 times, winning 4 and losing 2, including last year. The road to the World Series might go through Atlanta, but it hasn't gone any further. By the way, I am not a Red Sox fan. My prediction for the end of the world is with the score tied in the bottom of the ninth inning of the seventh game of the Series between the Red Sox and the Cubs. That way , Cubs and Sox fans can argue for all eternity over who would have really won the game.

That road has been a dead end for several years.

It seems to me that the argument has been focusing on whether the ownership is "attributable" to the non-owner spouse in a cp state. However, this argument ignores the actual basis for determining whether it is a controlled group, an argument that was put forward by Belgarath in quoting S. Derrin Watson Under the laws of cp states, the spousal exception of 1563(e)(5) fails because it fails 1563(e)(5)(A).

Is this like The Perils of Pauline where we end each episode with a cliffhanger? I'm waiting for part 2 also.

If the due date for the filing of the tax return (including extensions) has not been reached, you might try amending the plan and filing for a determination letter, using the provisions of 401(b) as the basis for the legality of the amendment. I have amended a number of plans after the end of the plan year but before the tax return deadline and then submitted them to the IRS. I received a favorable determination letter in every case. However, I haven't tried this for a while so I can't tell you whther it will work or not. You will probably need to document that the allocation to each participant is greater under the amended formula than under the existing one. You might also make a special allocation formula for the prior year only that provides an allocation equal to the greater of the allocation under the existing formula or the amended formula.

According to my loose leaf section, 132 times, with the last being the Pension Funding Equity Act of 2004, enacted April 10. 2004. It just seema like a zillion.

Here's something for you to think about. I'm not a CPA so I don't claim to know the answer, but I wonder if this is possible. The situation is an S-Corp with W-2 income of $25,000 for the owner. This is the first year of the corporation and the $25,000 is the total income of the corporation. The contribution to a defined benefit plan is $37,500. Can he contribute $37,500 to the plan as a corporate contribution, creating a $37,500 loss which is passed through to his personal tax return to be written off against other income? In essence, he would have a $12,500 net loss. If the income is split between W-2 and plan contribution, the contribution at the corporate level would be $15,000 and the W-2 income would be $10,000. This would create an additional net income of $10,000 on the 1040. Is what I'm describing possible or am I way off base? Thanks for your thoughts.

You might try the Profit Sharing 401(k) Council of America website. They may have developed a simple employee survey you can use.

you also need to consider whether you have a breach of fiduciary duty. Presumably, the HCEs who will retain their ownership in the comapny are also the Plan fiduciaries. Is the action in the best interest of all plan participants, or just their own interest? My initial reaction is the latter.

If she is an employee with the company that paid her the $50,000 and the company sponsors a DB plan, she would be able to participate to the full extent. There would be no controlled group issues arising. However, your original post referred to her reporting this income on her Schedule C, which is the income tax filing form for a sole proprietor. She would own 100% of the sole proprietorship and would have 100% ownership of the other business through attribution. (See 1.414©-4(b)(5)) Since both businesses are owned 100% by the same person, they constitute a controlled group and benefits must be aggregated under the plans. The deductibility rules for combined DC and DB plans under 404(a)(7) would be applicable. As SoCalActuary points out, if she was not an employee of her husband's business, she might qualify for the spousal exception. That doesn't appear to be the case, since you specified that the wife is an employee of the business.

I don't know all that much about SARSEPs either, but I can see some additional issues that should be considered. The first is that a SARSEP is a salary reduction SEP, so if only salary deferrals have been made to the plan, I think they would be exempt from the combined plan limits under 404(n). Second, if employer contributions have been made, they are contributed to the individual SEPs of the participants and recovery or retitling as DB contributions would be difficult. Third, I'm not sure if a SARSEP can provide for a match but, if so, you may have a problem with state compensation laws if the match is not made. Fourth, the SARSEP could be amended onto a prototype or individually designed plan by year end to avoid the only plan requirement. And finally, the SARSEP is a dinosaur and should be in a museum someplace.

You will have two ID numbers. The number assigned to the plan is the identification number for the trust. You will need to obtain a second EIN for the plan sponsor, itself. This may be done on line at www.irs.gov.

You may also need to file if the assets are less than $100,000 for te one person 401(k) plan but you maintain another plan and the total assets of both plans are $100,000 or more. For example, where the sponsor has both a defined benefit plan and a one person 401(k) for deferral only purposes.

Code Section 45E(d)(1)(A) defines qualified start up costs as

This may be a little off the wall, but can you have an affiliated service group? If you look at the PBGC definition of a professional service organization, it specifically includes performing artists. 414(m)(3) defines service organization as an organization the principal business of which is the performance of services. If they are professional service organizations, can they be considered as joining together to provide services to third parties (the listening public)? Anybody else have some thoughts?

While the filing of the 5500-EZ is not required for plans with less than $100,000, it is still a good idea to file. The three year statute of limitations under IRC 6501 begins with the filing of Schedule P to the 5500. If the Schedule is not filed, the statute of limitations does not begin.