jukeboy56

I'm trying to determine how the deferral and contribution limits work in this situation. We have a person (Joe) self-employed for the first half of the year with a Solo 401k plan. During the second half of the year Joe goes to work for an employer offering a 403b plan. We understand that the total deferrals for the year are limited to $14,000 total in both plans combined. We also understand that the limit on total contributions to the Solo 401k is $42,000 including any deferrals in that plan. Assuming self-employment earnings (after subtracting 1/2 SE tax) were at least $210,000 could Joe forego making deferral contributions to the Solo 401k and instead make only a profit sharing contribution of $42,000 and then make deferrals with the new employer's 403b plan of $14,000? I suppose he could acheive the same thing by using a SEP plan for the SE income, if the Solo 401k plan weren't already in place. right?

Company A is a small S-corporation with an employer-provided medical insurance plan. Company A pays all medical insurance premiums and reimburses its employees for out-of-pocket expenses (for deductible, co-pay, etc) over a certain dollar amount. The stockholders of Company A are also greater than 2% stockholders in Company B. Is Company B required to provide its employees the same coverage as Company A does? Both companies have probably half a dozen employees, including the stockholders.

Here's the arrangement contemplated: The employer will provide and pay for 75% of premiums for a high deductible medical insurance policy for all employees except the highly compensated and 5% shareholders, who will not be included in the HRA. The employer will also pay for a portion of deductible expenses for those covered employees by paying the provider directly for covered expenses up to a specified dollar amount. Since the highly compensated and 5% shareholders aren't covered by the HRA, the employer wants to pay 100% of their premiums. Does this violate any nondiscrimination rules or ERISA?

Also in the top 100 by Billy Paul: "Am I Black Enough For You" 1973 "Thanks For Saving My Life" 1974 "Let's Make A Baby" 1976 (Not to be confused with Paul Anka's "(You're) Having My Baby" ) Can't say I remember any of these.

Ah, Billy Paul on the AM radio while cruising Broadway in my '65 T-Bird......thanx for the memories.

Not guilty here, if you mean me. It's a real-life situation. Besides, after completing the CEBS program I vowed to never again try to make my 48-year old brain memorize things it couldn't retain even when it was 20.

A sole proprietor and his wife own and operate a business that sponsors a profit sharing plan. In the past there have been employees who shared in contributions, but the business no longer has employees. All participants except the business owner and his wife have taken their distributions from the plan. The business owner isn't sure at this point if he will hire employees in the future, but wants to continue making contributions for himself and his wife. Since, at this point, a fidelity bond is in effect primarily protecting the owner from himself, is he required to continue purchasing the bond?

For a basic plain vanilla 401(k) that IS NOT a safe-harbor plan, what are the notice requirements for the discretionary matching formula the sponsor uses? Is there any notice required at all? In this case, discretionary matching contributions are going to begin in the middle of the plan year. Can matching begin mid-year using a formula such as the one that follows: $.50 match for each dollar contributed in the second half of the plan year, limited to 4% of each participant's compensation for the second half of the plan year? The plan document does not mention whether discretionary matching will be based on compensation for any specific time period.