commishvp

Company A - is owned 50% by Mom and 50% by Dad. Company B - is owned 25% each, by Mom, Dad, Son 1 and Son 2 . . . both sons are well over 21. Is this a controlled group? It seems to me the answer is no since the parent is deemed to own the child's shares only if parents own over 50%. In company B the parents own exactly 50%. However, it doesn't feel quite right as seems like a good plan design to get more contributions into the owners accounts. Thanks for any input.

1099 was for $747. . . Why couldn't the participant pay the fee pre-tax?

Here is the scenario . . . Owner A is due an $872 RMD . . . our fee is $125. So client withdraws $872 from the plan, pays us $125, withholds $74.70 (10% of RMD net fee) and pays Owner A $672.30. Does this satisfy Owner A's RMD obligation? Thanks for the help.

What are other TPA's doing to report the quarterly fee disclosure on clients in SDBA's? So participant takes a $2,000 loan from plan, plus a $100 loan fee . . . statement shows $2,100 coming out of the plan but does not clearly explain the charges? Same situation but on a distribution, brokerage account just shows total liquidated amount, no separate line item fee with clear explanation. Looking for a practical solution? Thanks,

FT Williams is awesome!!!!! We switched from Relius for the PYE 2011 and could not be happier. Was worried about the transition as far as inputting data on the forms but FT will import last years 5500 info from the EIN. Also concerned with educating our clients on new system, but that was also super easy. 1000% better than Relius Govt Forms. . . we still use Corbel for our docs and are very happy.

I have a situation where the owner/plan sponsor wants to by a life insurance policy (covering himself) that was purchased by his spouse, who has been making the premium payments. His wife no longer wants to pay the premiums. Any issues if f he buys the policy from her with plan assets at the current cash surrender value and than continues to pay the premiums form the plan? I have read that life insirance policies may be purchased by the plan from a particpant or employer but this is a bit different. Thanks!!!

There is no need to set the client up in Web Client before uploading the Forms from Relius Govt Forms. . . the name and e-mail of signer is input under the plan info page in Relius. Once the form is uploaded the client will be set up in Web Client.

We have submitted the 2010 filing under a seperate log in accout with Web Client and that has seemed to work. Try having one of your co-workers upload the second filing.

Are you filing under VFCP too? Or just using the calculator for gains?

We've been reporting all "direct compensation" paid by the plan on line 8F.

If not doing a VFCP filing and simply putting in lost earnings and filing Form 5330 how are the earnings calculated? Would the plan still have to use the "Old VFCP" method comparing the highest returning fund to the IRS underpayment rate? Was the elimination of the highest return option an incentive to get Plans to file under the VFCP? How are others handiling this situation in practice? Comments are apprecitated. Thanks,

The client has not funded their 2007 non-elective SH contribution. If we run the ADP testing the test fails and the owner will get a refund of $14,000. I understand we need to contribute the 3% SHNEL ($20,000) with earnings. Do we also need to run the ADP testing and process the refund, pay the excise tax on the late withdrawal? Do we have to fund the SHNEL plus a QNEC? If a QNEC is required, would that be calculated under a scenario for late correction of ADP/ACP testing (with refund of the HCE’s deferral, as described in EPCRS), or would it be the QNEC that would have been required to bring the NHCE’s to high enough percentages to pass ADP testing without refunds? This seems to be a bit of a grey area and not specifically addressed in EPCRS. Any help would be appreciated. Thanks,

Hello, We are working on completing Schedule D's for ING plan's under MAP contracts. Does each fund need to be listed on the Schedule D? I am interpreting the ING instructions that you would list the total amount in the seperate account and not list out each fund. ING is not acting as a Direct Filing Entity . . . the other vendors we work with who do not file directly instruct that all of the funds available be listed on the D? What are other firms doing? Thanks,

When filing a 5330 reporting late deposits is there a minimum amount you would typically file the form? I have a very small plan and the taxable amount ends up being $0, so I was not going to file the 5330. I have read the instrucitons and do not see if there is a minimum amount required to file. Any thoughts? Do you typically file a 5330 with a $0 tax due? Thanks,

I have a situation in which the participant died and his beneficiary lives in Mexico and does not have a SSN. Should we process the cash distribution as we normally would and just use the deceased SSN on 1099? Or require the beneficiary to get a tax id#? Looking for a practical solution and there seems to be numerous posts on the issue but not with this specific example. Thanks,

It depends on what the plan document (gateway amendment) says. I know the Corbel amendment our office uses allows us not to give the gateway minimum to the statutory excludable employees. I have seen other document providers treat the issue differently.

A client has a Simple IRA and they are doing the 3% match. A participant contributes 10% for the first six months of the year and $0 for the last half of the year. Does the client have to make a match of 3% of full year comp or just on the six months of participation? The plan document does not specify if the match is payroll by payroll or annual. I am used to 401(k) plans that always specify the computation period. Thanks!

The cross-tested plan is on a Corbel document and is NOT safe harbor or top-heavy. There is a specific allocation group named sales people(2 fall in this group, 1 HCE and 1 NHCE) who the owner does not want to give a contribution too. Can I give NHCE a 0% contribution and satisfy the gateway minimum (he did work 1000 hours and is employed on the last day of the plan year)? Corbel amendment states " Any Gateway Contribution made pursuant to this subsection for a Plan Year will be allocated to each NHCE who receives an allocation of other "Employer Contribbutions. It does address that the Gateway be made regardless of accrual requirements, but does not mention if they are in seperate groups. Can I give him 0% as long as it passes the other non-discrimination testing? Is an unusual situation as most cross-tested plans are either top-heavy or safe harbor. Thoughts? Thanks!

Hello, I am working on a 401(k) plan with approximately 50 accounts which are all individual annuities. Commissions are paid from each account; each person has a separate account number. Do I have to prepare a Schedule A for each person, or can I aggregate the totals on one form and list the account number as various. Thanks for your help.

We switched from Corbel to Acudraft about a year ago. I do prefer Corbel . . .Acudraft leaves open a lot of room for interpretation on various issues. As we joke in the office it "gives you just enough rope to hang yourself."

The participant would have to be 59.5 to take an in-service on 401(k) deferrals.

It was my own logic that I thought it might be treated like a 402(g) violation, nothing concrete from Sal's book. The amount forfeited and refunded in the plan I am working on is only a few dollars off between the 2 options. Fiona1, I do agree with your logic. . . Thank you everybody for your responses.

HCE earns $300,000 and the discretionary match is $1 for $1 up to 4%. The person who processes the payroll does not realize there is a cap on compensation and deposits $12,000 of match into the HCE's account. The match should have been capped at $8,800. Do you run the ACP test on the $12,000 and than calculate the forfeiture and refund if applicable. Or do you forfeit the $3,200 and than run the ACP test. I looked in Sal's book and my interpretation is that you would treat it like a 402(g) violation and test on the full match. But I could not find a specific example for this situation. Any advice is always appreciated. Thanks,

Plan has a last day rule; participant terminates employment on 12/29/06 (last day of the plan year). Do they get a profit sharing contribution? I seem to remember it being a gray area and am not sure if there is any specific guidance. Thanks for your help.

I have a plan that is being acquired in stock sale and is going to terminate the plan formally. Typically we have had clients wait until the positive determination letter on the plan termination is received until processing the distributions. The client would like to distribute the balances of the employees who will not retain there employment and wait and distribute the remaining balances after the letter received. Any advice is appreciated.