ombskid

Loan payments continued for several months after the loan was repaid. Is the correction as simple as writing a check from the plan to repay the borrower for the overpayment?

Sole proprietor filed tax return and made profit sharing contribution based on net sch c income. Later the accountant finds a mistake and income was 50k or so lower. The return is amended. The amended income would significantly reduce allowable contribution. The deduction for the contribution must get reduced in the amended filing, correct? If the contribution was made after the end of the plan year, there is no penalty for over contributing, at least as far as that particular year, correct? What penalties would apply and or corrections can be made if the contribution was made during the year being corrected?

DOL audited employee deferral contribution for 2006 - 2008 and came up with a penalty for late transmittal of $12. Now they have sent a letter recommending filing 5330 so when they send their findings to IRS in Ogden, we will already have filed. For 15% of that $12. Anybody have experience with 5330's for these miniscule amounts? Does IRS really look for small amounts like this? Could we donate to our favorite charity instead?

Does anyone have or know of any spreadsheets that show all the calculations for cross testing a dbdc combo. We are trying to create one for plan design use and thought maybe we wouldn't have to invent the wheel all over again.

Owner is 45 and makes the max compensation. Spouse of same age makes 20k Employees age 50 and 55 make 30k amd 50k After maxing the ps/401k, if owner wants bigger contribution, a db plan would cost alot more than a straight 20% of pay contribution cash balance plan which would pass on contributions. I think.

Can a straight % of pay contribution cash balance plan be cross tested on contributions alongside a regular old integrated profit sharing plan w/safe harbor 401k? Youngish owner with oldish employees.

Plan was amended to freeze benefits. Do I remember a time when TH benefits continued to accrue even when a TH plan was frozen by amendment? Thanks

A DB plan is frozen with notices to participants. Do top heavy minimum acruals stop?

Here's a great Oct 14th question - maybe even better tomorrow. Can 5500's be scanned, transmitted to client & signed & filed?

Sole proprietor who is a real estate broker wants to buy residential property and rent it out until some alleged future day when it is worth much more, then sell it. 1. Can a plan get a mortgage to buy this investment property. 2. Is the plan exempt from ubit? 3. Could the trustee (also the sponsor and participant) sign personally for the mortgage.

Bird, yes that is my question. Your post came while I was typing. A 401k or profit sharing plan, on the other hand, if the only benfit is a lump sum, does not need spousal consent at retirement, correct?

I'm trying to distinguish between death benefits and retirement benefits. At retirement or plan termination the participant chooses from amongst the various forms of benefit and if he is married and chooses a lump sum or anything other than the QJSA, the spouse must consent. But i believe that must happen at the time of either retirement or the termination of the plan. Can spouse waive any right to any future benefit now, i.e. in advance.

Sole proprietor designates a non spouse beneficiary of a db plan and spouse consents. That refers to the death benefit. Can spouse also waive rights to the retirement plan benefits in advance? Or does that waiver have to be done within 60 days (or some similar timeframe) of either retirement or plan termination?

Accountant wants to dissolve a p.c. but the pension plan is still in existence. There are some issues preventing it from being terminated. Is there a recent change that allows such pension trusts without sponsors?

Thanks for the responses. Could an amendment like that work if only the sole practitioner came - no ee's. In other words, can such an amendment only benefit HCE's?

Sole practitioner is joining large medical group and bringing one employee. Group wants to amend plan to include service with the sole practitioner, making one doc plus one employee immediately eligible in the large group's plan. Any problems?

That's what I was remembering that I didn't remember! 99 to 2002 they were different. Thanks

Are hardship distributions from salary deferral accounts and profit sharing accounts now treated the same - they are not eligible rollover distributions and therefore no mandatory withholding. I believe at one time they were different.

Al owns 100% of AlsCo LLC and 100k goes to his se tax Al owns 50% of AlandBobs LLC and a loss of 10k goes to his se tax That's a non-passive loss AlsCo LLC has a profit sharing plan. Normally we would use 100k less 1/2 the SE tax X 20% to get the max contribution for Al How do we treat the losses on his SE tax?

Employee was participant in Client's SEP. Works less than 500 hours. Client wants to close the SEP and start a 401k with 1 yr/age 21 eligibility. Since employee never worked 1000 hours in a year, he is not eligible for the 401k - regardless of having been a participant in the previous plan. That OK?

"in an amount determined pursuant to subsection (x)" x referring to the language above. There is no other reference to amount, allocation or compensation.

"the company shall contribute to the Plan on behalf of each Participant who made an elective deferral an amount determined by the board" Now that I read that again, "an amount determined by the board" doesn't have to refer to compensation.

Actually the person entering mid year has the potential of a bigger match because it would be based on full year comp not just comp while a participant. The real question is can the sponsor create a match in any given year that is based on full year comp when the basic definition of comp is only that earned while a participant.

Volume submitter doc has definition of comp limited to comp while a participant. The match is discretionary. They would like to have the match be the lesser of the salary deferral or x% of full year comp. Since the match is discretionary, can that be done?

I thought so. Thanks