namealreadyinuse

Do you W-2? If so, I believe domestic employees are ok. The W-2 is the key. BUT, what you want is an HSA if he/she can get a HDHP.

I agree. After the new regs, I have heard of TPAs dropping out of prior agreements to handle Roths, not pick up the service.

Can ERISA 403(b)'s qualify for 404©? I don't see anything that would stop them.

They get you to sign a specifc power of attorney and act as your agent. They get the money and turn the net over to you. They provide a service and get paid whatever you negotiate with them. If you don't want to pay, either look for the money yourself or you'll get nothing.

#3. They weren't eligible to participate until they were offered the opportunity. However, does the plan really say "employer may use"?? The discretion there bothers me.

By definition, a rollover has already satisfied the distribution requirements of the original plan. The receiving plan can allow distributions at any time.

Um, you can. From the IRS FAQ on SEPs FYI: "Can a SEP-IRA be rolled over into a qualified retirement plan (e.g., 401(k), profit-sharing, etc.)? A SEP-IRA can be rolled into a qualified retirement plan, assuming the qualified retirement plan has language permitting such rollovers."

The Internal Revenue Manual has an obscure rule about wasting trusts that says all money should be distributed within one year unless there is a reason like filing an 5310. If it is not liquidated, it is treated as an ongoing plan. Otherwise, it is just a frozen plan and has to be amended for law changes, etc.

Not to hijack the thread, but does a PEO outsourcing arrangement qualify for aggregation. The IRS treats the Client Organization as the employer generally, so the PEO is really not a separate employer. Any ideas?

It is still too late to establish a SEP from scratch for 05 isn't it?

There is no legal difference between an amendment and a restatement that I know of.

Anyone doing final DOL claims procedure reg amendments? Not IRS, but . . .

That looks right on. Thanks. The Code itself didn't make any sense to me.

Taxable (conplex) Trust with employees. Can it adopt a qualified retirement plan? I can't get my arms around this question on a Friday for some reason and would appreciate help!

Very general Q: Are deductions for 401(k) contributions (say match or NECs) technically under 162?

You are correct that there are no statutory penalties either way. It is probably too soon for people to realize that they missed the deadlines and file late.

I would have no reservations about merging the plans and submitting one application. The amendments have to be drafted to apply to both plans back to the beginning of the date of failure, but I can't imagine why the IRS would object to one VCP in the case of properly merged plans, even if it were done on the eve of a filing.

Tax ID is not the determining factor. If plan attorney is comfortable that the new entity is not in the controlled group of the sponsor, they should not be worried.

Tax ID is not the determining factor. The key is the percentage of particpants from the old plan in the new plan. The IRS/DOL doesn't care if you terminate, you just can distribute. You will end up doing a trust to trust transfer/merger unless you wait.

Has anyone taken this position in front of the service?

Welfare only, of course.

I would go the other way if the forfeiture conditions is really valid, the exec is not in a position of power over his own fate, etc. If the comp is not earned AND vested, it is not subject to 409A. I am sure an expert will chime in though . . .

Expenses must be incurred after account is established? Does the account have to actually be set up on HSA custodian's records or can a signed application and check count? HSA custodian will take at least 10 days to set up and activate account, but participant is going to incur otherwise eligible expenses this week. Will a signed and dated application and check work?

Can you have negative income under Section 83? If the value of the property when the restriction lapses is less than the amount paid for it, what happens? The regs provide that compensation equals the excess of FMV on vest over amoount paid. In our case, this number is a negative. Does it offset other W-2 wages or what???

You would have to decide by 12/31 (or fye for non-individual service provider) to properly report on W-2/1099 and to pay excise tax, so that is the longest you can wait set the price. Also, isn't the ability to wait and see is the key determination, not what the ultimate exercise price is under the proposed regs?