movedon

I agree that they're on the hook.

What about permanency and the general requirement that contributions be made as a condition of qualification?

Happy New Year!

Thanks a lot, John. It's hard to imagine, given the message that Bob is sending every chance he gets, that some sort of deadline relief is not imminent. Maybe the RAP program is going to replace the deadline altogether?

Who is going to sign the plan document as the Employer?

Tom - re using 415 comp for the gateway - that's only for the 5%, right?

Transfers are not considered contributions for purposes of the exclusive plan rule - Notice 98-4 Q&A B-3.

Yes, I think the audit is still required. Generally when there is a short Plan Year of less than seven months, the audit for the short year can be filed along with the 5500 and audit for either the full Plan Year preceeding the short year or the full Plan Year following the short Plan Year. There's a box to check on the Schedule H for the short-year 5500 indicating you're using this exception. In the case of a short Plan Year created by a merger, there's not a full Plan Year after the short Plan Year (at least not for the non-surviving Plan) to file the short-year audit with, so I don't think the exception buys you any time for the short-year audit. Some folks would argue that you could defer the short-year audit and file it with the next full-year 5500 and audit for the surviving Plan (as you suggest). I think that's a less conservative opinion, although the rules seem sufficiently vague that you could make a case.

You're my hero.

It's interesting that they word it that way, since the Schedule P was never required. Do they mean to say, the Schedule P is no longer required to start the sol?

Heh?

Check out 401(a)(11).

I have a very vague memory that there is a problem with a foreign trustee. Look at SBJPA and TRA '97. Sorry I can't be more specific.

joeyd- What's your annual contribution budget in your best and worst years? Send me a private message if you'd like. I'll give you a friendly qualified free tip or two (I'm knowledegable re small business retirement plans, but I'm not in this segment of the industry at the moment, so I have nothing to sell).

I have a client who wants to amend it's traditional calendar-year 401(k) plan and make it safe harbor, and, of course, doesn't want to wait until next year to do it. Anyone know a reason why they couldn't amend the plan year to 7/1-6/30, issue safe harbor notices by 6/1/6 and add the safe harbor provision effective for the 7/1/6-6/30/7 plan year?