BG5150

Everyone eligible at the end of the year must get a total Employer allocation of 3% of 415 comp. Or an allocation equal to the lowest allocation of a key employee (if less than 3%).

You can't "slip-sheet" the correction?

Was the request approved by the Plan Administrator by the 20th? I would think the paperwork is not in good order until the PA reviews and signs or otherwise approves it.

And this is an SCP thing, right? It's w/in 2 years.

One of my plans has a participant who should have entered the plan in 2007. She only works part-time, and the ER thought she wasn't eligible, and never sent me information on her. So, they have to give her a Safe Harbor contribution for 2007 & 2008. I figured those out with earnings, and the ER will deposit the amounts. My question is: do the amounts have to go on 5330 as a prohibited transaction?

Does the plan allow for rollovers in of regular IRAs? As a default, we do not write plans that allow this.

And I'd ask the ER if excluding 401(k) from comp is really the way they want to go. (I know this doesn't help you for 2009) I think that's a throwback to when deferrals counted towards the 25% ER deduction limit.

I would be careful about just looking at Box 3, or Box 5, or Box 1. Different states have different reporting requirements for the W2's. For example, to get the full, gross-gross comp for NJ residents, we use Box 16 + 12D. For those, there is no other way glean the true gross comp without the ER telling us. Even then, I ask for W2's, because a lot of times, the ER is just using Box 5 (which doesn't include Sec 125 contributions in NJ).

"Threve" is someone who has never been in my kitchen (I am haiving a problem w/ my browser where I cann post after the quote. Nor can I go back an edit my post in the middle; I have to backspace to my error and re-enter every thing. Only since adopting FF 3.6!)

I looked in Options and nothing stood out as relevant. I even checked Scroll Lock and Insert. Sometimes those can bring havoc. And it's only this board. Others that run vBulletin and others work as usual. I thought it was one of the new themes I DL'd, but nope. I'm using the default.

I just DL'd the new Firefox. When creating a post, my cursor is not showing. Plus, if I reply with a quote, it only allows me to type infront of the quote /quote box; I cannot edit the quote in any way (ie, delete unwnated portions). Nor can I even place the cursor back into what I typed in my own message to change anything. Anyone else having this problem? Is it not compatible with this version of IP Board? BTW, IE works fine.

wow. just wow.

Isn't this true only for the years I do contributions other than deferrals and SH? For example, if I made a PS in 2007, I don't lose the SH protection for '09 if I only make the SH match. (Don't forget, if you reallocate forfs, you lost the SH 'free pass' on TH)

How does it affect the TH test? First year, probably not. Adding back in the in service withdrawal nets with removing unrelated rollover. But in years after, you will be taking out the unrelated rollover with no offset from the withdrawal.

He's 100% vested. He's part of a company that just adopted a multiple employer plan, and his past 15 years are credited.

And why can't the guy just leave it in an IRA? Trying to hide assets from creditors?

I have no idea. Would it look odd to a PITA auditor who notices the person who took a $10,500 in-service distribution and then did a rollover in for the exact same amount? (Well, if it was in an IRA for a couple days, the amount would be slightly off). Rollovers from conduit IRA'a go into Un-related rollover accounts. However, since the money originally came from the same plan, would it be treated as a related-rollover? It would affect the TH test, depending on if th money coming in was processed as related or unrelated rollover.

I looked at two different plan documents and they both say the plan will accept rollovers from "another 'eligible retirement plan'." To me, "another" doesn't mean "same."

We have a plan that failed the ACP test. However, the ER has not deposited the match yet. Therefore, I may not be able to do the refund from the HCEs account (it's the first year he's eligible for the match) by March 15. Is the ER on the hook for the 10% excise tax?

Back to this. Even simpler. Forget about Avg Benefits test, ratio percentage test, what have you. What about the Gateway test. Same financials. Req'd gateway is 4.5%. Satisfied with 3% SH and 1.5% PS. $1,350 SH and $450 PS (total $1,800 ER alloc) With comp of 45,000, ER% is 4% With Comp of 30,000 ER% is 6% The first is a failure, the latter is a pass. Do I have to give her more PS to get her to 4.5% of 45,000, because that was the basis of the SH?

Very! As it stands, it looks like an under 59-1/2 participant ought to have nothing withheld for 2010 unless they know for certain that they will claim the income in 2010, and not spread it over 2011 and 2012. Yeah, but if I'm [my firm] is preparing the 1099's I think I would have to know, if the person decided to take w/holding, when the person would be declaring the income (2010 or later).

So this looks like w/holding is voluntary on participant's part. However, it mentions the potential of having to do 2 1099-R's. This is very confusing!

Our Special Tax Notice reads, for distributions from a QP (no Roth contribs): "If you roll over the payment to a Roth IRA, a special rule applies under which the amount of the payment rolled over will be taxed." Do we have to w/hold on this? And would it be 20%? Is there a special 1099 R code?

Good point. I was having a "bad post reading" day yesterday.

Check the plan document. There's usually an election to use/not use the calendar year election in there near where it's decided if the top paid group is used.