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Husband and Wife have IRA accounts. Both are taking the reguired minimum distributions. Husband dies. What does Wife do with Husband's IRA. We know she can rollover the balance into her IRA but what happens to the minimum distributions that were being taken from the Husband's IRA. The PA Book says the deceased IRA's holder distributions must be at least as rapidly as they were before his death. However, what happens if the factor was being recalculated each year? And how is the amount calculated if the Husband's account is rolled over to the Wife's account? Does the minimum need to be made for the Husband's account in the year of his death?

Must an employer take salary deferrals from a bonus check in a 401(k)safe harbor plan and also can bonuses be excluded when calculating the 4% on the safe harbor match? I believe it depends on the definition of compensation in the plan document but what if the definition of compensation is silent on bonuses.

I don't have a cite for the restatement. We're receiving the info from a CPA and the plan was restated to a 403(B) in the 70's. Do you think we have an issue with the form 5500's being filed as 403(B) plans? Thanks for your help.

The plan was initially effective during the 1950's and then after various restatements, the plan was called a 403(B) plan beginning in the 1970's. At some point, the 5500's started being filed as a 403(B) plan. Do we have an issue here?

Does anyone know the difference between a 403(B) and a 501©-18. We have a CPA that advised that a client was preparing W2s as if the plan was a 501©-18?

We've got the hardware and software to scan a majority of our files and store them on our network. We're trying to determine if there are any potential problems going to a paperless office.

Has anyone had experience using a paperless office? We are a third party administration firm that is considering going this route. Any comments would be appreciated.

Can a profit sharing trust enter into the following real estate transaction? The Plan signs a 50 year ground lease on a piece of property which will lease for $2500 a month. The Plan then finds a tenant and builds to suit and then receives income from that lease.

We've got a profit sharing plan where the employer has not made a contribution in several years (the plan is then deemed to be terminated). The client does not actually close out the plan. Are there any ramifications?

A client filed its corporate return for the fiscal year ended 8/31/1999. The plan is a money purchase plan and the contribution for the plan year ended 8/31/1999 has already been deposited. The compensation for one of the employees was reported incorrectly and the participant is now due an additional contribution of $1,237.50. It is my understanding that for minimum funding requirements, the client would still be required to make the deposit but for deduction purposes, would the client be able to file an amended corporate return and get the additional deduction for 8/31/1999 or can the client deduct the additional contribution for the fiscal year ended 8/31/2000?

We have a company that went from a corporation to a LLC (company is being taxed as a corporation). If one of the principals (now a partner) had an outstanding loan at the time of the company conversion are we correct that the partner has to pay back the loan asap?

When doing a top heavy calculation for a defined contribution pension plan (i.e., money purchase or target benefit plan), it has been my understanding that contributions due as of the determination date are included even if they are not actually made by that date. However, for non-pension plans (i.e., profit sharing plans), only contributions actually made by the determination date are included (except for the initial plan year). Do these same rules apply to 401(k) contributions? Initially, I thought that since 401(k) contributions are required to be deposited in a timely manner, that any 401(k) contributons deposited after the determination date for the prior period should be included when doing the top heavy calculation. However, after reviewing 1.416-1, T-24, it appears that this is incorrect.

We've got a client with a non standardized document with an allocation formula stated as follows: a) 16.5% of each eligible participant's compensation during such plan year up to $150,000; plus b) 5.7% of each eligible participant's compensation during such plan year in excess of $60,000, up to $150,000. Does anyone see a problem with this formula? They happened to receive a determination letter.

A company currently has a SEP IRA and would like to convert it to a Simple IRA. Does one simply terminate the SEP and then adopt a Simple IRA or is the process more involved? Also, if they have deposited contributions to the SEP IRA for the partners for the current fiscal year, wouldn't they have to deposit any contributions to newly eligible participants before terminating the SEP?