nancy

If an employee is a more than 1% owner and earns more than $150,000, he is a key employee for top heavy purposes. If his wife is also an employee and makes less than $150,000 is she a key employee through the rules of attribution of section 318?

If a plan sponsor returns any excess contributions by March 15 but does not adjust the returns for any gains/losses is this a valid return? Is the excise tax still due on the excess contributions?

When a LLP or LLC adopts a qualified plan, do all the partners need to sign the document or can the managing partner sign on behalf of the partnership.

I agree. The bank will not accept a check made payable to the IRS with a coupon deposit. We have several client who have one brokerage account and have check writing priveleges on the account. However, most brokerage accounts are not located in our city and therefore are not drawn on a local bank. I even have one where Bank One is the bank but because it is not Bank One of Louisiana, we have to mail the deposits to Ohio.

Does anyone have a simplified method of depositing withholding payments where the check is written on a brokerage account and the bank is not local? The local bank will not accept the deposit.

What happens is an employer makes a mistake and contributes too much to one employee's SEP account? Is it a deemed IRA contribution? Who is eligible for the deduction, if any? The SEP provider returned the money to the employer and issued a 1099-R to the employee. I can't believe that this can be correct. Any help is appreciated.

A small employer(less than 50 ees) is a wholly owned subsidiary of a larger corporation (8,000 ees). The larger corp. maintains a DB plan but does not plan to cover the small employer. Can the small employer establish a DB plan and pass 401(a)(26)? There are HCEs in the small employer. Is the only way to apply for a QSLOB determination? We think so, but someone else has advised that they can maintain their own plan as long as it is identical to parent company plan.

Can an active participant default on a loan if they no longer authorize payroll withholding for the loan payments? Does this present any other problems other than a deemed distribution? This is a NHCE.