Gary Lesser

A copy from the obituary provided by Don's family follows: Donald R. Levy, 82, of Tuckahoe, NY passed away suddenly from cardiopulmonary arrest on Sunday, June 29th at Sound Shore Hospital in New Rochelle, NY. He was the son of the late Gertrude and Saul Levy, and widower of the late Carol Levy. Donald is survived by his children Cathy Levy of New York, NY and Daryl Levy of South Orange, NJ. He was an attorney and benefits consultant. A graduate of Harvard College and Harvard Law School, he received an MBA in accounting from New York University. He served as Vice President and Employee Benefit Consultant to Johnson & Higgins as Vice President-Human Resources and Director of Employee Benefits at UST (United States Tobacco Company), as Senior Consultant with William M. Mercer, Inc. His publishing activity developed in post retirement, after a few years with Prentice Hall and RIA. He continued with his own publishing business and authored many books, including the Pension Handbook. He taught at the University of Connecticut, served as a panelist for the Practicing Law Institute, and lectured before various professional groups. In lieu of flowers, memorial contributions may be made to the American Heart Association. If additional information is needed, please contact Don's daughter: Cathy Levy 415 E. 78th St. #2A New York, NY 10075

A broker/agent can not receive a commission on the sale of securities to his or own IRA under the Code. However, there are situations where sales can be made available without certain charges. E.g., mutual funds may be sold to broker-dealer registered representatives (and in some cases certain members of their family) at net asset value (without front end loads for class A purchases), regardless of the purchase size. Neither can the broker/agent direct that the commission be paid to another broker/agent. I am certain that the firm has a policy that covers this type of purchase. The agent should check with his or her compliance department on how to effectuate the purchase in his or her own account.

You are essentially correct; it is a product of the provisions of the particular plan and account documents together with applicable state law. An IRA trust must be valid under state law. Hope this helps.

COLA/Rollover Chart Modified. The Rollover chart was modified and takes into account the provisions of Notice 2008-30 relating to rollovers and direct transfers to Roth IRAs. The prohibition against rolling over after-tax contributions to certain plan types was added to the Traditional IRA/SEP row. [Rev. 5/08] Thanks for the comments (public and private). The attached pdf charts may be freely distributed in their entirety. COLA_RO_rev_5_2008.pdf

COLA/Rollover Chart Modified. The Rollover chart was modified and takes into account the provisions of Notice 2008-30 relating to rollovers and direct transfers to Roth IRAs. The prohibition against rolling over after-tax contributions to certain plan types was added to the Traditional IRA/SEP row. [Rev. 5/08] Thanks for the comments (public and private). The attached pdf charts may be freely distributed in their entirety. COLA_RO_rev_5_2008.pdf

COLA/Rollover Chart Modified. The Rollover chart was modified and takes into account the provisions of Notice 2008-30 relating to rollovers and direct transfers to Roth IRAs. The prohibition against rolling over after-tax contributions to certain plan types was added to the Traditional IRA/SEP row. [Rev. 5/08] Thanks for the comments. The attached pdf charts may be freely distributed in their entirety. COLA_RO_rev_5_2008.pdf

Treasury, IRS Issue 2009 Indexed Amounts for Health Savings Accounts Washington, DC--The Treasury Department and Internal Revenue Service today issued new guidance on the maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs) that must be used in conjunction with HSAs. These amounts have been indexed for cost-of-living adjustments for 2009 and are included in Revenue Procedure 2008-29, which announces changes in several indexed amounts for purposes of the federal income tax. See New_Cola_2009_May_2008.pdf

What was written on the check and/or the letter of instructions? SEP or IRA contribution? A traditional IRA contribution can not be recharcterized as a SEP contribution.

The 30-day rule in the Code is an administrative requirement. If not met, the contributions are not deductible; and likely treated as "wages." Since there are no deduction carryover provisions (or 6% contribution penalty) there are numerious (as yet unresolved) issues. The Code rule [iRC 408(p)(5)(A)(i)] does not mention the "payable in cash" provision mentioned by the IRS (see other post). [The employer must make salary reduction contributions to the financial institution maintaining the SIMPLE IRA no later than the close of the 30-day period following the last day of the month in which amounts would otherwise have been payable to the employee in cash] So, when would the amount have been payable to the owner in cash? Although treated as earned at end of taxable year; the amount might not be possible to determine (and pay in cash) until a later date. The IRS's interpretation seems to giver more leeway than the Code which states that elective amounts must be made not later than the close of the 30-day period following the "last day of the month with respect to which the contributions are to be made." The DOL view is about "plan assets," the IRS's view is all about deductions. It would appear that some additional guidance in this area is needed. However, without Congress doing something, the IRS may be at a loss. Until then the "strict" 30-day rule may very well apply. See tortured facts and decision in Runyan v. Commissioner, T.C. Suppary Opinion 2006-58 (Apr. 19, 2005), below:

If a safe-harbor 401(k) is adopted, the SIMPLE IRA fails to be a SIMPLE IRA and all SIMPLE IRA contributions would be treated as not made under a SIMPLE IRA; thus, the contributions would be treated as regular "wages." [iRV Sec. 408(p)(2)(D)]

Why wouldn't termination on or before 12/31 still be possible? After 12/31 the Simple IRA plan can only be amended for the current year if it does not change the provisions of the 60-day notifications; otherwise the amendment is effective the following year.

So you are saying that it is the same corporation (with different owners) that also underwent a name change with the Secretary of State. The existing plan should suffice assuming it to be current. The name of the plan can be changed by an amendment (and notification to employees, see plan provisions) and the accounts reregistered at the sponsors (by sending them the revised articles of incorporation). Keep in mind, the new owners, if employees, have to meet the plan's eligibility provisions. In the partnership world, the IRS generally views as change in control (more than 50%) as creating a new entity. Hope this helps.

If contributions are made for a plan year, they must be allocated to all eligible employees at the same time. Since the employee will turn age 21 before the plan year ends he or she would be eligible to receive any contributions made for the plan year (regardless of when made). If the individual dies before reaching age 21 the amount would probably become an excess. To do otherwise would likely result in discriminatory contributions being made for the year. Hope this helps.

No. The SIMPLE plan termination can take effect no sooner than the beginning of the following plan year. [see LRM on CODAs (page 31)] Hope this helps.

If the employers are controlled/related/affiliated then the existing plan should be adopted by participating employer. The eligibility requirements may need to be reduced (no service requirement). If not (C/R/A) then a seperate SEP would work. If owner has a more than 50% interest in both entities, then 415 limits apply to both plans in the aggregate (even if not C/R/A). Hope this helps.

1. Are there any penalties that will exist? 10% excise tax on employer. 6% excise tax on emploee. Both are cumulative. File amended corporate returns with Form 5330 attached (wait for notice of interest and penalties). If SASEP, there may be additional penalties (and possible loss of tax santioned status) for failure to provide notices depending upon the type(s) of excesses. 2. How should I correct this? Report excesses on amended W-2s (as "wages"). Employees contact sponsor to remove "excesses" (with gain for 2007 contributions returned before due date). Letter from employer will be helpful to employees in getting excesses removed from IRA. Employees may have to file amended returns. 3. How many years must I go back to adjust? The employer should fix all years (because amounts must be removed). In general, S of L not expired because form 5329 reporting these excesses never filed. Other methods that would allow excesses to remain in plan are available under the EPCRS. The 10% charge under the EPCRS for retaining excess does not generally apply. Both approaches must be analyzed (carefully) to determine which fix (Code or EPCRS) is better (and for which employees) and whether current year (2007) should be part of an EPCRS submission. See Rev.Proc. 2006-27, Section 6.10(5). SEPs are very unforgiving! Hope this helps.

If the stock was bought, it would appear to be the same company with a new name. Therefore, the existing plan would seem to be intact. Do the facts, instead, indicate that a new entity was formed?

The other entity may establish a SIMPLE IRA, however, the individual is still subject to the overall 402(g) limits. There are also transitional rules that might apply to the qualified plan. When there is an acquisition (or disposition) among a controlled group of employers , the minimum qualified plan coverage requirement is treated as having been met during the transition period if the minimum coverage requirement was met before the acquisition and there is no other significant change in coverage. [i.R.C. §410(b)(6)©; Treas. Reg. §1.410(b)-2(f); Priv. Ltr. Rul. 9707022]

Rollover Chart Modified. The rollover chart was modified to include a direct rollover from the Federal TSP to a Roth. The Roth transfer option is included on the TSP distribution form. The chart was revised again in May 2008. See other posts.

A special transitional rule allows an e/er to maintain a QP and a SIMPLE IRA at the same time because of an acquisition, disposition, or other similar transactions. The special rule provides that the simple IRA will be treated as a qualified salary reduction arrangement for the year of the transaction and the following year. See IRC Sec. 408(p)(10)©. Mid-year termination of a SIMPLE-IRA/401(k) is not a viable option.

Can anyone help me obtain a Health Reimbursement Arrangement (HRA) sample plan for inclusion in CCH’s Employee Benefits Management Reporter? CCH publishes various types of sample plans in Volume 3 of this product, but they do not have a sample HRA plan. If you have a sample plan (or can obtain one) that CCH can publish, they can include copyright or other introductory language as you see fit. Please let me know if you need additional information or would like to discuss this further via phone. My telephone number is (317)-254-0385). Thanks, Gary.

See other posts for current version.

COLA/Rollover chart modified May 2008. See other posts. Comments welcome.

See other posts.

The $20,500 limit is an elective limit that applies on a plan and on an individual basis. Assuming all individual plan limits were met, the employer's $6,800 should not be a problem (assuming it is not an elective contribution). If the owner is in control of the LLP (more than 50%), then aggregate limits would apply if employer contributions were made to both plans (the $45k/100% limits). OTOH, if the employers are related, affiliated, or controlled, then there would be other issues. "Mahalo" to you too! Hope this helps.