HCWilliams

I would like to resurrect this old thread in light of the PPA restatements that we are working on now. What are people's opinions on when the effective dates of Safe Harbor 401(k) Plan Restatements should be? Are you making them all the first day of the NEXT Plan Year. Historically, we have made required Plan Restatements effective on the first day of the Plan Year during which the Restatement is adopted, except for certain specified Plan Provisions which might have special effective dates stated in the document. I would argue that for many or most Plans, nothing affecting the SH is being changed and maybe even nothing other than the inherent PPA required language changes are being made to the Plan. But a Restatement is still an Amendment so how are folks handling the effective dates? Thanks, HW

Our doctor client owns a medical research clinic which is an LLC in which he is sole owner which I guess is treated the same as a sole proprietor. He has now joined a medical group (corporation w/5 Drs. and 20 EEs) in which he is a 20% shareholder. The research clinic and medical group are 2 separate businesses and have very limited common business dealings or patients (certainly less than 5%). I have concerns about 2 issues. First, is the issue of "regularly performing services for the FSO or regularly be associated with the FSO in performing services for 3rd parties." It would seem that this is not the case since our client says there is very little common business or patients. Second, I want to confirm that the Doctor's personal services for the corporation as an employee are separate and distinct from his LLC or sole proprietorship such that the LLC is not considered to be performing the services for the corporation. Since the LLC has 5 employees who are not associated with the medical group in any way, I think there is a clear business distinction, but want to be sure. I think it would be better if the research clinic were incorporated, but that is not the case. What do you think? Thanks, HW