mphs77

Are you doing the return on a cash or accrual basis?

"Other government agencies"? Suppose Jack Bauer is going to begin to do 5500 audits next season?

My thought is that D is the culprit. Benefits under a qualified plan accumulate tax-deferred until distribution. Of course, I could be reading more into it than I should.

You win the reward for the most obscure superman villain reference of the day. At least I won something!

Each letter should be said separately and in order, of course. And if we say them backwards, do you go back to your normal plane of existence?

Would there not be an excise tax on the Employer for failure to remit the excess until after April 15th?

What is the business entity type? Perhaps these are guaranteed payments of some sort? Inquiring minds want to know.

You are in deep trouble as I used to belong to a wter pistol club. We used to drink 'til 12 and pistol too. 12 AM or 12 PM? And as for playing with your pistols...we'll just leave that one alone. This is after all a family blog.

You forgot to specify that the range is limited to integers, so using real numbers (integers plus fractions), the answers is an infinite number of occurances. Sorry, I had to be a stickler on this one. Okay, Yankee. Restrict to non-negative integers. Exclude imaginery, irrational, transcendental, various and sundry numbers as well as deuteronomy. Sorry Andrew, but where I am from to call someone a Yankee is an insult of quite some magnitude. I'm afraid I will have to challenge you to a duel.....water pistols at 10 paces.

You forgot to specify that the range is limited to integers, so using real numbers (integers plus fractions), the answers is an infinite number of occurances. Sorry, I had to be a stickler on this one.

I would think that would be between you and your Actuary. From my experience with Enrolled Actuaries the answer would be NO, but your Actuary may be different.

An Employer established a Safe Harbor (matching) 401(k) Plan in 2004 (it is a calendar year Plan). For 2006, it appears as if not all of the Safe Harbor match was contributed as of October 2008. My understanding would be that the Plan has an Operational failure for not making the required contribution and another operational failure by not promptly correcting the failed ADP test for 2006. Thank goodness the Plan is Not Top Heavy so no problems there. No amounts have been distributed since 2006. The correction to the contribution would be to fund it now, the correction for the ADP failure is the vaunted 1-to-1 correction. Nothing else is coming to mind for a problem resulting from this error. Any ideas, hints or shots in the dark I might need to look at? Thanks folks!

In response to item (b), my possibly even foggier recollection from Number Theory in Grad School is that 0/0 is defined as 1. Sorry to contradict your old math teacher......

But the big question is.....do we really want to know?

I do agree with the inconsistancy theme. I have checked with the accountant and the business entity is a Partnership. 4 of the partners receive K-1's to report their income, and 1 partner "chooses" to be paid a salary and no K-1 income. As this W-2 partner also makes salary deferrals, if earned income is the only basis in a partnership for defining compensation and he has none......Houston we have a problem. Thanks for eveyone's input.

You sure on that FSA? Seems to be a lot of 9's. Thanks

Of course, he does not have a K-1, which I suppose would reinforce the idea that he is not self employed. Thanks again!

For purposes of the definition of compensation. The document specifies that W-2 income is used for Plan purposes, except for Self Employed Individuals, compensation means Earned Income. Earned Income is defined as net earnings from self employment in the trade or business with respect to which the Employer has established the Plan, provided personal services of the self employed individual are a material income producing factor. Thanks for all your help.

I have a client who is a partnership with a small wrinkle, one of the partners only takes W-2 income, no K-1. The other 4 partners do take K-1. Is the one partner (who owns 30% of the partnership by the way), considered to be NOT Self Employed as he has no earned income to be reported? Thanks for any guidance!