Dazednconfused

Plan is cross tested (last day + 1,000 for PS allocation requirements), Davis Bacon off-set. Some participants received davis bacon contributions but term'd before end of year (greater than 500 hrs) so not eligible to receive PS allocation. A few received davis bacon ( say $4,000) and would receive allocation of PS of $1,000, so the DB covers PS; and a few received only PS contributions. Question: How is testing for 401a4 done, which contribution amounts are included for testing purposes? Are all the participants with DB contributions in rate groups or only the PS contributions? Ugh... Thanks for the assistance.

I was wondering if there was anyway to set up a PSP with davis bacon offset for testing purposes. Anyone have any luck? Not sure if it is even possible however..... Thanks, Jason

Have a plan that upon review missed an eligible participant that should have received a profit sharing contribution in 2008. I am going to instruct for a make up contribution on his behalf this year. My question is can this 'make-up' PS contribution be included and deducted for the 2009 PY? Other options? Or does the ER lose the ability to deduct the 'make-up' contribuiton? Thanks, Jason

Thanks! So if there was a plan in place in 2009, from my understanding, if this person was eligible before Dec 1, 09 they could set up account and fund on behalf of prior year? Sorry I am new and learning on the fly (as if you couldn't tell already Thanks again. J

Yes, that is my question, did all plan set up/paperwork and such have to be completed on/before 12/31/09 or can every thing be completed now (set up plan for 2009, in march 2010) and contributions made on behalf of 2009 before the tax filing in 2010. Thanks in advance

For an HSA contribution, I have read you can make the contribution up to the tax filing date (April 15, 2010 for 2009 year). However, does the Plan need to be established on/before 12/31/09 in order to make the contribution? Just wondering if they can set up the HSA in 2010, make contributions for the 2009 year. Thanks,

Hi, I have a plan that has Schedule A data, in reading the instructions for the 5500 SF I believe I can use the SF even when a plan has Sch. A info provided from insurance companies. I just enter commisions paid on line 10(e). Any thoughts or do I need to complete 5500 and schedules? Thanks, Jason

Is the Plan "in the hole"? ha! No not in the hole, just a bad year for investment J

Hi, Participant received an ineligible profit sharing contribution, terminated and received distribution that included ineligible ps contribution amount. The ps account had a loss by the time money was withdrawn. I can try and get the money back from participant (it was a rollover, which might make it somewhat easier...) and if that fails the employer, I believe has to 'make the plan whole'. However, at which amount to must I try and return to the plan? Say the ineligible contribution was $1,000 and the loss was $200, do I return the original $1,000 from participant or the $800 from the participant then the ER makes up the $200 loss amount so that the total is returned? Or perhaps only the $800, since that what would have been forfeited at the time of the distribution? Thanks, Jason

Thanks, good idea I will give it a try. Also, on side note, if the plan has classes of hce & nhce, can the plan have a top paid election or is there anytype of requirement that it must/must not? It seems like it would impact the hce class in the testing (this is my random thought for the day... I think). Thanks again for the help.

Hi, Plan is cross tested, HCE group & NHCE group, only one participant in each group this year, the NHCE is older by ten years. I am failing 401(a)4 testing. If I bump up the NHCE to the same allocation percentage as HCE do I still need to run 401a4 test or am I fine with just running & passing 410b? Just wondering.... Thanks

Hi, Plan has a fixed match formula of 50% of deferrals up to 7% of compensation. For 2009 the ADP failed, my question is do I calculate the match on the entire deferral amount (before the failure) or do I reduce the deferral amount by the distribution amount needed and calculate match? I believe I need to calculate on the entire deferral amount that failed, then calculate match, run ACP and see if it passes and how much associated match needs to be forfeited, good times! Also, on side note, when there is a matching forfeiture, these forfeitures only go to those that deferred for that year in the same manner as the match allocation? My system seems to allocating it to all eligible even if not deferring but it might be a spec I overlooked....or perhaps the system is smarter than me which is usually the case.... yup I am losing it already. Thanks for the help.

Employee had excess contributions for 2009, funded $20,000, he was making up for 'catch up' contributions missed in prior years. I am fairly certain that this is not allowed but what is the correction method? 1. Is it to return to the employee, adjusted for g/l? 2. His w-2 would show $20k for 2009 (I assume I do not mess with this), then he should he receive a 1099r for 2009 for the excess or is the 1099r issued 2010 and coded for 2009 excess? Thanks

hi, Plan has pooled funds, however, participants can direct their contributions to funds within the pooled account. I believe that this is 'participant directed' and would need quarterly statements to participants, am I correct... Sponsor wants to go to semi annual val's but I don't believe he can do this under PPA. Thanks, Jason

Yes a 204h was issued for this change. Thanks for the assistance, is there anywhere that shows that only one filing is required in this case? I am in agreement with you that only one is need since the plan was merely amended... Thanks in advance.

Thanks! Follow up, is there anywhere on the form to indicate the change from MP to a PS or does it really matter (I still would complete the schedule R where I would put the MP contributions for the half year). I am in a discussion with a co-worker who thinks there should be two filings.... one showing the final for the MP and a new one for the PS. I have done this in cases when there were actually a PS Plan in place already and the MP being rolled into the PS. Thanks again.

Hi, We have a money purchase plan that amended their document and changed to a 401k mid year. Question is do I have to complete two 5500, one for the Money Purchase to the date of change, then one for the 401k. The plan sponsor did not change, the plan name did change but I don't think that is of any importance..... Thanks,

Hi, Client has a number of participants that are laid off, through reading I understand that being laid off may or may not be a distributable event, depending on a number of items....(unemployment comp and such). Is there a certain time frame when you can consider termination..... I was just wondering how others have dealt with 'laid off' participants. Also, lets say the laid off participant is rehired before distribution has happened, I would think that you must stop the distribution? Thanks for the help.

Hi, Plan Trustee did not file form 945, however, the deposits were made in a timely manner and zero was due at year end 2008. What is the penalties for filing the form 945 late, what are the best ways to resolve? I guess begg for forgiveness ? Thanks in advance. Jason

Hi, Question regarding ADP: plan end 5/31, HCE, over 50, defers only $1,200 for plan year. ADP test fails, can the $1,200 be 'recharacterized' as catch up (or the failure amount)? There are only deferral contributions for this year so did not exceed any limit.... Thanks, Jason

The plan uses the 'Plan year beginning with the Plan year which includes 1st anniv....' for the eligibility computation period, that is after the anniv. yr computation. Thanks! J

Hi, I am having a brain spasm... Plan has 1 yos & age 21, quarterly entry dates. Employee hired 3/10/08 did not work work 1,000 in annv. year of 3/10/08 thru 3/9/09. However, by 9/30/09 did work 1,000 hours, I believe that they would entery 10/01/09 and not a 1/1/10 entry date. Thanks, J

Hi, I have a plan that all assets were distributed on April 29, 2009. When completing the form 5500 would I use the April 2009 date as the plan year end and mark final & short plan year or use the regular plan year end and mark as final..... However, since the filing deadline is 7 months after the assets are zero I am thinking the April date for year end is the correct way but would like to her other thoughts... Thanks, Jason

Hi, Is there a requirement in the regs for plans that are 401k safe harbor to have at least quarterly entry dates (for at least the deferrals). I have scanned the regs but so far don't see anything. Thanks!

What kind of Plan is it? (DB, money purchase, 401(k)....) A DC plan, 401k...