KevinMc

An owner and his wife work in a small business and their two children work part time and never have become eligible for the 401-k Plan. Should they (the children) be included in the ADP and ACP testing as contributing 0%??

Can a non-safe harbor plan ammend the document and provide notification to participants that it will become a safe harbor (non elective contribution) plan at any time during the year or does it have to start on January 1st for a calander year plan?

Assuming the Plan Document allows for in service withdrawals and a participant meets the requirements for that withdrawal, are there any tax benefits for a participants who is using the proceeds to purchase a primary residence (first or otherwise?)???? Thanks.

A participant in a profit sharing plan cannot be located and the trustee has contacted the social security admin. to no avail. How much time is required to pass before the participant's account is forfeited assuming that is an option? Any help is appreciated.

A small dentist office who has a flexible spending account would like to terminate the plan effective immediately. Her thought is to refund any money in the plan to the participants. Is there any issue with terminating the plan prior to year end and is any formal notice/disclosure required to be sent to the participants or IRS? Any guidance would be appreciated.

I have a non-profit who has only ever filed an "informational" return, which is to say the 5500 with just basic information and no schedules. They received an IRS letter that their 2006 return was not received. Is an entity filing in this manner eligible for the DFVCP? Also, is an entity filing in this manner now required to file a more detailed return in 2009 and going forward? Any help would be appreciated.

If I have a client with $500,000 in their 401-k with $50,000 in outstanding participant loans, is the ending balance reported as $500,000 or $550,000? Also, I know the loan is reported on the Schedule I, but is there anywhere on the Form 5500 itself the outstanding loans are reported as well as loan payments made during the plan year? Any help would be appreciated.

A client filed late in 2006 and wrote letters each year to the IRS they got a letter. They got another letter this year that says they owe $15,070.85 for the late filing. My question is can they go through the DFVCP and pay the $750 or is that option only for sponsors who didn't file for a previous year? Thanks.

The only thing I can think of that I don't think you mentioned doing was doing an amendment/corporate resolution to terminate the plan. That should be done if it wasn't. What "auditors" are you speaking of, internal corporate auditors or the Dept. of Labor? It sounds to me like if the assets were transferred to the other investment carrier and the proper notices were sent to participants, the plan was amended and the final 5500 was filed, you did it correctly.

Does a 401-k plan that is not eligible for Form 5500-EZ have to file a 5500 if they have less than $100,000 in assets? They have never had over that amount (a new plan started 01/01/2008)?? I'm thinking they do, but not 100%.