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I know this topic has been discussed before. Given: AB = $10,000 415 comp Limit = $11,000 Age 62 Plan Actuarial Equivalent = 5% and 2013Table AE APR = 156.04 5.5% 2013Table APR = 149.07 417(e) APR = 176.3 (1) 415 maximum LS = $11,000 x min(156.04, 149.07, 176.3) = $1,639,770 (2) $10,000 x 156.04 = $1,560,400 (3) $10,000 x 176.03 = $1,760,300 Final max LS = min( $1,639,770, max( $1,560,400, $1,760,300 ) = $1,639,770 Is the procedure correct? Thanks for all responses.

Given: 401(k) Safe Harbor Profit Sharing Plan Given: Owner has no 401(k) deferral and no personal PSP contribution Question #1: Does the owner still have to pay the 3% safe harbor to NHCE? Question #2: If yes, how can suspend the safe harbor contribution (since you will pass the ADP test anyway)? Thanks for all responses.

Dumb question On the SB -- what is the contribution date (line 18)? (a) Date contribution is reflected on the asset statement? (b) Post-marked date of check? © Receipt date of check? (d) Other Thanks.

Oh okay -- I see it. Thanks.

I use the ASC document and I am no sure how to handle it. Fail Safe provision? 11(g) amendment? Remove the 1,000 hrs allocation requirement? Any suggestion is appreciated. Thanks.

Given: Combined DB/DC plan DB and DC service Eligibility = 1,000 hours Condition for DC allocation = 1,000 hours DC is a 3% Safe Harbor 401(k) Profit Sharing Plan Participant has 1,500 hours in 2011 and 800 hours in 2012 Since participant satisfies 1,000 hours in 2011, he must get 3% safe harbor in 2012 even with less than 1,000 hours. Question: In 2012, should participant also receive the excess DC allocation to satisfy the gateway/401(a)(4) requirement even with less than 1,000 hours? Thanks.

I have a PLLC that file Form 1120S (for S corp). How is pension compensation determined: (a) salary or (b) salary + ordinary business income (less contribution) I have a ASC Basic DB plan document. Thanks for all responses.

In an LLC taxed as a partnership, is the following correct? The elective deferral can be contributed up until the tax filing deadline -- with deposit coming from the K-1 income of each partner. Thanks for all responses.

Thanks. Just a note: The negative interest credit is on a cumulative basis (i.e. not annual) -- so it may not that bad.

Given: Cash Balance (CB) Plan with Interest Credit = Actual return on assets. Employer would like the situation where the sum of all participant's CB balances = Assets (similar to DC plan). I think this situation is possible -- except for the existence of forfeiture (due to vesting schedule). In a DB plan, forfeiture would be a "gain" used to reduce contribution. Question: Is it nevertheless possible allocate the forfeiture proportionately to increase CB balance and to remove this gain? (assume we will amend the plan document if this is legally possible). Thanks.

The plan is states that the distribution is "all or a portion" of the vested Accrued Benefit. But can we amend the plan allow in-service distribution equal to the lump-sum equivalent of the vested Accrued Benefit? So the question is: Is this lump-sum distribution legally allowed (assuming we amend the plan)? Thanks.

A participant age 63 wants to get an in-service distribution and roll it over to an IRA in 2013. The plan document allows for in-service distribution after age 62. Question: Can the participant take the entire "Lump-Sum" value of the vested accrued benefit? Or is the in-service distribution restricted to the amount of the (annual) vested accrued benefit?

Given a S-corp. The owner's spouse is getting W-2 and 1099 (I am not sure if this is possible). Question: Is it possible to include both W-2 and 1099 as Plan Compensation (as either Sec 3401 comp or Sec 415 comp)? Thanks.

Given: Actuarial Equivalent (AE) interest rate was changed from 30-Treasury rate to 5%. Question: How does this change affect Lump Sum calculation? Do you have to take both interest rates into consideration when calculating lump sum? Thanks.

Is a DB plan "required" to offer "non-spouse" beneficiary distribution option (e.g. 50% J&S) or is it discretionary? Thanks.

Employer wants to use "forfeiture account" to pay adminiistrative expenses. Plan document allows such transaction. Question: What is the tax implication of the of the distribution? Taxable distribution? Thanks.

A participant over 70 1/2 refuses to take RMD (for whatever reason). Is the TPA required to issue a Form 1099-R? If not -- how will the IRS know that there is a violation of the RMD requirement? Thanks.

Plan's termination date was 12/31/2011. Asset Distribution date is 7/31/2012. Does the plan document have to be restated for EGTRRA or are "good-faith" amendments sufficient? Thanks.

Given: PLLC -- DB Plan with employees. There is not enough corpoarte income to make the minimum contribution. Owner/ shareholder want to terminate the plan. Question: can the owner make a personal loan to the PLLC to make the minimum contribution? (Once the asset is distributed, the owner will then get back his loan). Is there any problem here? Thanks.

Given traditional DB plan with formula 5% of Average Comp x years of service. Question1: Can averaging period = 1? (that is, no averaging) Given fraction accrual rule. where accrued benefit = 5% x Average Comp (3 years) x min(25, total service) x (years of service / total service) Question: in applying the formula, CAN you use "projected" average comp rather "current" average comp? For example, given following comp: $100,000 $120,000 and $130,000. Is "average comp" = $120,000 (average of current 3) or is it $130,000 (projected average 3)? Thanks.

The motive is estate planning. But notwithstanding the purpose, is it possible (legally) to use plan assets to buy the life insurance policy?

Thanks. Please note the participant is already past normal retirement age and is collecting RMD (pending final distribution election). There is no discrimination issue since there is no other NHCE in the plan. There is no deduction issue also. The trustee just want to sell some stocks and invest the proceed in a life insurance policy on the NHCE participant who is 75 years old. Is this possible without violating any law or regulations? Thanks.

DB plan with a participant (NHCE) age 75 getting RMD. (There are other HCE participants). Question: Can the plan participant who is also a trustee choose to use part of the plan assets to purchase a life insurance policy on her own life? There is no other NHCE in the plan.

What if S-corp has K-1 but no W-2. Can the owner make 401(K) deferral contribution from K-1 (before tax-return filing deadline)? Thanks.