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Partiicipant's account balance (net of all loans) = $50,000 Oustanding balance of Loan #1 = $10,000 Participant wants to make a second loan. Question: In determining the 50% limit for loan #2, does the account balance include existing loan #1 balance? That is: Is the limit of loan #2 = (a) 50% of $50,000 - $10,000 (b) 50% of $60,000 - $10,000 Thanks for all responses.

Question: What is the advantage of filing Form 8905? That is, is there any advantage of a 6-year RAP vs 5-year RAP other than the 1-year delay of paperwork? Thanks for all responses.

Thanks. I think you are correct.

According to Rev Proc 2005-16, you cannot rely on VS opinion letter if the employer has maintained at any time another plan covering some of the same participants. Does this mean all combined DB/DC VS documents will have to apply for Letter of Determination? Thanks for all responses.

Under 401(a)(26), a DB plan has to cover on 40% of employees. Question: Does the plan document have to specifiy which employee? Question: Can you pick and choose the employees to be included (as long as you pass the other nondiscrimination test)? Thanks for all responses.

Plan document was established in 2005 as a Master Prototype (Fidelity) with an Opinion Letter On Form 5307 (1) Line 3(f) Has the plan received a "determination letter"? Question: Is the answer YES since there was an "opinion letter"? Or is it NO because an "opinion letter" is not a "determination letter"? (2) Line 9(a)- If you answer YES, you are required to attach a statement. In the statement, you are requried to state if the plan is PAIRED. And if PAIRED, you are required to provide "LETTER SERIAL NUMBER of the PAIRED PLAN. Question 1: What is a PAIRED PLAN? Question 2: If paired, where do you get the LETTER SERIAL NUMBER of the paired plan? Thanks for all responses.

Plan sponsor wanted to establish a new Cash Balance plan (CBP) for 2010. The requirement is that the plan must be "adopted" berfore 12/31/2010. Since CBP is an individually-desgined plan, the documents have to be submitted to IRS. Questiosns: (1) What does "adopted" mean? Does it mean a formal corporate resolution to adopt the plan? Does it mean the doument must be signed before 12/31/2010? (2) Assuming the plan was "adopted" before 12/31/2010 (as discussed above), will the IRS reject the submission as being "late"? Which Cycle document must be submitted (Cycle E - which ended 1/31/2010, or Cycle A)? (3) In general, is it still possible to get DL for 2010 with an April 2011 submission date? Thanks for all responses.

When is the deadline for "contributing" to the 401(k) elective deferral for owners for corporation (C or S), partners, and sole-proprietorship? Is it 12/31 (calendar plan year) or due date of employer tax return? Thanks for all responses.

Thanks.

Given a combined DB/DC with safe harbor 401(k) contribution (3%) Question: Are you required to provide the 3% SH contribution to the NHCE even though the HCE did not contribute to the elective deferral?

Given: 30 doctors are members of a PLLC. Doctors own about equal share (no one owns more than 80%) of the corporation. Each doctor is a separate profit center (own client's income and expenses). PLLC has a centralized billing department (where all doctors share expenses in the billing department). Question: Is it possible to establish a DB/DC combo plan for a single doctor but taking into account only his employees in the nondiscrimination testing and disregarding employees of the other doctors? Thanks for all responses.

So is the answer a Yes or a NO? .

I have a DB/DC 401(k) combo where no participant is in both the DB and DC plans. The DC plan is cross-tested. This is the set up: '........DB DC HCE ...1 1 NHCE ...2 2 Question 1: Do I have to provide the 401(k) Safe Harbor 3% to the 2 participants not in the DC plan? Question 2: Do I have to provide the TH and Gateway minimum to the 2 participants in the DC plan?

So NAR for HCE at 415 limt = 0% (assuming no increase in $195,000). Is that correct? Thanks.

IN calculating the normal accrual rate and most valuable rate, do you take into consideration the 415 limit? For example, if formula is 10% of pay and benefit is hitting the $195,000 limit, is NAR = 10% or 0% (assuming no increase in 415 limit) Thanks for all responses.

Participant is at 415 limit. So monthly benefit is $16,250. 100 x Projected beneift = $1,625,000. NRA = 62 Actual insurance is whole Life Policy with Death Benefit = $3,000,000. In applying incidental death beneift using the 2/3 rule, you are supposed to calculate the ILP Premium and 2/3 of ILP is deductible. Question: In determining ILP, what is the premium funding toward: $1,625,000 or $3,000,000 or something else (Or how do we calculate the IL premium?) Thanks for all responses. .

DC plan is providing 3% Safe Harbor for all participants.

Plan is top-heavy and subject to Gateway Minimum. Participant is terminating with 450 hours of service 11/1/2010. Question: is terminating employee entitled to the 2010 TH/Gateway Minimum distribution (even though not meeting the 1,000 hours threshold)? Thanks for all responses.

In drafting the Cash Balance Plan document (which is converted from Traditional), do you treat this as a: (a) New plan, or (b) Restatement, or © Amendment Thanks for all responses

Question 3g: Does this plan benefit noncollectively bargained employees or are more than 2% of the employees who are covered under a collective bargaining agreement for professional employees? See Regulations section 1.410(b)-9. My plan only covers doctors and employees (not collective bargainged). How do I answer this question: Yes or No? Thanks for all responses.

We took over a 401(k)/PSP plan. The document is not updated for EGTRRA (past the 4/2010 deadline). We have deicded to restate the plan to reflect EGTRRA (Form 5307). We have also decided to submit to IRS under the Volunatary Correction Program to correct the non-EGTRRA provisions. Question: Can we file the Forom 5307 simultaneously with the VCP Form F? Or do we file 5307 first, wait for approval, and then file VCP? Or vice versa? Thanks for all responses. .

Is Formo 8905 needed for a VS restated 401(k) /PSP plan (for determination letter). Thanks for all responses.

Cash Balance Plan

Thanks. Your interpretation of my question is the right one. .

New plan effective 1/1/2009 Contributions paid on 3/1/2010 = $300,000 2009 Maximum Contribution = $400,000 Amount deducted in 2009 tax return = $300,000 Question: Is it possible to allocate $250,000 of the contribution to 2009 plan year (as receivable) and the remaining $50,000 to the 2010 plan year? (Even though $300,000 was deducted in 2009)? (This mean the asset at 12/31/2009 is $250,000) Question: If yes, what do you show as contribution in the 2009 SB ($250,000 or $300,000)? Thanks for all responses.