Earl

Similar situation only on the other end...Plan Termination. If there is residual income to a closing biz and for calendar 2001, as of today, the biz can contribute $35,000 and payroll $140,000 to the sole participant, do they have to keep the plan open for the full year to get the full contribution? I am thinking termination creates a short year and pro-rated limits. Anyway to avoid waiting till 2002 to terminate and distrbute assets?

My vote is for 21 & 1 and use of the document entry dates. As I understand it the available technique is to apply the 'most stringent eligibility' requirements under law. I think there is a distinction between eligibility and entry. I don't think it says 'most stringent eligibility' requirements under law and 'most delayed permissable entry dates'.

I have a plan, 50/50 owners of company covered, no employees. They have split up. One partner starts a new corporation and wants to start a new plan. I want to include service for old co. in the calculation of benefits for new co. plan. Using service for eligibility or vesting is moot, new co. has no employees either, only owner. Is 50% ownership of old co. sufficient to allow incorporating for years of participation? Seems likely to me, but i don't know where to look. Is 50% ownership of old co. sufficient to allow incorporation of salary history? Seems unlikely. Thanks for any hints anyone might have.

1. His has left but amended the plan so that 1000 hrs gets a cocntribution so he is still worried about control. 2. I have no life.

Thank you for your replies. They are in line with my thinking...espcially the spouse is still due the annuity... To be clearer: Individual is the owner of the company. The company is the named administrator so, as I understand it, the duty passes to him as corporate officer. The individual is a co-Trustee as well as a Participant. Mutual Funds executed his order having been signed by him as Trustee of the Plan.

There was a case where the eligibility req. got changed twice with the expressed intent to exclude this one guy. He sued and lost. Don't remember his name, but the sponsor did not fight the fact that they were targeting this guy, but it was within their right to do it, as long as he had not yet entered the plan.

If a Trustee is leaving a company. He rolls over his account without completing the Election of Non-Annuity Form of Payment. He is advised and won't sign, even after the fact. Why annuity rights are in a 401(k) I don't know, but they are. The guy is married. Then the IRS audits the plan. What do you think would happen? We are documenting the requests and everyhting but the guy is an ass. I think the IRS would look to the sponsor with regard to any fine. Would then the sponsor have recourse against the Trustee for malfeasance in office?

1 guy is a key employee in 2 companies. no other common ownership or ASG issues. Can both companies maintain a MP plan and get $30,000 to the guy in each company? ($60,000 total) Can't find a reason why not, just seem to recall something... Thanks

thanks guys. in terms of more facts.... the c-corp is a trucking company. the non-profit is a child advocacy agency. i don't think ASG is an issue as the trucking company would not be a service company. the 512 ref is my next stop. thanks again. this board is the best thing since sliced bread.

two people own a c-corp, 50/50. The are also the two directors of a non-profit orgainization. How do control group rules work. does the director status in the non-profit equate to voting power and create a control group? thanks!

Dude, i think she is destined to become an infamous "lost participant".

Hope this is not too basic, but I have looked and can't find the answer. Is it true that the ability to switch adp/acp testing from current to prior and prior to current is unlimited until the end of the remedial amend. period? So year 2000 and 2001 are still flexible and only have to eventually be documented. Thanks!

Isn't it rather that aged (2 year old) PS money is available to be used without limit? Only a slight difference, but it is different.

How about instituting a policy to charge all employees a flat rate admin expense/qtr or /yr.? You could use up that money allocated to those people due to poor document drafting. Then, to prevent an employee revolt, you could also bump up the match to cover that expense. If non-deferers are still not deferring, you wash them out of the plan and the deferers are still "whole". You could probably get rid of them in a qtr or 2. You should probably be careful how you do it, though. Sounds like something the DOL would love to hear about, but it seems it would be possible.

one can sign, but don't all have to be named? I always wondered about naming all fiduciaries, but maybe that is not the function of the Sch P?

Lynn and I must be having the same dreams if that is not true. I will see if i can find it, but i remeber it from somewhere.

thanks - all the health and leave issues make sense, but what can a pension plan do? Can it require participants to name a DP as primary beneficiary? Can it place a DP in the primary position and require his/her consent to be replaced? (as my client said "have to be eligible to go on the plan.." I thought that was pretty funny, actually.)

A client calls me up and says that the 401(k) plan has to contain domestic partner benefit provisions to qualify for a city contract. What can he be talking about? Only employees can defer.... Spouses have beneficiary rights.... Can the plan require that a person name his/her domestic partner as primary beneficiary? any other ways that DP can be referenced? Thanks

try caltrust.com this is a no-load mutual fund company specializing in index funds. Ave. annual expense ratio is about 0.56% I don't have the number right now but I am sure it is on the web site. They have internet access for trading and offer a pooled option. Download avail. is under construction. [This message has been edited by Earl (edited 06-26-2000).]

I wsa speaking of the 5500 & 5300 IRS Forms. Thanks! [This message has been edited by Earl (edited 06-09-2000).]

Do you use the Blaze Form program? Have you used any others? I was FDP now hyperprep. Any comparison basis? Thanks [This message has been edited by Earl (edited 06-04-2000).]

for anyone using unit value system: Anyone set up/recieve from mutual fund company an excel file with daily values that can be imported to multiple plan files (one by one as processed?)

My thought is a 4 group new comp plan. No payroll taxes, contribution flexibility, no 402(g). No 401(k) is needed.

Dentist A buys a practice of Dentist B who is not immed. retiring but is cutting back. Employees of B as well as Dentist B and all eqpt of B move to A's office. Seems clear it is an ASG. B never had a plan. A has a plan. What is the hire date of B's employees for A's plan? Original date of hire or date of acquisition of B by A? [This message has been edited by Earl (edited 05-13-2000).]

Does anyone know company(ies) that find buyers of companies to acquire excess assets? I have Karel & Associates in Illinois. Any Others?