jkharvey

That's what I was trying to confirm. Thank you very much.

OOPS. I have my dates wrong. The plan terminated in 2001 and is filing F5310 in 2002. Sorry about that.

I want to make sure I understand this correctly. To meet the exemption from User Fee a plan that was first effective on or after 12/9/1989 must file the application for FDL before end of GUST remedial amendment period. This applies to terminations also? If a plan that was first effective in 1994, terminates in 2000 and files F5310 in January 2001, there is no user fee?

Thanks. The Committee Reports are exactly what I'm looking for. In particular, I'm needing the pages related to Section 412. I have page number references, 244 and 316 for example. If you don't mind, email me privately and we can discuss it further. Thanks again.

I'm trying to find a copy of the 1974-3 Cumulative Bulletin. The research service we use does not have it. Any suggestions?

The employer has a cafeteria plan that provides for health insurance. The employer pays a portion of the premiums and the balance of the premiums are paid by employees with before tax dollars as part of the cafeteria plan. Because the plan failed discrimination in years past, the employer has taken to paying the entire premium for the owners (4 doctors). The employer claims that since nothing flows through the cafeteria plan for these HCE's there is no discrimination and this benefit does not need to be included when testing for discrimination. This just doesn't smell right. Can they do this? Does this present some other problem?

Individual inherits an IRA from her father who passed away in 2000. The father reached age 70 1/2 a couple of years before his death. The beneficiary (daughter) took a distribution in 2000 based on 1/5 of the balance of the IRA. Does this constitue some kind of irrevocable election requiring her to complete the distribution over 5 years or can she take the 2001 distribution based on her life expectancy?

Thanks for your help. The plan document allows the employee to choose. Next question, however. Aren't there rules that determine how much of the distribution from the employee's after tax account must be allocated to earnings? Where do I find these? Also, I'm dealing w/ pre-1987 and Post 1986 monies. I know I have seen something about a difference in treatment between these.

We did not administer the plan pre-1987, but the information we received from the prior TPA did provide separate accounting for pre1987 and post 1986 monies. Unfortunately, I don't have access to the plan and won't until next week. Are you saying that the plan itself should specify from where the distribution will come as opposed to some statutory requirement?

Help!! I'm sorry, but I am not in my office and do not have access to any of my research materials. I have a participant in a 401(k) PS Plan who wants a distribution of only $3500.00. Her account balance is much greater than this. She is NRA. Her account, however, consists of after tax contributions with related earnings as well as 401(k) contributions and related earnings. HOw do I allocate the $3500 distribution among taxable and nontaxable amounts?

I have 4 501©(3) organizations that want to adopt 401(k) plan. How do I determine if they are a control group or if they need to adopt as multiple employer?

Thanks Carol. If I understand you correctly then, there is no safe harbor for the 457(B) hardship withdrawals and no requirement for cessation of deferrals for any length of time.

I need clarification please on the rules related to hardship distributions from 457 plans. What are the requirements and where do I find them? I've read Reg. 1.457-2(h) where it talks about "unforseeable emergency". In particular, is a participant that receives a hardship distribution required to stop making deferrals for a 12 month period, as in a 401(k) plan?

If a health insurance plan is not part of an employer's group plan (for example a self-employed individual's health insurance policy) is it a requirement that adopted children be covered under the policy effective as of the date of adoption? If so, what is the cite? If not, what is the cite?

I'm curious what others are doing. EGTRRA eliminated the user fee for new plans if filed during the first 5 plan years. I have some new plans that are cross tested that I was about to submit for FDL. Seems like I should wait until 1/1/2002 to avoid user fee. Any comments?

401(k) plan also provides that ees may make after-tax contributions. The ER incorrectly treated all of the elective deferrals as after-tax contributions. This happened for three or four years before it came to our attention. I'm looking for suggestions as to the best way to correct. There have been distributions that have been rolled over to IRAs by participants. Seems to me these amounts did not qualify for rollover and in addition to the Plan's problems, we have IRA/Excise tax problems.

I'm trying to follow worksheet 2 from the 1999 Pub 571. I'm stuck and need help, if possible. A participant with compensation of 78,000 has a 415© limit of $19,500. He make elective deferals of $9800.00 and receives ER match of $4200.00. It seems to me he has not exceeded 402(g) and does not need to use the special "catch-up" election. He has also not exceeded MEA (computations done separately) and he has not exceeded 415©, total employer contributions are $14,000. If you follow the steps of worksheet 2, however, it looks like the "amount excludable from gross income" is only $13,000. What am I doing wrong? I don't believe this participant has exceeded any of the limits.

Thanks for your response, but I have another question. What exactly do you mean by adjust the % or $ by 12/31? Is that 12/31 of the year for which the deferral is made? If so, how do you do this without K1 #?

I've read the previous posts on this issue, but I still need some clarification and/or guidance. How are you handling the partner's 401(k) election that must be made by 12/31 when K-1 data is not available until several weeks later? Any suggestions? We are considering making a guess and correct after the K1 is computed. The problem w/ this is how to treat the correction.

Employer has both a MPPP and PSP. Employer has funded the maximum 30,000 for the owner in the PSP then nothing in the MPPP because of 415 limits. Seems to me they should have funded the MPPP first because of minimum funding requirements then funded any additional in PSP. Is what they did ok?

Oops. I meant to say that the plan is Standardized. No 1000 hour or last day rule.

Non-Standardized MPPP terminates effective 2/15. None of the employees have actually terminated. Is a contribution required for the period 1/1 through date of termination?

Plan sponsor has changed entity type from PC to S-Corp. The EIN has also changed. These changes are effective in the middle of the plan year. How do I handle this? Is this a simple amendment of EIN? What about a short plan year? How do I file F5500? Old EIN, New EIN or both?

Employer has an 10/31/99 plan year end. We added 401(k) provisions (safe harbor 401k) effective 7/1/1999. I'm wondering if we have a problem. The regs say that safe harbor is effective for plan years beginning in 1999. Since we tried to do for only part of the plan year (7/1/99-10/31/99) do we have a problem? If so, exactly what? Are we not really a safe harbor and must pass ADP? If we made the 3% safe harbor nonelective contribution and now have to test for ADP and fail (only by $26.50), can we use the 3% as a QNEC to pass ADP? Any suggestions?

Sponsor of a 403(B) acquires employees of another entity that maintains its own 401(k). These employees have outstanding loans in the 401(k). It is my understanding that when these employees leave the 401(k) entity their loans become taxable as deemed distributions. The 403(B) entity wants to loan these people the money to repay these loans to prevent this taxation. Does anyone see any ERISA or other Plan related problems here?