rcline46

For anyone who has already worked 1,000 hours - they have accrued the right to the contribution. Only those with fewer hours would be affected this year.

Review the rules under 'cross tested' plans, or what is called 'new comparability' plans.

Contact ASPPA. Hopefully someone in your office is a member of ASPPA

A company should never be held hostage by its programmer. Apparently they process their payroll in-house. Hire a contract programmer. Who assignes the priorities to the programmer? This is obviously a failure by management.

Not a safe harbor definition under 414(s), leading to a 414(s) test. If he does not like hardships, then don't put them into the plan.

A law firm partnership has just discovered the 'deemed CODA' rules and is in a panic. My assurances that this has not been challenged, even with named partner groups, since the 1993 regulations doesn't seem to hold much water with them. So I have been requested to find anything 'official' to give them solace. I have looked at the ASPPA Q & As for 09, 11,12 and did not see anything. Anyone have something in any of the ASPPA Q &as? How about the ALI-ABA Q & As? My search here for deemed CODA and the like come back with the same result - IRS has not attacked any of these, but I am dealing with attorneys....... Thanks for anything you find.

Bad, Bad, Bad. The new 401(k) plan must not start until 12 months AFTER the last distribution. And if started in 14, it will have to have a short plan year or it will fail the 12 month test. And it cannot be aggregated with the Cash Balance plan because it does not exist on 12/31, so the cash balance will probably fail. There cannot be any good reason for terminating and restarting the 401(k) plan immediately.

What about the 1099 for the other assets? In this case I see only one 1099-R - total is account balance plus $30,000, taxable account balance plus $10,000.

Was the pollicy the ONLY asset in the plan? Strange if it were. If not, then the distribution (and 1099-R) of the cash value - well the cash value is part of the account balance. The amount at risk (20,000) is tax free ONLY IF the ps 58 costs were paid. If PS 58 not paid, then that is taxable also.

First - check the rules to see if a death distribution rollover is permitted to rolled into a qualified plan.

There is a point where the work is of a 'consulting' nature and should be charged. our position is that only one calculation is provided. Relative factors can also be provided so that the participant can estimate other answers. Otherwise, there is a charge for detailed calculations which are paid by the sponsor, participant, or general plan assets (which means the employer pays anyway). Free and easy does not get you the respect you deserve.

Sue the advisor for malpractice. Why was the service provider of the plan not consulted? Make the advisor pay the fees to prepare the VCP submission and the IRS penalties under EPCRS.

If no one has spousal consent, then the assets were transferred to the IRA illegally! This is because the 403(b) required spousal consent. This forms the basis for a complaint since you are the beneficiary of the plan distribution. If they cannot produce the spousal consent form, then they have to pay you the value of the account EVEN IF ALREADY DISTRIBUTED.

Bonus the employees. If a 401k, let them defer. Eliminates all problems.

I think you need to review the instructions to Form 5310-A which covers the mergers of plans.

The IRS response is totally opposite of their opining that a partner with no or negative income is NOT in the testing since they were not effectively eligible to make a contribution. Of course the partner is (likely) and HCE and the commission only employee is (likely) a non-HCE. This is known as situational ethics - if it hurts the HCEs, it is good, if it helps the HCEs it is bad, just because.

Merger of companies? Otherwise why? amend the simple k as of the beginning of a plan year.

No. Look at it in a simple way - set the Schedule SE. See the Social Security/Fica tax, look for 1/2 of that BIG number and subtract it. Most of that calculation is actually on the SE. Now you have your working number, and the answer is 'simple'. DC+DB+'Benefit Comp' = Earned Income less 1/2 Self Employment (FICA) taxes. Since the right hand side is FIXED, the left side gets wiggly (that is a technical term). So you had better lock down your DB number first.

It all is done a once. Hope you are billing enough for the 'fun' doing it all at once. And if you give a range for DB contributions, it gets funner! Hope he makes soooooo much he is always over $255,000!

Also remember, if vesting is based periods of service, that is - Elapsed Time and not hours, it must be on employement years.

They are not eligible for the plan, therefore get no Top Heavy and no Employer contributions, therefore, no gateway.

But the OP says it is a cross tested profit sharing plan. As such all non-benefitting are in as -0-, and now you have to pass the rate groups.

Assuming the plan was not also acquired, an amendment to the plan document. Most documents provide flexibility in what the credit is for. For example, eligibility but not vesting.

Stock purchase, you get the original hire dates automatically. Asset purchase you MAY grant service for whatever purpose you choose.

Tom, I said it was a dim bulb!