thepensionmaven

I'm looking for a pension study group in the New York-Westchester-Southern Connecticut area. Any leads would be helpful. Thanks, Steve

I believe that as long as the common law employees receive their minimum lump sums the owner can "waive", but the waiver has to be in writing and duly signed bu the owner both as participant and trustee, assuming he is also a plan trustee, and the participant's spouse. I would not have him waive anything until the amounts he has to pay out the common law employees is determined. He's waiving the excess benefit, so in your case the 1099R would be for only the amount he is receiving as that is the amount he is actually getting from the plan. It would be very generous to "gross-up" the distributions to the common law employees, but in actuality, the y are paid their lump sum equivalents and the boss would take the rest, and waive any amount of plan liability over the plan assets. And yes, all participants receive 1099Rs.

He can still contribute to the plan as long as he takes out the minimum RMD by 12/31.

I'm reviewing a proposal for a DB/DC combo for '06. Client has a profit sharing plan and is thinking about adopting a DB relatively soon. According to my understanding of PPA, any employER profit sharing contribution in excess of 6% of eligible payroll is not deductible. Am I correct? Thanks.

Thanks, I assume safe harbor non-elective employer contributions treated the same as 401(K) contributions, ie the participant has to be over age 59 1/2?

I'm seeing conflicting information on these: are in -service non-hardship distributions allowed in a profit sharing plan? in a 401(K) plan? Thanks, Steve

I am being asked by many clients if participants can rollover from either the company's profit sharing plan or the company's 401(K) to an IRA while still employed by the employer. What are the ramifications here?

Is spousal consent required for a participant to take a loan on his company's 401(K) plan?

I thought the question was clear, obviously not, and I am sorry. The participant died after having taken one distribution about one month prior to his death. The beneficiary is the spouse, who is NOT 70 1/2. But I think you answered my question when you stated that "in subsequent years, the distributions are calculated on the beneficiary's life expectancy." Do you have a cite for that? Thanks.

We have a sole participant DB plan, the owner died, having taken one RMD from the plan. No distributions were taken in '05. Is the RMD for '05 calculated on his single life expectancy or the beneficiary's? The beneficiary is under 70 1/2. Would the beneficiary have to take a distribution prior to the rolloveer of the plan to an IRA, on whose life expectancy is it calculated, and why??? Thanks, Steve

A participant with a plan loan outstanding terminated employment. His account balance will be reduced by the amount of the oustanding loan. Assuming he will not rollover, is the 20% withholding based on the actual account balance plus the amount of the outstanding loan? Thanks, Steve

I'm looking for a sample 60 day notice to employees for a benefit freeze. Can anyone help? Thanks. Steve

Where can I find more information on the above Safe Harbor 401(K) Maybe Notice, and possibly a sample? Thanks. Steve

We have a client whose 2001 Pension Plan Return is under examination. Two plans, MP and PS. Two accounts for each plan. Two doctors, one term vest doctor and one common law employee. For 2001, max comp was $170,000, max contribution $35000. The two doctors made $14,000 contributions to the MP, $21,000 to the PS, each. The auditor wants to declare a funding deficiency for the MP because he says the plan is $3,000 deficient for each doctor. Quite simply, the doctors contributed the $3,000 in error to the PS plan. I can understand making the transfer to the MP plan, but not the $3,000 "deficiency" and payment of any excise tax. Anyone have any similar experience with an audit like this? Thanks, Steve

We handle a safe harbor 401(K) with the non-elective contribution. The principals have not deferred any amounts and probably will not for 2004. There are 4 other participants, all NHCEs but only one is deferring salary. Client does not want to make any contribution if he does not have to. Under what circumstances is the client NOT obligated to make a 3% contribution. Thanks, Steve

PC sponsors a DB plan which has been overfunded for years. He reached age 70 1/2 and was advised to take out as much as he possibly could in order to bring the overfunding down. Principal recently died after having taken a few distributions from the plan. The plan is overfunded on the GATT rates. What lump sum do we quote for the value of his portion of the pension plan as of his date of death for the estate tax return?? His share of the assets (it's only him and his wife in the plan) on the plan rates or the GATT rates? What happens to the overfunded piece- is it just gone to taxes? How does the excess tax get calculated? Thanks. pensiondoc

We are in the process of amending a defined benefit plan formula. Anyone with a sample 204(h) notice?

I believe K-1 income for an owner of an S- Corp can not be used as active income in determining the contribution for the owner. Pension Answer Book as well as RR 59-221 seems to bear this out. Recently, I was told that as long as the K-1 represents compensation for services rendered to the coproration, it is ok to use the K-1 for pension contribution. Isn't this in direct conflict with the Revenue Ruling and Penson Answer Book??

Are premium only plans subject to the separate trust requirement or can the employer pay any premiums out of their general account.

We have a client that set up a "cafeteria Plan" for 2000, which consists of premium coversion, med reimbursement and deendant care reimbursement. The only portion they have utilized so far is the premium only portion. I have only done 5500s for premium only plans, ie page 1 5500 and Schedule F. Would the filing requirements be the same?

Referring to "salary". Client setting up their own payroll system for cafeteria plan on something like Quickbooks, or some such program. Do they take FICA and FUTA before the salary defferral % is applied to compensation. If know that with a 401(k) contributions are subject to FICA and FUTA, but is it the same with a premium only plan? Thanks.

Is compensation for a premium only plan before or after FICA and FUTA??

I believe the client is speaking of a 125 flexible benefits plan. I have looked at the Flexible Benefits Answer book. Anything better out there??

I do not know terribly much about medical reimbursement plans, but have a client that wants to know a bit more. They want to set up a medical reimbursement program and wish to know how it works. I assume employee contributions, like 401(K) are withheld from pay. Where do these contributions go? When a physician asks for payment up front, how does the participant get reimbursed. Where can I get the "basics". Thanks.

We have a client that currently sponsors a money purchase and a profit sharing plan. Some of the participants have mention that they want a 401(k) plan; the client has agreed to amend the profit sharing to include the safe harbor feature, since he has alwys contributed more than 3% anyway. Rather than restating the whole profit sharing plan to a safe harbor 401(k), does anyone know of a simple snap- on type of amendment to add a safe harbor feature to a profit sharing plan??