k man

What happens if a plan sponsor does not make the required match in a SIMPLE 401(k) or IRA.

this is an old thread but i have a comment/question to add. after the plan adminstrator follows the court ordered stay, does the clock start running with respect to default and 1099? i would say that it does even if the Court subsequently allows the petetioner to commence repayments. it may already be too late if the cure period has passed. do you all agree or disagree?

what if there were employee deferrals?

well then would the employee just have to pay the 6% IRA excise tax?

Could you tell me what would happen if the Simple plan was less than 2 years old and the sponsor does decide to go ahead with another plan in the same plan year? I am concerned with the excise tax and also whether the employee would be subject to the 25% excise tax (for distributions within two years of plan establishment)

i guess the question is if you terminate the SIMPLE plan and then start another plan, are you in fact mainting the simple plan?

We all know an employer cannot have a SIMPLE plan and another plan at the same time; however, what would happen if the employer had a SIMPLE Plan and terminated it today. then tomorrow he starts a traditional 401(k) or profit sharing plan, effective for the current plan year? could the new plan be effective retroactive to the first day of the plan year.

yes it helps alot. thanks.

we deal with a church plan with an employer contribution that has not filed 5500's nor has it made an election under ERISA. However, the plan is operated like an ERISA plan insofar as it has a vesting schedule and participation restrictions such as a one year wait. the question is: does operating a non-electing church plan in accordance with ERISA somehow subject it to the requirement to file a 5500?

in light of the previous post, if you are updating the plan, do you make the amendment retrocative to 1/1/97?

what about the penalties?

suppose you are dealing with a 5500 EZ? this makes the sponsor ineligible for the DOL program. it seems this is prejudicial because they then cant take advantage of the IRS fee waiver.

is the compliance method/Program essentially throwing your self at the mercy of the IRS?

If the sponsor is not eligible for the DFVC program, what do they do to remedy their failure to file dating back several years?

are employees that are part of an excluded class of employees such as "leased employees" or "associate attorneys" considered "participants" when filling out item 6 and 7 on a 5500? I don't think they are but the number can have an impact on whether a plan is audited so i want to be certain.

you are correct. unfunded unsecured promises to pay are excluded from the definition of property. the doctrines that are applicable are constructive receipt and the economic benefit doctrine.

Is it necessary to provide a 204(h) notice to participants upon conversion of a money purchase plan to a profit sharing plan where the participants will be receiving the same contribution.

are you saying that a participant must have a separation from service, reach age 59 1/2 or have a hardship before they can get a distribution? i thought i read somewhere that 403(B)(9) plans were exempt from many of the requirements of 403(B) plans.

i know this is an old thread but are church plans subject to the same distribution restrictions as other 403(B) plans? i am thinking particularly of the distributable event requirements.

I am not the only one reviewing the matter. i am merely trying to elecit ideas, and i certainly appreciate all of the suggestions. i will be going back to gather more facts.

MGB, good question. i need to check the facts.

No life insurance although i am aware that the plan sponsor can purchase life insurance with the surplus.

Forgive me if i misuse some of the DB terminology as i don't work with them much but the question pertains to the surplus assets. essentially the sponsor wants to see if there is a way he can increase his benefit or pay himself money he did not take in previous years in order to avoid the excise tax on reversions. with respect to a previous post, the client is retired so i don't think the benefit formula can be adjusted at this point in time.

i think that clears up everything in addition to earlier posts and the research i did this morning . with respect to the non discrimination point, if you all say it does not apply, i will take your word for it. but as you stated it would be a bad result nonetheless.

I have a client with an overfunded DB plan. he is the only participant. he reached retirement age several years ago and did not take any money. he wants to know what his options are with respect to the overfunded money if he takes a lump sum distribution. someone suggested that he take distributions retroative to when he could have taken them. is this a viable option? if so what would the authority be for this position?