k man

two questions - 1) how do you make the check payable? i believe you must indicate it is an inherited IRA 2) must the plan inform the accepting custodian that the beneficiary has 5 years to receive the money? (5 year rule applies here)

i am aware of that. clearly the practice group has to make that decision first before anything can happen.

bottom line it is doable. granted the cpa and/or tax attorney for the participant would have to stick their necks out but if they are prepared to do it it is on them.

i have a doctor group client. one of the dr. participants (employee non owner) wants to remain an employee but receive some income as an independent contractor (from the same company). the dr. wants to set up another plan to deal with that income. would the IRS frown upon this type of duel relationship ie. employee/indpendent contractor?

awesome..so basically i can set up a non qualified plan under 457(f) and i think be able to avoid 409A as long as the plan does not involve a deferral of compensation, correct?

a non profit tax exempt org wants a executive benefit plan for a select group of HCE's.. the plan would not allow for elective deferrals. it would only be employer money. could this entity do this plan or are they restricted by 457?

dont have the cite offhand but i dont believe you can do it that way..once it is returned for the 401(k) it is considered income to the participant. the regs dont make the exception for refunds into a non qualified plan. i will look for a reference.

can a sponsor allocate forfeitures from nonelective source to reduce safe harbor matching contributions assuming nonelective contribution has been satisfied or they are not making one?

LeeNunn, thanks for the information. i think they are workable as long as the rules are clearly explained. i agree 409A complicates things somewhat. were the treasury concerns printed anywhere? i would like to see that in black and white.

in order to qualify for the top hat exemption plan must be for select group of management or highly compensated employees.

does anyone know if wrap around plans are still alive under the final regulations. cant seem to find a mention of them and they were mentioned in an example in the proposed regulations.

the participant had an outstanding loan for 10k and he dies. he has 100K in his account. who do you issue the the 1099 to? due to the default, i think you issue a 1099 to the deceased participant for 10K and the beneficiaries (if they take a distribution) for 90K... anyone know whether this is correct.

from my research i can see these are subject to 415 limits. does anyone know how they are tested. it looks to me like you perform the adp 401(m) test.

mjb and janets answers seem to conflict. assuming the document allows for in service and the participant is age 59 1/2 can they take distributions and roll them to another qualified plan?

the scenerio is this...a participant in a 403(b)wants to continue to defer into the 403(b) but take distributions annually and roll them over to a 401(k) plan. he is over 59 1/2. my thinking is that he could do it but i dont know much about 403(b) plans.

can anyone give me some practical examples and opine on these specific facts as they apply to participant directed 401(k) plans. i am looking at the QDIA regs and wondering if an RIA that is hired as an investment advisor is considered an Investment Manager as required by the regs and as that term is defined in Section 3(38). To be a Inv Mgr you must have the ability to manage or dispose of the assets. in our case we are an RIA. we select and monitor investment options in the plan as well as construct asset allocation models for participants. we accept fiduciary status. we do not accept custody, does this make us an Investment Manager qualified to construct QDIA's.

can anyone give me some practical examples and opine on these specific facts as they apply to participant directed 401(k) plans. i am looking at the QDIA regs and wondering if an RIA that is hired as an investment advisor is considered an Investment Manager as required by the regs and as that term is defined in Section 3(38). To be a Inv Mgr you must have the ability to manage or dispose of the assets. in our case we are an RIA. we select and monitor investment options in the plan as well as construct asset allocation models for participants. we accept fiduciary status. we do not accept custody, does this make us an Investment Manager qualified to construct QDIA's.

can you give a 3% safe harbor profit sharing to NHCE's and a 3% regular non elective to HCE's and still pass coveraqe. you do this under a cross tested plan document with each employee as his own rate group.

listened to a web conference by aspaa i believe by aspaa i believe and they handed out a statement which included the actual vesting schedule. is there disagreement out there on this point? ? Did aspaa represent the sample provided as the very minimum it thought necessary? or might it have had more info than aspaa thought minimally necessary? The reason I ask is that the individual benefits statements are to provide "the nonforfeitable pension benefits, if any, which have accrued, or the earliest date on which benefits will become nonforfeitable" (ERISA 105a2AiII, as amended by PPA '06) or alternatively "such information as is necessary to enable a participant or beneficiary to determine their nonforfeitable vested benefits" (ERISA 105a2C, as amended by PPA '06). The Committee Report specifies that the statements should indicate "the participant's or beneficiary's vested accrued benefit or the earliest date on which the accrued benefit will become vested". Joint Committee Taxation (J.C.T. REP. NO. JCX-38-06), PPA '06 Act section 508. I could find nothing on point in DOL Field Advisory Bulletin 2006-3 specifying in detail what must be provided. The sample including the vesting schedule would certainly seem to satisfy the requirement, but so too it would seem would just providing info about the amount of vested benefits--not going into detail about vesting years, vesting schedule, etc. in reviewing the asppa materials they seem to merely suggest giving the vesting schedule but i agree with you that it is not required by the law.

listened to a web conference by aspaa i believe by aspaa i believe and they handed out a statement which included the actual vesting schedule. is there disagreement out there on this point? ?

is it sufficient to list the participants actual vested percentage or must the plan's vesting schedule be listed on the statement as well?

what is the correction method for failure to take deferrals from an automatic enrollment 401(k) plan? my thinking is it has to be the same as the correction for failure to allow an employee the opportunity to defer.

the commentators/experts say no..the employer only losses 404© protection for that investment.

no necessarily correct. that is if the money is deposited back into an IRA within one year you would be eligible for the automatic waiver of the 60-day rollover rule, provided of course that the broker was at fault and you have not been using the money. however if it has been more than one year you will need to get a ruling.

doesn't the 5 year rule have to be provided for in the plan? we use a corbel prototype and the default is for the 5-yr rule to not apply unless an election is made.