dmb

At the time of plan termination the plan only consisted of the owner and his wife.

It was an involuntary plan to plan transfer.

A client terminated his DB plan when he reached NRA and rolled the money into a new PS plan. I realize that the J&S feature still applies to the rollover. The PS plan allows for in-svc. distributions (the DB allowed in-svc. distr. at NRA) and my client would like to take advantage of that. If he wanted to take monthly or bi-monthly distributions that were less than $5,000 each, would spousal consent be required?? I think it is, but would like confirmation. Thanks.

It is my understanding that this act does not change the 417e minimum lump sums. For example, if the plan's act eq is 5% and the 417e rate is 4.37%, the minimum lump sum would still be based on the 4.37%. My question is regarding maximum 415 lump sums. Would the 5.5% rate override the other rates for 415 or would the 417e lump sum take precedence since that would provide a larger lump sum than the 415 (if the participant's accreued benefit was at the 415 lmt.)?? Thanks.

If an employer has a DB Plan effective 1/1/04, can i use accrued to date testing based on service prior to the effective date if i only have current compensation or would i need compensation to match the prior service?? Thanks.

I also know someone who does some English-Spanish translating for extra income.

A 50% owner of LLC A with a DB plan is also a 33.333% owner of LLC B. LLC B is not related to or an adopting employer. Can income from LLC B be used for benefit purposes of LLC A's DB plan without including the the two other owners of LLC B in LLC A's DB plan?? Thanks.

I'm not sure if i put this in the right category, but here goes. A client based in Georgia has a division in San Fransisco where there are participants with same sex marriages. Are those marriages recognized for retirement plan purposes since the employer is based in Georgia?? Thanks.

I think i know the answer to this, but need a little confirmation. If a participant terminates with less than 500 hours (therefore not receiving PS alloc), but was eligible for deferrals, does the participant need to be included in the average benefits test?? Thanks.

The spouse of a 100% owner currently works less than 1000 hours (1000 hrs required for allocation). She had been full time in previous years so she is an active participant. Can she be included in non-discrim testing?? It seems like this is an easy way to help testing if the spouse works a year or two to enter plan then only work minimum hours in the future to be included in test. Thanks.

Thanks for the response. I realize that waiver application deadline has passed for 2002, but just thought i'd put a feeler out and see what came up. Thanks again.

I am also interested in obtaining a waiver of minimum funding. However, my situation is that my client (at least this is his story) intended to make the 2002 required contribution to his DB plan, however, his bank didn't follow his directions and the money ended up somewhere else. My client's wife and mother both passed away around the minimum funding deadline and he hasn't been at full capacity since. Is there a situation where the Excised Tax for missing minimum funding deadline is waived for personal hardships rather than business hardships?? Thanks.

Thanks. I'm ok with the weighting. But my main concern is about lump sums paid prior to NRA. Are they considered expected distributions??

FAS isn't one of my strong points. Regarding distributions, i understand distributions weighted for timing and actual distributions. However, i'm a little confused about expected distributions and the interest on them. Are expected distributions only for retired participants in pay status?? and is the interest on expected distributions only on those distributions or is the interest on the expected distributions the interest on the weighed distributions. Please help!! thanks.

Thanks for the quick help.

A calendar year DB plan, owner, his wife and one participant covered by PBGC thru 2003. The one participant termed and was paid out in 2003. If the owner decides to terminate plan in early 2004, is he still considered covered by PBGC and must he file plan term with PBGC??? Thanks.

A client has a new solo 401(k) plan effective 1/1/03. There was a prior PS plan that terminated in 2002. Some of the 2002 admin fees of the old plan were actually paid from the new plan in 2003. Is that kosher??

If i use prior year testing for ADP & ACP, can i use top paid group election to determine prior year's HCEs if I didn't use top paid group election last year???

A participant who died earlier in 2003 with her daughter as sole designated beneficiary had deferred her RBD for RMDs. Can she use the Uniform Life Table or does the Single Life Table have to be used with the daughter's life expectancy?? Thanks.

A Client with a SIMPLE IRA has a fiscal year ending 9/30/02. The elective contribution for the owner was made in Feb of 2003. Can that contribution be deducted for the fiscal year ending 9/30/02 or must it be deducted for the fiscal year ending 9/30/03?? Thanks.

Well, it was Mike Preston's confirm that really solidified it, but Blinky's quote of 11(g) confirmed what i was saying.

Thanks, I actually knew the answer, but my superiors wanted further confirmation.

A cross tested profit sharing plan has a last day requirement to receive an allocation. Based on a couple of participants terminated during the year, cross testing does not work. Can the plan be amended for 2003 only to remove the last day requirement?? or does it have be removed permantly if it is removed?? Thanks.

Does the 7.5% minimum allocation limit apply if there is no participant overlap in the DB/DC combo, if no participant participates in both plans??

My client reaches his NRD on 1/1/04. He has a BOY calendar year DB plan. He will be age 67 at 1/1/04. He is considering working another three years. I remember reading something saying NRD could not be projected beyond one year, but I'm not totally sure. Can i fund for his benefit with an NRA of 1/1/07 (age 70)?? Thanks.