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Tom, i've been trying to find a Relius report that breaks down the Employee Deferral, Employer Match and the Profit Sharing contributions by participant. I found this message thread, but couldn't find the report that seemed to be attached to one of your messages. Do you have a report that breaks down the contributions by participant. Thanks.

I was just wondering. It's really not going to make much of a difference, since I can use 3% ADP for the NHCEs in the first year.

A 401k plan effective 1/1/03 was adopted 10/15/03. It is my understanding that compensation from the adoption date may be used for ADP testing. This plan has one owner and four or five NHCEs. Can I use comp from adoption date for the NHCEs and whole year comp for the HCE for ADP testing?? Thanks.

A Client currently has a PS plan, he would like to start a DB plan in 2003 and not fund the PS plan. For vesting service, is it allowable to disregard service prior to the DB effective date or must the PS service be included?? Thanks.

I am proposing the above type plan for a prospective client. With regards to discrimination testing, the average benefits test must pass based on all benefits, that is the sal. deferrals, PS, and Cash Bal., correct. If the average benefits test based soley on the Sal. deferrals and PS allocations does not pass, is it ok?? The plan passes the midpoint test for PS and aggregated on an accrual basis and passes the aggregated avg. benefits test. on an accrual basis. Please advise. Thanks.

Thanks. Actually, i had already planned on adding the 401k feature, but had been a little slow regarding the PS accounts. Thanks.

A client that consists of 3 owners and no other employees currently has a self directed profit sharing plan. They are going to start a DB plan effective 1/1/2004 and not contribute to the PS plan. If they merge the PS into the DB, can the PS money still be self directed in the DB plan?? Thanks.

Does that mean that an individualized notice must be prepared for each participant comparing what they would have received to what they are going to receive?? or can it be a general notice that explains the benefit formula before and after the plan term or in my case, plan freeze?? Thanks.

Thanks. I guess i can give myself a big "duh".

I am reviewing a cross tested profit sharing plan allocation for a plan year ending 10/31/02. There are three HCEs and 41 NonHCEs. The owner's alloc rate is 21.88%, his wife's alloc rate is 17.5% and the other HCE's alloc rate is 3% as is all the NonHCEs. Testing on an accrual basis, each rate group's ratio is greater than 70%. Shouldn't this plan still have to meet the 5% minimum gateway?? When wouldn't the plan have to meet the 5% (or 1/3) minimum gateway?? Thanks.

We have a profit sharing plan that terminated 12/31/01. Same employer adopted a new DB plan effective 1/1/01. Can the PS money be transferred to DB plan as a plan to plan transfer without distribution election forms?? Thanks.

Thanks. Compared to FAS 87 is more involved or time consuming??

Does anyone have a cite or source where i can find info regarding which GASB reports need to be prepared for a govt. DB plan? Thanks.

MPP merged to PSP in 2002. Owner, wife and 1 other participant. Self directed broker accounts. "other participant" did not merge her account but took a distribution from the MPP. No signed paperwork and amount taken exceeds 50% of the combined MPP/PSP balances so loan does not work. Also no 1099R. Any suggestions to correct would be appreciated.

The argument has been made that the plan is making a loan to an independent developer. That is the investment for the plan. The commissions earned on the rental/sale of the property after the development is a separate event. Does that matter?? Thanks.

So, even though the real estate agent is not receiving any greater commissions that he would get on other transactions, this would be considered a PT?

A client is a real estate agent and sponsors his own one man DB plan. He has the opportunity to loan a developer money from the plan as an investment. Once the developer builds on the land the real estate agent will have the opportunity to rent/lease/sell space and receive normal commissions on such rentals/leases/sales. Would this be considered a prohibitive transaction? Thanks.

I was thinking the same thing, but figured i'd ask anyway. Thanks.

I've been told by a broker that Solo 401(k) plans or Uni-(k)s don't have to be updated for GUST. I thought all plans had to be updated for GUST, but since i don't work with many solo 401(k)s (and the ones i do work with are updated for GUST) I would appeal to higher ground. If anyone could confirm that Solo 401(k)s need or don't need to be updated for GUST, i would appreciate it. Thanks.

A client with a Profit Sharing plan with about 25 participants is considering terminating his plan and shutting down his business. We are trying to help him keep his retirement plan money protected. I think he's going through some litigation of some sort. His son owns his own business, but our client would not be considered an employee and therefore couldn't roll his profit sharing money into his son's plan. Any ideas on how to keep his profit sharing money protected from litigation/creditors would be appreciated. Thanks.

Thanks. I'm glad you mentioned the combo gateway. I have a couple of participants that worked less than 1000 hours and receive only TH minimum. I had them getting 5%, i guess they have to get 7.5% since the highest HCE alloc is greater than 37.5%. Thanks again.

I am trying to prepare a DB & PS combo where no participant participates in both plans. The DB is a safe harbor formula, the PS is cross-tested. By testing both plans on an aggregate basis, both the midpoint rate group test and the average benefits test pass. Does the PS plan still need to pass the 70% coverage test?? Thanks.

I understand that a corporate return extension extends the Form 5500 filing. With that in mind, I have a client where fiscal year is different from plan year. Does that have any implications regarding the extension of time fo file Form 5500 if a Form 5558 has not been filed??

Thanks again. I realized after the fact that i used the multi- rather than multiple, but thanks for the warning.

Thanks for the help. I was pretty sure about the controlled group issue, not as sure about multi-employer possibilities.