dmb

The tax was not really the issue but rather if there was any way to spread out the distribution to the children past the 5 years on the fathers retirement money. Thanks again.

yes, the estate is the bfcy of the IRA and children are the bfcy of the estate.

A plan participant dies and his wife is his beneficiary. She rolls his plan money into an IRA. She dies and leaves all monies in an estate (including her IRAs). Her children are the beneficiaries of the estate. Is there anyway to escape the estate taxes to the children?

Thanks for all the input. Now I am looking at a Cash Balance Plan to go with my cross tested PS plan. I have been reading where Cash Balance Plans can be set up as non-Safe Harbor plans as long as they pass non-discrimination testing. Does that mean I can have a Cross-Tested Cash Balance Plan???

Would it be legal for a third party to sign the 5500 based on information provided if the employer is not available to sign forms and file them on a timely basis??? If not, what would be result of such an event?? Thanks.

I had a thought: With the new 25% of comp deduction limit for PS plans next year, does it make sense to set up a Cross-Tested PS plan with a DB plan??? The combined plan 404 limit will still be the greater of 25% of comp or the 412 min req. contr in the DB plan. Any thoughts?? Thanks.

Thanks for the input. The cross tested profit sharing works with a full 15% contribution. I was going to then set up the DB plan to fund for the other 10%. Obviously, after the first year, there will be some give and take between the plans with regard to the contribution split. As far as testing goes, can I test the plans separately??? I thought the plans had to be aggregated for non-discrimination testing. Thanks again.

I'm trying to design a cross-tested profit sharing plan and a defined benefit plan. I guess I have a few questions. Would I set up the PS plan first and then set the DB up to get to the 25% 404 limit or vice versa?? When testing, do I test both plans on a benefits basis and combine the accural rates??

Does anyone know where I can find some info (discrimination testing) regarding setting up a Cross-Tested PS plan and a DB plan for the same employer?? Thanks.

Does anyone know where I can find some info (such as discrimination testing) regarding setting up a Cross-Tested PS plan along with a Defined Benefit Plan. Thanks.

We have a prospective client who's prior company had a money purchase plan that terminated (maybe) with a deficiency for at least the final year and maybe more. He is interested in setting up a new plan with his new company. What must be done regarding the original company and plan in order to set up a new plan with the current company??? Thanks.

Does anyone know if and how the new Pension Refrom effects QTIP trusts?? Thanks.

It was a total buyout and there is immediate eligibility. There is no subsidiary situation.

If Company A buys Company B in the middle of the year, what compensation is used for employees of Company B now with Company A for 415 purposes in Company A's DC plan?? Can I use total comp between both compies or must I only use comp from Company A. Company B is not an adopting employer and did have a SEP in place. Thanks.

Once again. The FASB option under Reporting/Defined Benefit screen only generates the FBO, ABO and cost. I was hoping the system could generate a report suitable to send to the employer, but that isn't happening so I made my own. Thanks for the response.

Like I said, the program prints out one page with two lines of numbers on it. I am setting up an excel file to print a complete report. Thanks for the input.

I can run the numbers for FAS, but Relius doesn't seem to have an actual report, other than to just spit out the PBO, ABO and Service Cost. Thanks.

Does Relius have a FAS 87 report available?? I haven't been able to find one on 6.0. Thanks.

I have a similar issue. i don't have any IRS notices, but I have a Money Purchase Plan with less than 10 participants. The employer hasn't filed any 5500s, the plan is effective 10/1/94 and was not required to file for the plan year ending 9/30/95 (one participant and less than $100,000 assets). He now wants to make amends and go through the DVFC. While reading procedures for filing DVFC it says to file complete Form 5500 or Form 5500-C (but not Form 5500-R) as appropriate. Does that mean the employer must file a 5500-C for each year or does it mean that 5500-R is exempt (I doubt it)??? Thanks.

I agree. QNECs can be used to satisfy top heavy requirements, but I can't help you with the required funding date.

An employer sold his company as of November 16, 2000 and terminated his owner only money purchase plan that same date. However, for whatever reason, he over-contributed for the last plan year and now has excess contributions in the plan that cannot be carried over since the plan has terminated. Is the excess contribution treated as a reversion and if so is there a way to reduce the reversion penalty from 50% to 20% since he is the only participant in the plan???

Not realizing that forfeitures reduce the employer contribution, a client with a Target Benefit Plan contributed $3,000 excess contributions to the plan during the 2000 plan year. Should the excess be allocated or should it just be treated as a prepaid for 2001?? Also, since it was made during the year it must be included on the corporate return, is there a 10% excise tax on the excess contribution??

That's what I thought, but I wanted to get a couple of opinions.

A participant in a 401(k) plan heard that he can roll money from his plan here in the USA to his plan in Israel. He is currently living and employed here in the USA, but previously was employed in Israel and still has money in the plan. Is this a tax-free rollover??

An employer has a Defined Benefit Plan and a Profit Sharing Plan. Both plans effective 1/1/97. The DB plan excludes service prior to the effective date for vesting service. The Profit Sharing includes all service. Is this allowed?? If not, I assume i would have to count all service in the DB plan.