Alan Simpson

Have two attorneys that each own 100% of their own s-corps. Those two attorneys each own 50% of an accounting firm of which they do not perform any legal work or share mutual client. Is this a ASG?

Looking for a report that will run on Relius version 11 that will list the following information for each participant on one line showing multiple participants on one page. Name, Beginning Balance, Contribution/Forfeitures, Gain/Losses, Distributions, Ending Balance, and Vested Balance. Has anyone created such a report. I have a few plans that require an audit and this is being requested by the auditor.

Can a Roth IRA be rolled/transferred into a Roth 401(k) plan?

Why can't the brokerage just make the net check payable to the participant? They may want a letter signed by the Trustee indicating who the check should be maid payable to.

What about the possibility that the funds are wired but incorrect information is on the wiring instructions. When would the money be in the plan account? Would the wiring bank/asset holder hold off wiring the money to you until they get the incorrectly wired money back? If you did not receive the wired funds by the time that you have to have the cash for the settlement of the buys that you had ordered – would they then have to be reversed and maybe at a loss necessitating a loss in the account before there is even any money in the account. We NEVER HAVE perform buys until we know the results of the sells. We will not take that financial liability. Perhaps if those individuals that are saying that “everybody” is doing it would sign a binding agreement that they are financial responsible for any deficit in the account caused by the funds not being received when expected I might consider doing this but otherwise I would not.

E-mail me and I will provide you with a one page (double sided) document that I believe fits what you want.

Since the land is part of a directed profit sharing account the directed account should pay the expenses, NOT the company or the participant from outside of the plan.

A Registered Investment Advisor performs the buys and sells for retirement plans. Up until now they have been “eating” the charge for mailing out confirmations of trades charged by the broker/dealer back office. They wish to start passing this charge along to the retirement plans. Does anyone have an idea on how to charge a fee to the specific individual(s) for the transaction(s) as a whole? I do not want to post it as a normal fee to all participants in the plan since only those involved in the transaction should pay the fee. I have talked with Relius support and they do not know of a way to accomplish this.

Why not just have the participant, even though in prison, complete the distribution forms. Nothing says that he can't complete the forms himself.

There is a deceased participant in a retirement plan that has named trusts (each trust for a specific individual) as her beneficiaries. How is the distribution handled and taxed?

Yes, an IRA can hold a house or building (as long as the IRA owner or their family do not live in the house or use the building for any purpose). However, you would need to find a Trustee who would hold that asset in the IRA, have annual appraisal of the property (which the IRA must pay for), and the IRA must have enough liquid assets to pay for the insurance premiums, property taxes, upkeep, appraisal, etc. for the house/building.

Once again I ask, what would you do if the employer does not fund the accrued profit sharing. While the company may declare the profit sharing amount/contribution that they wish to have, they can of course change their mind and contribute a different amount as long as it falls within the deadline for making the contribution. Therefore, I would not include it in the amount available for calculating the maximum loan.

What would you do if the accrued profit sharing is not funded. I believe that it should not be included since it is not guaranteed to be deposited into the plan - it is only accrued and is subject to change.

An IRA holder dies in 2002 after taking RMDs from his IRA in previous years. Is the IRA holder required to take a RMD during the year that they die based upon the 12/31/02 balance?

I need clarification on the deductibility of contributions by the employer to both a DB and DC plan. I have heard that if an employer has both types of plans in place their deductible contribution is limited to the greater of the DB plan required contribution or $40,000. In other words although 415 was repealed as far as individual limits are concerned, the employer may not be able to deduct the full contributions made to both plans. Is this correct? The repeal of 415 made the individual participant limit go away but have the appropriate changes been made for the deductibility side?

If a plan makes 25 or more loans in the current or prior year or has 5 or more loans secured by a residence it must make the truth-in-lending disclosures.

I agree with Katherine

Has anyone created a report using Crystal Reports that prints out the distribution forms to be mailed out to participants who are eligible for a distribution? If so, are you willing to share the report?

The DOL's opinion is that the interest rate for loans must be consistent with interest rates charged by commerical lenders for a loan made under similar circumstances (DOL Reg 2550-408b-1(e)). Their view is that this is no justification for using below market interest rates.

I would ask for a letter from the ER stating: 1) that you have informed them that the plan is top-heavy; 2) that you have informed them that a top-heavy contribution is due; 3) that they have been informed on the consequences of not following your advice; 4) that they are taking outside advice, indicating who that advice is from, that indicates the plan is not top-heavy; 5) that they will pay any and all of your legal bills (within 30 days of submission) associated with this transaction in the event you are brought into a legal battle over this; 6) that the guarantee of legal expense payment is binding upon the current owners and any future owners and can be collected from any one or all of the owners (from personal or corporate funds); 7) and have this letter signed by all current owners with their signatures either notarized, or signature guaranteed. Once they realize that they may have to put up some money if the situation comes to light they may change their tune a little. If not I would seriously consider whether to keep them as a client since they value the decision that saves them the most money more that the correct decision.

I know that you can create sub-reports within Crystal reports as this is now I produce me participant statements. For me I have one report that produces the cover page and summary of the account with the next page(s) being created by the sub-report and printing out more participant detail.

What are the recordkeeping requirements for a 412(i) plan? It is my understanding that they do not need an actuary to review the funding since the funding is through individual insurance contracts with level annual premiums.

I am doing this with a few of my plans too. Just as a side note, the $1,000 contribution would be considered a deferral until the participant reached the maximum contribution. It only would switch to a catch-up contribution after the employee has reached the maximum available contribution.

No. For a loan to be able to be amortized over a period longer than five years it must be for the PURCHASE of a principal resident or to repay a loan from a third party on the principal residence.

Could your “secured trust” actually be a non-qualifed plan with a surety bond? If so, then to prevent the surety bond from triggering constructive receipt I believe the employee must bear the cost of the bond, not the company, and the company should have no involvement. That being said, obtaining a surety bond may be expensive and difficult to find.