wmyer

Belgarath, I assume you mean 100% limit, not 25% limit? BDZ, I agree that Form 5310-A needs to be filed for both plans.

FJR, topheavy would have nothing to do with it. The question, as I understand it, is about terminated participants (who wouldn't need a topheavy contribution since they are not employed on the last day). But because the participants get the SHNEC, they must get the additional 2% gateway.

That's correct--no final 403(b) regs yet.

Needless to say, I mean, YES, it is available...not yes, it is a stupid question.

Yes it is.

The mandatory IRA rollover was effective for distributions on or after 3/28/2005. Are you trying to avoid rolling over <5000 distributions to an IRA? If so, why not simply reduce the cash-out amount to 1000?

I assume you are still working for the employer with whom you have the 401(k), and that you are not 59 1/2 -- if you are no longer working for the employer or are over age 59 1/2, you could have another distributable event. Recall also that harship distributions are subject to federal income tax and possibly also state income tax and a 10% penalty.

Indeed that used to be the case, but was changed by EGTRRA. Thus IRS Publication 590 (page 65) states: After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan) or deferred compensation plan of a state or local government (section 457 plan).

You are correct. The 25% penalty only applies if the 10% penalty would otherwise have applied. The qualified plan has to accept rollovers from IRAs.

So if the short plan year is a 2005 short plan year, and you want to use final regs that are generally effective 1/1/2006, that's okay, but you will have to be in compliance with all aspects of the final regs for the 2005 plan year.

I'm assuming that this is not a successor 401(k) plan. You can start the plan up by October 1, 2005 and give notice on October 1, 2005 if you want the plan year end to be 12/31/2005. Alternatively, you can start it up later with a different plan year end and still have a 2005 plan year. You could also have a traditional 401(k) the first year and amend to Safe Harbor for 2006.

That information would likely be in the prospectus.

Maybe the DOL schedules should come first, then the IRS schedules. Or vice-versa. Where in the alphabet does the letter "SSA" come...is that before "T"?

Is this plan going to have an audit from an independent accountant? Will the financial statements match the Schedule H? Will the accountant give a clean opinion on the financial statements?

R. Butler, recall that DFVC is not available for EZ filers.