wmyer

Thanks, all of this is exactly the information I was looking for.

The employer and employee still have to pay FICA on the deferrals. However, they do not have to pay federal tax until withdrawn. Also, most states don't require state tax until withdrawn. But, when you withdraw the money, the current tax system doesn't impose any FICA.

a participant has 2 403(b) arrangements from 2 different employers. he is over 70 1/2 and still employed by an employer sponsoring on of the 403(b) arrangements. does he have to take an rmd from the other 403(b)?

Notice must be given at least 30 days prior to beginning of plan year.

So how about that C-3 exam yesterday? Apparently, there was some kind of server problem in the morning....

You'd need a distributable event to get the 401k money out. For example, if you are over 59.5, for example. Possibly the plan permits in-service distributions, so you may be able to get the match or profit-sharing money out, but that would depend upon the terms of the plan and how long the money has been in the plan.

Considering that the rate of inflation by some measurements is NEGATIVE, I disagree that inflation is a large factor in the savings rate; a few months ago Greenspan had us all in a panic about DEFLATION. Also, considering that the tax on capital gains and dividends is SIGNIFICANTLY LOWER than the taxes on wages, I disagree that taxes are the factor. It seems, on the contrary, that TAX SUBSIDIES are the biggest factor -- and I mean specifically the tax subsidy for homeowners that lets them deduct home interest and property taxes. Take away these subsidies, and watch the savings rate go up! But really, I agree with mbozek that you can't put too much stock in all these statistics. How the savings rate is constructed is a matter of much debate. For example, the savings rate doesn't include social security.

What's a typical price range for a limited scope audit for a 1000-1500 participant defined contribution plan with about $30 million in assets? Is there anywhere that I can find benchmarking information?

Facts such as...what kind of a plan is it (457, 401k)? What are the plan's eligibility requirements, and did any NHCEs meet them? Does the employer only employ HCEs?

I took the ASPPA DB exam yesterday, and...it was very tough. I had read the study guide TWICE, answered all the questions in the study guide TWICE, read the DB cram material three times, and read significant portions of the DB Answer Book. I felt prepared going into the exam, and fortunately I did pass. I definitely recommend knowing everything in the study guide backwards-and-forwards -- I found it to be a significantly harder exam than the DC exams.

thanks for the link, that one didn't come up in a search. so, i don't mean to sound daft, but...regarding people who are eligible to make elective deferrals but choose not to make them...are they supposed to get an SAR too?

who exactly has to get an SAR? the regs just say participants and beneficiaries. does 'participant' in this case mean anyone who had a balance at any time during the year? or does 'participant' also include people who were eligible but did not participate? i searched the other threads on this message board, but didn't find anything exactly on point.

I disagree. The final regulations specifically state that some mandatory distributions will be more than $5,000 because of additional funds attributable to prior rollover contributions. However, the plan can specify whether or not to include the amount of the rollover contributions (and earnings thereupon) for purposes of the $5,000 cash-out amount.

The default amount in all cases is just the unpaid principal amount (amount withdrawn). Interest is never added to figure out the amount defaulted. Only the unpaid principal would appear on a 1099-R.

What are the timing requirements for matching and/or employer basic contributions within a 403(b) arrangement for a tax-exempt entity like a hospital? Since there's no income tax filing deadline, when do contributions have to be made? Before the 5500 filing? Before 12 months after the plan year end?

weekends1, you can roll a 403(b) into a 401(k) if the 401(k) plan allows it. This portability rule was added by EGTRRA effective in 2002.

R. Butler, as you probably know, the proposed 401(k) regs do permit a short plan year Safe Harbor 401(k) as long as the short plan year is flanked by two full plan years. Of course, we can't rely on proposed regs.

Consistent? Who knows? But this is the answer from the 401(k) Answer Book, Question 8:59 -- wait, am I allowed to reproduce this here? -------------- In determining the maximum deductible amount, may the employer take into account the compensation of all employees, or just those who are plan participants? Only the compensation of those participants who benefit under the 401(k) plan may be taken into account. [Rev. Rul. 65-295, 1965-2 C.B. 148] The cited revenue ruling does not deal specifically with a 401(k) plan. Presumably, the compensation of a participant who elects not to make contributions would still be taken into account. ----------------

Yes, Lori, the 404(a) deductibility limit is $50,000. Also, recall that the deferrals don't count towards the deductibility limit. So, the employer can provide a $50,000 contribution in addition to any deferrals made by the employees.

Thanks for the link, WDIK. It will be very helpful, except...it doesn't have 1994-GAR. So, I'm still trying to get an immediate annuity factor table and a deferred annuity factor table for that. Anyone?

This link no longer works. I am looking for the GAR 94 annuity factors (age 65, 50% male/50% female). Can't seem to find it on the SOA website. Does someone have this in EXCEL that they could e-mail? Pax?

OK, so... If an employer has both a 401(a) plan -- let's say a money purchase pension plan -- and a 403(b) deferral-only plan, and you are testing the 401(a) plan under the average benefits percentage test, do you include the 403(b) deferrals?

Safe Harbor plan has to be in existence for at least 3 months. Therefore, October 1, 2004 would be the deadline for a 2004 Safe Harbor 401(k) plan. Notice would have to be by October 1, 2004. [iRS Notice 98-52, 2000-3.] Plan could use either non-elective or matching. You can avoid prorating by making the profit sharing plan effective 1/1/2004, although the CODA part would be effective 10/1/2004.

Disagree with last post. If employer wants 15% contribution, this can be 12% PS plus 3% SHNEC. Gateway would be 5%, which would be 3% SHNEC plus 2% PS. The total contribution would be 5% for the staff, which would then be tested for general nondiscrimination.

With regard to retirement plans, how about IRS Publication 560? http://www.irs.gov/pub/irs-pdf/p560.pdf