JanetM

First - just get the participant and AP to agree the plan intended is the ABC 401K plan. Second asked for copy of the filing from the clerk of records. This one will have all the proper stamps showing is has been duly reviewed by judge and filed with the court.

This operational failure. Unless the plan was amended to be non safe harbor he must fund for 2007 also.

If it sounds too good to be true, it is. If is caught the plan sponsor, not the attorney, in on the hook. Just as the attorney happily received payment for getting you into the mess, he accept an evern higher payment from you to try and get you out of the mess he created. Get a second, third, IRS opinion ...................

Let me get this straight - Doc A has own company and plan. Doc B has his own company and NO plan. Employees are in company C that is owned and operated equally by doc A and B. Employees in company C - with no plan. My take - No control group if each doc only owns 50%. You have to MORE than 50% ownership to have CG. Docs A & B can continue to be greedy not offer benefit plans. You don't have to give auditor census. I would ask the basis of the request.

masteff we use the similar hierarchy with couple changes. Tax withholding and mandated garnishments Health & welfare, FSA (medical and child care) Union dues Qualified plan loans Computer loans (paid to company) Other after-tax - United Way Pre-tax qualified plan savings After-tax savings Logic being that you should be meeting contractual (loans and pledged charitable contributions, dues, required premiums for coverage, FSA amounts) before those discretionary pre and post tax amounts. This way the required H&W plans stay in effect, the loans and pledged obligations are met and only the employee misses out.

Keep it simple. Company B plan - pay out 4 terminated participants (if they elect to withdraw). 2 others who go to Company A and begin participating in Company A plan. At convenient time after all that, merge the assets from Plan B into Plan A.

They can't be combined if the distribution code is different and the tax treatment is different. Example - EE pension might be code 1 and the QDRO payment might be 2.

Wouldn't you be looking for anything that allows mandatory in-service distributiosn? I did search and all I find is language saying you can permit in-service if employee elects to take one. Don't understand why you would want to force money out? Don't you want to keep assets in the plan?

I love it.

Distribution forms don't matter in determining if QJSA applies. If plan has old Money Purchase money or profit sharing funds which have QJSA provisions then you need spousal consent. This varies by plan and could be either way - depends on how sponsor set it up. You need to read the summary plan description to know what your options are.

You can amend the plans to allow balances to tranfer between plans upon transfer. You can't force any distribution over $1,000 since 3/28/2005. I believe the cite is 401(a)(31)(B). I would reread the plan - what exactly does it allow as far as inservice w/d? What does it say about w/d of after tax contribs?

I agree with you masteff. The IRS only sees the 1099R from IRA company. It doesn't designate the number or timing of payments. What would cause them to look in to the timing if the required annual amount is taxed?

Using the TPAs logic you would be using a different compensation base that what you use for testing and non discrimination tests. Constructive reciept should prevail. The employee is not eligible to defer their pay until they receive it. The participant got paid after 4/01 so the deferral should be on that pay check.

Not really. How was it reported? W-2 or 1099. If it was on W-2 he has some ground for deferral. But there is question of what is plan definintion of eligible participant to make contributions?

You only have in-service if allowed by plan. What does it say? Any rollover to IRA is free from 10% penalty regardless of age of participant. Sponsors normally don't like to allow leakage like this. This decreases assets and may cause fees to increase.

File an amended return and be done with it. If you get EBSA letter simply explain the codes were wrong and you fixed them.

If it were me, I would file the 5500 for 2007 showing a single participant. If the owner has no intentions of ever having employees again then 2008 you can swithch to (not) filing EZ. This would be easier to expain than simply switching to (not filing) EZ.

Doubt the IRS would let you do loss for more then the investment is worth. I invest $1000 and it becomes worthless - I can't take write off of more than the $1000 I invested. (ignoring trading costs and other investment expenses of course)

If the value changes daily than I would treat is like any other daily valued account. AP gets 50% of balance as of date, those assets are subject to gain or loss between the date of award and the date of distribution.

Just explain to me how the value can go negative. Once it hits Zero its worthless. Is this some new CSO, swap or other evil investment from investment banks ?

Where do I sign up?

Unless the wife lost insurance from another source that covered the 4 yr old, there is no way to get coverage before the next OE.

I would show the client the regs that require the testing in order for the plan to be Qualified. Explain that you must have the data to do the test on their behalf. If they don't provide it, you can't do the test. I left TPA land a long time ago, but when I was in the biz we fired clients like this.

Just being control group with larger plan does not make the small plan a large plan. Requirements of filing are plan specific.

Call me cynical, but I have to ask what's the catch. You are packaging various service of others and offering the whole thing at a discount? I figure you are getting some kind of discount from service providers and adding you layer of profit and then offering it to me. The last time this all in one was offered around here the whole mortgage industry entered meltdown. The appraisers inflated, the inspectors overlooked, the underwriters forgot to sharpen their pencils and the pig with lipstick was sold to some faceless investor.