JanetM

Switch to EZ this year if you qualify for it. Use accrual accounting basis. Show receivables for the 2006 year. The purpose of this when the audit your tax returm they will look at 2006 income to ensure you contributions are allowable and deductible.

If you meet the five "who may file form 5500EZ" requirements you can file an EZ form. No prohibition in changing to EZ. Same goes for EZ filer who adds employees and switches to 5500.

American Funds has $250 minimum for its IRA accounts. You can do automatic investments monthly. Disclaimer - I don't work for American Funds but I do have IRA with them. I like the funds they offer.

I looked at them. They allow you buy individual stocks for IRA accounts. Not a great idea unless you have a crystal ball. Mutual funds you at least give you some diversity. Buyandhold also has some pretty steep fees. You could do better with mutual fund company.

If the instructions don't allow us to mark up form for filing then we won't be able to terminate any plans in the first half of the year. I would call the EBSA and ask what we are to do for final filing now.

I would have sponsor amend the plan now to ban future loans.

Are they allowed to change deferral election after enrolling? Seems to me they must have increased the deferral at some point. Unless the plan requires all deferral elections in writing then this isn't an issue.

DC plan must be adopted before deferrals can be made. Co Bs deferrals continue at the time of spin off then plan would have to adopted at spin off date. Asset normally follow at later date. DB plan has time but plan must be done soon. First off no Trustee will accept the assets with out a Plan in place. Second you want to assure the participants that the plan continues.

If the plan exclude independant contractors then you don't have to exclude you simply ignore him. He should not be in the data so you may have to make a note to delete him before you do any testing.

Exclude by class - all manufacturing reps. You would not be able to benefit any other reps. You can't exclude if he is an employee. Is he really independent contractor?

Why not just use the funds you would give under retirement & health plan to increase wages and let employees decide how to spend it. 401K or medical plan.

You got that one right on. No cashout provisions mean NO cashouts. You could amend the plan and it would be a good idea. You don't want to be searching for folks 10 years from now for coule hundred dollars.

From the AICPA audit guide. ARA_Appendix_D_re_FSP___SOP_94_4_1.pdf

Yes it would. Code says eviction or foreclosure is safe harbor reason for hardship.

Yep, short and simple.

It is my understanding that process changes are not material changes that require SMM. Fund changes, payroll cycle changes other process changes are administrative. SMM reflects formal amendment to the plan and not simple process change.

I would make it a formal amendment. We got out of a law suit after closing a plant by having amendment. We announced we were closing half the lines in one plant in March 2004. Vested all who were employed on those lines. Had about lawyer round up about 30 employees who voluntarily terminated in the few months prior to announcement and tried to sue us for benefits. He didn't get far after we sent copy of the amendment and plan doc.

Seems to me you have done right so far if the entity sponsoring the plan is the same (just name change). Droped trustee, changed name etc. Just give distribution pkgs and ensure all are 100% vested upon distribution.

I don't believe you will get anyone to give you a number on this board.

I would think this is more an administrative process than a change to the benefits available. I wouldn't use SMM for this notice. Yes fix the plan language. If it were me, I would just add notice to quarterly stmts or send something out with paychecks.

Wouldn't you calculate it the same as retirement plan? Based on snapshot at plan year end?

If the all members of the group are in the plan, there are no other members or plans then I don't believe 3H would be used. Was my first thought. If it is parent sub - filing consolidated tax return - I would skip the 3H. If you have ASG that doesn't file single return then I would use the code 3H.

Normally this is function of record keeper/payroll abilities. If the participant was auto enrolled they must have option to cease at any time.

sponger42 have you tried to contact an Ombudsman at one of field operations offices? Here is the link to customs site. Sorry I can't be of more help. This board deals with employee benefit plans not business operations. http://www.cbp.gov/xp/cgov/toolbox/contacts/cmcs/

ER saves FICA and medicare also at federal level. State tax rules vary.