JanetM

QDROs can be drafted to allocated funds to spouse, ex-spouse or child. See IRC 414p. Can be used for child support.

If you are doing SH match and add a profit sharing type contributions you only need to pass coverage.

Mbozek, few years back when I was at CPA firm, we had clients who signed 2848 so that attorney or CPA could sign 5330, 5558, 5500 and payroll returns. Representing plan was interpreted to include the original filing as well as afterwards if the IRS had question or there was an audit.

5500 preparers manual contains the following: Ch. 25 Form 2848 Power of Attorney Form 2848, Power of Attorney and Declaration of Representative, may be filed by a plan sponsor of an employee benefit plan or the trustee of a trust to authorize an individual to represent that plan or trust before the IRS and receive tax information. Form 2848 may also be used by other taxpayers or entities to authorize an individual as representative. However, the following discussion applies to employee benefit plans only. NOTE Individuals and entities filing tax returns with the IRS are not required to authorize an individual to represent them before the IRS. The plan sponsor or trustee will often appoint an individual to act on the plan's behalf before the IRS, receive tax information from the IRS, and assist in the preparation and filing of certain required government reporting forms relating to the plan, such as the plan's: l Form 5500, Annual Return/Report of Employee Benefit Plan l Form 5558, Application for Extension of Time to File Certain Employee Plan Returns l Form SS-4, Application for EIN l Form 5330, Return of Excise Taxes Related to Employee Benefit Plans This authority is valid only for the type of tax and for the years or periods listed on the Form 2848. The representative may be named for no more than three years into the future. The three future periods are determined starting December 31 of the year the power of attorney is received by the IRS. Form 2848 and the instructions for this form are included in this chapter at sections 25.03 [[fpm01.sgm][1248]] and 25.04[[fpm01.sgm][1249]], respectively. Many software programs that produce Form 5500 filings can also produce Form 2848. A fill-in Form 2848 in Adobe Acrobat format (pdf) is available at www.irs.gov/pub/irs-fill/f2848.pdf. The fill-in form is easy to use and has a professionally prepared look.

If A bought B they don't have to merge the plans if they can pass all the tests. The date of plan merger would be the date show in plan docs. Regardless of when the assets transferred. I don't know of any trustees who would take assets in plan to plan merger without the proper documentation.

I would make the distributions. Especially if that is how your plan is written.

Of course. You logic seems to be that since there is not letter you should not allow what the plan should allow. If this were true you couldn't make contributions either. You must operate the plan as the document is written.

I would use the date the compnay B plan resolution states they are merging into company A. There is the ability, subject to coverage and other tests, to keep both plans so I disagree with E's statement that it would be the date the company was bought. The date the Plans state the date to be is what is used. Didn't they have to communicate with participants that as of date X the plan will be come part of Plan A?

Is the plan is danger of being disqualified? Unless there is possibility of that I don't see why you should not follow your plan doc.

Isn't there also a way to use surplus assets to fund health care?

Alf, SMW (sheet metal workers) tell you up front it is an ESTIMATE and if the final calc is different - tough. Guess it depends on exactly what they told you. As far as being negotiable ............... I have only delt with a few multi's and it depends on the trustees. SMW are so underfunded they don't negotiate. Thing with negotiating is you have to start paying them what they calculated in ordertto have the right to negotiate.

Penman you have it right. Didn't the employer know at least a week ahead of time they couldn't make the funding required? I know for calendar year plans and sponsors it seems odd. But if you have a 12/31 sponsor and a 6/30 plan year end it really does make sense. The 5558 is due by due date of 5330. It only gives you extension (if approved) to file 5330, not to pay the excise tax. Then of course you will have additional filings of 5330 until the plan meets minimum funding.

Belgrath, I agree with you. I originally missed the 52% data point. terric, yes doing businnes with one another would cloud the issue.

Since wife is on husbands payroll you have attribution of ownership and a control group. Do these two have children? If they do you, again, have a control group. That means you have a control group situation. The $42K is total for group annual additions.

She should file for bankruptcy is she is single. He should write a will. Maybe after the bankruptcy they could get legally married. Are you sure they are considered common law? That had to be established before 1996. Did she take his name? Have joint accounts? Are addressed as Mr. & Mrs.?

v everett Tell him to pay his taxes and liens. Get legally married and draft a will. Conforming to what society expects isn't going to kill him.

If plan is written to allow it, non keys and non owners don't have to take RMD at 70.5 if they are still active. see what I get for talking and typing at the same time. I have to edit my post.

Richie, time for a group hug.

Better yet, disappearing ink.....................

Opps, as I reread I see they are still working. First read didn't catch that. Seems you do have an issue. I would show in part 3 with the nonexempt transactions, loan of plan to PiI. I would also make sure the fiduciaries in charge of this plan add on market interest for the time they have had the funds. That way they are not compounding their problem.

When I moved from Dayton last august I would have swore it was winter and fixing the roads. All that contruction at 70/75 was a nightmare.

Yes the can sign with 2848 POA. It can be used for 5500, 5330, 558 and SS-4. You have to list the form and tax years on 2848 when it is filed. Question back at you, where is plan sponsor? Does the POA know for sure 5500 is correct and is willing to sign it and P. Am guessing small plan with employer directing investments since they are signing P. Still begs the ??? where is employer/plan sponsor?

ERead, 1999 was the first year they added the barcode stuff and split the form into schedules. Don't think it has been so long............

Article posted on Benefits link today by EBRI - Employment based plan participation.

Maybe I don't understand the question, but the catch up is $4,000 for 2005 regardless of the plan limit. Example - plan limit is 10% and person makes $75,000. Plan limit for them is $7,500 and catch up is $4,000. Plan limit is 50% makes the numbers $14,000 and $4,000.