pmacduff

So Bob - I don't have to include all of that stuff about "other" employer contributions (that MAY be made) in the notice, as long as I include the info relative to the safe harbor? As I mentioned, the model notice I am looking at is VERY comprehensive....

I was looking for feedback from others regarding the 2006 safe harbor notices. At the ASPPA conference, everyone was talking about the "new" notice requirements. We have been using a notice which I think is pretty comprehensive, but when I look over the "new" notice template, I see it contains much more information especially regarding "other" employer contributions to the plan, availability for withdrawal of those other contributions, vesting, etc. Is it really required to have all of that additional information in the SH notice? Our notices have always including information regarding eligibility and withdrawal restrictions as it pertains to the safe harbor contributions, but not on the other employer contributions that MAY be made. One of the IRS speakers at the conference said that notices by reference to the doc or SPD that didn't spell things out would probably not be acceptable. any input appreciated.

Can the safe harbor match count towards the gateway minimum? I know this should be an easy question, but I couldn't find a thread referencing and all of my cross-tested clients, to date, were using the SHNEC and are top heavy...I seem to remember something about 'non-electives' being counted, so I thought maybe the SHMAC doesn't. Any help appreciated.

Hi Tom - never had a chance to catch up with you & say "Hi" but alot of people were buzzing about the "IRS rubberband gun"...I heard comments from the session and then throughout the rest of the time I was there. I heard one girl musing that she wondered if you had built that thing yourself !

I had a trick or treater come to the door as a "water closet". She opened the bowl for the candy. I thought it was probably one of the most original I saw, but many I've told say "eeewww a toilet...GROSS"...so much for originality !

Seems to me I recalled a past thread on this, but I can't find it. I have 5 plan years on the system for a client from inception to current date. I want to run a report to pull the cumulative 401(k) contribution amounts for all participants for all plan years. Is this even possible? Anybody have a Crystal report that does this...Tom....??? Thanks in advance !

Janet - I agree about the non-keys, but I thought that owners were specifically required to take them, even if still actively working...?

jevd - I think you are S to the 5th power with those kids!

CBMMN - how about "don't fear the gateway"...by the same band !

rcline46 - that's what I thought. I'm just wondering if there comes a point when all the "old" plan year data is slowing down my system. I'm no computer expert, so I don't know if it would have any impact on performance.

Relius users: How many past plan years do you maintain on your system for your "active" plans? I know that if I backup and remove, for example, 2003 and 2004 plan years for a current client and then upgrade to version 10.0, I won't be able to import them back in. I know I can upgrade first, and then export the plan years, but then what happens when I'm ready to upgrade again? I know that if I want access to any past years, I should reimport them prior to the upgrade, but I can't imagine everyone does that for all clients...or do they? Any input is appreciated.

sometimes... if you go to the "Processing Menu"; "Balance Update" and "Set Trade Date Field"...perform that function and then try and rerun your gain/loss allocation. It has worked for me before, but not always......hope this helps.

that's actually what we're going to do, I just wondered if anyone had submitted an over 50 group and what the charge turned out to be.

Does anyone have any experience with the IRS program with regard to over 50 "lost participant" requests? I have some information that tells us that requests of over 50 employees will be billed at $1750 plus $0.50 per person. (Up to 49 is free.) We have a client with approximately 60 lost participants. It's hard to explain to them why the cost jumps from $0 to $1750 when they are only over by 11 participants. I know the line had to be drawn somewhere...... You must submit a preliminary letter for review prior to sending in the over 50 requests. Is it possible that the IRS reviews each case individually and, when they respond to advise if the letter is acceptable, then provide you with a fee that might be more reasonable? Any experiences/thoughts appreciated.

just another guess...the advisor doesn't want the client to know that he's getting $50 and you're getting $25......

We advise the participant that the refund portion was an ineligible rollover and must be distributed from the IRA. We then issue 2 1099-R forms, one for the refund and one for the rollover.

Quite a few years back we had a dentist get his "hand slapped" upon IRS audit when it was discovered that he funded his $30,000 profit share in the first quarter of the year, but didn't make the staff deposit until the last possible date in the following year (always went on extension.) The auditor cited what Belgarath has said, that the dentist's prefunding was discriminatory because it was receiving earnings for a much greater period than the staff contributions. Don't know what they would have said if the account lost money, but they were concerned with the deposit timing. They told the dentist that all future deposits were to be made at approximately the same time. No fine or anything....

Many years ago (30+) my Mom worked for a big oil company in a program they called "casual labor". She was paid directly by the company, not through a third party. I think that the group was actually like the "per diems" of today; i.e., they were called in for certain projects, no guarantee of hours, no benes, etc. BTW - they more often than not wore blue jeans and sneakers........ oh yeah blue jeans, sneakers AND tee-shirts..didn't want anyone to think it was risque' or anything.........

Thank you very much !

I don't do much with SIMPLE plans and someone has asked if the SIMPLE can be aggregated with the person's personal IRA accounts for purposes of the 70 1/2 RMD calculation and distribution. It seemed logical to me that this would be ok, but I couldn't find an answer in print. They are aware that any Qualified Plan distributions must be taken from the plan as a stand alone. Any help is appreciated.

A.) (It is my opinion that the hardship is really not related to the loan.) The participant would be eligible to take 25K if the account had that much $ and the plan allowed for it (deferrals since inception). That being said, you can't take what's not there. I say the max hardship is $12,150, the "cash" balance available. I know that this question has come up before because the hardship does not leave 50% of the balance as security for the loan but I believe I read somewhere that as long as the loan followed the terms of the plan at the time of the loan, you're ok to do the hardship subsequently. Sorry I don't have cites. Others??

Thx Pax - an actuary & cowboy on the same page and as "best" and "worst" to boot....there must be a good one liner for that!!!!

The client wants the 401(k) portion to match up to the W-2 info because it gives the participants a double check between the W-2, plan statement and investment statement they receive. I don't know if there were maybe problems in the past on the deferral side (we are taking this plan over). We use Relius and can code fiscal wages in for allocation purposes while using W-2 for ADP/ACP and reports but I didn't know if this was ok or if the plan had to state....

I know this should probably be a basic question, but I've been struggling with it a bit...client has a calendar year 401(k), but the fiscal year ends March 31st. They never utilized the profit share feature, but a discretionary profit share has always been available in the plan. (Plan doc is a standard prototype). They want to start profit share contributions, but would like to base the profit share allocation on the fiscal wages, not calendar. Document defines comp as W-2 with adjustments for all pre-tax. Is there any reason that we can't allocate the ps on fiscal comp? We get quarterly payroll, so the data is there but I'm thinking that the plan doc does not ask separately for comp used for allocations. Does this mean the plan doc would have to be changed to a non-standard or individually designed? thanks in advance for any/all replys...

Austin - I would report her as a "D". I assume per the Plan that upon rehire she is no longer entitled to distribution until such time as she "reterms", retires, dies, etc. and if so, "D" is the most logical. hope this helps.