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Belgarath

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  1. Like
    Belgarath got a reaction from GMK in Happy 11/12/13   
    Maybe your wrapping technique needs to be more efishent.
  2. Like
    Belgarath got a reaction from 401king in Start a 401k plan   
    Deadlines? Whaddaya mean? We all know all you have to do is push a button...
  3. Like
    Belgarath got a reaction from wvbeachgirl in Start a 401k plan   
    Deadlines? Whaddaya mean? We all know all you have to do is push a button...
  4. Like
    Belgarath got a reaction from K2retire in Start a 401k plan   
    Deadlines? Whaddaya mean? We all know all you have to do is push a button...
  5. Like
    Belgarath got a reaction from Bill Presson in Start a 401k plan   
    Deadlines? Whaddaya mean? We all know all you have to do is push a button...
  6. Like
    Belgarath got a reaction from K2retire in Anyone taking CPC test in November?   
    Congratulations and good luck.
    I'm now at the stage where, to steal a phrase from Simon and Garfunkel, "Well I've paid all the dues I want to pay..."
  7. Like
    Belgarath got a reaction from ETA Consulting LLC in Enchanced Safe Harbor Match   
    What about capping only the highly compensated employees? The SH match only requires the NHC to receive the minimum amounts already discussed. Realistically, no NHC could ever get to the $10,000 cap anyway, so this would only cap HC's, which appears to be what is intended? Am I missing something? (quite likely...)
    I'm assuming there is no top paid limitation group issue in effect here.
  8. Like
    Belgarath got a reaction from Below Ground in What is the procedure for a terminated participant to maintain ownership of life insurance?   
    Well, that's by no means the only solution, particularly if the participant wants to avoid current taxation and (possibly) premature distribution penalties.
    First, think "Fair Market Value." Although Cash Value and FMV are often the same, often they are not. But let's assume they are for the moment.
    Participant should be able to buy the policy from the plan for FMV. She writes a check to the plan for $13,000, plan assigns ownership of the policy to her. No taxation, and now she can roll her entire account balance in the plan over to an IRA if she wishes - (I'm assuming this isn't a DB plan that prohibits lump-sum distributions.).
    Sometimes a maximum loan is taken by the plan trustee and policy immediately then assigned. This reduces taxable distribution, but participant now receives a policy with an outstanding loan.
    There are additional "wrinkles" to this, potentially involving "taxable term cost basis" that require more detailed answers than I have time for now. The insurance company and/or agent should be able to provide you with this type of information - the fancier footwork typically involves policies with higher FMV.
    Hope this helps.
  9. Like
    Belgarath got a reaction from ETA Consulting LLC in Max Loan Limit   
    In your situation, I would read this to allow a 6,000 loan.
  10. Like
    Belgarath got a reaction from ETA Consulting LLC in Employee rehired after plan started   
    I believe they must enter immediately. In order to totally disregard this service for eligibility purposes under the "rule of parity" the employee must have been a PARTICIPANT at the time the break periods begin. I grant you that this seems ridiculous, but that seems to be the literal interpretation of IRC 410(a)(5)(D) and ERISA 202(b)(4). Never quite understood the sense of this, but my early mentor in this business told me to never try to make sense out of it all...
  11. Like
    Belgarath got a reaction from Bill Presson in Participant count for 5500 form - welfare benefit plan   
    I have to give them credit - the DOL person who gave this answer called my co-worker back yesterday, and said that after thinking about it she had given an incorrect answer. So this DOL person does agree that you wouldn't count them in this situation.
  12. Like
    Belgarath got a reaction from Bill Presson in welfare plan dfvc - missing 1st 2 yrs   
    Just tossing out a thought FWIW. Why even bother with an SAR other than for, say, the last 3 years? It isn't filed with anyone, and there's no specific penalty involved. If the DOL or a participant asks for one, then of course you must produce one, but it seems unlikely they will.
  13. Like
    Belgarath got a reaction from John Feldt ERPA CPC QPA in Who's a good service provider for a super-micro 401(k) plan?   
    TANSTAAFL. (There Ain't No Such Thing As A Free Lunch.)
    No one can afford, as a TPA, to provide excessive handholding/telephone time/letters/client visits, etc., for a client who refuses to help themselves, without charging for it. Either the base fee is higher, or there will be hourly charges, or maybe some revenue sharing, or some combination, etc., etc...
    Or at least no one can afford to do this for free for very long. Those people are called former TPA's.
    Most good TPA's will provide as much service as you want/need. So the question is: how much is the client willing to pay? If he requires lots of service but isn't willing to pay reasonable fees for the time/services required, then most TPA's are going to drop him as a client. (Well, maybe I shouldn't speak for others - I'll just say that WE would drop him.)
  14. Like
    Belgarath got a reaction from WDIK in hardship from roth rollover   
    I respectfully (and strongly) disagree. The section you cite is in fact referring to "employer contributions made to a plan pursuant to a cash or deferred election..." - take a look at 1.401(k)-6, which defines "elective contributions."
    Rollovers are not made pursuant to a cash or deferred election. The employee has no option to receive a rollover as cash compensation from the employer.
  15. Like
    Belgarath got a reaction from John Feldt ERPA CPC QPA in What is the procedure for a terminated participant to maintain ownership of life insurance?   
    First, although it sounds like nitpicking, she's trying to avoid CURRENT taxation. If she pays it to the plan, then rolls her account to an IRA, it'll get taxed eventually when withdrawn. On the other hand, she'll now have a policy with a FMV of $13,000.
    I don't have an opinion as to whether this transaction is beneficial from a tax viewpoint or not. Dangerous to guess when you don't know someone's full financial situation, both current and expected. I'm only giving options.
    In addition, I'm not a CPA or financial planner, so my free advice, if I were able to give it, would be worth the cost...
  16. Like
    Belgarath got a reaction from Bill Presson in What is the procedure for a terminated participant to maintain ownership of life insurance?   
    Well, that's by no means the only solution, particularly if the participant wants to avoid current taxation and (possibly) premature distribution penalties.
    First, think "Fair Market Value." Although Cash Value and FMV are often the same, often they are not. But let's assume they are for the moment.
    Participant should be able to buy the policy from the plan for FMV. She writes a check to the plan for $13,000, plan assigns ownership of the policy to her. No taxation, and now she can roll her entire account balance in the plan over to an IRA if she wishes - (I'm assuming this isn't a DB plan that prohibits lump-sum distributions.).
    Sometimes a maximum loan is taken by the plan trustee and policy immediately then assigned. This reduces taxable distribution, but participant now receives a policy with an outstanding loan.
    There are additional "wrinkles" to this, potentially involving "taxable term cost basis" that require more detailed answers than I have time for now. The insurance company and/or agent should be able to provide you with this type of information - the fancier footwork typically involves policies with higher FMV.
    Hope this helps.
  17. Like
    Belgarath got a reaction from K2retire in lifetime income illustrator   
    Tom - I think, as TPA's, we probably all know in whose lap the responsibility is likely to fall...
    Now it is time to rant a little bit.
    My own feeling is that the DOL should require only a website URL/LINK on the statement that refers them to the DOL website for the calculator. Then the DOL can have whatever assumptions they want on the calculator, as well as any disclaimer language, and the statements can have just a canned statement, developed by the DOL. This stuff about requiring the payment amounts on the statements is utter foolishness, and in my own cynical view, is being pushed (under the guise of helping participants) by those who have or will obtain a financial stake in lifetme payouts, as well as some well-meaning but sadly misguided do-gooders. I hasten to say that I have no evidence whatsoever to back up my cynicism.
    The simple fact is, whether you like it or not, that most participants in DC plans don't want, and will never take, a lifetime monthly payout option!
    Rant over. For now.
  18. Like
    Belgarath got a reaction from masteff in lifetime income illustrator   
    Tom - I think, as TPA's, we probably all know in whose lap the responsibility is likely to fall...
    Now it is time to rant a little bit.
    My own feeling is that the DOL should require only a website URL/LINK on the statement that refers them to the DOL website for the calculator. Then the DOL can have whatever assumptions they want on the calculator, as well as any disclaimer language, and the statements can have just a canned statement, developed by the DOL. This stuff about requiring the payment amounts on the statements is utter foolishness, and in my own cynical view, is being pushed (under the guise of helping participants) by those who have or will obtain a financial stake in lifetme payouts, as well as some well-meaning but sadly misguided do-gooders. I hasten to say that I have no evidence whatsoever to back up my cynicism.
    The simple fact is, whether you like it or not, that most participants in DC plans don't want, and will never take, a lifetime monthly payout option!
    Rant over. For now.
  19. Like
    Belgarath got a reaction from GMK in lifetime income illustrator   
    Tom - I think, as TPA's, we probably all know in whose lap the responsibility is likely to fall...
    Now it is time to rant a little bit.
    My own feeling is that the DOL should require only a website URL/LINK on the statement that refers them to the DOL website for the calculator. Then the DOL can have whatever assumptions they want on the calculator, as well as any disclaimer language, and the statements can have just a canned statement, developed by the DOL. This stuff about requiring the payment amounts on the statements is utter foolishness, and in my own cynical view, is being pushed (under the guise of helping participants) by those who have or will obtain a financial stake in lifetme payouts, as well as some well-meaning but sadly misguided do-gooders. I hasten to say that I have no evidence whatsoever to back up my cynicism.
    The simple fact is, whether you like it or not, that most participants in DC plans don't want, and will never take, a lifetime monthly payout option!
    Rant over. For now.
  20. Like
    Belgarath got a reaction from K2retire in Credit for prior service within controlled group   
    See what I mean? So you take whatever approach you or your attorney feel comfortable with, and run with it. Believe me, I can (and have, when it suited my purposes) use QDROphile's approach.
    "Go not to the Elves for counsel, for they will say both no and yes."
  21. Like
    Belgarath got a reaction from masteff in A chuckle for the day   
    King Ozymandias of Assyria was running low on cash after years of war with the Hittites. His last great possession was the Star of the Euphrates, the most valuable diamond in the ancient world. Desperate, he went to Croesus, the pawnbroker, to ask for a loan.
    Croesus said, "I'll give you 100,000 dinars for it."
    "But I paid a million dinars for it," the King protested. "Don't you know who I am? I am the King!"
    Croesus replied, "When you wish to pawn a Star, makes no difference who you are."
  22. Like
    Belgarath got a reaction from MoJo in A chuckle for the day   
    King Ozymandias of Assyria was running low on cash after years of war with the Hittites. His last great possession was the Star of the Euphrates, the most valuable diamond in the ancient world. Desperate, he went to Croesus, the pawnbroker, to ask for a loan.
    Croesus said, "I'll give you 100,000 dinars for it."
    "But I paid a million dinars for it," the King protested. "Don't you know who I am? I am the King!"
    Croesus replied, "When you wish to pawn a Star, makes no difference who you are."
  23. Like
    Belgarath got a reaction from ETA Consulting LLC in Are Church 401(k) Plans subject to 401(k) and (m) testing   
    Ah, good point!!
  24. Like
    Belgarath got a reaction from MoJo in Is a DB plan best for my situation?   
    I don't think anyone can advise you what is "best" without a detailed knowledge of your financial situation.
    Having said that, a couple of comments.
    First, since you are talking about contributions that over the next several years are likely to be at least several hundred thousand dollars, I think it is worth your while to engage the services of an independent actuary to discuss and answer your questions.
    Second - be very careful of advice from a person who is trying to sell a plan based upon commission-based products. The typical 1st year commission on a whole life policy is 50% or more. I'm not implying that anything unethical is proposed or going on, but there is an inherently powerful incentive for less than objective advice in such a situation.
  25. Like
    Belgarath got a reaction from masteff in Simultaneous Loan & Hardship   
    I suspect the "$10,000" the investment agent is referring to is actually the $10,000 exemption from the premature distribution penalty tax for a first-time homebuyer distribution from an IRA. This does NOT apply to a 401(k) plan.
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