maverick

I've been using Datair for 3.5 years and agree with earlier comments (fast, quick to update, good support). Also, the testing module is first-rate and the cost is reasonable. I'm one of the beta testers and like what I see so far. The "look" of the windows version is the same as their windows-based systems for documents and 5500's.

Situation: SARSEP plan year runs 8/1 to 7/31. Employer wants to make SARSEP contribs 8/1/04 to 12/31/04, then start a SIMPLE 401k 1/1/05. I checked the SEP/SARSEP/SIMPLE forum back to "the beginning" and did not see a relevant post. Sal's 2004 ERISA Outline (chap 12, section V, pg 12.33, sub-par 1d) discusses the exclusive plan rule for non-calendar plans, and gives an example of a fiscal year SARSEP maintained for a portion of the calendar year. I am lead to believe that if SARSEP contributions stop 12/31/04, it would be okay to establish a SIMPLE 1/1/05. But on the previous page (sub-par 1c) it says "If the qualified plan is not maintained on a calendar year basis, the employer must make sure no benefits accrue under the plan for any plan year that begins or ENDS (emphasis added) within any calendar year in which the SIMPLE plan will be in effect. My idea would be to "terminate" the SARSEP 12/31/04, then there wouldn't be a plan year ending in 2005, the first year of the SIMPLE. Thoughts? p.s. Sorry for the long post, I wanted to lay out the entire scenario.

I agree with Demosthenes. Also, if the fee is included on the 1099-R and the person is subject to the early withdrawal penalty, he'll have to pay 10% of the fee to the feds [and 3.33% if a Wisconsin (aka, the tax h*ll) resident].

I'm schedule to take DC-2 on August 10th. After goofing around for several years, I decided to get my a** in gear. Finished DC-1 in May. Just think, only 40 more days to study!!

I submitted det. letter request with both parts of the match formula blank (percent of match, and max deferrals that would be matched). The IRS came back and said complete one or the other. Since then I've been completing the match as follows: - matching contribs: discretionary each plan year, proprotionate to the elective contributions made on behalf of a participant - limitations on matching contribs: the employer shall not make matching contribs with respect to elective contribs in excess of 6% of a participant's compensation

No restrictions that I know of. We just did one of these. The guy's Dad came by, picked up the forms, took them to the local jail, and got all the required signatures.

I think it used to be acceptable to "deliver" a SAR by posting it on the company bulletin board, but not any more. Corbel's 5500 Filing Guide (2003 plan years), page XIX-10 says: "A plan administrator may use any of the following methods to distribute the SAR: 1) hand delivery 2) as a special insert to a periodical distributed to employees (e.g., a company or union newsletter), if the number of participants to whom the periodical is delivered is comprehensive and the periodical includes a prominent notice on the first page advising employees of the special insert 3) electronic media (e.g., email) 4) mail (first, second, or third class)... The plan administrator may not distribute the SAR by posting the SAR."

I just had the same problem. We amended the plan to allow rollovers from all employees (not just eligible participants).

Earl, the other day I was looking at the Form 8109-B instructions on the December 2000 version and noticed the option for sending $$ to "Financial Agent, Fedeal Tax Deposit Processing (etc.)". That option was not on the version we had been using (October 1996), although it did include a section titled "Deposit at FRBs" (which isn't on the 2000 version). After having problems in the past with 8109-B 945 deposits being rejected because of "inactive" (for lack of a better word) trust ID numbers, I've been depositing 945 deposits under the employer's ID #. You still have to hassle with having the custodian cut a check payable to the employer, having the ER deposit the $$ in its checking account, then cutting another check to get the withholding deposited. This Financial Agent ooption sounds too good to be true. Have you tried it? Thanks.

Not that it has anything to do with this thread, but I know someone whose employer mandated direct deposit of payroll. Then he wanted to charge the employees $2.00 each payday. After a near-mutiny, he "re-thought" the idea. In this case, I'd like to know why the employer wants to charge for each loan payment. If he's trying to discourage plan loans, why not just eliminate them completely?

The numbers might be in block 7b because a terminated participant took a partial distribution (not necessarily an annuity). We don't use Relius, but out software does the same thing.

Concur with EDSAADE's recommendation. I just received the study outline for ASPA's DC1 course (part of QKA designation), and guess what was in the box? A set of Sal's 2004 ERISA Outlines. I have a CEBS designation, but am going for a QKA because the course of study directly relates to what I do every day.

How about FUBAR (fouled up beyond all recognition) - a plan that's so screwed up the only option is to terminate it, bury the documents, and hope it never gets audited. Have a good weekend. p.s. What does WDIK stand for? Only thing I can think of is "what do I kare".

Tom, wasn't it "Kate Smith MD"? When I first saw it, I thought of the singer.

ljr: Comment noted. Even though 941 payroll withholding and 945 distribution withholding are reported correctly, it doesn't surprise me that the IRS could mix them up somehow. During my 20 years in the Marines, I frequently heard the comment "Close enough for government work.".

After running into this problem several times I stopped using the trust EIN for 945 reporting. All 945's are now prepared using the employer's EIN. Just make sure the tax is deposited using the ER's EIN.

I tried looking up an EIN using freerisa.com and did not get a hit. I think freerisa.com's database only includes EINs of companies that sponsor qualified plans -- can someone confirm? If true, is there another website with a database of all EINs issued by the IRS? Thanks.

I seem to remember that either the IRS or DOL published a brochure on QDROs, but could not find it on their websites. If there is something available please provide the link. SITUATION: Divorce decree says Jane gets 50% John's 401k. Attorney for John doesn't want to do a qdro because "it's not in the divorce decree". I guess he just wants John to take an in-service dist and give the money to Jane. Doesn't make sense to me, since dist would be taxable to John, and he would have to pay early w/d penalties. I'd like to give John's atty something that explains the nuts and bolts of QDROs. Thanks.

Thanks for your responses. Withholding was 4,200.

Situation: Distribution processed December 2003 and 20% federal withholding was taken. The 20% w/h was not deposited until January 2004. Okay, the 2003 1099-R will reflect the distribution and withholding, but do I need to wait and report the withholding on the 2004 945? Thanks. p.s. Called the client and asked why the w/h was not deposited in 2003, he said "I was waiting for you to call and tell me what to do.". Go figure.

How about comparing unit prices on the two days to get the return? Hopefully capital gains weren't paid in between. You can get daily prices on yahoo: http://chart.yahoo.com/t?s=FNPEX&g=d

Check Benefits Buzz, there's a link to Fidelity's 2002 report. As of 8:54 a.m. (central) it's the second item. http://buildingfutures.fidelity.com/executive.html

If the person is a reservist, he or she should have active duty orders showing beginning and release dates. Also, after a certain number of days are served on active duty, a form DD214 is issued. It shows beginning and ending dates. It's been 14 years since I retired from the Marines, so I don't remember the cut-off for a DD214. I think it used to be 180 days.

I agree with FundeK. We had a plan with 32 participants, of which 27 had outstanding loans!!!! Subsequent to receiving the loans, 2 or 3 also took hardships for 100% of the account balance (less loan).

Belgarath: In 7+ years I have not had one participant select the annuity option.