abanky

thank you very very much.... what a wierd definition of employee contributions that is..

what about where it says in section 1.410(b)-5(d)(2)? It says "only employer-provided contributions and benefits are taken into account in determining employee benefit percentages. Therefore, employee contributions (including both employee contributions allocated to separate accounts and employee contributions not allocated to separate accounts), and benefits derived from such contributions, are not taken into account in determining employee benefit percentages." Aren't elective deferral employee contributions?

Thank you Andy, where can i find that in the code? Andrew

are elective deferrals included in calculating the abp in a straight new comparability ps? or in a cash balance plan/401(k) plan? I'm getting mixed signals from what I read.

Can someone clearify Section 72(d) for me? Specifically, I have an employee in a db plan with pvab of 200,000 and after tax employee contributions of 50,000 (interest not included). Plan does not allow lump sums. Do I have to offer the after tax contributions as separate annuity forms? or just have 50,000/200,000 (annuity form) be tax free? Thank you, Andrew

Thanks

i'm not sure of any provision... i couldn't find anything on it all last week, but i thought i read something about it before

under PPA, does the normal form for a single person have to be straight life or can it still be the actuaries decision (like life and 5)?

I've just taken over a 401(k) plan and I found that no schedule p has ever been filed for it... It was my understanding that all plans need to file a Schedule P signed by the trustee. Now I deal with mostly db plans, so maybe this is common for 401(k)'s. btw... the company is a normal s corp

Is there a government guidelined format for submitting a new new comparability plan? or will they except any format? if there is a format, does anyone know where I can find a copy of what they want it to look like? Thanks Andrew

My main question is... are lump sums no longer allowed?

First please forgive me if i seem a little ignorant regarding Nqdc's. My main question is regarding this point: Any provision that permits acceleration of the timing or form of benefit will result in immediate taxation of the entire account balance. This would include, for example, a provision that permits a participant to elect to switch from installment payments to lump sum. (i'm summarizing from a bulletin I received.) Now I have an employer funded plan who has a nqdc plan set up as follows: say a participant has a 5 year average salary of 100,000 at time of termination. They then project it 5 years at lets 6% interest and the employee receives a cash amount equal to what they would had they worked for the next five years. Now according to my understanding of the new law, an employer can't give a lump sum like that. Any answers or do i need to clarify? Thanks, Andrew

What are the restrictions to setting up a db plan for a nonprofit? Client is in her late 50's and has no retirement plan. She has high employee turnover so most of the contributionwould go to her. Anything I have to set up different then a normal db plan? Thanks, Andrew

I've a beginning of the year DB plan. The termination date was 4/30/04. Originally we planned on terminating the plan as of 12/31/03, but it was held up. On 1/1/2003, the required contribution was, lets say, $60,000. The unfunded liability was, lets say, $200,000. Around 11/30/2003, the client put into the plan $200,000 to fully fund the plan so that the termination process could begin. Well, since we couldn't terminate during that year, how do I report the excess contribution that was made during the 2003 year? I'm sure I didn't state all the facts, so I'll be ready for some questions. Thanks ahead of time, Andrew

if a participant receives a lump sum distribution because of a social security defined injury, do they get the 10% penalty for early withdraw. and if so, since a 1099 does not need to be attached with filing, do they have to have one reissued? thanks, Andrew

In my safe harbor 401(k), I have participants that are terminated. Now, I understand that based on the type of safe harbor I have, I must give all terminated eligible participants a 3% of comp contribution. My question is if a participant is eligible to participant on 7-1-03 and terminates 9-20-03, do I have to give them a 3% safe harbor contribution for their comp from 7-1-03 to 9-20-03 or do i only have to give a safe harbor contribution to participants who had entered the plan before the 2003 plan year?

Excuse me if I'm wrong, but isn't there a regulation change that is suppose to take place soon which will allow the use of 100% of current liability when calculating the Full Funding Limitation. If this is true, for what plan years will this be allowed or our we still waiting on the regulations to be passed?

Does anyone have any introduction material to cash balance plans? stuff like governement regulations, testing, limits and so on. Thanks, Andrew

Does a corporation which employs only a husband, his wife and their mother have to file a 5500 or can they file a 5500-EZ? Actually, the mother no longer works there, but receives a benefit from the plan.

if i have two HCE and I want to discriminate against one of them, what is the lowest allocation % i can give them, 5% or 3%. Thanks

In determining the amount available for a hardship withdraw, what sources are available to be used? Example. A participant has a vested balance of 5000, consisting of 80% salary deferral + gains and 20% employer match + gains. The participant has a need for all of the vested balance. Now Is 5000 available to withdraw? or Is 4000 available (only salary deferral)? or Is 4000 minus the gains on investment available? Thanks, Andrew

the bankrupt company participants makes up less than 2% of the total participant count for the peo, would that be a big enough percentage of participant to do a partial termination

I don't normally deal with 401(k) so forgive the terminology. We have a Peo who is currently with a single-employer non-safe harbor 401(k) plan. The Peo had a five year cliff vesting but now has a 3 year cliff for the 2002 plan year. Most of the companys that are now under the Peo's umbrella had merged their plans with the Peo. If a company with a 6 year vested schedule merged with the Peo in 2000 (service for participants starts from initial employment with company not Peo) and went belly up this current year,What is the best way to approach distributions? forfeitures? If a person had two years of service in the company, would he be vested on match 20%? or would he be 0% vested? or would all employees be automatically vested? If there is a forfeiture, where would it go? back to the company (which no longer exists) who matched it? Thank you

Thanks pax, this is exactly what I needed. Andrew

Thank you, I understand that it is an accounting statement, and that it is not necessary for the sponsor to complete, but I have been asked by an auditor to draft one. and I just wanted to see what it entailed before I told them no. Andrew