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I have always had the same problem with takeover plans. I have always had to manually calculate the date. I hope someone else can offer a better solution.

The surrender charges are usually very high. If the client becomes unhappy, it can be very costly to switch to a new provider.

It has been a while since I have performed some new comparability projections. Would someone mind looking over these for me and let me know if I doing it correctly. Thanks.

What about for excess deferrals after April 15th?

Going along with Butler, it would be a good idea to put some figures together to show them the benefits they are getting from tax deferred savings as well as the tax credit if they qualify.

I wish they would make that an investment election in my company 401k Plan.

That is correct. I have dealt with recordkeepers on numerous occasions that would not do peform a terminating valuation. Even if they did agree to do it, it is my experience that you can get it done 500% faster than the amount of time it would take them to complete it.

If the plan is balance forward with the prior recordkeeper you should have no problems doing a YTD valuation. The problem would be if it wascoming from a daily environment but I am guessing that is not the case. You should look at this as a way to make more revenue.

Can you get rid of optional forms of distributions (leaving just lump-sum option) in a 403(B) Plan (ERISA) like you can with most qualified plans?

In my research I have found out that a trust arrangement can be used in lieu of a custodial agreement for 403(B) plans. Treas Reg. 1.401(f)-1

The 1/1 eligibility wouldn't pick him up but the 6/30 one should. Are your contribution transaction effetive dates earlier than 6/30? If so you might need to rerun eligibility effective the day before you do the contribution. If that is not it I recommend calling Relius support.

I think you need to run an eligibility transaction each time a new participant enters the Plan. Relius needs the eligibility transaction ran in order to tell that this participant is now eligible. Just run an eligibility transaction every time you post a contribution.

That was bad...

Okay, I think I understand your question a little better now. You can use any reasonable method as long as the method is not discriminatory. Here is the method that Relius (Quantech) uses: "Total Refund Gain is the percentage of the total year-to-date gains for all relevant accounts equal to the ratio of the excess contributions to the total Beginning Balances plus Year-To-Date contributions for all relevant accounts. Relative accounts include ADP, ACP pre-tax match, and ACP post-tax match. Example: Total Refund Gain=1000*300/(15000+1200)=18.52"

How do you not have the records? All you need to know is 1/1/2001 beginning balance, contributions, distributions, etc. and the earnings number will be the number that gets you to the ending balance from the prior provider. This information should be able to be retrieved from your client.

I have found out the IRS has actually not issued any guidance on this issue as I am sure it does come up often. However, at the 2000 ASPA conference in D.C. during a Q&A session the IRS did acknowledge that treating this HCE as ineligible would be a reasonable approach. Jpod, just to further your point, the IRS has recently raised employment tax audits to a top enforcement priority. Being a CPA I have seen many people do this but I would not advise it anyone with similar circumstances.

I don't know for sure but I would guess that they are periodic so he will have something to live off.

Yes, it is an S corporation and he gets money out by doing the ol' "distribution of profits" trick.

I have an HCE (by ownership) that works for his company just like a regular employee. He does not take a salary from the company therefore he does not make any deferrals. Is he included in the ADP test?

That's what I thought but I did the ol' "doubt myself trick" and had to have a second opinion.

Can a non-profit 501©6 company setup a SEP?

It sounds like you may be able to put a ridiculously high amount in that blank and then you wouldn't have to amend the doc every year. However, I would check with the document provider to verify that is there intention. You could also do this and have the client write and sign this administrative procedure as their interpretation of the document to cover you and the client.

However, the TPA may have a CPA on staff that can sign the returns and is not required to have a power of attorney.

Here are what the instructions say: The form must be signed. The person who signs this form may be an employer, plan sponsor, or plan administrator filing a Form 5500, Form 5500-EZ, or 5330, a disqualified person filing Form 5330, an attorney or certified public accountant qualified to practice before the IRS, a person enrolled to practice before the IRS, or a person holding a power of attorney.

It is an ERISA plan and the client would pay all trustee costs. A bank would be trustee. The reason this came up is because a salesperson sold it this way and now we have to clean the mess from his ignorance. I think salespeople are just one level above lawyers! (Just kidding)