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If it helps, Treas Reg 401(m)(1) states.... "A defined contribution plan shall be treated as meeting the requirements of subsection (a)(4) with respect to the amount of any matching contribution or employee contribution..." The employee contribution piece is your after-tax piece. Your boss can't argue with the regs. Then again, if he didn't already know this then I guess he could find some wrong explanation to support his ineptitude.

I have never heard of anything like that either. My guess is that you may be looking for a SAS70 audit of internal controls for the plan auditor?

I had a similar situation recently. Please refer to my thread which will hopefully give you a little help. http://benefitslink.com/boards/index.php?showtopic=13526

Sara H, see if the employees that do not want the contribution would be willing to give it to me.

A 5 year graded schedule is fine. It only has to be at least a 6 year graded schedule. That is only for matching contributions. You can still do a 7 year graded for profit sharing contributions.

Yes. I would use the same procedures that MWeddell provided in his post. Unfortunately, I have never had to prepare 1099s so someone else will have to answer your question regarding this.

Could you please repost your question. I am having a hard time understanding exactly what you are asking.

If you can't do that, the answer to your question is yes. You are not following the plan document so it could become a qualification issue.

Because that is what Treas. Reg 1.401(a)-30 says to do. It is includable in 2001's income so it must be distributed by April 15th. However, the income allocable to the corrective distribution is includable in 2002's gross income.

You must refund the excess deferrals plus any allocable income to the participant before April 15th.

Find a new career! Just kidding. I personally think the PA-1 books are excellent for introductory purposes. I have also heard that Cannon Financial Institute has a good training program -- one week a year for four years.

Okay. Yes, you will have to basically map the document over and then restate/amend again for July 1st. Hope this helps.

Yes, you have to wait until July 1st to allow for the safe harbor provisions. All participants must receive a notice of the safe harbor provisions 30 days prior to July 1st. What exactly do you mean by convert?

You actually should limit deferrals to around 75 to 80% in my opinion. You need to leave some room for payroll taxes and other pre-tax benefits the employee's company may offer.

In my old life, we used Columbus Circle and I found they had problems reconciling cash. It became such a big problem that we moved to someone else. I was not too involved with the process at the time so I don't know the details of it. But maybe this will help you and others in deciding what vendor to use.

I don't know of any consequences that you could face from merging in the middle of a plan year. As long as your amendment addresses both issues, I don't see a problem with that either. Some administrators are particular and want two separate amendments but that is more of a matter of personal preference.

That is correct. If you are currently on an individually designed plan, you have until 2/28/2002 to execute a certification of intent.

Could you post it on this thread? That would be great!

You don't have to have profits to make a profit sharing contribution. You can make either a match or profit sharing contribution. It all depends on how you want to setup the plan but the fact that you are not not for profit should not hinder you. If you do not want to make employer contributions, you may want to consider a 403(B) plan.

Can a governmental entity establish a SIMPLE IRA?

Yes, I agree with that point of course. What I meant is if no one has completed 500 hours for the current plan year then it is permissible. Unless they are marathon workers, no one is going to have that many hours for a plan year that started on 1/1.

Yes, it is permissible. You are not getting rid of any benefits so this would not violate any anti-cutback rules.

I don't believe they are required but most prototypes include the trust provisions.

There is an employee that was terminated in 1999. This employee is an attorney and received wages due to a pending settlement over the last couple of years. He received his final settlement wages (W-2) in late 2001 even though he is terminated from the employer. Does the employer still have to contribute to the SEP for him?

I have erred in my ways but I have seen the light! Sorry for the misinformation.