Buckoosier

Can the spouse of a 1/3 owner of a company service as the broker for a 401k plan?

Thanks you for these comments.

A participant bought a life insurance policy from a plan several years ago. During the time the policy was in the plan, he paid income tax against the "PS 58 cost" portion of the premium each year. Several years later he cashed out the policy, and there is now gain (relative to the original exchange price) that will now be taxed. For purposes of determing the gain, is the participant's cost basis the exchange price, or is it the exchange price plus the sum of the PS 58 costs?

Thanks

On a plan with a 1 year wait, with entry on the date of completion of the 1 year, Relius determines the otherwise excludable employees based upon the statutory entry date approach. How do I code Relius to use the plan's entry dates for determining otherwise excludable employees?

Upon termination of a plan, a participant (still employed) receives a distribution of her entire balance (comprised of employer securities, and some cash). Is this considered a lump sum distribution for reporting purposes?

A 401(k) plan has a recordkeeper platform offering a significant number of mutual funds as its only current investment option. The recordkeeper charge is 50 basis points. The plan is considering adding a managed brokerage account where a participant would be subject to a minimum annual advisory fee of $5,000. Would this managed account option be considered discriminatory because of its relatively high fee?

That's what I thought, thank you for your input.

I have a client that employs a minor child of the owner, and the child was paid $20 for the year. Is there a de minimis amount of compensation that should be paid in order to include this HCE child in the ADP test?

Thanks. On a related topic, can you always use the DOL online calculator to determine lost earnings?

If a 401(k) plan has late salary deferrals and makes a deposit of lost earnings to the plan, but does not file a form 5330 to pay the excise tax, what are apt to be the consequences to the plan sponsor?

Thank you

We recently took over a 401(k) plan that just received a “compliance check” notice from the IRS because the beginning of the year asset value on their 2012 form 5500 was different from the end of year asset value on the 2011 5500. Has the IRS always looked at this issue for 5500s, or is this a new IRS initiative?

Thanks, I found some helpful discussions.

Suppose a corporation has a profit sharing plan and a fiscal year that ends on 12/31/13. If the employer sends a check by mail on 3/15/14 for a 2013 contribution (2013 corporate return is not extended), is the contribution considered deposited in time to be taken as a deduction for 2013?