Sully

A participant in a top-heavy cross-tested profit sharing plan who works less than 1,000 hours and is employed on the last day of the plan year is required to receive the employer top heavy minimum contribution. Are we required to include this participant in the non-discriminatory classification test and the average benefits percentage test? Would it make a difference if he worked less than 500 hours?

I have just taken over the administration of a 401(k) Plan from a reputable TPA firm. In looking back at last year's work I noticed that the employer was late in remitting some of their 401(k) deferrals. The 5330 was prepared and the excise tax was calculated based on the amount of the late deferrals. I have always calculated the excise tax on the 'use of the money', as if it is a prohibited loan. I thought it was accepted practice to base the excise tax on the loan theory. Am I missing something? Thanks in advance.

Trying to file a 5500-EZ today for a sole proprietorship. We just found out that the employer does not have a federal ID number. The 5500 clearly states "Do not enter your social security number", and we cannot get a number assigned today. Anybody have any suggestions?

When performing the top heavy ratio test for a 401(k) plan do we add back amounts that were distributed due to a failed ADP test?

Client would like to establish a SEP for 2001, but...... Client had a calendar year DB plan that was terminated in 2000. There was a contribution due for 2000 that was not put into the plan until after September 15, 2001. That contribution is being taken as a deduction on the client's 2001 personal return. The instructions to Form 5305-SEP say you may not use the 5305-SEP if you currently maintain any other qualified retirement plan. Is the above client considered to be 'maintaining' a qualified plan for 2001 and therefore unable to set up the SEP? Thanks in advance.

Anybody see a problem with an employer paying out a terminated participant with a company check and counting that distribution as a contribution? The concern is that the money is not being run through the trust.

Client restates their only plan, the 'XYZ Money Purchase Pension Plan', to the 'XYZ Profit Sharing Plan'. The trust and the trust ID number for the money purchase plan are under the name 'XYZ Money Purchase Plan'. We want to retitle the assets to the name of the Profit Sharing Plan. Can we continue to use the original trust ID number or do we have to apply for a new number under the name of the profit sharing plan? Is it possible to have the IRS change the name they have associated with the original trust ID number? In the future we will be using 'XYZ Retirement Trust' as the trust name on all of our plans.