Jim Chad

Participant bought a house (primary residence)with a Partner some time ago. Now, they do not get along and Participant wants to buy the other half of the ownership of the house. Does this qualify for hardship withdrawal? Could a loan be for 30 years?

I am trying to figure out what to quote for adding Roth in plan transfers. It seems like most of the work is at the time of the transfer. I will need to: 1. Set up new sources on my computer for each old source being rolled. 2. I will have to set up new accounts for each new source. I am guessing this will take 20-30 minutes. (I'm slow, I know) At distribution time, how much extra time will be needed? Does anyone have a Roth distribution checklist they would be willing to share? (or help me build) Things like "Is there a recapture?"

I once saw this done so that the Summary Annual Report, showing a huge amount of money for the owner, is not distributed to everyone.

I think that a government plan would have everything except testing and 5500. Can anyone think of something I am missing?

I agree. This is not a legal SHMAC.

By the way, yes this is a doctor plan and we go up to the 415 limit every year.

We have been looking at this for a while and I am just not sure. 12-31-2011 SHNEC and discretionary non-elective were missed. I think we have to put in the SHNEC. Does anyone know off the top of your head if this has to be VCP filed? I think we cannot put in the discretionary non-elective. But here is my problem. All employees received statements showing they would get this contribution.....that it was a receivable.

WFIW I believe you are correct.

FWIW I would use the cash surrender value.

The rest of the story is that if they do they will disqualify the SIMPLE Plan. And some people think the penalties aren't too bad. This is being considered here. Does anyone know what happens to employer money that has already been deposited?

A company wants to start a 401(k) plan now, for the usual reasons. They just started deferring in May so the 3 Participants don't have much money yet. I know that if they take the employee money out of the disqualified plan this year, the taxes are a wash. But they each have between $100 and $200 in employer match? How is the match money handled?

A company wants to start a 401(k) plan now, for the usual reasons. They just started deferring in May so the 3 Participants don't have much money yet. I know that if they take the employee money out of the disqualified plan this year, the taxes are a wash. But they each have between $100 and $200 in employer match? How is the match money handled?

The DOL says this is just for the investment chart. Are people treating this as being for the whole 404(a) disclosure?

Around 2004, (I think) I had a Plan audited by the IRS. they had made the Th for everyone who met the 1 year eligibility for PS. But they let people defer after 90 days. They were told by the IRS auditor they had to make the TH for these people or the plan would be disqualified.

FWIW. MY services are targeted for the small business owner that is wearing so many hats, he doesn't have time to read the letters he gets. Is this client in Michigan?

First: What I read was something from the IRS website a telling auditors what to look at. It includes sample language of many regulations. I don't remember how long ago i printed it. Bottom of page 3 says" [Note to reviewer: If a plan that permits catch-up contributions limits the amount of Elective Deferrals a Participant is allowed to make, the limit may not be a percentage that is less than 75 percent of compensation.] My Situation. Owner has comp around $35,000. So when ADP fails and refunds are made, owner has highest percentage and causes failure but lowest dollars. So the refund hits the other two HCE's.

Is it still legal to limit HCE's to 4% of pay to get them into catchup area sooner? Ii read something today that makes me wonder.

I believe the 5330 is note filed in the usual way. it is just filled out to show the calculation and sent in with the stack of paper as a VFCP filing.

FWIW I would think no because cash is not a security.

As for what steps: Amend document to remove participant direction is the only thing i can think of. Also, tell the employees ahead of time if they are going from quarterly to annual statments.

FWIW I think it is OK.

Great idea! If not, I will help you make one. Would you know how to post it on here? Other items for checklist would be payroll issues. Do they know what Roth means? Can they handle downloading to the investment comapny? Takeoff tickler lists or put on as needed for Safe Harbor notice and 404 notices

I can tell you that. Yes there is a formal submission that is supposed to go the DOL. If you go to the DOL website you can download both the application and the checklist. By the way ....the checklist is supposed to be signed and sent in with the application. And the checklist gives some help in deciding if a Form 5330 needs to be filed with the IRS.

yes if this excludes all HCE's. Beware of low income owners by attribution. I would suggest you also exclude all HCE's in the doc. On the other hand, if you pass coverage, I don't see why you couldn't do this.

Well, he is going to get a 1099 next January. I know of no requirement to notify him now. But I always do as a courtesy.