Jim Chad

I think I know the answer. But I hope I am missing something. 401(k) Plan was "cancelled last summer. The last money was rolled to an IRA on 2-3-12. Is there any way to start a Safe Harbor 401(k) prior to 2-4-13?

ESOP Guy That is exactly what I was looking for. Thank you very much.

I want to make up social security numbers to do proposals on my computer. I think I once read about a numbering convention that the social security uses that a series of numbers will never be used by them. I think I remember that if the 4th and 5th digit are 5, it will never be used by them. Does anyone know more about this?

Corbel has good programs for CE for ERPA's Also, the IRS phone forums count for about 1 hour a month. Also, ASPPA, of course.

I guess I don't know if there is a minefield regarding private placements. I have never dealt with one before. Any thoughts?

90% of the 401(k) Plan is the owner and his wife, other 10% belongs to two employees. It is trustee directed Plan, presently. Owner is in the financial industry and a very knowledgeable investor. He wants to invest $200,000 in a private placement. (Broker dealer has approved him.) He says he will be able to get a proper valuation every year. Do you see any problems with him buying it for the Plan as a whole? Should we make this Participant directed and have him buy it for himself only?

I see no reason for the Parenthetical "not less than 3%".....But that doesn't mean there is no reason. I would check with the document provider on this. I would not willingly go outside the guidelines for filling out the adoption agreement.

No. Eligibility is not a protected benefit. I don't see any problem with what you are trying to do.

Can I aggregate 401(k) and 403(b) Plans for coverage and nondiscrimination testing?

I would like to know what others think so I am going to start the discussion my stating my guess. I think the first payment is due on the 1 year anniversary of the start of the leave of absence. Thus the default / offset will not occur until the end of the cure period. With the cure period being the end of the calendar quarter following the calendar quarter of the missed payment.

I am still doing it. FWIW

No. The smiley face was for me. This the rare questions which had a simple, unambiguous answer.

Austin, FWIW I'm confident there is nothing immoral about it. The Participant still ends up paying the correct amount of tax.

ERISATOOLKIT, Thanks for the confirmation.

Does water and sewer shutoff notice qualify for Hardship Safe Harbor?

I heard that if you are efiling the 8955SSA, it does not need to be signed. Is this correct?

The only non partner 401(k) Participant I can think of is an employee? His 401(k) contributions would be deducted as expenses on the partnership return. Am I on the right page for your question?

FWIW I would think the short form is OK. However I do think that Safe Harbor Contributions would need to be reported separately form other Er contributions.

Plan doc has each person in own his category. This year cross testing won't work. Owner's comp is around $160,000 and the employees are around $35,000. When testing on an allocation basis, can I impute disparity at the $40,000 level instead of the taxable wage base. In other words can I get the same result as if I had no categories and just did a simple integrated calculation.

Thank you D Lewis

If this is a Safe Harbor Plan, you could lose TH exemption if you allocate to Participants. Nothing is ever simple!

The instructions for 5500 say to efile with a DFVCP statement. Does anyone have a sample of what to put on this statement?

FWIW I will be attaching a copy of the extension to every 8955 SSA, I mail after 7-31-12.

FWIW I think you could amend the plan to include other employer. Then look at who you want to be eligible and bring in enough people to pass coverage.

Is anyone mentioning email delivery of notices in the letter to the employer with the 404a notices? If yes, what are you saying about it? I am thinking of a paragraph that goes something like this. Email may be used to deliver a copy of this disclosure to anyone who uses a computer as a normal part of their job everyday. Paper copies of this disclosure should be distributed to everyone else as soon as convenient but no later than August 30th. (By the way, is August 30th the right date? Right now I am not sure of anything!)