Jim Chad

They should be posted in 2010 and they should affect testing etc. and you should charge to redo this work and to file VFCP. IMNTBHO

Mjichigan now has tax withholding on distributions. First question, Everything I have read says that monthly payments are now subject to mandatory withholding. Does anyone know if lump sum payments are subject to mandatory withholding? Second question: Is there any de minimus?

Do I understand you correctly? 3 non eligible employees received a benefit. What benefit?

I do not see any need to open an account and have a zero balance. If he has been given the option to defer, he is "covered". It is perfectly ok for any or all employees to choose to defer -0- for now. As far as a good paper trail if audited....I would want each employee to sign a form saying they have chosen to defer 0. And I may even want the form to state that they understand they will not receive the match if they don't defer. MY opinion FWIW

The big question is whether or not they are considered employees by the IRS. If they are, this company can have its own Plan and cover the 'leased' employees as well as the owners. If you want to exclude the leased employees, that gets more complicated and I recommend you look in either the ERISA Outline by SAL Tripodi or the book "Who's the Employer" by Derrin Watson.

FWIW I think this is legal. I think you may have a problem in future years if there an ours requirement that isn't met by some NHCE's.

Presently no other IRA's. He planned on selling the land before this IRA ran out of cash.

FWIW I think you are correct. Except for one issue. I am wondering about paying salaries of Plan sponsors employee. Is this allowed?

A tax client of our firm has an IRA that is all one piece of raw land. He is 75 years old and the RMD is about $9,800. How does he get cash in there to pay RMD and $3,200 pr property taxes?

I have one Plan with many alternatives. Right now we are looking at each Participant having a self directed brokerage account.

FWIW It is required to amend in and amend back out. But I always do both in and out on a one page amendment.

We dropped the prototype for EGTRRA and have not seen one time when we wanted it.

I am posting this here because many life insurance agents work with these plans. Does anyone know how or where I can get a copy of the MDRT information retrieval system?

FWIW I thought that the time as a leased employee would count toward eligibility at this employer. We always "try out" a receptionist by hiring form Victor temps. I researched this a while back and came to the conclusion that the 90 days she was an employee of victor temps has to be counted. Can anyone else shed light on this?

I believe that this will require all match contributions to be tested for ACP, because you are matching deferrals in excess of 6%.

I agree it is silly and no I don't know a way around it. Has anyone ever not contributed the full amount to the HCE and have it found on audit? I wonder what an auditor would do....

I think to do other than resign is helping a criminal hide criminal acts. I think the TPA has to resign and if Employee deferrals are missing from the Plan, the TPA has to report them to DOL. I say has to as in the "right thing to do". "Do what is right no matter the cost."

When running a BRF test, I don't think there is any requirement to do it the same as coverage or nondiscrimination. What do others think?

FWIW I think yes.

FWIW I can't see a problem with this. You could get this result by checking the box on the adoption agreement that says that Salary Deferral elections can be modified only on the first day of the plan year.

Did owners 3,4, or 5 ever own any of company A? When?

FWIW I agree with Erisatoolkit.

Are all of the payments in the "next calendar quarter grace period"?

I believe that under shared employees you have to count all of the comp and all of the hours. I think Derrin Watson has a section on this in the "who's the Employer" book.

If they are talking about no deferrals for one year, could they do a SEP?