Jim Chad

Maybe I can start the discussion by thinking on paper. First: the employer sponsors the Plan. He is the only one that can pay fees out of Plan assets. If the adviser sends the bill to the employer and the employer cooperates, I think it would be legal. FWIW I think it would be the same as paying my TPA fee for a loan. What do you all think?

Note that many document providers are not writing PPA amendments for GUST docs. So to amend for PPA by 12-31-09 means restating for EGTRRA by 12-31-09 and using that tack on amendment for PPA.

FWIW To summarize: the TPA took out money by mistake and put it back. I would leave it alone at this point.

You have told us what the payroll department is doing. But I wonder if the document doesn't already say you should be calculating it the way you want to. Does the document say the match is an annual calculation or a per payroll calculation? Also, having a last day employment requirement and paying the match every pay has many problems. There have been many discussions here. You may want to do a search.

If you give more to NHCEs than to HCEs that cannot cause you to fail testing. It can only help Question for you administrators out there. Would you put this in the QNEC account or would you put it in the deferral account? FWIW I would put it in the deferral account. Also, do they have to put in the full amount that would have been deferred or just half?

He opened accounts at Fidelity in 1993. And they sent him letters every year telling he may need to file a 5500. I give it a 50-50 chance that he actually signed adoption agreements.

FWIW This feels "not right". But I cannot see a particular rule being broken.

A client got busy and did not fund a solo MPP and 401(k) in 2001 thorough 2006. He did fund 2007, but was low due to a miscalculation. 2008 tax return is due next week. Also, he can find no documents. Plans were first funded in 1996. 5500's were probably never filed since Plan has never had a total over $100,000. Obviously there was small contributions and some bad luck on investments. For these questions we are just looking at cleaning things up the simplest way: 1. Would you recommend he put anything into the 401(k) to meet the ongoing contributions requirement? 2. When filing EPCRRS, would you do documents for TRA '86, GUST and EGTRRA? 3.Since he is the only hurt by the underfunding of the MPP, do you think we still need to go back and correct all of the underfunding?

If you are terminating the Plan you can move any size account to an auto IRA. Who is the investment company that will not pay your fee? I have had this experience with the American Funds Direct Platform and the old MFS. I found that when I pushed American Funds hard enough, that they would do it once at final payout and closing of the plan. Several TPA's I know, recommend against using "American Funds Direct" for this reason.

Blinky, I have wondered about this for a long time. Would you still say the formality of a written resolution is required for a Plan where the corporation is owned by one person. Or is verbal communication of his decision sufficient? I always feel silly having the owner sign the board resolution. Does everyone go through the formality? Do you do anything similar for a sole proprietor?

I don't see any problem. Employees who are not Participants have no rights in the Plan.

If one person has died and gets the current fixed match and the others get a smaller match, this would not really change coverage testing.. Then, you have the ACP test for nondiscrimination. Is testing this simple or can someone think of something else?

IMNTBHO I think you are close. If anyone has met any of the 3 exceptions, I believe you cannot change until next year. But I may be confusing this with the way non elective contributions work. I'm going to be interested to hear what others say.

I would not accept that for an answer. When the loan was done is was not the insurance companies option whether or not they wanted to liquidate part of the annuity. That is what they were required to do. I don't mean this in any mean way. no one knows everything. ( And some of us know a lot less than others LOL) But I really think that answer came from someone who is confusing the way life insurance policy loans work with the way qualified plan loans work. I would want to talk to someone higher up.

I believe the Corbel Prototype and Volume Submitter documents are both more flexible than this. I believe they have no restrictions on investments. Which would mean a doctor could get into a lot of trouble. I have one client in a single person Plan that invested in real estate. So far, this has not been too bad. Of course the law says you may not invest in coins, art or antiques.

This is not an "owner only" Plan. Right?

The only right way for him to get a smaller match is to defer a smaller amount. It is always wrong to do something different than a specific provision in the Plan document. I'm usually scared to death to use the words always or never....but this one I'm pretty sure about.

WDIK You are right. I found my notes from last year and I did send to EBSA. Getting old and senile stinks! Isn't that odd, since DOL has no jurisdiction over those plans?

I know we have been sending "regular" 5500s there since 2000. But I thought the 5500-EZ for one person plans still went to IRS.

Is it correct that we now send 5500-EZ to EBSA at Lawrenceville?

Of course, first thing is to look at the document. And that probably is clear s mud or you would not be on this board now. Here is my first thought FWIW, if the doc says to use comp only while eleigible, I would not use whole years comp. Otherwise, I would use whole years comp. I'm interested to hear what others would do.

FWIW I can't think of anywhere to look for an exception to the 20% withholding rule. It seems that the taxable distribution is $500,000.

Takeover 401(k) has a doc they say is Datair. It was signed in early 2007. The copy write date is "2002-2007". And the adoption agreement mentions EGTRRA vesting schedule. I would appreciate anyone's opinion or direction on this question? Could this document be good for all of EGTRRA or do I need to restate it this year?

Is there any sort of non discretionary benefit stated in the Plan doc: such as fixed Non elective or SHNEC?

What does everyone think of amending eligibility to let be defer and get SH for 2007 and amend again to allow deferral but not SH last year and amend again to go back to 21 and 1 for the future? I am thinking of this all in one amendment ,(probably take two pages.) What do ya think?