Jilliandiz

Client is Self Employeed at Age 78, is there anything he can contribute to? IRA, SEP, etc.??? Any ideas for this old folk, this request you dont see happen every day. Also, since he is over 70 1/2, I understand he would also have to begin taking is RMD regardless. Any Thoughts?

Do you think the employer still needs to provide the 3% through 6/30/05, eventhough deferral participation doesnt have an effect on whether or not they get it? What stance would you take on this?

Thanks for replies, however does the rules change when dealing with a 3% SHNEC? Does the plan still have to use current ADP testing? Why wouldn't it be deemed passed if they were required to give the 3%? Is the 3% required in the year of termination? What wages would I test on? I dont understand why you consider the plan to be a short plan year? The termination date is effective for 6/30/05, the IRS approved it last week, but the assets are not fully liquidated until sometime in 2006? Can you help clarify this for me? I've read everything, but everythign pretty much discusses if the plan was a SHMatching contribution....this case is a SHNEC?

Thanks for the response, where do I get a copy of the Final Regs?

Plan is a Safe Harbor Matching calendar year plan. Terminated 6/30/05. Do they have to contribute the Safe Harbor Contribution in the year of termination? Also, are they only required to contribute the amount from 1/1/05-6/30/05? Or does it have to be the entire year?

Client currently maintains a 401(k) SH plan on a calendar year basis. They would like to know if they can convert the 401(k) SH plan into a Simple IRA plan this week? Is that possible? If so, what would happen with the 401(k) SH plan and the contributions already contributed for 2006?

Plan is a traditional 401(k) plan, that wants to be amended to become a 401(k) Safe Harbor Plan. Can I just do an amendment to the plan, or do I have to restate the entire plan document to add a Safe Harbor feature? I know I must provide the notice also. Thanks

Thanks a ton. Here is my email...jilliandiz@hotmail.com

Does anyone know the Wage limits for 2006?

125 Plan established. 7 nonhighly employees who participate 1 highly who participants. Is there a limit the highly can put away, based on discrimination testing, wage limits, etc.?

Okay, sorry for what may seem like a stupid question, but I have to ask it b/c I dont think it works, but my boss for some reason thinks it does, here it goes. 401(K) Profit Sharing Plan with Prior Pension Plan Assets merged in. All participants are still employeed with balances, can you draft something in the document that states all money will be rolled out of the plan into individual IRA's except the 401(k) money? I have never heard of such an idea before, considering everyone is consider "active". Any ideas!

Participant is hired 3/24/04 works 1000 hrs and terminates 9/20/04. He gets rehired on 6/6/05 and works the entire 2005 plan year, obtaining another 1000 hrs. Would he become eligible 7/1/05 since he worked 1000 hr the first year and got rehired in 2005?

So since I would be using it for the 2005 plan year, I wouldn't be limited to the Final Regs and I can use the old bottoms up rules? right?

Are you still allowed to do a bottom's up QNEC, or were there rulings that eliminated this option? Suppose I want to draft a new plan document allowing for the bottoms up, can I use it or are they not existent anymore? Thanks for some reason I thought I heard something about this option going away, but I cant remember?

Participant takes a lump sum distribution and therefore 20% taxes are w/h. When are those taxes due to be deposited and filed by? The end of the month the distribution occurred, the end of the plan year, tax year? Are there any specifics? Thanks

Client is terminating their 401k plan. IRS submission for approval was done, and they have received a letter back from the IRS asking the following: Explain how the plan is entitled to the entended RAP for GUST? Can someone help me on explaing what that means?? I don't know what RAP even means? Thanks

Is there anything that has to be done to terminate a SEP plan?

What do you mean a triggering event for the 403b?? The participant is no longer an employee there!

Can you roll a Simple IRA and 403(b) into a regular 401(k) Plan?

2004, the beginning of the plan year is the tax year your filing for.

Participant takes a loan from her 401(k) Plan, but while that loan is outstanding the plan terminates...what happens to the loan?

Can a participant take a loan during the period that the plan is under review for determination of plan termination? There has been no determination received yet?

401K plan is under review for determination of plan termination. Can a participant take a loan from the plan during this process, we have not recieve determination letter yet??

What about for Top Heavy Testing?

Do you have to aggregate an ESOP and a 401k plan for testing purposes?