Jilliandiz

Are they automatically opted out of the any forfeiture allocations as well?

What taxes are imposed for 125 deductions?

He contributed $14,900 in 401k contributions His balance today is $10,000....so that's his maximum right? I know I sound dumb but sometimes I feel like I confuse myself!

Participant wants to take a hardship w/d from a 401(k) Safe Harbor Plan. Can they take all contributions made from the 401k and SAfe Harbor portion, minus any earnings?? Or are they only allowed to take the 401k portoin? The document says the following: Nonelective and basic or enhanced matching contributions under the Safe Harbor CODA Contribution provisions are subject to the same distribution restrictions as Elective Deferrals except the Safe Harbor CODA Contributions specified here may not be distributed under the hardship distribution provisions. The matching contributions that are made to your account to automatically meet certain nondiscrimation requirements are subject to same distribution requirements as your Elective Deferrals. What does this all mean? What are this participants options? Its a 401k & Safe Harbor Matching & Profit Sharing Plan. What is he able to take from?

So would I not include them in testing if they opted out? Is that what I'm getting here?

If a participant chooses to Opt Out of a Profit Sharing Plan/ESOP whatever it may be...do they have to opt-out when they first become eligible, or can they at any point? Participant was eligible 2002, has received allocations in 2002 and 2003, can they opt out in 2004 or did they have to back in 2002 when they first became eligible? I know I remember reading something re: this but I cant seem to find the info again. Thanks

There is terminated participant in a 401K plan with a vested balance of about $4,500....we know where she lives, have called numerous of times and sent numerous certified letters to her, they all come back to us saying she is not claiming them. The problem is she stole money from her employer back in the day so she avoids all means of coming in contact with us the TPA and them the ex-employer. Can I distribute her account balance to unclaimed funds since we know she is in fact not accepting anything from us, and we know where she is. Also, if I can file her account to unclaimed funds, how would I do that? Thanks

401(k) Plan allows for in-service distributions after Age 59 1/2. Participants is 62 and would like an in-service distribution, the plan allows for it. Is he allowed to take his entire vested account balance when he requests the In-Service? Are there any general rules/restrictions for In-Service Distributions? The plan does not mention anything besides having be 59 1/2, and they are allowed to take distribution from all fully vested sources. Thanks

Client wants to set up a new 401(k) SH Plan. Do I have to wait to make it effective until 1/1/06 since its October 2005 already?? Doesn't it have to be atleast 3 mths to be considered a "short plan year". Also taking into consideration it being a SH Plan, there wouldn't be enough notice given to the employees for 2005 to be the effective plan year.....right?? Are there another limitation for the first year?

Can you provide me links to where I can perform searches when I need to look up a Section or regulation?? I always have the hardest time finding them. thanks

They deferred 3%, but payroll is only deducting 2.85%. IF all the participants are okay with this, can we just move forward and have them fill out new forms to modify future contributions?

If the plan sponsor, the financial advisor and the participant have all lost their enrollment forms....who's responsibility is it ultimately to keep them? Shouldn't it fall onto the participant? There is a participant who claims they elected to defer 3% each pay period, and they have noticed now 9 months later, that they are only taking out 2.85%, but there is no proof of the 3% to make any adjustments b/c the enrollment form is missing. I would think its the participant's fault for losing the forms, not the employer, and tell them they have to wait until the next entry date to complete a new form b/c the plan document only allows changes 1/1 & 7/1. What do you think?

Participant is a doctor and is in a 403(b) plan with the hospital. He also started up his own business, can you maintain a 401(k) and participate is both? If so, what are his limits? Can he maximize himself in both?

Client didn't deposit 401(k) deferrals for 5 months into the trust....what actions do I need to take? Do I need to file with DFVC Program? Pay the interest that would have accrued? And pay the $750 to the DFVC??? Any thoughts?

I have a client who took it upon herself to take a loan from the plan. However, she took $5,000 more than she was entitled too. What do I do now? Does she have to repay including interest and earnings, or does the $5,000 she wasn't entitled too get treated as a distribution? Any ideas, before I get more annoyed?

Unfortunately they will probably fail testing slightly, but they insist on terminating the plan regardless. It is a SH Non-elective contribution. Thanks for your help!

I'm terminating a plan, they have never filed for a determination letter before, does an opinion letter act as a determination letter?

Plan is terminating in 2005. Therefore, there will be 2005 SH contribution owed to everyone eligible. How does this get paid?? Do they have to fund it before the participants take their distribution, or can they just fund it by the time their corporate taxes are due 9/15/06 and cut checks directly to the individuals since their accounts would already be distributed from the plan? I have no idea how to handle this?

Either way, the plan will be subject to ADP/ACP testing for the plan year???

Employer wants to terminate their plan beginning with the 2005 plan year...calendar year!! They provide a 3% Safe Harbor, are they still required to make the safe harbor contribution in the year of plan termination? What are the rules with this?

If you file for an extension and later find out there are under 100 participants for the plan year, does that effect anything??? Meaning there was an extension filed but NO 5500??? Also, when do you NOT file a 5500 for a Flexible Plan?

Client wants to terminate their 401k plan, do I need to file for a determination letter? What procedures do I need to take in order to terminate a 401k plan? They would like to terminate it this year.

Client maintains a pooled profit sharing account with Merrill Lynch. The account gets hit with its usually quarterly investment fees. The employer ends up paying back the fees and writing a check to the pooled account to cover the cost. When completing the 5500 and participant statements, should I be showing the fees running through the pooled account and adjusting it through earnings....or should I not show that any fees ran through the plan since the plan fees are being paid by back by the employer. Any suggestions, I'm hitting heads w/someone in my office on this issue, and frankly I don't even think it should be issue.

Under any SEP Plan, is the eligibilty to receive a contribution, "any" service performed during the plan year? Can that be modified or is that universal?

I have a client who maintains a SEP Plan. They use to be invested at Smith Barney and therefore adopted their SEP Adoption Agreement. However, in the past year they moved to Merrill Lynch and ML does not maintain a SEP Document. Isn't it most likely true that the Smith Barney document probably doesn't satisfy the ML investing? I spoke with both SM and ML and they cannot give me any answers. Do you think I should adopt the IRS Form 5305-SEP Document to be safe? Any suggestions?