Jilliandiz

But doesn't both allow for employee contributions?

What are the main differences between Simple 401(k) Plans and Simple IRA Plans? Can someone advise, as it seems there are NOT many differences. 1. Currently have a 401(k) plan. 2. Want to switch to a Simple 401(k) or Simple IRA. 3. Can you rollover your current 401(k) into a Simple 401(k) or Simple IRA? 4. Are the distribution requirements different. 5. Filing of 5500? 6. When can you begin a Simple Plan if you currently have a 401(k) plan. Any thoughts would be appreciated. I have read about both the Simple 401(k) and Simple IRA Plans and I just want to make sure I have everything covered before I give a client some advise. Thanks

What constitutes the Board of Directors? Is its stated in the plan document? I have a client asking me who makes up their Board of Directors and I don't believe I would have the answers for that....any thoughts?

1. Can you terminate a Simple IRA at any time? 2. Can you open a SEP IRA the same year the Simple IRA is terminated? 3. If a SEP IRA is effective 1/1/05, do all employees who have worked the past 3 years become immediately eligible? Or do they have to wait 3 years from the time the SEP was established?

great sounds like i had the right idea...thanks

Plan Year 2004 Participant 401k = $13,000 He's over 50 Add'l PS = $31,000 Total limit = $44,000 Can that work based on taking $3,000 out of the $13,000 and classifying it as catch up...therefore $10,000 401k, $3,000 catch up, $31,000 PS???

Or another scenario, can the PS be a total of $31,000 to get him to the $44,000 limit?

Participant makes $13,000 in catch up contributions, he is over 50 for 2004. Can't he still receive $44,000 total, because any $3,000 of his 401k can be reclassified as catch-up? 401k = $13,000 PS = $41,000 Reclassify $3,000 as catch up, therefore 401k test only on $10,000??? For a total of $44,000 Any truth to this?

Its only a profit sharing plan...hire date 11/11/02, 2 year service would bring the ee in at 1/1/05..if the plan is TH in 2004, does the ee get TH contribution in 2004?

Profit Sharing Plan has a 2 year waiting period....if the plan is top heavy does an ineligible participant become eligible in the first year???

What if the participant is employeed by 2 different companies...the 403(b) is a school and the other employer maintains the 401(k) plan...can they contribute $42,000 for each plan, for a total of $84,000???

Are there any restrictions to the limits if you participate in both plans? I am assuming they the limits just offset each other? Is that correct? I know nothing about 403(b) Plans? Thanks

I have a x-tested plan, and the NHCE's need to receive 5% for the gateway, which in this circumstance, will pass all testing...however, there is also an Non-elective 3% Safe Harbor Contribution, can that 3% be used towards the 5% gateway?? Or do the NHCE's need to receive the 3% SH and an additional 5% Profit Sharing?

Hi, I have someone asking me the following: Do Voluntary Life/AD&D Programs need to have a 5500 filed? It is an optional employee-paid benefit. Can anyone help me?

30% of the stock was sold, and the ESOP loan has been paid back for 2 years now, therefore no loan balance remains. However, the company has experienced profit this year and wanted to know if they could make a contribution to the ESOP plan? Is that possible? Can the ESOP accept profit sharing contributions?

No there is no controlled group/related issues here. The 5 companies are set up under 5 separate plans....so is it safe to say it doesn't matter if all 5 don't contribute the same amounts? I would think so since they are separate. Thanks for your help!

I was concerned b/c they began funding for 2003 and then decided they couldn't continue. Here's more details...they have 5 companies subsidized by the gov't and only 2 of the 5 are not able to fund the rest of the 2003 contribution. Is that a problem?

My client has a SEP Plan and the gov't subsized 1/2 of the contributions b/c they help manage low income housing. However their fees, expenses, etc. have gone up and they cannot fund the entire SEP contribution for 2003...isn't this a problem?? Since were already at the end of 2004, dont' they have to fund the 2003 contribution b/c if they didn't they would be "taking away" the benefit? Also, what would happen if this was for 2004? What if they began funding throughout the year and found out today, they can't afford to fund the rest of the year? Any thoughts? I've never had this happen before? Thanks

I am trying to find this ruling on the irs website and I am coming across nothing...does anyone know how I can get it??? Its regarding the health and welfare of non-discrimination. Thanks and much appreciated!

Thanks for your response! What if the mother died at age 80, and had begun taking RMD's before her death....does that change anything for the beneficiary???

A daughter inherits her mother's IRA. She was notified by the investment company that she had 60 days to request a rollover, etc. She was not aware that if she didn't respond, she would be paid out as a lump sum distribution. She would the opportunity to have the money redeposited and a rollover check issued to her instead. What's the distribution timeline for IRAs? 5 years? Deceased life expectancy? Can someone clear things up for me?

I was just informed that my client cannot afford to pay their Safe Harbor Contribution for the 2003 plan year....all valuations, statements and tax returns have already been completed and filed. Can anyone advise me as to what their options may be? I am assuming they have to make the 2003 contributions regardless, and then I would just have them amend the plan to make discretionary contributions only from this point forward...any ideas?????

I'm confused for some reason... In 2003, an employee gets paid over $90,000, therefore HCE in 2004. In 2004, an employee gets paid over $90,000, therefore HCE in 2005? In 2005, an employee gets paid over $95,000, therefore HCE in 2006? What are the limits, I'm confused.

Employer is a Sole Proprietor, with a Schedule C needed to calculate the annual SEP contribution. He would like to also have a 401(k) Safe Harbor Profit Sharing Plan....is that possible to have both plans active??? 2 HCE's 2 NHCE's.. Help!!!!

So to have the SHNEC...would that mean that contribution goes to all those deferring only or to all those who are eligible to defer? Thanks again!