Jilliandiz

Is it possible to have a 401(K) plan with discretionary safe harbor matching provisions. The idea here would be that if the company does not want to match from year to year, and wants it to be discretionary each year. It would have to be safe harbor though, b/c they fail ADP testing. Any thoughts?

Can someone please tell me what the compensation limits are for someone to become on HCE in 2004 and 2005.

Is it possible to have a one person 401(k) plan that is not a simple plan? I had a financial advisor mention that today, and I've never heard of such thing...can anyone give me some imput or tell me where to look. Thanks

Can anyone tell me where I can find some rulings/more information on the newly passes IRS Automatic Enrollments, they are calling it a "general information letter" but I cant find anything regarding the rules/guidelines, etc.? Thanks for the help!

Welfare Plan Filings Original Plan year is 6/1/03 - 5/31/04 Amending to change plan year as 7/1/04 - 6/31/05 Policy year is also changing w/insurance providers at 7/1/04 File a 5500 for 6/1/03 - 5/31/04 File a Short Plan Year 5500 from 6/1/04 - 6/31/04 File new 5500 from 7/1/04 - 6/30/05 Can you verify for me those are the 5500's that need to be completed??? Also, what would I request from the insurance providers for the Short Year?? Would I request just policy coverage during that time period in the month of June, 2004??? Can someone give me some feedback!!! Thanks

What does distribution code 2 mean on 1099-R. I know it means early distribution...but what's the exception? I can't figure it out. Thanks.

Mike, thanks so much for clearing that up for me. I appreciate it!

Ok, the distribution came from a 401(k) Plan, and the money was transferred to a new account set up under the beneficiaries name. Was that handled correctly? If so, then the beneficiary didn't really receive a distribution at this time? He would need to take the money from the new account as a lump sum within 5 years right?

I was under the impression that rollovers were only permitted to spousal beneficiaries also. But I think somehow this guy received a rollover death benefit. Would that answer the question then about the taxes needed to be paid? Because if he would have received the distributon in lump sum, then he would have had taxes withheld already??? Also, how would you solve the problem of the death benefit was a rollover and taxes still need to be paid, since he did actually receive it as a rollover? What is the 5 year rule? How should this guy pay taxes, what is his time limit to pay them???? Anything to help me understand this better please!!! I need some advise as to how someone might handle this situation. Thanks again!

Participant dies in 2003, and the beneficiary is his brother, who receives the death benefit payment in 2003, as a rollover. However, when does he have to pay the taxes on that amount he inherited? Does it have to be in the year he received the benefit? What's the deal with the 5-year rule??? What are the beneficiaries options on paying the taxes from the benefit? Thanks.

Can someone get a profit contribution if they are under the age of 18? If there is no age requirement, is there still a law that prohibits someone under the age of 18 to not receive a profit sharing contribution? thanks

But I fail the top heavy testing if I give it to the HCE??? Don't I?

Ok, I have a cross-tested profit sharing plan only. A = Shareholders (1) B = all others - NHCEs (3) Client wants to make a $2,000 contribution only to the plan. However that does not pass top heavy, b/c it only comes to about .75% of compensation. However, would it pass the top heavy rules if I spread the $2,000 across Group B and gave nothing to Group A....the total contribution then is only 2% of compensation. Any thoughts??? I always thought it had to be 3% regardless in order to pass top heavy, am I wrong here after all this.

Thanks for the response, it definately clarified some things for me. One more thing...for 2004: Simple 401(k) $9,000 $1,500 Whats the profit sharing limit....can a Simple go up to $41,000 also?? I thought something to the affect that they could only contribute a limit of like 3% to the employees in PS dollars.....am I totally wrong?

Hello all, i have a few questions. 1.) Can you have a Simple 401(k) Plan and regular 401(k) Plan at the same time? 2.) If you have a 401(k) Plan established, can you rollover the Simple assets 3.) Can you just amend a Simple to become a regular 401(K) ? Or do you have to establish a new plan document all together? Bottom line, I have a client who currently has a Simple 401(k) Plan, but they are making a lot of money now, and would like to start up a 401(k) Plan, so he can put away more money....I don't know the best plan of action of here? Any thoughts? Thanks

Ok, I have a cross-tested profit sharing plan. Group 1 is shareholders and their spouses. Group 2 are HCE's not in Group 1, and Group 3 are all other participants. In Group 1, the goal is to maximize the 2 employees at $40,000. However employee #1 has $200,000 in comp. and employee #2 has $160,000 in comp. Don't they both have to receive the same percentage of allocation, even though that does not get employee #2 to maximize at $40,000???? I cannot have them both receive $40,000 right? Employee #1 = $200,000 x 20% = 40,000 Employee #1 = $160,000 x 20% = 32,000 Isn't that what they should receive? I can't give employee #2 $40,000 b/c it would violate the same percentage allocation right? Thanks.

Ok, the participant terminated in 1/03, he became disabled in 11/03. He is now receiving social security and disability benefits from the gov't. However, if he now takes a distribution from his profit sharing account, does that affect his social security is currently receiving from the gov't?????? help, this is so confusing!!! Thanks.

Profit Sharing Plan, participant is 100% vested and Age 57. He is no longer an employee and is on disability......does he get special tax treatment because of disability. He will be taking a lump sum distribuiton....is he still penalized 20%?? Thanks!

For 2002, do you not have to file 5500s for cafeteria plan?

The 2 companies are owned by the same person...does that change anything?

The 2 companies are also unrelated!!!!

Company A has a profit sharing plan. Company B decides to adopt Company A's profit sharing plan. Therefore, both A & B are depositing employer contributions into one account, filing 1 5500, but 2 separate corporate tax returns......is this considered a multi-employer plan????? I don't know what to do about marking the 5500??? Thanks.

I would agree w/your answer......because thats the answer I wanted to hear. Ha Ha!! However, do you think there is anything wrong w/doing that??? I don't see where there could be, but you know the world of pension....its always confusing. Thanks so much for your help and clarifying the info. for me.

So your saying that he cannot make a deposit to himself of 4.91% which he never received? What actually has to happen is the contribution that was deposited has to be reallocated to give him a part of it????

The company wanted to make a contribution of $175,000 into the account, therefore allocated to everyone was 4.91% of teh $175,000. No its not a money purchase plan, its just an ESOP???? Any other thoughts on what I can do to get that owner his money???