Jilliandiz

Ok, their corporate year is 1/31/03 ending and so is their ESOP year. So your saying, they can deposit his 4.91% share of contribution that he did not receive for the 1/31/03 plan year, and it can be deducted on their 2003 corporate filing? But they what would I do w/the 5500. Account for it on the 1/31/04 filing? Thanks for your help! This gets confusing sometimes!!

Client has an ESOP. They made a 4.91% contribution to all the eligible participants. However, the owner had not sold any of his shares yet, therefore he should have also received a 4.91% ESOP contribution for their plan year that ended 1/31/03. The 5500 has been filed. Can I have the owner deposit his 4.91% contribuition he should have received and amend the 5500? What can I do here to fix this problem?

They only want to make the safe harbor matching contributions, however the plan document also allows for discretionary profit sharing contributions. What now? Do I still pass top heavy, or do I have to give that participant the additional discretionary contribution to pass it???? And if so, can I do a corrective amendment just for that year?

Ok here's the situation. I have a 401(k) Safe Harbor Matching Plan. There is a participant that only deferred 1.34% of comp. Therefore, they are not satisified by the Top Heavy Minimum required, b/c the match is 100% up to 3%, and 50% on the next 2%. Can I do a corrective amendment (11g?? What is that amendment called) for that plan year, stating what the participant would receive to pass T.H. ??, so I don't have to give everyone an additional profit sharing contribution?

I have a client who has an existing IRA. He is over 70 1/2 and began taking his RMD last year. However, his wife died this year, he was the beneficiary of her profit sharing account, therefore, he rolled over his wife's account into his existing IRA. He needs to still take a RMD for 2003. Since RMD's are calculated from the beginning balances, how does this rollover effect what he receives in 2003. The rollover into his account occurred in August, 2003. Thanks.

I have a profit sharing plan, and for 2001 it looks like the contribution was allocated incorrectly, based on erraneous information on someone's date of birth...its an age-weighted plan. This person was given $2500 too much, therefore everyone else was shorted that amount as a total. What can I do to correct this? Can I take that money away from that participant and reallocate it correctly? Or does the employer have to deposit the additional amounts everyone else was shorted because of the allocation error? Thank you!!!

Hello everyone, I'm not sure if this is something anyone will be willing to give up, but I'm wondering what your companies charge their clients get their GUST restatements completed and what they would charge to have their plan documents totally amended. For example, what you charge a client to have a GUST restatement and what would you charge to have a plan document amended from a Profit Sharing plan to a Safe Harbor 401(k) Plan? I'm trying to figure out what is logical to charge my clients? Thanks for your help all!

Yeah, your right, I was asking about an existing policy outside the pension plan. Thanks for your help!!!!!!!

I have a client who is curious if this can be done? Can you pay for life insurance out of your pension plan? Also, what are the restrictions, advantages and disadvantages? Does anyone know where I would begin to make this change? Would a new document have to be drafted? Can someone please give me their feedback on this if you are knowledgable about it or have experienced it yourself? Would you recommend it? I know nothing about this issue. HELP!! Thanks.

Today is 10/20/03 and a client wants to set up a Simple IRA. Can I set it up to be effective for 2003 still or do I have to wait and have it effective 1/1/04? She would like to put money in for 2003.

A company has both a 401(k) Profit Sharing Plan (employer discretionary contributions) and an ESOP Plan. In the 401(k) plan, its is cross-tested and the employer deposited money up to 16% to the HCEs during the year, therefore I would assume to pass gateway the NHCE's would have to receive atleast 5.57% employer contributions. However, in the ESOP plan the NHCEs all received a 4% contribution, can that 4% be counted towards the 5.57% that is assumed to be needed to satify the 401(k) gateway? Can you satisfy the requirements in the ESOP Plan to satisfy the 401(k) plan top heavy or gateway contributions? There is nothing stated in the documents regarding this question. Thanks. And No, I was not the TPA before now!

The tax year is 12/31

I have a profit sharing plan that runs from 6/1/02 through 5/31/03? Therefore, I think it would be safe to say, the 5500 is for 2002. When do the employer profit sharing contributions have to be deposited by?

I have a new ESOP, therefore I am filing the first 5500. Here is my question. The employer deposited $175,000 for the first year, allocating about 4% to everyone. The beginning balance was obviously $0 and the deposit of $175,000 was deposited on the last day of the plan year. Therefore, the account balance at the Bank looks like this: Plan Year 2/1/02 - 1/31/03 $175,000 deposited on - deposited 1/31/03 $10.45 paid in interest - year to date interest $175,010.45 - balance of the account Do I just need to show that deposit of $175,000 on Schedule I and the interest of $10.45? I'm not sure how fill it out Schedule I? Thanks.

Is there a website that explains how to administer an ESOP and complete the IRS 5500 for them as well. I have the 5500 instruction booklet, and I know what schedules I need, however I am just not familiar with ESOPs in general. Help!!!

I have a 401(k) Safe Harbor Plan, that is effective 4/1/02. If the plan document doesn't say to use plan year or participation wages, what do I have to use in this instance. Participants began deferring 4/1/02, do I use wages from 4/1/02 or from 1/1/02, its a calendar year plan? Thanks.

When your establishing a new retirement plan - safe harbor 401(k), when do the participants need to be notified of the plan. Is is so many days after its been implemented or so many days before? Thanks.

I have a client that has a Profit Sharing and Pension Plan. There is an employee who has become eligible in the plan and does not want to receive any benefits he is entitled too. Is there anything I need to do for that besides probably have the eligible participant and the employer sign something saying he wishes to opt out of the benefits??? I know, I said the same thing, why would you want to opt out???? Ha ha! Thanks.

I can't remember what the rules are behind the whole Gateway rules. Like when do you have to contribute the 1/3 of the HCE's, etc. I can't get it straight in my head. I'm working on a cross-tested plan, and the HCE is getting 12.5% of the P/S contribution, therefore I have to give the NHCEs 1/3 of that (4.17%). Why? I can't remember!!! Why can't I just give the 3% top heavy? Help!!! Thanks.

What the limits for 2004....compensation, 401(k) and catch-up???? Anything else, please add.

What if someone just wants to makes to an election change in general. Can that made anytime during the plan year, or does it have to be the beginning of each plan year? Or is it stated in the document when changes can be made? Sorry, I have a prospective client asking these questions and they have not provided me w/great detail regarding their document. thanks

Is the Federal Maximum cap for Dependent care still $5,000? Can it be raised? Can insurance contributions increase if premiums increased during the year, or is there a cap as well? Can you make election changes at anytime during the plan year, if you want to increase your contribution due to increase in premiums? Are there restrictions to the plan documents? Help Help!!!

What would happen if a participant had a loan and they terminated before their loan was paid off? Would it be defaulted? What if they left to open their own company, could they just rollover the loan?