arthurkagan

Thanks Lois. There are also several problems with administering these accounts. For key employees, any employer contribution to their 401 (h) account reduces the company's limits to their profit sharing account. Also, the employer contributions for the non keys are apparently not pooled, but separate for each eligible participant. It appears to be an administrative nightmare. Do you agree.

401l(h) accounts can add up to 25% tax deductible contributions to a pension plan. Are 401 (h) accounts which provide incidental post retirement medical benefits appropriate for small Cash Balance and Defined Benefit plans, where all the participants take lump sum distributions or rollovers on retirement or termination. Suppose an employer has 3 owners and 10 non-key employees. If one of the non-key employees retires and distributes or rolls over their full lump sum pension amount, are they still eligible thereafter to benefit from post retirement medical expenses, or must they be receiving a monthly pension from the plan to be eligible for post retirement medical expenses. Similarly, suppose an employee terminates prior to retirement and takes a full distribution at termination, and later reaches the plan's retirement age while the plan is still inexistence. Are they then eligible for post retirement medical benefits. If a key employee is past the plan's retirement age, but still an active participant, can they start to received post retirement medical benefits. What actuarial requirements are needed for a pension plan with a 401 (h) account. Is anyone actively administrating plans with 401 (h) accounts for many of their clients.

I want to know if each doctor can set up a separate plan covering just themself in this scenario. This appears to me to be an Affiliated Service Group among the three entities, and they would need one plan with three participating employers.

Two doctors own a medical practice. They want to start a pension plan. They each have their own corporations. They have 7 employees of the practice who are eligible for the plan. They each want to establish a pension plan for their respective corporations without covering any of the employees, and to establish a separate 401k Profit Sharing plan for the employees. CPA insists that several TPAs have told him this design is ok. Can this pass IRS rules.

Plan participant first wife dies. He names daughter as beneficiary of his 401k plan, and also as beneficiary of the 401k plan in his family trust. He remarries and dies several years thereafter without naming his new wife as beneficiary of his 401k plan. The daughter is claiming the benefit. The new wife disagrees. Who is right.

Owner has S Corporation, and takes W-2 pay annually. Only other employee of corporation is wife, who also receives W-2. Owner made SEP contributions for several past years, but did not take tax deduction on corporate tax return. Can owner prepare revised tax returns for past year to claim deduction. Can owner take tax deduction in current year for past years accumulated missed tax deductions; i. e. can it be carried forward. What other options are available to capture past years missed tax deductions Suppose in one of the past years, the SEP contribution was greater than 25% of the W-2 amount, or exceeded the dollar limit for SEP contributions. Can the excess be carried forward.

Its a 5500 SF. Does it matter which 5500 form it is.

Plan sponsor communicates by fax but not email. Signs 1st page of 5500 form sent by fax. Will the DOL accept a 5500 form signed by plan sponsor on faxed page.

Plan sponsor has 403(b) plan which complies with ERISA, and each participant has individual account. Plan sponsor makes matching contributions each payroll. Wants to convert plan to 401k administered by Paychex. Plan sponsor does not have HR director, and feels it would be easier to have the same payroll company and TPA. Assume 403(b) plan termination occurs as of 6/30/2021, and want to start new 401k 7/1/2021. Are there any special legal issues in terminating the existing plan or starting the new plan, considering that participants are not terminating employment Is there a required 12 month wait between the termination date and the new plan starting date. How must the individual accounts of the 403(b) be handled. Do participants have a choice of taxable distribution, rollover to IRA, or rollover to new 401k plan, or a combination of choices.

Ask attorney Alex Brucker

Two dentists (husband and wife) have separate corporations. Their corporations are both participating in the same 401k plan, which has a safe harbor matching provision. The husband and wife both make the maximum 401k contributions to the plan from their separate payrolls. The wife's corporation contributes the safe harbor matching contribution to the plan for her, as well as the safe harbor contribution for the husband. Is this OK, and does the wife's corporation get a tax deduction for both safe harbor contributions. In general, in a plan with multiple participating employers, can one entity contribute for another entity's participants.