MBCarey

No that's not the case. I guess I am stuck with a late filing. Right?

If the client has an extension to file his taxes can that be used for an extension for the 5500 as well? I though I heard this somewhere?

I just learned that one of our plans with a plan year end of 3/31 was changed in 2002 to a plan year end of 12/31. necessitating a short plan year 5500 filing. Can someone tell me what the guidelines are for the filing deadline for the short plan year.

We have a client who has maintained two plans, a mp plan with a 10% contribution and a ps plan with no employer contribution. We merged the two plans 1/1/2003. Both plans had a plan year of 10/01-09/30. This has been changed with the merger to a calendar year plan. I believe that we are obligated to make the 10% contribution for the short plan year from 10/01-12/31. We are using the compensation for 10/1-12/31 to determine the required contribution. The HC in this plan received the max. $17,000 for the 2001 plan year which ended 9/20/2002. If a 10% of this short period compensation is given to him, would that contribution be counted in the calendar year for the short plan year or would it have to be counted in the 2003 year when the two plans were merged. Would we base the contribution on what he actually earned in this quarter. . The 10% contribution is continuing to be given in the profit sharing plan fso no loss of benefit occurred. We are just trying to determine if we would be letting the HC receive more than he should either in the year 2002 or 2003? Also, since the eligible compensation went from 170,000 to 200,000. Should we use $200,000 to determine 10%. His reported income for that short period is over $70,000. I don't think we can use 10% of that. Sorry if this is confusing

Kathryn, After looking over the end of year statement from the previous investment company, it does look like they made the 10% contribution for what wouldbe the first Quarter of the 2002 plan year. So that answers the question for the Schedule R. Still would the short plan year filing for the MP Plan be the final even though the money did not transfer until March. Employer contributions were made to the plan in the first quarter of 2003.

The effective date of the merger was 1/1/2003.

Would the filing for the short plan year be the final for the MP Plan?

Effective 2003, we merged a MP plan into an exisiting PS plan. Both plans had plan year ends of 9/30/2002. When the plans were merged the plan year was also changed to a calendar yer. I am doing 5500 filing for a short plan year from 10/1/2002 to 12/31/2002. This will not be the final filing for the MP plan as the money did not officially transfer to the PS plan until March 2003 so I believe I will have to complete the final filing in 2003. Am I correct? Also, for the money purchase plan that was merged into the PS plan, how do I complete Schedule R for the short plan year as well as the final return regarding minimum contributions as there were none. The 10% contribution that was being made to the MP plan in the past will not be made to the PS plan.

I hope I haven't ask this before. In years prior to 12/31/2001, were refund of excess deferrals added back to the ending balance like distributuions.

Thanks everyone. Sorry if I confused all of you. This is not a safe harbor plan. I think the following is the answer that I was looking for was the following "non-key's allocation in a top heavy plan must be the lesser of 3% or the allocation for a key employee" Marybeth

Tom, I understand that the plan has to pass the ADP/ACT test, but to satisfy top heavy minimums. THis plan passed it ADP/ACT test. Can we give a minimum 3% as a QNEC or ER contribution to the NHCE's to satisfy TH or do I have to give more because the Key employee deferred more? Marybeth

In a top heavy DC plan, am I correct in saying that if a 3% contribution is given to the non-key employees, then the key employees can defer the plan maximum, maximum per prior year NHCE %, or the yearly maximum of 12,000 whichever is less?

Yet another top heavy question. I have a Key Employee (5% Owner) who terminated in 2000. He just took his distribution in 2002. Do I count his distribution in the Top Heavy Determination for 2003? Thanks

We have a client who wants to set up a new safe harbor plan effective 7/1/03 (no other plan in place) and I have a couple questions. 1. Should the notice have gone out 30 days prior to 7/1. 2. There is an employee who was full time in the first 6 month of the year, but went part time as of 7/1, will be paid W-2 wages of $1,000 and commission as a independent contractor going forward. Does he have to be included in the new plan? 3. Should we ask the client to wait until 1/1/2004 to make the plan effective.

We are looking back at the 1999, 2000 plan years. Yes, EGTRAA has been adopted. Would I still have to look at two definitions. I am not sure what the old document says.

Thanks Blinky. This is a DC plan. Also, Can you give me some simple guidelines in determining who is a key employee. It is not always those who are HC only by virtue of compensation is it?

I should know this.. But I am doubting my own knowledge and can't find it in writing anywhere. Do participants who were no employed as of 12/31 have to receive a TH Contribution?

Should Employee Loans be added in as inservice distributions for Top Heavy Calculations?

Recently one of our clients were bought out by another company. The 401(k) PS plan for the original client is still in existence with about 40 participants with balances even though the company is not. There are no contributions going into the plan nor were there for 2002. Therefore, there was not testing run on the plan for 2002. How do I continue to complete Schedule T. Can I mark one of the exception boxes. If so, which? Thanks

Can someone please clarify for me where I should report on the Form 5500 terminated participants from a 401(k) plan who have not yet taken distribution from the plan? I have been including them in the active participants count, but each year I second guess myself. Thanks

I know that o/s participant loan balances have to be reported as part of the total assets. But when loan payments are made back to the deferral account and are included in total Salary Deferrals, should the loan payment amounts be backed out of that number on Line 2a2 of the Schedule I? Also, is the interest paid back on the loans adjusted on the Other Income line? The more I do these the more dumb I get. Thanks

We have a 403(b) (hospital) plan that has consisted totally of employee deferrals up to now. They would like to change that and start to make an employer profit sharing contribution of 1 1/2%. Eligible employees would receive this regardless of whether they were contributing or not. Currently there are two entry dates 1/1 and 7/1 after a year of service (1,000 hours). Once an employee becomes eligible to be in the plan, can there still be a 1,000 hour per plan year requirement to receive the employer contribution. Some of these employees are part time and even though they meet initial eligibility rules, may not consistently have 1,000 each year. Guess my question is can they be excluded from receiving a ER contribution if they do not complete 1,000 hours.

I am filing for a Determination Letter for an Age Weighted Profit Sharing Plan. We used one of Corbel's volume submitter plans and made so significant modifications. The plan has to pass the General Non-Discrimination test each year. Do I have to file a Schedule Q or not. I have read different opinions and am confused.

It has been 15 years since I have done a 5500 filing for a Welfare Plan. (only retirement plans). Could someone tell me: when reporting total employees, total participants eligible and total employees participating on Schedule F (125 Cafeteria Plan) should this total correspond to the total active participants on the Form 5500. The numbers I have been given for the 5500 count, the Schedule F count and the count on each of the Schedule A's is different.. Hope I don't sound too stupid. Any insight would help. Marybeth

It has been 15 years since I have done a 5500 filing for a Welfare Plan. (only retirement plans). Could someone tell me: when reporting total employees, total participants eligible and total employees participating on Schedule F (125 Cafeteria Plan) should this total correspond to the total active participants on the Form 5500. The numbers I have been given for the 5500 count, the Schedule F count and the count on each of the Schedule A's is different.. Hope I don't sound too stupid. Any insight would help. Marybeth