Basically

Massachusetts

Client is closing a plan because he is joining a larger medical practice. He doesnt like the investment choices he will have in the new plan and has asked where can he put his $ and still protect it. If he opens a plan and is the only participant he is not protected under ERISA... what are his options. IRAs are subject to litigation... what to do Thanks!

If a participant has his bene a trust, do you still use the same RMD factor?

Thank you. I appreciate your help. This ia a new client... and actually I am not even responsible for the admin.. just restated the docs to implement some changes they wanted. I wanted to give them the option of a SH before we go to print with the changes.

I understand that it would need to be checked a SH plan for it to be one... that simply based on the formula it wouldnt be deemed a SH. I have never had 2 401k plans for the same client... didnt know if since one was a SH then it would eliminate testing for the other. First... Plan 1... would that pass as a SH formula? what do you mean "same restrictions as the deferrals"? Sorry for my ineptness with acronyms.. B,R,Fs?

When you have a SH match, does it have to go along with the typical "100% of the first 3%... etc" ? I have a new client that wants (has) the following: 2 401K plans..... 100% vested at all times Plan 1 has a 4% max deferral limit in which they match 200% Plan 2 there is no limit to what they can defer of course as long as they do not go over the 402g limit. Would plan 1 be considered a SH plan? Thanks

WDIK... I did find that page with the grid by Ms. Calhoun. I appreciate the link. No ADP test... Catchup allowed... I need to look up 402(g)(7)

Can someone point me to a good source to explain 403b plans... the ins and outs... differences between a 403b and a 401k? Appreciate it!

(Calendar year plan) If plan is TH and the participant enters the plan in December is the TH min based on full year comp... or from date of entry?

Thanks! I was able to send it along. I certainly appreciate it.

Can someone please point me to the actual regs stating the 3%Nec or SH Match so I can send it to a CPA and educatge him? He is not beleiving me. I am not in my office and need to answer him ASAP. A link would be great! Thanks!

One man show profit sharing plan wants to invest in a LP. There should be no reason why he cant is there? There are no other EEs/Participants to harm with the investment. It is his money to lose if the investment falls flat on its face. Am I missing anything? He is not an owner... just an investor. Thanks

I just couldnt think of a system back in the early 80s other than the PENTABS system. The Vector Research computer and the Florida Data printer. For as long as I have done this job I should be an expert... just didnt take it as serious as some.

hmmmm... Pentabs?

So being in the union has nothing to do with anything except for determining which plan she is eligible for. The thinking is that the employee earned wages from the employer, end of story. Those hours worked as a union member count . Thanks

CPA has asked the question... I have a plan where an employee moved from being a union EE to a management EE (non union). The Union EEs have their own plan and the management EEs have thier own plan. For eligibility purposoes, when would we start counting the hours for the EE who just became management? From the beginning of the year or from the point where she became management forward?

Tom... I brought up that very point! The fact that making the contributions back in 2001 might have moved the plan from being TH to not being TH. The plan sponsor is paying me for my time and advice. The payroll company is performing the correction which is fine with me. He simply asked me what the fines might be if he was ultimately caught. Thanks

The plan sponsor has decided to let the payroll company dictate to him how to correct this problem. His question to me is.... If the plan is audited down the line and it is found that the the correction was done incorrectly, what will the fines and penalties be? I am assuming that the plan would be disqualified so what will he be looking at in the way of fines and penalties? Is there an IRS notice explaining fines and penalties? Thanks.

Employer makes an employer contribution... plan has a SH match... Because of the SH match the plan will pass the TH requirement... correct? Also, due to the catchup deferral the plan exceeds the 25% 415 limit... but that is OK because it was the catchup that put it over. Right? Sorry for the basic quesitons...

I intend to review the past years to make sure Paychecks is accurate. I also will post my findings to see what you, my constituants, think might be the best course of action. The adoption agreement is as vanilla as can be. The services agreement between the plan sponsor and Paychecks has yet to be seen (by me). I was told by the sponsor that he only received one letter and one phone call which was recent to alert him of the TH requirement. The sponsor does not deny he should have taken a more diligent role running his plan. He is frustrated that there is not an easier way to make this problem go away. He is also frustrated that this plan design was suggested to him considering the participation of his EEs (a SH match would have been the way to go) Any other comments are certainly welcome! Thanks

Paychecks .... and I was thinking outloud with him today regarding that thought. I will post all the info soon and ask what everyone thinks is the best approach. Honestly, I have never had to file under any volunteer compliance program for my plans. One reason I enjoy the niche market I am in.

Information still coming in..... After a phone call and some faxes it appears the $50K is TH requirement.

A plan sponsor was referred to me today asking if there is an easy way to fix a failed ADP which his payroll service and plan administrator just notified him of recently. Here is the situation: - straight traditional 401K... no match... no ER contribution - 14 EEs including himself - participation: One NHCE, and himself (No payroll info yet to determine who was eligible to participate) I think the best case scenariois that he has failed the test just barely each of the preceding years. The payroll company told him it will cost him $50K to make the plan right. My question is... can he go back and withdraw from the plan the over deferral for the years he failed instead of contributing new $ to a plan he really doesnt want. Amend the form 5500s and move forward from there? Is there a specific correction under VFCP? I know this is vague... simply trying to find out what some options are to suggest when I go to collect information and really see what the issues are. Thanks

Anybody?...

Is it allowed for a participant to take an inservice distribution from plan A (as long as plan As document allows) and roll it into another qualified plan (plan B) of which the participant of Plan A is also a participant? The reason is that the investment choices of plan B are better than plan A's choices. This "rollover" can only be employer contributed $, not deferral correct? age issues? and finally, if the account is not 100% vested, how is that issue addressed? Thanks!