Basically

Goodness no.... you could have been taught by someone who learned that way..... Sheesh, I need to watch my wording

oh... so it is simply a software issue... and for those who learned the old "original" way simply still use the + out of habit. Thanks

I am no Excel SS expert... I have seen a ton of formulas on spreadsheets where the formula starts with a +... what is the significance of the +? (sorry to interrupt the post)

To follow up on my understanding, the TH contribution for a plan year can be accrued and as long as it is paid by the time the corp returns are paid then it would be deductible for that year. If paid after then deductible in the year it was paid....

They were.... only hope that you are all ready for me asking ... "where do I find this in the EOB? I can't find it in the table of contents!" On a Sox note... good start last night with the win... after the record snowy winter we had here in Massachusetts, spring around the corner is a welcome sight! (although I am not ready to stop hitting the slopes up north with the kids)

The question being "when is the TH min due" would be by the time you file your corp tax return (with extensions) to take the deduction.

I do like the answer book.... but as I mentioned, many make reference to the EOB... Thanks to all for your responses... Between this thread and the other it is pretty clear how people feel... both books are exceptional references!

unfortunately, I have never purchased the EOB. I dont know what the text looks like and how the answers are arranged and described. Is the example on Cyberisa true to form.... what it looks like? PAB does lend itself to easy reading... but when so many make reference to the EOB on these boards I find myself lost... no reference to go to see the point being made. I think I am leaning towards the EOB. Sal offers the book... and the book w/CDs (for an additional 10 sawbucks). Any benefit to spending the extra $ for the CDs? Purchasing the online version I think has been determined to not be the way to go for the simple reason that once the subsription ends... you have nothing, no reference to look back on.

I have a problem searching... I never can come up with these links! Thanks for pointing me there.

As everyone knows, the ERISA Outline book is a great reference for the pension administrator... but then so is the Pension Answer Book. I have always purchased the Answer Book.... Outline Book is talked up so much... What are everyone's feelings towards each? One considerably better than the other? $200 vs $300... Thanks!

Good catch! Thinking outside the box.

Only 5% owners are HCEs regardless of comp earned for the first year. Of course after the first year you now have a "look-back" year

Situation: Small company owned by husband Wife EE earns $20K Lookback year same as determination year From Pension Answer Book I am gathering that to be an HCE all the wife needs in her situation is to be a 5% owner of the company through attibution.... she is not an HCE based on her income. My fault in reading the text was that I missed the "or" resulting in thinking she had to pass both tests to be an HCE I understand that if one spouse owned 4% then the other spouse would own 4% ... meaning ownership would not be the reason for HCE determination (just saving face here)

Regardless of actual ownership.... Wife is considered an HCE due to attribution.... right?

That is what I have always thought being on auto-pilot for many years. It wasn't until many small employers started putting in place individual 401K plans that I have been asked soooo many questions. Each sponsor saying that they have read or were told ... etc etc. Sometimes you just need someone to agree with you. I liken it to hearing from another parent that their child is trying to use the same asinine argument to defend their actions or get what they want.... know what I mean? Thanks!

Revisiting this question..... What about Plan with owner and spouse and 1 EE that does not work 1000 hrs... assets less than $100K in plan... 1. Can file EZ? 2. Since assets less than $100K is an EZ required yet ? I understand that once the EE becomes eligible to participate then the EZ is not allowed..

oh.... funny you should mention that.... one of the EEs is the wife who quit her job to come and work for her husband. She had income in 2004... albeit very little. Idea was to amend PS to include deferrals subsequently reducing ER cont exposure and allow wife to defer since she will not be eligible for ER contribution. SH was the way to go. Total existing EEs passing 410(a) elig were 3, 2 EEs hired in 2004 (which will be able to defer in 2005 because of exception), plus 1 Dr..... total EEs all together 6 (3+2+1)

3% safe harbor nec. adp should be fine. At this point there is no one not eligible to participate. It was a gesture to allow one EE to participate. Small dental practice, doc is making beaucoup $

Existing profit sharing plan amended in September to a 401k. Eligibles in 2004 were able to defer in 2004. Employer wants to impose an exception to the eligibility requirement (for deferrals) and allow EVERYONE who was employed on 1/1/2005 to be deemed as already meeting the one year service requirement and be able to defer . Nothing wrong with that when amending an existing plan to allow deferrals is there? Standard eligibility requirement will be in effect for employer contributions and new employees hired after 1/1/05 will need to meet the standard eligibility to be able to defer.

A client has a child that receives income on a 1099... she turned 16 in 2004. If she files as a sole proprietor and files a schedule C, can she have a plan?

I just spoke to this gentleman... it is a business that has since ceased to produce any income. He wishes to continue to pay the loan off... doesnt want to take it as a distribution. Because of the loan he can not roll it into an IRA.... I think he may be sunk!

No... new loan. It is only a year old. His pay structure makes it very convenient to have an annual loan. hmmmm... could we say that loan payments are taken from pay... and if he only receives a pay check annually then the loan payment will be taken then?

huh.... I stand corrected. So what you have is a list and as an employee meets a requirement you check it off as "met". So does he chock up a year of service for vesting for that year also? He is not eligible for a contribution but if the plan is TH does he get the 3% min because he has more than 500 Hrs? He has no balance.. is he considered a participant yet?

I was contacted by an individual, one man show, took a loan from the plan, only made an annual payment (principle and interest). I know the rules... at least quartely payments and if a payment is missed it is allowed to be made up as long as it is done before the next quarter. My question... are there any exceptions to the rule... can he make annual payments? Semi-annual? He is looking at a deemed dist... trying to help him out...

I disagree... I would think that the slate would be wiped clean each year. He would need to satisfy each requirement to enter the plan.