Basically

Rev Proc 2003-44. This is the fee page from Rev Proc 2003-44 sec12.02. $750 to amend late? One man plan. 50% break is way past being available at this point.

I received an email from a plan sponsor who wanted to update his/her plan for GUST.... missed the deadline and didnt do anything to date. This can be done through voluntary compliance.... Anyone want to share thier experience? A direct link to the proper procedure?

well... went to the Pub for dinner... watched Lowe pitch ... doesn't look good. Hope the end of the game is better! Cabrera was a great trade for Garciapara.... As far as I am concerned, Garciapara was damaged.. a great guy, but lets face it, it is a business... and we need players who can play.

You are so right Lori.... Schilling pitched a fabulous game. What ANOTHER exciting game last night! Cabrera with the walk off homer over the monster in extra innings!!! Now if we could get Veritek to hit .... bring on the Yankees! Foulke .... sheesh.. almost blew it again!

have to ask... anyone see that Sox game Tuesday night? Baltimore at bat, top of the 9th, 2 outs, 2 stikes, one man on, Sox lead one to zip and the batter hits a home run.... clean over the monster! OUCH! Then bottom of the 9th, 2 outs, 2 men on, Bellhorne hits a single into the gap between center and right field... Sox win!!!.... wow, what a finish!!! and to think I almost turned it off.

gotta love algebra....

What are people's thoughts on this situation... Let me know if and where I go wrong: Plan makeup: - LLC taxed as a partnership - 401k non SH, No match, W/ER PS contribution - 10/31 FYE & PYE - Cross Tested: Group 1 Partners (3 partners), Group 2 all others All partners make $200k+ Passes ADP No problems W/Cross testing contribution Here is the situation... One partner is retireing on 10/31/04. That partner has deferred $1,000/month for each month of the 10/04 plan year. 2003 402g not exceeded. Partner wants to defer an additional $3,000 in month 10/04 to get to the 2004 402g of $13,000 which would mean a $15,000 deferral to the plan for the 10/31/04 plan year (see my math... $1,000 each month of 10/04 PYE + $3,000 additional in 10/04 for $15K).... ok? Partner also wants to deffer the $3,000 catchup. (With me so far) Questions: 1 - Can the partner have a $15,000 deferral for the 10/31/04 plan year? (+ $3,000 catchup?) 2 - Wont it limit the max non elective contribution to the other partners to $41,000 - $15,000 or $26,000? That will ultimately mean that the other partners will not max out.. they will get $26,000 + $12,000 or $38,000 (if they continue at their usual rate of $1,000/month). CAN they (the other partners) also make that $15,000 deferral like the retireing partner as outlined? Basically use up their 2004 402g in the first 10 months of 2004, not make any deferrals in 11,12/04 and then as a business going forward their employer profit sharing contribution will just be more to get them up to the max for the 10/05 year end? Is there a better way? Thanks!

I am amazed at the number of Red Sox fans here on the boards. Is it something in the water in Boston that breeds such faithful fans? Living north of Boston on the ocean and a Red Sox fan for life I can hardly remember my past baseball loyalties growing up in Pennsylvania (Pittsburgh and Philly). We are due for a world series victory in Boston!!!

Am I correct in saying that if a one man show plan like a solo 401K plan has no other employees then that plan is not protected by ERISA? Not protected from litigation? That it is only protected when there are employees other than the owner/trustee/sponsor? We all know that ERISA was put into place to protect employees from being cheated... Does the DOL take exception when a one man show establishes a plan and hides behind ERISA in the event he is sued? In that scenario will his pension assets be attachable in the event of a law suit? Any cites would be greatly appreciated... either way they fall.

I am simply answering the guys question. I think he wants the client to be able to borrow. He also mentioned Insurance.... Can you not have life insurance in an IRA? Thanks

Like I said, CFP was vague. Where do I find that PLR? (sorry for my ignorance ) Thanks!

Individual has no EEs, I dont even think he has a business. The CFP was vague but the just is he wants to establish a plan and roll $$ into it, consolidate his retirement $$, IRAs and pension $$. I will look into the PLR, thanks!

CFP asked me (told me he read a news-letter or was told by someone) if a person can establish a plan and rollover balances from other plans and IRAs to the new plan. There will no be any deferrals (because there is no compensation) or employer contributions. He wants to know if it can be done so he can solely roll other monies into it like IRAs or other QP accounts.. What is the ruling?... do plans have to receive active deferrals and or employer contributions?

Here is the response I received when I asked how it worked.... "It is, in effect, an insurance policy to protect the contributions to a 401(k) account. Today, if a person becomes disabled and are receiving monies from their disability insurance, their contributions to a qualified plan cease. However, if they have a rider on their qualified plan, a premium payment for this disability insurance would be taken from their contributions pre-tax. In the even they become disabled, a pre-defined amount would be contributed to their qualified plan while they are disabled. In this sense the qualified plan is the immediate beneficiary of a disability insurance policy. The contributions from the plan, are immediately vested and could be available for qualified withdrawals. A Private Letter Ruling by the IRS in 2002 validated the legality of pre-tax contributions and premiums, and post-tax benefits, etc. A few companies have jumped on the wagon and started officially offering this rider. Corporate Compensation Plans (www.corpocompinc.com) has a pretty good explanation of the whole thing, but today, this is primarily being offered by insurance carriers (Cigna, Mass Mutual, etc) as a adjunct to their 401(k) plans"

Anyone heard of this? Financial planner asked me the following: "I am researching the prevalence and viability of adding a disability rider to a 401(k) product. "

sounds to me like it is that new math... "IRS math".... they dont consider "0" to be a number there, but then 0/0 = 100% which I guess is 100% of nothing

I dont see C/D if Mr. D is over 21. R. Butler... why is mom 100% owner of ABC? (at most)

Thanks.... I will do a search.

Who has? Is it a good idea? Necessity? Where to get it?

Thats why I ask these questions... and why this forum is so valuable. Thanks for the insight.

The allocation of the contribution would be skewed towards the older participants on the premise that they have less time to fund for retirement. Standard eligiblity ( 21/1 , year of service is 1000 hours)

Existing age weighted plan... wants to allow deferrals. Since all the EEs are 100% vested already, would the age weighted contribution count as the 3% SH to pass SH requirements? or would an additional 3% need to be added in addition to the age weighted allocation?

I thought it was a controlled group... wanted to post to see if anyone would come up with a reason why it wasn't.

I intend to get the book.... Not a hardship. Simply a participant in a PS plan that wants to take an in-service distribution. In this case the 10% will apply I am sure. Found my answer... Thanks!

Client wants to take an in-service distribution. Doc says as long as the participant has 60 months of participation it is allowable. What are the taxes? 20% withholding (Minimum), 10% excise (EE is 57)... am I missing anything? Tks!