Lynn Campbell

I am still mulling this over but it seems that plans that qualify for a free User Fee and are not vanilla plans (may use cross testing, or be age-weighted, etc.) could be submitted, and get a full Determination Letter that covers Demo 5 and/or 6, with no User Fee. Is this a good idea?

When might it be advisable to include fail safe language?

This is a Volume Submitter Plan...thanks for all the help.

It sounds like, based on other posts, that fail safe language can be limiting. In the document I am using, if I choose fail safe, then the Plan must pass 410(b) by the ratio percentage test. If I do not choose fail safe, then the Plan does not seem to contain any language about how to fix a failed 410b or 401(a)(4) test. Would I just use the corrective amendment route? Is it OK that the Plan does not specify that I should use the corrective amendment option? This is all theoretical, I am doing the GUST amendment and trying to pick out the best language.

Judy, the Plan would be exempt from the bond if just the husband and wife were in the Plan. Once you add the son you need the bond. It is not logical, but I think those are the rules. Assuming that the non-qualifying assets are greater than 5% of total assets, You need a bond that covers all the non-qualifying assets, it does not matter in whose account they are held. How much bond do you think is required here?

I think you need a bond.

Does anyone have recent experience with late 5500-EZ filings and the IRS response to your "reasonable cause" letter? It would be very helpful to hear from you! Thanks.

If the Plan has an unusual definition of Entry Date (Dec. 31 nearest?) it might be possible for this person to be in the Plan as of 12/31/2002?

Could she also put in 401(k) deferrals up to the 402 g limit?

Thank you for the help, Gary. When did these rules become effective (the ones that require reducing the $40,000 down to $35,160.70 in this case)? Thanks again!

Here is my situation: Schedule C owner has $800,000 compensation. SEP integrated at maximum wage base. One other eligible employee earned $13,000. Thanks for your help.

Gary - Doesn't the fact that the limit is reduced from $40,000 take away the advantage gained by the integration of the SEP? At least in a situation where there is only one other eligible employee who makes, say $10,000 in compensation, it would be better to switch to a non-integrated SEP, right?

Is it too late to tell the client you will not be able to take this Plan? Why sign up for problems?

Would this be a blackout? Participants have new investment choices as of 4/1/2003. All the old investments are replaced by the new ones. Their old money is moved to the new investments as soon as possible after 3/31/2003 - once the account balances of each person as of 3/31/2003 have been computed. This is a quarterly-valued plan. Would the answer change if the old funds were all liquidated as of 3/31/2003 and put in a money market account pending calculation of the 3/31/03 account balances- and then moved to the new investment options? Thanks for all input.

When you send a deposit to St. Louis, do you get any acknowledgement or receipt in return? Can the check you send be issued by any institution (bank, brokerage company, etc.) ? I have never tried this method...

Try Cal-Surance - Sue Surrell has helped me recently. Her phone is 800-280-7250.

In addition to using the Trust ID on Schedule P - I use it on Form 1099-R and it also shows up on Schedule R, Part I, line 2.

This question relates to a pre-EGTRRA year: If the plan provisions have a limit on deferrals (i.e. 15% of compensation) and the participant exceeds both the plan limit and 402(g) limit, which is corrected first? How does this work?

Thanks very much, Tom!!

Tom, do you think the idea that a non 401k plan that amends to include the 401k features is considered a "new Plan" for safe harbor purposes can be used to justify the use of partial year comp in the first year? Or am I stretching here? Thanks very much.

Client has existing calendar year profit sharing plan - and wants to add 401k provisions mid-year. From reading Notice 2000-3 Q-11, it appears that the client can make the 3% non-elective safe harbor contribution for the 6-month period from 7/1/2003 (amendment effective date) to 12/31/2003 for the first year. Is this correct? Thanks for all input!

Since a plan in which only the owner participates is not covered by ERISA, how much bankruptcy protection does this particpant have? Is the protection the same in an IRA, or should the person keep it in the retirement plan? Thanks for all input.

For a new Plan to be in existence for calendar year 2002, are board minutes re establishment of new plan adequate, or must plan document itself be signed by 12/31/2002?

I have a client with late 5500-EZ forms to file for years from 1998 through 2001. Should all the forms be sent to PWBA?

I have a similar situation where the Employer wants to put safe harbor 401k in an existing Profit Sharing Plan - and do it this calendar year. If I give note in mid November and make the 401k contributions effective 12/1/2002 (Plan Year ending July 31, 2003) - what is the 402(g) limit for 2002? Is it still $11,500? Could an employee conceivably defer $11,500 in December?