Lynn Campbell

What was the source of his traditional IRA?

Maybe you are thinking of the EGTRRA Model Amendments that the IRS published in Notice 2001-57?

pax, does your message imply no increase in vesting while the plan is frozen?

If an employer who files 5500-EZ subsequently has an employee who joins the Plan, then I think the Plan is instantly subject to these rules and must have a bond for the non-qualifying assets unless 95% of the assets are qualified. I can foresee difficulty where employee data is not collected until the end of the year to determine who was eligible to join the plan during that year...When must the bond be purchased in this case to meet the requirements?

How does this affect age-based profit sharing plans?

The 1999 instructions for this line specify: "Do not include unrealized gains or losses". I was not aware of this change. In any case it seems to require splitting out the interest/dividends etc. from the unrealized and realized gain... I do not know why this information would be useful to the IRS...

But Announcement 2001-77 appears to be a Big Deal, which seems to say that in certain situations, using a Non-Std. prototype or Volume Submitter, no DL need be requested but the ER can rely on the Prototype or Volume Submitter Plan's opinion or advisory letter. This will save TPAs many hours of work, if it means what it looks like?

No 204(h) notice is needed to terminate a Profit Sharing or 401(k) Plan. Only plans subject to minimum funding standards need a 204(h) notice, as far as I know.

In a small SARSEP one NHCE defers 12% of pay. The SARSEP is deemed top heavy, so 3% must be contributed for each non-key employee. This puts our NHCE who defers 12% at the 15% limit for contributions. Does this mean that no additional "Employer contributions" may be made on behalf of the HCE, whose only contribution is a $10,500 deferral? He is at $170,000 compensation limit. My other question: is the 15% limit on contributions for each employee computed as 15% of gross wages including salary deferrals, or 15% of gross wages minus salary deferrals? Thanks for all help on this matter.

Has anyone mailed the Tax Deposit Coupon and Check to the Federal Tax Deposit Processing office in St. Louis, Mo.? If so, did this agency accept the check? Please advise your experience with mailing the withheld taxes and the address(es) you used for this purpose. It would save my clients considerable time if they did not have to take these deposits to their local bank. Thanks for all input.

I have been the lucky person to do these calculations.

One of my clients has an integrated SEP with Prudential Securities. Maybe this will be of help...

In an integrated Profit Sharing Plan it is possible for a participant with compensation >$170,000 to get a contribution larger than $25,500. Is it also possible to do this in an integrated SEP? Thanks for all input.

If the amount of tax that should be withheld happens to be less than $1,000, you may deposit that amount along with Form 945.

In a 1 person C-Corp. what documentation is needed to provide medical reimbursement to the sole employee (who is also the 100% owner)?

I have a Profit Sharing Plan with 4 long-time participants. One of these 4 terminated during the year with less than 500 hours service, so he does not share in the contribution per document provisions. Can I count this person's compensation when computing the 15% deduction limit? This is just an old-fashioned profit sharing plan, no 401(k) features. Thanks for all input.

I am working on a takeover plan and am trying to find out if the Plan, which was adopted 11/21/94,was ever submitted for a Determination Letter. Years ago, I had a contact at IRS who would locate the latest DL and FAX it to me, but he is no longer available. I am hoping that someone has a contact at the IRS for this purpose. Thanks for all input.

In light of this client's failure to follow your advice, perhaps you should reconsider accepting this takeover plan, and notify them to find another TPA.

I would do a Final 5500 if the checks were eventually cashed, as long as they were issued by year end.

There is a similar question under this topic: How are top-heavy testing and 410(B) testing coordinated? at http://benefitslink.com/boards/index.php?showtopic=4886

I would say, deposit the $2,000 remaining and allocate the $7,000 contribution to participant accounts for 2000. The "loss" on the contributions is just included in the total investment gain or loss for the year and not attributable to the contributions directly.

Although not technically correct: if a client mistakenly puts the contribution into the wrong plan, what about moving it into the right one? Having a 20% pension plan creates problems, maybe amend it to 10% for the future?

There is an update to the program that will solve your problem. You can download this from http://www.peakone.com.

I have been using the Tax ID# that I would use on the 1099-R for the distribution.

Can anyone provide a citation for the interpretation that a top heavy minimum contribution does not equal "benefitting" for 410(B) purposes? Thanks for your help.