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Actually there is a solution: just have her contact her representatives and senators and tell them to make Congress change the law! I'm sure they will listen intently.

Process the RMD. Process the rollover. Tell her to discuss tax implications with her accountant. Unless you are also her accountant, in which case, good luck.

A most requests for creative solutions amount to wanting to be told that the illegal proposition is acceptable.

The thought of passing off tax-free dollars to a non-profit (and expecting to take a deduction). That's definitely not how it works. I've had to discuss that a time or two. I get why folks don't want the tax burden, but there's a reason why RMD rules are in effect. I've told my clients I will always look out for their best interest, and that they must also understand they might not always like what I have to say. It's just part of being a good service provider :-)

I think you are remeding it. You are getting a better service provider. I don't think there is anything that you need to do to fix the past.

Same. One of the greatest challenges is working with folks who toe the operational bounds of plan administration. We can make recommendations and outline consequences, but they are ultimately responsible for their decisions and bear the risk of contrary outcomes. Good luck!

I have treated these "urgent" notices as a "heads up" that there is no enrollment on file for that person & then I usually just clear out the message from the message board. You will need to make sure that these default invested people receive the QDIA notice annually.

Peter, I don't think what you describe would be considered to be acting solely in the interests of participants and beneficiaries (ERISA 404(a)(1)). I also think it would be very likely to have the claims procedure be considered to not be reasonable under 2560.503-1(b)(3). Also, what do you do with a participant or beneficiary who doesn't have a valid SSN? I haven't heard of any auto rollover company that will accept a rollover without a valid SSN.

A plan that benefits no highly compensated employees for the plan year automatically satisfies the 410(b) requirements with respect to employees. See 1.410(b)-2(b)(6).

Are there 0 eligible NHCEs participating in the employee contribution portion of the plan, or are there 0 NHCEs eligible for the employee contribution portion of the plan?

Employer provided life insurance is subject to ERISA. I only know of a few states that have laws permitting a trial court to order a Participant to continue to carry life insurance for the benefit of an Alternate Payee. See: Rollins v. Metropolitan Life Insurance Company, 863 F.2d 1346 (7th Cir., 1988) - Indiana Head v. Metropolitan Life Insurance Company, 449 N.W.2d 449 (Minn., 1990) Perkins v. Stuemke, 223 Ill.App.3d 839, 585 N.E.2d 1125, 166 Ill.Dec. 103 (1992) Life insurance in generally agreed to by the parties to guarantee that the obligations of the agreement are fulfilled, e.g. payment of alimony and child support, college for the children, and also as a potentially cheaper substitute for a defined benefit plan. (Premiums are usually less than the actuarial cost of a defined benefit plan and the proceeds are tax free.) I have spent 32 years involved in preparing QDROs and studying ERISA as well as the laws and regulations governing all of the other Federal, State, County, City, and International agency Plans. There are over 980,000 pension and retirement plans in the USA. About 960,000 are covered by ERISA. You would do well to advise your client to work out a settlement.

What would they do with participants who do not have a bank account? Some of our clients have a significant percentage of people who do not have bank accounts. The companies that direct deposit paychecks help them get one of the prepaid credit cards for their paychecks. Our experience has been that those cards refuse to accept ACHs of plan distributions.