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[EDIT] Aw, man! I had like six paragraphs of great insights and code citations for you! Now I had to delete them.

You are correct on both counts. From Notice 2003-20: Treas. Reg § 1.457-10(b)(5) provides that a beneficiary may transfer the money to a 457(b) plan of a nongovernmental employer if both the transferring plan and the receiving plan allow for this. Of course, this would require that the beneficiary actually work for a nongovernmental tax-exempt which maintains a 457(b) plan that allows for such transfers.

Absent evidence of the claim I don't see you can do anything. I am not a lawyer either but a concerned call isn't facts. I will point out most plans do have language discussing if a participant or beneficiary is a minor or incapacitated it seems like. So IF you GET the evidence there is a competency issue the document might give you direction on what to do.

To the moderator - please delete this post. Information now coming in is very different from originally received, and at this point, no one should be wasting their time responding to the original post. Thanks!

Bob, thank you. This is what we ended up doing after speaking with an ERISA attorney. Forfeited and then paid expenses and made pro rata contributions. The company is holding this amount on a ledger in case he ever resurfaces.

S-I-L is not attributed ownership. No double family attribution. Dad's stock attributed to daughter. End of the line.

Before a court appoints a fiduciary, a threat of Labor’s enforcement might persuade an employer to administer its plan. In those circumstances, an owner/employer/administrator might see sense in reasonable corrections. And those circumstances might give a third-party administrator some bargaining power to negotiate reasonable fees (including payment in advance) and protective terms before the TPA accepts an engagement. Before revealing information to a participant, one might consider whether the information was disclosed with an expectation or presumption of confidentiality or privacy and, if so, whether professional-conduct rules, a voluntary association’s rules, or one’s personal ethics preclude revealing the information. But those questions might not arise because a participant might already know enough information to support her complaint.

There won't be a problem. This is pretty common for institutions to file a barebones 1041 which contains only the trust’s name, address, and tax identification number. They will attach a separate grantor tax information letter to the return. This is easier for them than filing 1099s when there are multiple sources of income.

yes, submitted the 14704 with all the returns and the check. I think the fact IRS thinks I didn't send a check (which I did and they cash) is messing this up. Does anyone know what happens at end of 30 days? Premature to go use the tax payer advocate? Problem is the IRS rep said everything is taking months to process.

Annual additions 415 deadline 15th day of the 10th month. IRC Sec. 1.415(c)-1(b)(6)(i)(B).

QRP allocation has nothing to do with deduction only for 415c limit unless you are combining deductible contribution with QRP This is easy if you have no rank and file employees since testing might be an issue.

Maybe 15 years ago we had a client wash his hands of the plan. We advised him about filing requirements, fiduciary duty to participants, etc. but he just walked away. About two years later he called up and said something to the effect of "the Department of Labor just called me and said I need to re-hire you to help me wrap up this plan or I am going to jail".