Taking over a plan and notice they failed the ADP test in 2010 and 2011 and did not forfeit the associated match for the deferrals refunded. In looking through Rev Proc 2013-12, I don't see anything directly related to such a failure (but tax season fatigue could be causing me to overlook something obvious). Has anyone tried anything other than forfeiting the monies at this point (and related earnings)?

Is there a place I can find in the IRS Regulations that specifically explains that within a qualified plan, the Dividends from the Employer Stock that are paid out to a participant, do not affect that participant's Lump Sum Eligibilty?

Even after a qualifying event?

Also, is there an IRS regulation that explains what actually disqualifies a participant from lump sum eligibility?

In the case of a plan termination, is it a requirement that the plan agreement provide (in writing) the right to terminate the plan, or is it enough that we follow the procedures for discretionary termination by the employer? If someone has an answer, can you direct me to where to look in the code? Thanks

Does anyone else take the position that, based on Notice 2005-1, Q & A 7, and the absence of subsequent guidance, that equity incentive plans of LLCs can be treated in the same manner as stock appreciation rights plans for purposes of the exemption under 409A, provided the requirements for SARs are otherwise met? Any reference to guidance would be greatly appreciated.

Is a one lump sum distribution from a 457(f) Plan to a participant over 59.5 subject to PA state tax? Now, don't everyone jump in at once.

I have a feeling this is a stupid question but I am going to ask it anyway.

Are leased employees counted in the beginning of year participant count for purposes of determining if a plan is a large plan or a small plan?

Thank you.

Sponsor terminating a db plan wants to spin off participants who chose a monthly benefit (vs most who chose lump sum) into new plan. Old plan was already frozen, this one would have no new benefits.

Is minimum participation requirement met when none accrues an additional benefit?

Hello all and thank you for taking the time to look at this. I am hopeful that somebody reading this might have the information that I need to make the right decisions.

I'll try to keep this as condensed as possible, so there may be important details I've missed. Please ask if you need more detail.

The details:

• wife is fired by employer with 403b (2009)
• wife has cancer and short time to live ( diagnosed Jan2010 - deceased Mar 2011)
• wife has daughter from previous marriage
• wife asks me to sign spousal consent form to transfer 403b to IRA with XYZ Bank (around Dec 2010)
• I ask bank rep the following two questions - 1) will I remain the beneficiary - answer Yes 2) will it continue to require my signature to change the beneficiary info after converted to IRA - answer Yes
• I sign a document titled Spousal Consent - from what I recall on the doc there was no information regarding death, or giving up rights, basically a document saying that we the bank want to manage this account to provide you the best returns blah blah blah.
• I later discover on an IRA statement that the wife has changed beneficiary to the daughter
• my copy of what was signed goes missing (daughter suspected)
• I call the bank rep - rep won't talk to me
• I go to the bank - they won't talk to me (not a named beneficiary)
• try to get copy of signed Spousal Consent to see what it says from bank, ex-employer, two 403b funds (Vanguard, Fidelity) - no success
• my attorney ask the bank for copy of document from the bank and they tell him they have no copy of any documents ever signed by me
• as part of the ongoing estate battle - the daughter (also executrix and beneficiary of bank accounts, land, life insurance, ...) supposedly looks into this and also cannot get any documents from the bank or funds - according to her lawyer

I have looked at multiple Spousal Consent forms from my employer and online source and universally, they all have language in them that clearly state you may be giving up your rights to the money, etc. The document I signed had nothing like that (from what I recall). Clearly I knew wife was going to die and tried to carefully review the consent form for any similar language and nothing raised any flags. I continue to believe that the bank rep has a fiduciary responsibility to me as a beneficiary to inform me accurately about the impact of the transfer to IRA.

Is all hope lost? I have had a very difficult time finding anyone well versed in this subject - please help.

I've found several threads here that are close to what I'm trying to figure out, but maybe I'm just not able to translate them to my situation...

Non-5% owner participant in a calendar-year plan will attain age 70.5 in August 2013. The participant terminated in March 2013, and is requesting a full rollover distribution (immediate distributions are allowed by the plan) to an IRA.

Taking a conservative approach, I reasoned that the termination made 2013 the first distribution calendar year, with a RBD of 4/1/14 but payable anytime in 2013 based on the 12/31/12 account balance, so the plan should pay the 2013 RMD in cash and roll the remainder to the IRA. The recordkeeping platform rejected this, claiming that the RMD can't be paid until the participant actually attains age 70.5. They further claimed that the participant should take their 12/31/12 statement to the rollover institution and make them pay out the 2013 RMD.

Am I being too conservative here? I'm not getting any clarity from Reg 1.401(a)(9)-7 or 1.402©-2, either... Thanks.

I had the QDRO prepared by Lexington Pensions. They told me that I did not need a lawyer, they would prepare the order and I just needed to go file it in court so the judge could sign off on it. SIMPLE as that!

I went to the court and they gave me a check list of what I need,

- Notice of Settlement of the Proposed Order ?

X- Proof of Service of the Proposed Order and Notice of Settlement - I understand they must both be served to former spouse.

X - A copy of signed Judgement - I have it

X- A copy of parties' stipulation of settlement - It's attached in the QDRO as you will see

X- Correspondence from subject plan (s ) which states the Proposed Order meets their qualifications. Attached in the QDRO
X - A self addressed stamped post card

-------------------------------------------------------------------------------------------------------------------------------------------------------------
I have some questions, I am not completely sure these;

1- How do I name myself on the Affidavit of Service ? Current maiden name or former married name as is in the divorce?

2- When I serve him the order do I need to include the Addendum or the Correspondence from the Plan( both attached in QDRO ) to my former spouse or just the order itself?

3- Notice of settlement is filled out by me and that is served along with the order to my former spouse?

4- What box do I check on the Notice of Settlement for PLEASE TAKE NOTICE- Order ?

5- I sign it under Yours, defendant?

6- What is Notice of Settlement of Proposed Order mean?

Thank you in advance to anyone who could shed somelight for me.

Does anyone have any guidance regarding a situation where a client took an IRA deduction on his 2012 tax return, made the contribution by check prior to the 4/15/13 deadline & then the check was subsequently returned for insufficient funds after the 4/15/13 deadline. Is the deduction disallowed for 2012 even if the check was eventually made good?

I think I may have a situation where we paid ongoing annuity payments directly to an executor of a deceased participant's estate under the executor's SSN.

What are the consequences and steps that can be taken to rectify this situation if this is indeed an issue?

If we send a letter to our terminated clients asking if they want their records and advising them if they don't that the records will be shredded, are we off the hook? These are 401(k) plans, so the records consist of annual report, Form 5500, testing, etc., or in other words things that may be needed for an audit.

My boss likes to get rid of everything but I feel that it is still our firm's responsibility to keep the records for 6 years, regardless if the plan is terminated or active and switched to another TPA firm.

How does everyone handle this? We are a small firm and electronic storage (high speed scanning) of records is not an option at this time.

An employer wants to terminate its group health plan in connection with a sale of all of its assets.

Do the summary of benefits and coverage regulations at 54.9815-2715(b) ("Notice of modification") require a 60-day advance notice of same?

It sure appears that way, because, arguably, the plan's termination is a reduction in coverage, and coverage is one of the topics to be addressed in a SBC, and the plan's termination is a "material modification" under ERISA section 102, and the regulations at 2520.104(b)-3(d)(3).

Note that under the ERISA regulations, notice of a plan termination type fo material modification may be provided up to 60 days AFTER the modification takes effect. (Of course, the fiduciary duty rules require advance notice of a plan's termination . . . so that participants don't incur claims/expenses that are no longer covered under the plan.)

In the past, prior to the SBC requirements, I've had the employer issue an SMM notifying participants of the plan's termiantion at a reasonable time prior to the plan's termination.

If the SBC regulations apply, I guess the notice will have to be provided at least 60-days in advance, and an updated SBC provided.

I've found no guidance on this particular issue. Any thoughts are appreciated. Thanks.

Where/how do we report CE for ERPA? All I read is that you have to do the credits and keep the records for 4 years. Nothing about how to report it?

Is it on the honor system, but you have to have the stuff in case they ask?

The supplement that accompanies the AFN from my former employer showed an MRC with MAP-21 of $15 million and without MAP-21 of $78 million. My conclusion is they are not adequately funding the plan and I intend to write the IRS, DOL, PBGC, FTC, FCC, WSJ, NY Times, and Al Sharpton. It's totally implausible that a plan participant can feel anything but panic let alone assess the plan's funded position.

For Congress to say you must employ certain assumptions to determine your contributions and then punish you for using these assumptions demonstrates just how little understanding they have for pension issues. It is of interest to note that unlike the prior Summary Annual Report, the AFN does not disclose how much the employer funded or intends to fund (in 2012). It's possible they might even fund the $78 (or more) rather than the $15 million..

I cannot find the correction procedure under the new EPCRS rules for the following situation.

1. The plan document excludes shareholder doctors from a 401k plan. All other eligible employees can make deferrals, including catch-up contributions. There is no match.

2. Several of the shareholder doctors (over age 50) made "catch-up contribuitons" (or what they thought were catch-up contributions) of $5,500 in 2011 and 2012.

I see the EPCRS correction where a 401k plan excludes individuals who should have been included. However, I don't see the EPCRS correction where a 401k plan includes individuals (in particular, HCEs) who should have been excluded.

Amending the plan retroactively to include them might be problematic to the client. There is another plan that covers these shareholder doctors. That would make both plans in the same required aggregation group, and require additional top heavy contributions to the 401k plan. (The 401k plan eligibiility is more generous that the profit sharing plan's eligibility.)

Alternatively, correcting the 401k plan by refunding the money (taxable) to the doctors will annoy the doctors somewhat, but not too bad.

But, I cannot determine what the correct fix it. Any ideas.

When changing recordkeepers, a blackout notice was timely provided to all actively-employed plan participants, but was inadvertently, not provided to terminated-vested participants. The error was not discovered until the blackout period had ended. Is there any correction method for the failure to provide the notice to all participants? Is anyone aware of the DOL taking enforcement action for such failure to provide notice? How should Line 4n of the Form 5500 be completed (i.e., check “yes” that the blackout notice was provided)?

When changing recordkeepers, a blackout notice was timely provided to all actively-employed plan participants, but was inadvertently not provided to terminated-vested participants. The error was not discovered until the blackout period had ended. Is there any correction method for the failure to provide the blackout notice to all participants? Is anyone aware of the DOL taking enforcement action for such failure to provide notice? How should Line 4n of the Form 5500 be completed (i.e., check “yes” that the blackout notice was provided)?

I dont see anything in 72p about when the first payment is due. Other than payments must be made quarterly. So I would assume the first payment is due within the first quarter after the loan date. How do other people administer this?

For example, what if someone wanted to take a loan today and not make the first repayment until 3 months from now, and then make repaments monthly subsequent to that?