I saw some older threads on this topic, but thought I would see if there is any updated opinion on the matter. Do we need to file F5500 in the year we receive and distribute the settlement money? That is assuming, of course, we can distribute all of it in one calendar year. The final 5500 was just filed in 2012 for a 5/31/2012 final year.

Which professional titles do you put after your name on your business correspondence?

Hopefully, by the end of the year I will have:

QKA

QPA

CPC

ERPA

Now, that's a handful to place on a signature line. For example, this looks a bit cumbersome:

Jim McGillicutty, QKA, QPA, CPC, ERPA

So, which ones do you put?

is it necessary to provide a 204(h) notice in a 2 person DB plan consisting of husband and wife?

I have a client with a 401(k) plan who is interested in making an in-plan Roth conversion. Just was hoping to confirm some issues involved with that:

(1) The plan has to be amended to allow for Roth contributions

(2) The participant has not yet made Roth contributions but can still have an in-plan conversion

(3) Any existing account balances attributable to 401(k), QMAC, QNEC, or Safe harbor contributions cannot be converted until at least age 59-1/2 and must be eligible rollover assets.

(4) Any amounts other than the above can be converted, but only if they are otherwise eligible for distribution (including in-service withdrawals) and are eligible rollover assets.

(5) Any amounts that are converted to Roth must remain in the plan for at least 5 years; otherwise, the earnings will be subject to taxation.

I also had a related question:

(A) Does the answer for #5 change depending on whether the distribution is a rollover or a lump sum cash distribution?

Thanks for any replies

In a 401K plan there are 3 ben. (1 spouse age 60, 2 children age 30 and 40),

The participant is receiving RMD.

If participant dies can the ben. use there own age to calculate RMD?

If they can't what age must be used?

How would it be different if spouse was sole ben?

I am trying to figure out the correction for a plan sponsor if they contributed funds to their Plan in-kind as opposed to in case. Has anyone encountered this before? From what I understand:

(1) The transaction must be backed out (positions sold) and the funds re-contribued in cash. Should it be the original amount involved in the transfer of stock or should it be the original amount + any earnings, if any?

(2) It is a prohibited transaction so must be notated as such on the Form 5500.

(3) The amount contributed does not count towards the Minimum Required Contribution. So as a result, they should file a Form 5330 and pay the excise tax on the failure to meet the MRC.

What I am not completely celar on is how much excist tax is to be paid. Is there one excise tax to be paid because there was a prohibited transaction, and then another excise tax paid for failure to meet the MRC?

One of my clients is looking to split their annual recordkeeping fees, which their participants pay, by active and terminated employees. The question the client has is can those fees be different meaning $40 for actives and $50 for terminated participants? Would that be discriminatory in nature?

I can find references that show US Qualified plans of US Corporations can accrue benefits based on foreign income (for US persons) even if paid in the local currency.

What I have not located are any code sections or regulations addressing this issue. I have spent over two hours on BNA trying to use the search function to find this. Of course, I have trouble with ALL search engines - even GOOGLE!

Does anyone have a clue as to what code section(s) might cover this?

Thanks all.

Owner of S-Corporation that is only two years old wants to set up a SEP IRA and make contributions for himself, but not his employees. The owner argues that this is possible because the employees have not yet been employed for 3 of the last 5 years. Then, after the owner makes these contributions to the SEP IRA only for himself for as many years as he can, he wants to transition the SEP IRA to a Simple IRA and continue to make contributions for only himself. Is this permissible? Is there any IRS guidance on this?

It is my understanding that a ITG is not eligible to participate in a 457(b) plan. Therefore, as they are covered under 414(d) and can have a Governmental Plan, could they have a 414(h) pick-up feature in their 401(a) plan.

Participant has an account balance of $70.00 and TPA charges $75.00 for a distribution fee. TPA wants to wipe out account and have the remaining balance sent to them as a fee for distribution. Is their really a distribution fee to be charged? I have found no IRS guidance on this nor a De minimus amount .The distribution was not initiated, no notices to the participant and not disclosed as such in the Fee Disclosure Statement. Under audit would the IRS ask for the money to be put back with earnings? What would be the correction? Or is this the norm and it's ok to process the transaction?

So the plan contact had an outstanding loan that he received a 1099R for in January from American Funds, as he was not making loan repayments. Apparently (he says) when the plan moved over to my new employer and to a new carrier (AF), "somehow the loan repayments for me stopped" and for another person he mentioned. He wants to know if he can start repaying the loan. My answer would be no, since he received the 1099 already and the info was submitted to the gov't back in February; I don't think there is a way to "undo" the default...or is there?

Plan is a defined benefit plan. Participant had 16 years of service with the Plan, so he is vested. He and his wife were divorced in July, 1987. A DRO was filed with the Domestic Relations Court (state = Ohio) at that time giving Alternate Payee $85.00/month beginning July 1, 2003. That was when Participant would be 55 and eligible to retire under the Plan.

As far as we can tell, that DRO was never sent to the Plan Administrator to judge whether it was a QDRO or not. At least, it wasn't provided to the Administrator until last week. The Participant left the Plan in 1990 when he took other employment. He is going to be 65 this July and is looking to begin his benefit with the Plan.

So, my questions to my fellow board members are as follows:

1) Has anyone ever experienced anything like this? If so, what did you do?

2) Is there any time limit on turning DROs over to a Plan Administrator? I don't believe there is, but who knows if there's some goofy ruling out there saying there is.

3) Assume that the terms in the DRO are acceptable, thereby making it a QDRO. Is the Plan required to make a lump sum payment for all the payments it "missed" since 2003 even though the Plan didn't even know it was responsible for those payments until 2013? My inclination is that, if the DRO is a QDRO, then the Alt. Payee is entitled to all those benefits, not just from this point forward.

Thoughts? Thanks.

Hello,

A sponsor has two plans covering different companies. Plan A has been in existence for 3 years, and Plan B is new in 2012.

For the 2012 Plan Year testing, both Plans have to be permissively aggregated for coverage, and non discrimination testing.

Both Plans use prior year testing method. Since the Plan A has been around for a few years, the prior year testing percentage is known, but I am not sure what percentage to use for the Plan B to come up with the Weighted Average for the combined plan.

Plan B's document says the Plan uses 3% rule for the first year.

I appreciate your time and response.

Thank you.

ML

The employer has 5 locations (retail). Each is filed as a separate Schedule C for income tax purposes. What is it that determines which entities need to actually become participating employers by separately adopting the 401k plan? Is it because each has filed a separate Schedule C as opposed to combining the entities as one?

Does anyone know if there are any provisions stopping a participant from taking out a 401k loan to purchase a property abroad if they provide a purchase contract? I have a participant wanting to purchase a property in Poland. Thanks for the help!

Document/Adoption Agreement was drafted by prior TPA. It was on a non-standarized 401(k) prototype.

I have two questions:

1. Client comes to us, the new TPA, to administer the plan. I would suggest the plan be restated onto our prototype document. Client wants to wait until the new restatement that will be required in 2014. What does this do to their document? I believe it is now an Individually Designed Plan. Does that mean they need to apply for a determination letter?

2. Adoption Agreement lists the client as an Corporation. Client tells us that their business entity is an PLLC. Should the AA be corrected?

Plan year is 01/01. Employee acquired 6.2% ownership at the end of the business day on 12/31/2011. I know the employee would be HCE for 2012 but what about 2011. I know the ownership definition states:

The employee owns more than 5% of the employer at any time during the current plan year or during the 12 months preceding the plan year.

But since this employee acquired the ownership at the end of the business day on 12/31/2011, did he really have any ownership in current plan year (2011)?

Any thoughts?

Roughly 65% of employees are in the self insured plan

and 35% are in the insured plan. It looks like the plan fail

the first two discrimination tests and the employer has no

real worker classification to fall back on for test 3.

For the past ten years, the employer has been paying much less of many of the non highly compensated employees health premiums

in the insured plan relative to highly compensate employees in the self insured plan.

Any problems for the employer?

Thanks,

Ty

Can someone clarify on the timing of deposots for self employed individuals to their SIMPLES.?

I am self employed and usually extend my tax return. I never know what amount I will contribute until I do my return in the summer.

Therefore I do not make any contributions usually until the summer ( "deferrals and match " ( however for self employed the funds all are the same really ))

THanks for the input.