In the context of an asset purchase:

If the seller's prototype plan requires repayment of plan loans immediately upon a termination of employment, can loans be rolled over to the buyer's plan without amending the "immediate loan repayment" requirement (assuming both the seller and buyer plans otherwise permit in-kind rollovers)? It seems that this is done fairly regularly in the context of acquisitions, but I can't find anything indicating if the seller's plan has to be amended to eliminate the immediate loan repayment requirement in order for it to work.

It would be preferable not to have to amend since it would take the plan out of prototype status. However, without an amendment, how do you get around the immediate repayment obligation? Any thoughts would be much appreciated.

The plan sponsor had an employee making loan payments - For some reason, they stopped withdrawing loan payments from his check. (No one knows why)

At some point the loan was defaulted and deemed.

No notice was give to the employee. The employee apparently, never noticed that payments were no longer being deducted from his paycheck.

He is asking that the plan sposor reimburse him for the taxes and penalties he suffered at tax time.

I have never had such a request. Any thoughts or concerns????

Thanks!

Client was taking installment payments. He was age 80. He died this year. RMD regs says that the RMD for the year of death is calculated as of the participant lived until the end of the year. Is there any exception that would require the RMD for the year of death to be calculated using the spouse beneficiary’s single life expectancy ( and not the decedent's Joint life-expectancy of uniform table?

Thanks

Cass

A county is saying that if an employee has an employed spouse and the county employee is eligible for the spouse's employer's coverage, they are not eligible to be covered under the county plan.

Can you do that?

Next, the county is saying that they will reimburse the employee for the cost of covering the county employee under that employee's spouse's plan.

Then, they will reimburse the out of pocket expenses that the employee incurs if that expense would have been covered under the county plan.

Do you think that after 2014 they will still be able to offer that? There is no maximum stated in their benefits description, but it seems unlikey that this unlinked HRA would satisfy the no annual no lifetime max requirements that will be in effect.

Thanks.

Client has IRA. Only asset is investment in limited partnership. Owner turned 70 1/2 in 2011. Account balance reported on 12/31 (by K-1) $273,000. However, we have now learned that limited partnership is out of business; asset basically worthless. Custodian calculated RMD (to be distributed by 4/15/2012) based on 12/31 value from K-1. Obviously, there are no funds in the IRA to fund the RMD. Does 1.410(a)(9)-5, Q&A-1 solve this situation ("However, the required minimum distribution amount will never exceed the entire account balance on the date of the distribution")? Are there any reporting requirements we have to meet to verify the account balance on the date of distribution? Any guidance is greatly appreciated!

We have a governmental 403(b) plan that wishes to apply a three year eligibility requirement for employer contributions with an applicable vesting schedule? Is this permissible?

I would like to receive some feedback as to what would be considered a reasonable "client load" per administrator. CPA firms and non-CPA firms if possible.

Anyone care to share?

Thanks!

Situation: Foreign company wants to set up a 401k in the US. Who can be the trustee? The people at the parent level obviously want that role, but they live in South America. TAG says no, because to be a domestic trust, the decisions must be made by US corporations, citizens OR residents, etc.

Any thoughts? Has this been written up/addressed by anyone else?

Employer offers High Deductible Insurance Plan with HSA. They are telling employee that he cannot participate because his wife has a VEBA. Can't find anything on this. Thoughts?

Thanks!

Does anyone have any model language that they could share related to Rev. Rul. 2012-4 and allowing roll-overs from a DC Plan to a DB Plan?

Company has 4 employees - one owner, owner's wife, owner's father and one NHCE (not related). To pass 401a26 they just need to benefit two employees right? So if they had the owner in a Plan with his wife, or with his father, they would be ok? No need to include the NHCE?

I left my Company in May 2011 and was rehired in Dec 2011 and still currently with this company.

My question:

Since I left my company, can I rollover any amount of the 401K even though I came back and still current employed by this same company?

Thank you

Have there been any extensions announced for 5500's for areas affected by Hurricane Sandy? I have a 3/31/12 YE and the client is in the disaster area?

Just wondering what others are charging to restate an ESOP plan document.

Any help would be greatly appreciated.

Thanks

DPSRich

I am 65 1/2 years old. Signed up for Medicare Part A & Part D (Current HDHP prescription coverage not credible to Medicare). I Have a HSA account that I can not contribute to because I am participating in Medicare. I am still working at an Employer that has more than 20 employees and will continue with a HDHP for 2013. My question is can I participate in the employers HDHP and FSA account for 2013 even though I have a HSA account that I can't contribute to but, could pay bills from?

We use Corbel PT 401k Plan. Have a plan that WAS 401k, but now wants to be PS only. My dillema is that for things like hardship and in-service, the PS Prototype doesn't give me the options regarding 401(k), etc.; it assumes the Plan has ALWAYS been PS only. So I don;t think it will work.

So what am I to do? Should I use the 401k document still, but just not check the box that says 401(k) contributions will be allowed and "blank" the whole 401k section?

I think that is what I need to do, but looking for suggestions.

Client adopted a Flexible 401(k) PSP in October of 2010 sponsored by First Clearing, LLC. Client only has copy of Adoption Agreement and does not have underlying plan document. Adoption Agreement is entitled "Flexible 401(k) PSP Standardized Adoption Agreement". I know it is a longshot, but is anyone aware of where the "Basic Plan Document #01" might be found on-line? I will try to contact First Clearing, LLC as well, but thought I would give it a try. Thanks.

Calendar year plan, 2012 AFTAP was certified in March to 80.04%. There was a $23,000 deemed waiver of prefunding balance (there is no carryover balance) to get AFTAP to 80%, plus an additional voluntary wavier of $2,000 prefunding balance to account for the NHCE annuity purchases so the assets less prefunding would be 80% and allow employer to apply credit balance in 2013 if needed. This is not a huge issue since they still have a good amount of prefunding balance, but while it's my understanding the deemed waiver amount could be reversed if not necessary under MAP-21, can the addtional voluntary wavier be reversed as it was not done to avoid benefit restrictions?? Thanks.

Can a plan provide a limited safe harbor contribution to HCEs as long as the full safe harbor contriburtion is made for NHCEs? For example, the plan provides a 3% safe harbor nonelective to NHCEs but HCEs only receive a 1% safe harbor contribuiton. Or for a safe harbor matching contribution plan, the plan provides a basic safe harbor match to NHCEs but provides a lesser match to HCEs.

I have been contracted by an employer to assist in the termination process for a large auto employer. This was a bundled plan, very poorly managed I might add. The institution was named the corporate trustee for some reason. Bear in mind the employer has been very hands off, which I guess is why they went with the financial institution being the trustee but now, several issues must be addressed and I am not quite sure who does what. Add to this, it is an Affiliated Service Group.

The plan has decided to terminate. That said, who signs the termination paperwork? The financial institution told them they needed an attorney to terminate the plan I am assuming because they had no clue how to handle. Not sure why they were told that when they prepared all the documents, participation agreements for the employers and restatements so really just not clear on why they wouldn't prepare the termination paperwork. At any rate, back to my question, who signs the termination paperwork and all the distribution forms?

Next question, it appears that one of the members of the Affiliated Service Group left the Group during this plan year. I don't have any paperwork for that as it appears to be a Partial Termination. Also, the sponsor didn't match any of the participants salary deferrals because there is a 1000 hour requirement and that group left before that could be reached. I just seem to have an array of issues and need a bit of direction.

So questions as follows:

Who signs the termination paperwork for each Employer of the Group?

I assume each Employer in the Group needs termination paperwork, correct?

The Group that left, what to do about that? Left with no termination paperwork and didn't receive contributions?

Anything else I should be addressing that isn't coming to mind while I am typing this for documentation purposes?