looking for input or experiences of those that have missed the filing deadline whichever cycle for Individually designed db plans. if the plan has no technical defects that you know about other than being a late filer, can you submit under the VCP program? do you have to come up with a defect? i want to submit the plan but i do not want to lose the ability to retroactively amend if there is a defect.

We have two (2) types of employees, salaried and hourly. Our understanding is that we can exclude hourly employees as a group; i.e., only our salaried employees would be eligible to participate. However, we've read that there is a minimum coverage rule of some sort, and it's unclear if that applies to the creation of a salaried-only group. For example, do the total number of salaried employees have to equal or be greater than a certain percentage of the total number of employess working for us, before we can create this specific group. Please advise, if possible and/or direct us to the IRS provision governing this (we tried looking for it, but only found vague references on IRS.gov Thank you for your time, assistance and attention to this matter.

The plan currently does not exclude any class of employees and has the standard 1 yos/ 21 yoa eligibility requirements. The plan wants to amend to exclude a specific group of employees (Nurses). These are all HCEs, so testing is not an issue. I understand that eligibility is not a protected benefit, but can these people now be excluded if the plan is amended?

I have a participant who would like to receive a lump sum distribution, but the plan's AFTAP is below 80% (it's also below 60%). If, after the participant begin receiving an annuity, the AFTAP increases, can she elect to receive the remainder as a lump sum?

Thanks!

Background: Client had a SEP. Changed to a Profit Sharing Plan effective 8/1/2005. Has not filed a Form 5500 as they were not aware that they needed to do so.

We have been hired to complete all the delinquent Form 5500's. Intend to go through the DFVC Program.

BUT, we have discovered that for 4 of the 6 plan years that are delinquent, the profit sharing contributon was not capped for the HCE's. Client was giving 10% (in all years affected) of compensation (no limit) to all employees. FYI, the profit sharing allocation is discretionary amount - pro-rata/

Since the amount was deducted on the Corporate Tax Returns for all those years, it is my suggestion that the client determine a "new percentage of comp" for profit sharing in the years affected that would generate the same taxable amount and re-allocate the profit sharing contribution (taking money FROM the HCE's and giving TO the NHCEs).

Any thoughts? Any concerns with this method of correction? Are lost earnings required as well?

Thanks

We have a takeover plan whose non-discrim testing over the past 10 years appears to be suspect. In looking at a few years, I have several HCE's whose allocated match (formula is 100% of deferrals up to 3% of eligible compensation) was not capped at the Annual Compensation Limit. This has been the case for the three years I have been reviewing. I am going to assume that it goes back to the 90's. What is the best way to correct? Any suggestions?

Plan participant with a loan was termed 4/23. He stopped making loan pmts when termed & was re-hired 10/15. The way I understand it is the cure period would have ended 9/30. Is there the possibility that the participant can make up loan pmts & interest and continue with the loan at this point or is it too late? Thanks

Is it permissible to have a passive HSA Open Enrollment? Can I just let the 2012 payroll deductions for HSA carry into 2013? We do allow employees the ability to change the deduction amount at any point during the year, so it's not like they are trapped all year with this deduction as they would be for an FSA.

The mentality for most of our employees "If I am happy with my current elections, then I don't need to do anything" (this mindset persists even when I beat them over the head with communication telling them otherwise).

Curious to know if it is permissible.

Considering signing a contract with Guardian to be the TPA on a client's plan with assets at Guardian. Does anyone have any experience with the company that they would be willing to share?

Thanks!

Does anyone know what the penalty is for a late 8955 SSA?

if this lady applies for a job watch out

http://www.viddler.com/v/800b0af0

My client says they did this with a prior administration firm in the past. (of course)

This is a totally participant directed plan and the trustees are going to make a "special" investment of Trust assets in a piece of foreign property. A notice is to go to all active participants stating that they have a one time option to invest in this property with lots of notes about how highly speculative, aggressive etc this investment is. Any participant may elect to direct some of their account into this investment. (Assumption being that they have enough owners who want to be in this investment that they can cover the purchase price). Once in the investment it will be treated like a pooled fund - with annual valuations. Participants with a share of this investment can only get out of it in the month following the annual appraisal. Once in a participant can only get out of it entirely (i.e. if their share is 10,000 they can transfer out the total but not 50% of it). I've not seen this before and would welcome any thoughts.

My initial concerns regard the fact that it is a directed and yet pooled investment. How does this effect fee disclosure, quarterly valuations, etc.. Would this be similar to allowing participants to keep some of their assets in a trustee directed fund?

Thank you in advance.

(edited to add more information).

I am now informed that one participant wants to borrow money from the plan to invest as an individual as well.

Three doctor offices each with three doctors (9 total). They created a billing company that, initially, will perform billing services exclusively for the three offices. All doctors have equal ownership with the billing company. Each doctor office has their own plan.

Does the billing company create an ASG with any or all of the doctor offices? It would seem at first glance that the billing company would be a "B-Org" and the doctor offices are an "A-Org" and also an "FSO". Curious if the billing company is affiliated with each separate office could all four are combined as one ASG...

A 403(b) Plan installed by a 501©(3) in 2002 which is funded solely by employee deferrals and employer matches of 100% of pay up to 3% of pay and the matching has a 5 year graduated vesting schedule.

The Plan has never filed a 5500.

Should The Plan have filed 5500s since 2009?

If the match had been immidiately vested, would that have made a difference?

I would like to thank you in advance for your input?

Rene

Old firm sponsored Old plan which included 401k benefits.

Old firm dissolved. Many, but not all of the old law partners formed New firm, for which New plan was set up, with a 401k feature.

As Old and New firm constitute a control group, those employees of Old firm that went to work for New firm when it was set up did not separate from service.

Not understanding fully the separateness of the two plans, the administrator/trustee of Old plan allowed those that did not have a separation of service and requested (on an individual choice basis; not a trustee-to-trustee transfer) to directly roll his or her benefits from Old plan to New plan. Four individuals chose to do such; all four being under age 59 1/2.

I have been asked to prepare a VCP for Old plan, so that it can correct the fact that the benefits left Old plan before those employees had distributable events and without having been provided proper notices and explanations. The correction will include the return of the funds from New plan back to Old plan.

My question is whether a VCP application needs be made for New plan also, as it received into its trust what were improperly rolled benefits and as part of the correction will be paying those funds out, back to Old plan. Is a VCP for New plan required as one is for Old plan?

A rehired employee who was previously a participant in the plan is rehired. The document requires the person to immediately resume participation in the plan. But the auto enrollment provision that was added to the plan since the participant left requires advance notice. Do you simply offer the option to defer immediately, wait for the expiration of the notice period and then auto enroll them? If so, how do you answer the auditor's question about why the deferral rate is less than the stated percentage for automatic enrollment?

i know the order is not called a QDRO. my question is when calculating what is marital property in divorce involving a participant in a federal TSP does state law apply (eg. in florida contributions prior the marriage plus earnings are is not marital property) or is there a federal law that supersedes that when dealing with what is marital property.

Is there a mandatory interest and mortality rate when converting from one form of benefit to another i.e. convert a plan's normal form life with 10 yrs guaranteed to life only?

When you have both a DB plan and 401K plan,

do employee deferrals count towards 415 limit

ex. comp $250,000

DB contri 100,000

3% SH 7,500

Can you also have employee deferral of $16,500?