There is a QMCSO in place for my three children. After almost two years, the order has finally been put in place with the latest health insurance carrier. I have received a couple of reimbursement checks but have now been advised by the non-custodial parent that the checks will no longer be made payable to me, the custodial parent, but to each of the three children since the children are now over the age of 21. They have NOT been emancipated. The QMCSO states reimbursements are to be made payable to me and notices shall be sent to me. Of course, I am the parent who has paid for these medical services. Can the insurance company now make the checks payable to the children?

a plan sponsor made deposit on 9/17.

tpa wants to show cont date of 9/17 on sb.

i say it is wrong and they just have to show deficiency on sb.

unfortunate, but the way it is.

any other views, experiences?

a frozen plan has NRA of 62 and is a one participant plan.

participant not near 415 limit.

plan provides that for late ret benefit is actuarially increased.

a tpa firm ran a val with retirement deferred to age 65 but did not actuarially increase benefit payable at 65.

my position is that the benefit s/b act increased per plan terms.

any one see justification in not actuarially increasing benefit at late ret for val purposes?

thanks

We have a situation where a participant is covered under a disability plan sponsored by the employer that has a rider that provides for contributions to be made on the participant's behalf to cover lost 401(k) and employer matching contributions, should the participant ever become disabled. Well, now we have a participant who has retired via disability and has taken a distribution of their entire account. The vendor of the disability policy is now sending the employer checks to "cover" lost 401(k) contributions. My understanding of these arrangements is that the contributions are deposited in to a trust for the participant to tap into once they reach age 65.

I understand that there are vendors that provide these kinds of disability 401(k) plan continuations as an actual investment under the plan and I would guess that the plan would have to have language to cover this kind of arrangement The plan does not have any language that covers this and we are at a loss on how we can provide this plan sponsor with some assitance on how to handle these payments. They have tried to set up a tax-deferred trust at several area banks and no one would accomodate there requests.

Any insight on how this situation can be handled and other info would be greatly appreciated.

I have a participant who was late in turning in her declination in a plan with a 3% automatic contribution upon eligibility. The 3% was withheld from only one

of her weekly pays. I now have that opt out form and will return her deferral plus earnings as required. I have completed the redemptions within the proper 90 day timeframe and I'm ready to return the money to her. A few questions.. Can we charge her for this? Also, do I complete a 2012 Form 1099-R for this distribution and how is it coded? Or am I totally off base on how to handle this? Additionally, this employee has separate from service as well.

Thank you.

I have a plan that transitioned to our company and in preparing the 2011 Form 5500 discovered that the prior preparer did not report the loan values as assets on the financial part of the form. I realize that the plan should be amended to include the loan values but how far back would you go. My thinking is to adjust the form to include the value on the 2011 reporting and make it right going forward. Any thoughts on this.

A plan account was apparently mis-coded by the brokerage firm and they withheld taxes on some earnings. (Not my plan; just trying to help out an accountant.)

Does anyone know how to get that back?

I suggested to the accountant that they file a trust return - Form 1041 - and show $0 tax due and $x withheld and they should get a refund, just like any other overwithheld tax. Any thoughts?

One partner stopped working for the company in May to go to work for another company that he owns. That arrangement did not work out and he returned to work at the first company within 6 weeks. In the mean time, a total distribution was processed for him. When does a partner actually "terminate" for distribution purposes?

I have group of plans that are all part of the same controlled group. Here is the breakdown...

A: 401(k) with Match, a Service Based Profit Sharing & "transitional" contribution to those over 50+ years old

B: Profit Sharing Only

C: MPP

D: MPP with AT & Match

We are struggling to ratio test and the ABT test do not pass. It may pass with some creative plan aggregation, but wanted to check on some questions:

1) Can a MPP contrib be aggregated with an Employer/PS contribution? If yes, I assume then aggregated for general.

2) Can the AT & Match portion of MPP be aggregated with the ACP test for the 401(k)?

Any thoughts?

Underfunded DB plan with only 2 participants with benefits is being terminated. Assets include individual annuity contracts in the name of each participant from 3 insurers (6 contracts total). Contracts will be distributed in-kind (presumably). Plan sponsor will fund liabilities less assets but is struggling for money. No majority owners exist, so no waiver is possible. How should the insurance contracts be valued, at "accumulation value" or "cash surrender value"? Differences in values are not huge - 5% to 7%.

Obviously I cannot provide all the details of the contracts. Just looking for comments/observations/opinions. Thanks.

I have a question regarding a participant distribution in a typical 401(k) Profit Sharing plan that is completely participant directed:

If a participant comes to the plan sponsor (plan administrator) requesting a distribution, files the necessary paperwork, and receives the distribution, but the plan sponsor (plan administrator) later receives a QDRO notification, does the plan sponsor have any liability for allowing that distribution? What if the plan sponsor routinely asks participants upon requesting a distribution whether they are married or not and the participant lies to them and says "no"?

I cannot find any specific language in ERISA, IRC, or other regulations that address this issue; however, I would suspect that as long as the plan sponsor did not know (or had reason to know), the liability would fall on the participant who lied. Any thoughts? Any idea if this situation is addressed in an Interpretive Bulletin or elsewhere?

Hello everyone! Question for anyone who understands non-discrimination testing...

Our client has a 401(k) plan. The own 100% of the stock of company A. Company A has its own 401(k) plan that passed nondiscrimination testing. We are required to take into account company A as part of the controlled group for purposes of nondiscrimination testing for our client's plan. Our client failed the 410(b) test. We are now going to try an average benefits test.

However, under any appropriate remedial procedures, does anyone know how to correct a 410(b) failure? Additional contributions? Including certain people? Any guidance or pointing me in the right direction would be greatly appreciated.

Thank you!

FYI

In the IRS phone forum on MAP-21, today, Michael Spaid, IRS Actuary posed a question from a forum participant,

Mr. Spaid commented, "The IRS is not taking a position on this. Do what seems reasonable."

Company A is a Taxable Entity. They sponsor a 401(k) retirement plan.

Company B is a Tax exempt entity. They sponsor a 403(b) plan.

Company B owns company A.

Effective 1/1/2013 all employees of company A will be paid under Company B.

1) Can the 401(k) plan be merged into the 403(b) plan?

2) Can the current loans outstanding in the 401(k) plan be rolled over to the 403(b) plan?

If the plans cannot be merged and we must terminate the 401(k) plan, can the loans be rolled over to the 403(b) plan.

Thank you

I give up.

Can someone please help w/ this question? I am totally confused by the AIRE/ERPA websites.

If I have a PTIN (because I prepare Forms 5330) but I have not yet taken the ERPA exam, must I satisfy the CE requirement for 2012?

I attended the ERPA conference this summer and I am assuming those hours will qualify, but how do I check that I was given credit for them?

Thanks!!

small traditional db plan with owner and wife and

several nhces..passed with general test.

new nhce employee hired 1/1/12..wish to exclude

from the plan in 2013.

is it better to exclude the employee by classification(will pass

the ratio % test)

or include but make a 0% accrual class. there is no dc plan

so i am thinking if the person is in the plan then they will need

to get the top heavy accrual. Outside of the top heavy issue, the person

is over 40 so is it perhaps risky from an ADEA perpective to give a person

a lesser formula benefit versus excluding them by class in the first place

which would not relate to age.?

From reviewing other posts that a hardship can be limited in a plan, to say 1 per plan year.

I do not see that avialable in my document without adding the criteria. Can it be like the loan policy administered outside the document?

Assume Chris owns 100% of company A, a C-corp which has 50 employees.

Several people/resources have told me that if Chris sets up company B, a C-Corp "marketing" company with Chris as the only employee, then B can sponsor a qualified plan without having to cover any of the employees of A.

This goes against everything I've ever learned or been taught, but I'm willing to be corrected.

Is such a set up really allowed by IRS?

If so, can you please provide a cite?

Thanks,

My children are covered under a self-insured health insurance plan under their father's firm. I have finally started to get checks from the insurance company; however, the checks are "voucher checks". I am not receiving explanation of benefits for these checks. Shouldn't I receive an explanation of how these claims were paid as well as an EOB when there is no payment or the payment goes to someone else?

I'm also confused as to why I get these voucher checks rather than the "normal" check one usually gets from the health insurance company.

I am struggling with deciding whether an employer should correct an insignificant violation. Here's what happend: Employer paid holiday bonuses. Plan docment does not exclude bonuses from definition of Compensation. Employer did not apply employees' 401(k) elections to holiday bonuses. Correction would be for employer to contribute 50% of missed deferral amount plus employer match (also 50%).

Employer's intent (despite plan docment language) was not to withhold 401(k) on holiday bonus. And, one could argue that employees' intent was same, because no employees came forth and complained. Error was picked up by CPA auditor.

I am pretty comfortable that this violation is insignificant. So, why should employer voluntarily make corrective contribution now under SCP? Why not wait and correct only if IRS later raises this issue on audit? Because this is an insignificant violation, employer could presumably self-correct then.

I guess the risk is that the IRS could on audit take position that violation is significant - in which case (assuming 2 years has passed by then) employer could not self-correct and would be stuck with negotiating IRS compliance fee.

I will appreciate any thoughts.

Thank you.