It is my understanding that the funding relief interest rates will not be available to a plan that is using the full yield curve. Agree?

Thanks

Company A is owned 100% by Pat. Chris is a long-time employee and participant in Company A's plan. Chris is not related to Pat, and Chris is NHCE right now.

Pat and Chris will soon form Company B, owned 49% by Pat and 51% by Chris. Before the end of the year, Company B will become a co-adopter of the Company A plan. Since there is no ASG (they are manufacturers) and no controlled group, the current plan will thus become a MEP. As such, Companies A and B will have to satisfy separate discrimination tests for 2012.

It seems that Chris will be NHCE w/r/t A's testing, but HCE w/r/t B's testing. Can that be right? I've never heard of it, so I'm guessing Christ must be treated as HCE for the full year for all parts of the plan.

Agree?

We have an basic safe harbor match with an auto enroll of 3%. We understand that a participant can elect any percentage including zero if they don't want to be auto enrolled at 3%. However, the plan sponsor would like to make the participant opt out (change their deferral percentage to zero every year). For example. the sponsor wants to look at all deferral rates once a year on a specified date (assuming we give the details in the safe harbor notice). Any employees deferring 0% will automatically be enrolled again at 3% until they opt back out. The problem I see is that an employee has elected to defer 0% in a prior year, if we do this then we override an election. The question is, can you have an auto enroll provision that applies to everyone each year that will recapture anyone who has elected 0% in a prior year? If so, any good reference material?

Thanks

CPC, ERPA

I am trying to respond to a question but have not found a good resource for information on Governmental 401(a) Plans.

A utility district currently has 457(b) and 401(a) plans - same participants in both plans. Since annual contributions in both plans have never exceeded the annual limit of $17,000, the discussion is to continue the 457, and terminate the 401(a).

Can the 457(b) plan accept a rollover distribution from the governmental 401(a) plan?

,,

Same individual has 100% ownership a tool and die shop and in an auto garage.

The auto garage employees are excluded from the tool and die shop plan.

Schedule C from tool and die for the owner is $240,000

Schedule C from auto garage for the owner is a loss ($87,000)

What compensation should I use for ADP & ACP testing for the owner in the tool and die plan, $240,000 or combine the two schedule C's and use $153,000?

Thank you.

Are there any companies that will give life insurance to a 68 year old man in New York? What is the average premium?

- Health is average

- Face value ~20K

Read more: http://www.insurance-forums.net/forum/requ...l#ixzz23VswmZ7t

Plan elects top paid group HCE definition.

20% equals exactly 8 HCEs. So, rounding up or down is not an option.

Employees 8 and 9 have the exact same compensation ($125,000).

So how do I choose between employee 8 or 9 as to which is HCE and

which is NHCE? Would it be possible to have both employee 8 and 9 in

the HCE group, even though the top paid group is only 8 employees?

Where does a partnership deduct non-partner 401(k) contributions? Is it possible that we would need to deduct it to calculate earned income for general partners?

Hey all,

Have a 401k plan with compensation defined as 3401a. Now, said plan has lots of US citizen/resident alien employees all over the place, about half here in the US and the other half abroad. When these overseas employees are paid, they get paid by the local agency, be it euros or rubals or whatever. Plan does not specifically exclude employees working overseas or overseas compensation, just has 3401a comp. So basically my question is, can these employees use this compensation towards the 401k? I know there's a million treaties and exceptions etc., but as a general rule, can you defer/get allocation for this foreign comp? I know for 415 gross up comp you include this comp, so I assume its a yes for top heavy calculations, but what about regular match/deferrals/roth/PS? And would the foreign comp used be the gross comp paid out (converted for average currency rate for the year) or the gross taxable US comp portion? Cause i know there's even more exclusions for time overseas and taxes already paid overseas.

Any help greatly appreciated. Thanks.

Can't get this straight - when is the first annual notice due for a plan that would start effective 8/20/12? And is that different than having the plan start on 9/1/12?

Thanks!

We are a large company with several mutual fund vendors who offer financial advice to participants in our plan. The intent is to comply with the final regs under 408(g). Does anyone have any thoughts about whether investment advice, if available, must be communicated to all participants, or whether it can be limited to active participants or those who meet certain account balance thresholds?

Can an employer's 401(k) plan accept rollovers of Roth contributions if the plan doesn't also permit Roth elective deferrals? For example, an employer maintains a 401(k) plan that does not permit Roth elective deferrals. The employer wants to amend the plan to permit and separately account for Roth rollovers (but not new Roth elective deferrals) so that new hires can transfer Roth balances in from other 401(k) plans. The regulation can be interpreted to say that Roth transfers cannot be acepted if the receiving plan doesn't also allow Roth elective deferrals. However, I haven't found any explicit statement to that effect in any primary or secondary source. Any thoughts would be appreciated! Thank you!

Is it possible to have two different cashout limits under a plan? For example, a $5,000 cashout limit applicable to benefits accrued before 1/1/2012, and a $1,000 cashout limit applicable to benefits accrued after 12/31/2011? Is it permissible to bifurcate a participant's accrued benefit in this manner for this purpose? If so, how would this be applied in practice? Suppose a participant has an accrued benefit of $6,999, $6,000 of which was accrued before 1/1/2012 and $999 of which was accrued after 12/31/2011. Can the $999 attributable to the benefits accrued after 12/31/2011 be cashed out, even though the participant's total accrued benefit of $6,999 exceeds the cashout limit?

Our plan has been able to stand alone for years by first passing the 70% test on its own, and the controlled group of which it is a part passes using the average benefits test. This year our plan will not pass the 70% test.

QUESTION: Assuming we have an acceptable business criteria for excluding a classification of employees, is there any prohibition against using the average benefits test for our stand alone plan and also using the average benefits test for the controlled group?

Is there some obscure multiple use rule?

Thanks in advance.

When we set up our HDHP several years ago, we stated that in order to enroll in our HDHP, you must be eligible for an HSA. This linkage was done I believe due to our decision to make an employer contribution. Does anyone have any benchmarking info as to whether this is a standard practice? We've asked our health plan vendor for their BOB info and wanted to gather other external info.

Thanks.

We TPA a plan that has part of its assets some old annuity contracts. The provider is refusing to provide the investment chart under 401(a)5.

What recourse does the sponsor (more specifically, the Trustee) have? Is it similar tot he 408 notice where they can (and must) squeal tot he DoL?

The employer last updated their 5305-SEP in 2002 (revision date 3-2002), which is considered to be updated for EGTRRA. Now that we are doing a VCP submission due to contribution errors, I'm wondering if the IRS will say they should have updated onto the 5305-SEP with a December 2004 revision date, or is the 2002 version okay to submit with the filing? If they do have to adopt the 2004 version, does that increase the filing fee since we would be adding on a non-amender problem along with the contribution errors?

Have a plan that has a SEP, note they also have a non-ERISA 403(b)

SEP was originally established with a 5305 years ago. Also, looks like a doc was put together in 89 of some sort nire looks like an spd. It has an integrated formula for the contribution. At some point the TPA firm realized that doc had old language in it and amended for law changes. I don't really think it ever had an approval letter or anything like that.

I am now trying to make sure they are compliant and am not sure what direction to go, ie just complete a 5305 current and it's requirements as per the instructions or are they ineligible for this form and must use a prototype plan. I'm unclear based on the instructions on the 5305 if they are ineligible for this. They have the 403(b) but not sure if that is considered another qualified plan which would knock them off the 5305 and it's integrated so it's not a uniform percentage of comp. Just not sure.

Can anyone offer assistance and if we have to amend onto a prototype, looks like it has to be submitted to VCP?

Do the periodic (quarterly) statements have to break down the assets into sources of money? Assume same vesting schedule for ER money.

For example, can the statement have:

Deferral: $6,345.21

Employer: $49,837.90

Rollover: $19,048.67

Where in the employer bucket there's match & PS money. (Again, on same schedule)

Or does it have to be:

Deferral: $6,345.21

Profit Sharing: $45,824.89

Match: $4,013.04

Rollover: $19,048.67

(I know the latter is preferable to the participant, but does it HAVE to be broken out like that?)