The DB plan document reads as follows:

"The Administrator, at the election of the Participant, shall transfer, as of the Participant's Normal Retirement Date, the Participant's Present Value of Accrued Benefits to the Participant's Retirement Investment Account."

The participant is at age 70 1/2 and has a Participant's Retirement Investment Account of about $500,000.

Should the Required Minimum Distribution be calculated using the DC or DB method?

Small overpayment in a 401k plan. I know I send a letter asking them to repay the overpayment, and tell them that the amount was not eligible for rollover.

Do I need to issue a 1099 showing taxable income for the amount not eligible for rollover if I know they rolled it over?

I want to make up social security numbers to do proposals on my computer.

I think I once read about a numbering convention that the social security uses that a series of numbers will never be used by them. I think I remember that if the 4th and 5th digit are 5, it will never be used by them. Does anyone know more about this?

Our employer is getting set to offer a CDHP with an HSA next plan year. There is talk of adding a limited-purpose FSA. A couple of us are questioning the need of offering a limited-purpose FSA. What is the need of offering a limited-purpose FSA when an HSA is also offered?

The reason why a couple of us are questioning the need is that it is our understanding that whatever a limited-purpose FSA covers, the HSA covers as well. So, why have both?

We have read that some like to save money in the HSA and thus use the FSA, but if one has room to contribute the money one would put into the FSA into the HSA, then why even bother with the FSA? Just put all the money into the HSA. I realize some may want to use the HSA as a long-term savings vehicle, but employees can put that type of money into the Deferred Compensation plan or open an IRA. We are talking state government here. I doubt no employee has so much disposable income to save that he is running out of places to store it and would simply use the HSA for savings purposes.

I believe there is a limit on how much can be contributed to an HSA in a given year. If a person expects all health care expenses to exceed that amount, I can see where a limited-purpose FSA would be handy. But, if a person expects to have that much in medical expenses, then why would that person sign up for the CDHP? The person would choose a different plan (one of the many low deductible plans offered).

The only thing we can think of as to why a limited-purpose FSA might be needed is that you don't have to have the money all saved up in the FSA to spend it, unlike an HSA (that is our understanding with an HSA). So, if someone expects to incur dental/vision expenses early in the year that are large, then I can see why the person would want to put money into the FSA. But, over time, that person might build up savings in the HSA and would be able to use the HSA to cover large dental/vision expenses incurred early in the year.

I'd appreciate all comments and answers to my question above. Thanks.

assume a one participant qualified plan with

sole proprietor as entity type. sole proprietor

participant dies in service before retirement age.

sole proprietor has no will(i.e., dies intestate).

does suriving spouse automatically have the power to

assume all functions of plan sponsor and plan administrator?

My reading of the PTIN rules is that a RTRP needs a PTIN to prepare and file Forms 945 and 5330 for clients and the PTIN rules carry a 15 hour CE requirement before the end of 2012. ERPAs hours can overlap, but does an ERPA need the 10 hours of "other federal tax law credits"? Does anyone have any suggestions for CE programs that would fall into this category and have any relevance to the Retirement Plan industry? Am I missing something?

Suppose you have a safe harbor plan that deposits safe harbor employer contributions more than 2 years after 8 1/2 months after the plan year end.

Along with going through VCP to make up the late contributions, are they able to take a deduction in the year the contributions are deposited?

Thanks

Any users of this application to remotely access your business PC or Mac?

Obviously, I work with sensitive client data, which includes SSNs, so am particularly concerned about compromising security. It's bad enough that despite antispyware galore, stuff can happen. Adding another portal just seems frightful.

Any experience positive or negative would be appreciated.

I have a calendar year plan that had under 100 participants at the beginning of 1/1/2010. For 2010, a Form 5500-SF was filed.

As of 1/1/2011, there were 117 participants. 29 CFR section 2520.103-1(d) allows the 2011 annual report to be filed as a Form 5500-SF under the special 80/120 rule.

If it does, is it exempt from the independent accountant's audit requirement of 29 CFR section 2520.104-46 and -41, which specify the 100 threshold, but not the special 80/120 rule?

Does anyone know of any IRS ruling that applies the special 80/120 rule to the independent accountant's audit report requirement too?

a SH 401 plan's def of comp is W-2 wages including 401(k), 125, 132(f),414(h)pickup) only excludes comp while not a participant in the plan. The plan sponsor has not included excess life insurance amounts in the definition of comp due to the fact that the employee does not receive any cash. However, it is footnoted for inclusion in the employee's taxable income. The auditor thinks that it MAY be subject to deferral and match calculations. If so, I suspect a retroactive amendment could exclude such benefit using SCP? The plan utilizes the basic SH match formula.

A Plan B was merged into a Plan A with a resolution effective 1/3/2012. The assets were not retitled at the vendor. The assets physically transferred from the old vendor to the new vendor in July 2012. What is the due date of the final 5500 for Plan B?

Administrator inadvertently distributed $150 out of participant's Roth 401(k) account. I am wondering whether the distribution should be reported on 1099-R and subject to premature distribution penalty (participant not eligible for qualified distribution)? I can't seem to find any exemption from the premature distribution penalty for this type of mistake. If the participant agrees to put the money back into plan, is it just a wash and there is no 1099-R reporting and no penalty?

I have a 401k plan which defines compensation as W2 income. The executives have the option to defer income into a 409a plan. When the 409a deferral is paid out, it is paid as W2 income. Would you withhold 401k deferrals on the distribution from the 409a plan for a current employee (assuming he is eligible to participate in the 401k and employees are eligible to take a distribution from the 409a plan)? What if the participant terminated in a prior year and is now receiving W2 income from the distribution of the 409a plan for services performed while employed when a deferral election was in place?

Thanks

90% of the 401(k) Plan is the owner and his wife, other 10% belongs to two employees.

It is trustee directed Plan, presently.

Owner is in the financial industry and a very knowledgeable investor. He wants to invest $200,000 in a private placement. (Broker dealer has approved him.)

He says he will be able to get a proper valuation every year.

Do you see any problems with him buying it for the Plan as a whole?

Should we make this Participant directed and have him buy it for himself only?

in 2010, assets transferred from Principal to ADP. ADP established a new plan, filed 2011 5500 with new plan number 002, marked first return, zero beginning assets and showing a transfer to the plan on Sch H line 2l. The Adoption Agreement has an original effective date of 01/01/2010. There were no other changes to the company or the plan. Is there any reason that a new plan should have been started? btw, this is a large plan with an audit required.

The problem now is that a final form 5500 for the original plan 001 was not filed. Client has received an IRS notice inquiring about 2010 return. I don't know if the Principal plan was actually terminated (doubt it). I don't think there are any successor plan issues because there were no distributions to participants.

If I file a final 5500 for the original plan 001, we will have to go through DFVCP and it would cost $2000.

any thoughts on how to fix this?

Thanks!

I'm not sure if this is a rant or a question...let's see where it goes.

I have a number ("too many") of clients who use managed brokerage accounts in self-directed plans - that is, they hire an investment manager, or otherwise charge an asset-based fee, for managing money. This is a separate charge that shows up as a deduction on the participant statements.

I've tried, pretty much unsuccessfully, to bail out on the disclosure - I spit out a basic notice from Ft. William and say "your broker should provide a separate schedule of fees" and ask the broker to provide a fee schedule. (Chuckling now at my own naivete that this could possibly work...)

Of course, the brokers proudly send me their 408b2 disclosure. I say "no, no, that's not it, I want you to tell them what they will pay in their account." So they send me something that tells what the fees were last year. I say "no, no, that's not it, I want you to tell them what they will pay in their account - you know, a $100 fee or whatever, and the percentage for management." Then more long and agonizing discussions follow, and (usually), they eventually send me a 111 page mess that might or might not contain what we want, but no way am I wading through it to pull out a fee schedule. We're at an impasse right now on most of these. (I suppose my barely concealed contempt for them is affecting my relationships.)

Anyway...now I have a Merrill (why is it always them...) guy telling me that his home office "expert" says they really don't have to provide a schedule of management fees. Mmm. I guess that's the question...could you consider a managed account an "option" that doesn't require advance disclosure of the management fees? They are being deducted at the brokerage level, so it's not like a mutual fund with an expense ratio. I pasted most of Q&A 13 below; it doesn't discuss such fees directly but in my mind that doesn't mean they shouldn't be there. It doesn't make sense to me that they would have to disclose commissions on trades but not an overall management fee. Thoughts?

Does anyone know/have a life insurance that allows the occasional celebratory Cigar? I don't smoke cigarettes, but hate to have to pay the HIGH premium prices for an occasional cigar that leaves a little nicotine. I am curious since I am about to have to renew my life insurance policy soon. Thoughts... Thanks!

I think a corporation can have a Sep 15 deadline for filing its tax return (showing a deduction for profit sharing), yet the profit sharing contribution may be deposited as late as Oct 15 without jeopardizing the deduction. Can anyone verify this?

In 2011, a distribution is made and reported on the 2011 5500-SF under line 8d - Benefits Paid. Turns out the participant received the wrong amount (too much) and in 2012 actually returned the excess portion to the Plan. Any thoughts on how the return of the mistaken distribution should be reported on the 5500-SF for 2012? Not sure if there is a right answer, but the following seem to be the options:

8a(3) Other Contributions

8b Other Income

8d Add back to Benefits Paid

8j Transfer to the plan

Thanks.

When an overpayment is made from a plan, the EPCRS rev. proc. says that the employer must make reasonable efforts to collect the overpayment and, to the extent it cannot be recovered, then the employer or another person must contribute the difference to the plan. In the defined benefit multiemployer context, who makes the payment to make the plan whole when the recipient does not repay the entire amount? Any thoughts would be appreciated!