Does any have a format to share, or directions to, the current FAS 87 (I know, it has been renumbered somewhere by the AICPA) report for defined contribution plans? Apparently the CPA for a client no longer will do it, or they changed CPAs or something.

Thank you.

I know previously there was a waiting period between when the notice was given to participants about removing the J & S provision from the plan and when the removal of the J & S provision actually went into effect, but I thought that had changed. I can't seem to find documentation - can anybody help?

Thanks a bunch!

I want to understand the new $2500.00 FSA limit. I take it to mean that any of our plans started before 2013 are not affected by the limit, is this correct?

How are people handling the DOL's blatantly incorrect interpretation that these disclosures go to everyone eligible, without regard to whether or not they have a balance in the Plan? Is anyone going to say "although contrary to the DOL's interpretation, one reasonable interpreation of the rule is that individuals without an account balance have no right to make investment elections."

How is that not a reasonable interpretation?? I'm thinking of one plan with 200 eliglbes and 40 with account balances, adn wondering how I tell them with a straight face that by law they are required to send this to the 160 non-contributors?

Hi all,

I am new to the 403(b) world. I have a newly created Non Profit Agency that is the result of two different groups merging as of 7/1. Both groups have their own plans that will run thru the end of the year. Each plan counts service under both for eligiblity and vesting (matching contributions). Each plan has a differnt match formula. I have employees transferring from the entity with the more generous match to the entity with the less generous match. Is it possible to have two match formulas in the plan, one that mirrors more generous match for employees transferring from that agency and keep the existing match for employees who haven't moved. There are no HCEs among the transferring employees. Are there any implications I have to worry about?

Thanks for any help, I hope my question is clear.

Single employee (owner) profit sharing plan. Does he need an ERISA bond?

A client is concerned that the total of the plan assets (all in Guaranteed Annuity Contracts) exceeds the 100K insured maximum. Is this a genuine concern for a qualified plan?

Does anybody know what the third bold requirement means within the context of whether an active participant reduction might require the filing of Form 10 for a plan that is 80% funded? I have asked this here and elsewhere before and have never found an answer.

Funding-based waivers: For the event year:

- No variable rate premium (see Part IV.B);

- Less than $1 million in unfunded vested benefits (see Part IV.C); or

- No facility closing event/80% funded: The plan is at least 80% funded for vested benefits (see Part IV.D) and the active participant reduction would not be reportable if only those participant reductions resulting from cessation of operations at one or more facilities were taken into account.

Imputed disparity in a DC plan tested on an allocations basis seems relatively straightforward. But it seems rather more complicated if it is cross-tested. I want to see if I'm getting the basic idea right.

Let's say it is just a PS plan, no 401(k), no other DB plan, never has been a DB plan, never has been any integrated formula. Plain vanilla.

You have obtained the EBAR's for all employees. Now you are going to adjust those EBAR's for imputed disparity.

When calculating the "permitted disparity factor" - it is apparently the sum of the annual disparity factors for each year included in the measurement period for determining the accrual rates, divided by the participant's rtesting service in that period.

When doing this for a DC plan, can you use a "measurement period" of the current plan year only, as well as the current plan year only for "testing service?" In other words, if the average annual compensation is less than or equal to covered compensation (and good luck obtaining that data) and the unadjusted accrual rate is 1%, can you simply use the lesser of (2 x 1%) = 2%, or (1% + .75%) = 1.75%, therefore 1.75%? Or is it more complex than that and you have to go back and add up the sum of the disparity factors for all prior years, etc., and perform various voodoo and sorcery?

If you have been a participant for more than 35 years in such plan, is imputed disparity not allowed (probably dependent upon answer to above?)

Thanks.

Hello everyone

A quick question. Employer sponsors a 403(b) plan that failed to cash out participants with vested balances less than $1,000, and failed to roll over participants with balances between $1,000 and $5,000 when they didn't make an election otherwise. Does this require a VCP application? It doesn't look like this is the kind of operational failure that is correctable yet under EPCRS.

What if the same failure happened in a defined contribution plan? That has to be VCPed, correct?

Thanks so much!

Hello everyone

A quick question. Employer sponsors a 403(b) plan that failed to cash out participants with vested balances less than $1,000, and failed to roll over participants with balances between $1,000 and $5,000 when they didn't make an election otherwise. Does this require a VCP application? It doesn't look like this is the kind of operational failure that is correctable yet under EPCRS.

What if the same failure happened in a defined contribution plan? That has to be VCPed, correct?

Thanks so much!

Is there any guidance available for how to treat a bequest to an ESOP that is not a qualified gratuitous transfer under IRC 664(g) and 2055(a)(5)?

Thanks!

A loan for a terminated participant should have been defaulted back in 2010, it was not. What is the process for getting this corrected? The custodian is generating the 1099 current date. Is there a penalty?

If a plan is being amended to eliminate its loan provision, is there a minimum number of days that must elapse between its adoption and effective dates? Also, is it acceptable to notify the participants no later than the amendment's adoption date? My understanding of protected benefits under 411(d) is that a participant loan provision is not considered to be an optional benefit and can be removed from a plan, as opposed to, e.g., an inservice distribution provision. All help is greatly appreciated.

Section 415(b) limitations on benefits are applicable to non-electing church plans but are the mortality tables under 417(e)(3) required to be used in a church plan for determining actuarial adjustment to straight life annuity? If not, where can I find the exception.

Thanks.

I received a call today, a participant has a loan in a plan and is leaving his employer. He wants to roll the loan balance into the new plan at his new employer. Can this be done... if the distributing plan and receiving plan both allow? (I guess it first depends on the distributing plan)

This is a welcome and necessary change given the internationally reported efforts of cyber-terrorists and other dissidents to log on to MYPPA and alter unfunded vested benefits !!!

===============================================================================

Hello – This message is being sent to you because you have an online My Plan Administration Account (My PAA) account. My PAA is the web-based application used to electronically file premiums to our federal agency, the Pension Benefit Guaranty Corporation (PBGC).

Federal information security regulations require us to strengthen the password requirements for My PAA. Stronger passwords will help better protect your personal and business information. Once the change takes effect (expected no later than August 1, 2012), you will be required to change your password to meet the new criteria, for example:

The length of the password must be between 10 and 24 characters without any spaces.

The password must contain at least 1 uppercase and 1 lowercase character.

The password must contain at least 1 number and 1 special character.

You will need to change your password periodically.

Please note that you do not need to rush to change your password after the new rules are implemented. You may continue to access My PAA according to your normal schedule; and My PAA will prompt you to change your password at the appropriate time. Also, please notify us if you are no longer using My PAA or if you set up an account by mistake so that we can deactivate your account (after removing any plans).

We thank you, in advance, for helping to keep your records up to date and secure. Please do not respond to this email. If you have any questions or requests, email them to premiums@pbgc.gov or call the practitioner toll-free number 1-800-736-2444 and select the “premium” option.

My PAA Administrators

Pension Benefit Guaranty Corporation (PBGC)

80 year old participant died this year. 86 year old husband/owner is beneificiary. I am reading conflicting information on future RMD's.

Page 6-22 of this link states if the life expectancy of the deceased participant is greater than the beneficiary, you use that divisor and reduce it by one each calendar year.

IRS RMD's

The 401(k) Answer Book (2011 edition) makes no mention of reducing the divisor by one each calendar year for a spousal beneficiary. It states as follows "If the participant has a designated beneficiary as of 9/30 of the calendar year following the calendar year of death, the the distribution period is based on the beneficiary's life expectancy using the ben. age as of his or her birthday in the calendar year following the calendar year of the part. death or, if longer, it is based on the participants remaining life expectancy. In subsequent years, the distribution period is reduced by one for each year after the calendar year in which life expectancy was originally determined. HOWEVER, if the spouse is the participants sole beneficiary, then the spouse's life expectancy is recalculated each year based on their birthday for the year in which a min. dist. is required. For this purpose, life expectancies are based on the single life table"

I may be over thinking this or misinterpreting but I'm thinking the former is accurate rather than the latter as I have found more than one discrepancy in my usage of the Wolters Kluwer's answer books.

Now that we're in the home stretch of creating disclosures - how are others out there assisting plan sponsors with actually using the disclosures?

Are firms simply providing the disclosure and letting the plan sponsors know it's coming and leaving it at that?

Are firms providing additional info outside of the disclosure itself or providing some sort of background on the new regs and the plan sponsors' responsibilities included therein?

Are firms helping the plan sponsor out with reading, reviewing, interpreting disclosures?

Since we are accepting fees (even though in many cases we are a co-fiduciary), those of us providing these disclosures are not impartial and cannot give independent assistance with reviewing the disclosures. I've seen new services cropping up that offer independent review of disclosures, but in many cases that could result in adding another layer of fees.

Is there any type of checklist out there that a plan sponsor can independently use to make his / her review?

Any comments, thoughts or inspiration would be appreciated...

My wife has a private HSA eligible HDHP. However, I have been reading that we may not be able to contribute to an HSA because my employer provides a plan made up of an employer funded Health Reimbursement Arrangement and an employee funded Flexible Spending Account. My employer plan is use-it-or-lose-it for all funds in a given year (regardless of whether it was employer or employee funded).

Does anyone know if I can or can not contribute to an HSA?

Thanks.