Our firm is currently using Datair and we are not especially happy with the functionality. We have gone through a demo of the ftWilliams admin software and it seems pretty slick. Does anyone currently use the ftWilliams admin software and if so, what are the pros/cons? Thank you.

Does anyone know where to find a list of the old GUST restatement requirements applicable to governmental plans, and the specific adoption deadlines for each of those requirements? I have checked the various cumulative lists but I am looking to find something that is focused only on the governmental plan requirements and is written in a more easily understood manner.

I found what the penalties are for a late 1099-R, but I can't seem to find to who or where you pay them. Does anyone have any idea? We have a client with self-directed brokerage accounts. An employee withdrew some money without notifying anyone, so no 1099-R was done. Maybe it's just an issue of filing the 1099-R and waiting to receive the penalty notification? That would seem a little odd to me, because most other IRS corrective processes require you to be proactive on paying.

Can a plan have the following MA formula?

100% to 1% deferral, nothing from 1-2%, then 100% from 3% to 5%.

As an example, part. makes $20,000 & defers 1%. He gets $200 MA for $200 Deferral. If deferral increases to 2% ($400) he would get no additional MA. However, if he raises his deferral percent to 3%, he will get an additional get an additional $200 in MA.

Thank you,

I recieved a Schedule SB to review.

The plan (one participant) has term date of 3/15/2011.

Prior to 2011 the valuation was a last day of plan year val, thus the 2010 val date was 12/31/2010.

The lookback month was 3 months prior to val date (i.e. 9/2010).

The 2011 val is a 1/1/11 val with a four month look back.

Hmmmn.

As far as I know:

the val date can't be automatically changed in 2011, so it would still need to be last day ofplan year and the lookbackmonth cannot be changed for 2011 either.

Of course the changes would have been fine for 2010.

does anyone know of anything that supersedes my assertion? I thought there may be some latitude in year of plan term, but didn't explicitly find it post PPA.

thanks.

Have a plan that has partners in it that receive k-1's for compensation for the year. If the plan has 401k contribution changes allowable only on a calendar quarterly basis, are the partners who receive the k-1 tied to the same frequency for changes?

Has anyone received a notice on a DC plan for failure to file a Schedule C? No change in acct or actuary. No indirect comp paid to any vendor. Total direct comp $3000. EBSA is sending a notice asking why the Schedule C was not filed.

Plan is undergoing a PBGC termination. Possibility the majority owner will forego some benefits. A couple of the NHCEs have inquired about taking a distribution. It is past the 60 day review period for the PBGC. Are there rules against paying an NHCE or two out before everyone else? I know there are several issues why this is not a good idea. But I'm more looking for the answer to is it allowed?

Plan's recordkeeper wants to charge 20bps to participant accounts. They cannot override their system to charge the employer instead, so the employer wants to reimburse the plan for the charges.

Is there any problem with this? Because it is a direct reimbursement, I think it should NOT be treated as a contribution.

72(t) withdrawals must be continued for the longer of 5 years or to age 59 1/2. Does that mean that a withdrawal is required for the year in which age 59 1/2 is attained? Specifically have have a client who has been taking distributions for more than 5 years and will be 59 1/2 in 2013. Is the last year for which she is required to take a distribution 2012 or 2013. It seems logical to me that it should be 2012 since that is the last year in which the 10% penalty applies. Or is it? I guess a related question is does the 10% penalty apply until age 59 1/2 or until the year in which age 59 1/2 is attained?

For purposes of the 6% of pay limit in a combined plan deduction calculation, if a participant in the DC plan does not receive any employer funded contribution, but is eligible for the 401(k) part and does or does not defer, is their compensation included in the 6% calculation? Some argue you include their comp if they’re eligible to defer. Others, like me, say you only include their comp if they get employer money; deferrals irrelevant.

Your input is greatly appreciated.

edit: typo.

say an employer can create a profit sharin gplan where of 100 NHCEs, if they only covered 50 of them it would still pass the non discrimination tests quantitatively.

the questions is:

how might plan doc specify which employees are eligible?

they can't name the 50 employees to be included by name I presume.

So essentially the tp adminstrator would need to obtain job classifiacations (eg. sales, nurses, hourly, salaried, technician, etc.) from the plan sponsor and then determine which type of employees to exclude?

If they included these NHCEs and gave 0% I presume they would be obligated to give them a gateway, thus the reason to exclude them from the plan all together.

thanks

Hello everyone,

Our company is thinking about implementing the 2% admin fee to our Cobra administration. Currently we do it at no cost for our clients.

I am wondering what kind of problems can arise.

How do we notify current Cobra people that they are getting an increase in rates when it is not open enrollment?

Should we grandfather the orignial members and only charge the new Cobra members?

Has anyone done this before? How did it go?

Thanks!

Is a "pink sheet" traded company considered "publicly traded on an established securities market or otherwise" within the meaning of the 409A definition of "specified employee"?

Has anyone researched whether a 403b plan sponsor can use VCP to correct a past failure to follow plan terms re making employer matching contributions?

I'm wondering whether that kind of failure could be shoehorned into the categories of operational failures for which the IRS accepts VCP submissions, or whether it would be rejected as ineligible.

Thanks in advance for your thoughts.

Gad, I thought I only wrote bad pension parodies of popular songs.

but someone lese did even, well, I leave that up to you.

Hey, have a slice of Gooseberry Pie (my favorite)!

Ludolph The Mathematician

(to the tune of Rudolph The Red-Nosed Reindeer)

We know Einstein and Euclid and Sir Isaac Newton

Lifelong devotions there ain’t no disputin’

But do you recall…

The most tireless one of them all?

Ludolph the Mathematician

Had a special thing for Pi

He made it his life’s mission

To help the number specify

All of his fellow teachers

Never understood his plan

To unlock the number’s magic

By calculating it by hand!

Then in 1599,

Ludolph set his goal...

I’ll find digit 35

With geometry as my guide!

Then how the math world loved him

All his hard work helped them see

Ludolph the Mathematician

You’ll go down in history!

(Learn more about Ludolph van Ceulen here.)

Oh, Number Pi

(to the tune of O, Christmas Tree)

1. Oh, number Pi, Oh, number Pi

You're truly transcendental.

Oh, number Pi, Oh, number Pi

You're physical and mental.

You stretch the bounds...of all we know,

And tell our circles where to go

Oh, number Pi, Oh, number Pi

Your digits are so gentle.

2. Oh, number Pi, Oh, number Pi

Why can't I learn you faster?

Oh, number Pi, Oh, number Pi

You're really hard to master.

Just when I think...I've got you down

I flip a 6 and 5 around

Oh, number Pi, Oh, number Pi

Numerical disaster!

3. Oh, number Pi, Oh, number Pi

Why are you so specific?

Oh, number Pi, Oh, number Pi

Your digit growth's terrific.

Ten years ago, you had a Mill

And now you're at a couple Trill

Oh, number Pi, Oh, number Pi

You stretch to the Pacific!

Pi Day Time

(to the tune of Silver Bells, starting at "City sidewalks…")

Random digits,

Endless digits

Transcendental in style,

In the air there's a feeling of Pi Day.

Children laughing,

People graphing,

Worry-free for a while,

And in every math classroom you'll hear…

Three one four…

One five nine…

It's Pi Day Time at (our school!).

Three one four…

One five nine…

Savor those numbers, today!

Ring The Bells

(to the tune of Jingle Bells)

Basking in the glow

Of a Math Class holiday.

All we need to know

Is "Pi will lead the way!"

To circles we will sing,

The digits we'll recite

The ratio gives us everything

It's geometry's delight! Oh!

Ring the bells, Pi Day spells

Fun with 3 - 1 - 4!

It's the day to celebrate

That number we adore! Oh!

Ring the bells, Pi Day spells

Fun with 3 - 1 - 4!

First we take one slice of Pi

And then we ask for more!

How do we compute RMDs from Cash Balance plans?

Do we do annuity calculations like regular DB plans?

Do we do factor calculations like DC plans?

Oooooh - good questions.

Here is an interesting question:

A key employee age 72 wants to take $1 million out of his account. The Plan allows for this in-service distribution so that is not a problem. If he gets a direct distribution, taxes are withheld but he has 60 days to rollover to an eligible recipient Plan (i.e. IRA, other Plan, etc.). Can he change his mind and roll it back into the original Plan???

He can't take a loan because the limit is $50k. He actually wants to use the funds for a bridge loan. I can't find anything to say that he can or can't. I can see arguments either way. Any ideas? Thanks.

Situation -- Director X is working for a company, but not directly for subsidiary A. Subsidiary A is spun off and the Director X begins working for Subsidiary A. The spin off documents provide that it won't constitute a separation from service.

Does it constitute a separation from service anyway.

I know someone who works for a sub does not experience a separation when that sub is spun off.

And I know that in the case of a sold subsidiary, if the selling documents provide there is no separation, there is no separation.

But this is unique to both those situations -- the person wasn't an employee of the sub before the spin off and it is not an arms length sale. I think there is a separation, regardless of the language in the spin off documents. Does anyone agree?

Client has not funded their Safe Harbor Contribution for 5 years. They however took a tax deduction for the contribution each year. We've calculated the amounts due with earnings and will put them through the Voluntary Correction Program but now I am worried about 415. Since they already took the deduction do I need to add all 5 years of Safe Harbor Contributions to 2012 415 limits? Any other concerns I should be worried about?