After an annuity commences to an alternate payee, does anyone know how the PBGC limits apply if the plan is terminated in a distress termination? Is the alternate payee's benefit combined with the particpant's benefit in determining the limit or do the limits apply separately?

If a cycle A defined benefit plan is on an individually designed document for EGTRRA compliance but expects to use a volume submitter when they restate for PPA, can Form 8905 (dated April 2006) be used to extend the deadline for the PPA restatement? If so, what date should be used as the submission date under Line 4 of the form? (Or should it be left blank?)

Thanks

Therese

Hello,

Does anyone email the PDF copy of Form 8955 for client's signature? Or any other tax forms that has bar code on them, and must be submitted in hard copy?

My normal procedure is - when a form has a bar code on them, I always print out, and mail the forms for client's signature. Because I thought that PDFing the form may cause some issues with the bar code, and it could be rejected by the IRS.

But now the dealline of the Form 8955 is approaching, I would like to know if anyone emails the forms as their normal procedure.

Can anyone help?

Thank you.

ML

Does everyone agree that I should use a 2010 form with the short 2011 plan year entered to file the SSA data? i.e., similar to the treatment of the 5500 reporting?

Hello

I am hoping you folks can help me.

I made an idiot mistake signing up for my FSA in Dec. I calculated my needs based on my Spouse and I - BUT, my spouse is same-sex and therefore not eligible. I will now be very over-extended in the contribution.

OOPS

I would like to call/write our HR Dept and admin of the FSA explaining the mistake and asking for amount to be reduced. I would claim mistaken information. The online enrollment had a drop down on coverage labeled "Spouse/Domestic Partner" which I used ot order my partner a Debit card. They sent the card. Evidently they think my partner is covered too!!

Can I get any help? Are there any rulings I can point to to support my claim? It is very early in the year - we haven't even been paid yet or had a deduction.

Thanks in advance for any help!!!

We are administering a very small plan with two related owners and a few contributing participants. The plan holds privately-held company stock which is in the accounts of the two owners. When they get a fidelity bond, are they required to get a bond to cover the stock even though it is in the owners accounts and let's assume would never be offered to the other participants? Or is a bond covering the other assets of the plan sufficient?

If an active participant is annuitized (frozen plan), is not an owner, never started to collect a pension, and continues to work, is he/she required to take minimum distributions following annuitization?

Is the answer different if the plan is being terminated versus not terminated?

We've been periodically contacted by overseas firms who offer qualified plan admin on U.S. plans and are considering talking to them. As it's been several years since this was last discussed, I'm curious as to what experiences other employee bfts administrators on this board have had with offshoring and whether the general opinion on this topic has moved one way or the other over the last five years.

Just wondering how others are mechanically handling auto enroll opt out participants who are refunded within the 90 day window in your pension software.

This client is with one of the large 401(k) vendors and I import to Relius. The import (of course) shows the contributions and then subsequent distributions.

I don't want these contributions to show on the ADP testing but am thinking that the deposits and withdrawals do need to be reflected in the plan asset activity for audit purposes.

(This is a large plan with the required 5500 audit.)

I can override in Relius to exclude them from the ADP/ACP testing but wanted to see if anyone does this differently within the software?

Following the MDIB table in §1.401(a)(9)-6, Q&A-2©, the example states that the adjusted age difference is 25 years and the applicable percentage is 64%. However, the final sentence says that the benefit fails because it provides more than 66% of the retiree's monthly payment. I think that it fails because it provides more than 64%. I think the 66% appeared in the original 6/15/2004 Regulation when the example stated that the adjusted age difference was 25 years, that the language of the example was changed in the 11/23/2004 "correction" to indicate that the adjusted age difference was 26 years with a 64% limit, but that the "correction" failed to carry through and change the last sentence's reference from 66% to 65%. Has anyone considered this?

I am establishing an 81-100 group trust. Can someone point me to a resource where I can learn the specific audit/5500 requirements both at the trust level and the individual plan level?

I have a client that currently sponsors an ERISA 403(b) with an employer match and one investment provider. If they decide to eliminate the matching contributions to the plan prospectively, can they now be considered a non-ERISA 403(b)? If so, would they need to restate their current document (a volume submitter doc) to a non-ERISA 403(b) document?

Any advice or information would be much appreciated!

ETA: Will also want to allow for multiple investment providers going forward.

As a result of the changes under the Health Care Reform Act, I need to make sure I am am up to date on the following:

Can the expenses for exercise classes/gym membership be reimbursed from an HSA account if the doctor prescribes due to obesity?

A claim will first be filed with the insurance company to see if they will pay for all or part of it.

If a balance remains after the insurance processes, can it be filed under her HSA?

I would appreciate any guidance in this. Thank You

I am trying to decipher the methodology for calculating earnings for an SCP. The issue is that the ER failed to follow terms of the plan as it relates to deferrals on bonus payments.

My predecessor asked for rates on:

the Plan's default fund (which happens to be a TDF so there are multiple rates)

Money Market Fund

the experience of the plan as a whole

experience of the highest HCE for the plan year

I am curious as to where he came up with these? I don't see them in the RevProc. Also, if these are the rates I should be looking at, do I have to go with the highest rate of the 4 options above? I thought that App. B, Section 3.01(3)(b) would be applicable and I would only have to look at the rate of return for the fund with the highest earnings rate for the period of the failure since the corrective ctrb is going mostly to non-HCEs?

Thanks!

We export a COBRA file to our TPA via ftp every two weeks. This week, we received a phone call from a former employee asking when she would receive her COBRA information. We verified that she was on the export file, then contacted the TPA and asked when her paperwork would be mailed. We were told by our TPA that they had not received any files from us since October! :angry:

I sent the TPA a screenshot of the ftp site showing the dates/times all of the files had been uploaded. They then admitted they had made a mistake, sent notices to all QBs that day, and are refunding our service fees for November and December.

I know that we have 44 days from loss of coverage to notify QBs. We are okay with the November and December terms because they all fall within the 44 day limit; however, there were approximately 40 in the October exports that are outside the 44 day limit.

I know that, as the employer, we are ultimately responsible for the actions (or non-actions in this case) of the TPA. What penalties do we face for this error made by our TPA?

Thank you.

Our company contributes to the HSAs of employees who elect medical coverage under the HDHP. All HSAs are set up at one specific bank, and company policy is to make the employer contributions only to HSA at that specific bank. Occasionally the bank refuses to set up an HSA for certain employees. The bank won't divulge specific reasons for these refusals, but we understand that this is generally related to the employee's credit history. The question is, is there any way to classify this as a status change event allowing the employee to elect a different medical plan?

Mjichigan now has tax withholding on distributions.

First question, Everything I have read says that monthly payments are now subject to mandatory withholding. Does anyone know if lump sum payments are subject to mandatory withholding?

Second question: Is there any de minimus?

Hard Plan Freeze for DB

no Unrecognized prior service cost or transition asset/obligation

Unrecognized net loss= $4 million

Decrease in PBO due to curtailment = $3 million

do we reduce the $4 million loss by $3 million, resulting in $1 million unrecognized loss after curtailment?

Thanks

Cash balance plan has just been frozen. 401(k)/PS not frozen. Top heavy has been provided in the 401(k)/PS. Keys are deferring at least 3%.

With the DB frozen, does the 5% TH allocation requirement change to 3%? If so, where is that cited?

At what point do you determine the vesting % for an ACP corrective distrubtion of an excess aggregate contribution?

1) At the date of distribution?

B) The end of the plan year for which the excess was contributed?

III) Something else?

TIA!