For a person retiring on 12/31/2015 at retirement age 55 who's average compensation has allways been above the Annual Limit on Includible Compensation, what would the maximum monthly Defined Benefit as of 12/31/2011? I'm a little confused on that calculation.

Thank you.

hello everyone!

Hopefully an easy question. If a law firm provides services to a retirement plan (specifically, to the plan sponsor/administrator of that plan, a company client), are we required to send a disclosure under the final 408 regulations? Are we a covered service provider? I can't confirm whether or not that's the case anywhere. Any suggestions or authority would be appreciated. Thank you!

Sole proprietor funded SIMPLE IRA fully (11,500 EE and 11,500 er match) for 2011 in September 2011. Net self employment income supports an ER matching contribution of only $3,765....$7,735 excess er matching contribution. Looks like under EPCRS the excess, plus earnings, can be removed without penalty under self correction. Does this sound correct?

What if I want to be pbgc covered so I can skirt the combined plan limit? Is there code that prohibits this? It seems too good to be true and if allowed, everybody would do it. Thoughts?

I'm thinking about buying some testing software. I'm a freelance consultant. I don't administer plans, but I do some DC plan testing now and then - 410(b), general testing, ADP & ACP, etc. Sometimes I test one year for a client, sometimes several years - usually in the context of EPCRS work. Up until now, I've done it in Excel, but I'm getting into some bigger plans and some bigger controlled groups with more plans and more testing issues, and I want to use commercial software to check my work.

So, I've used Relius and Datair in the past and I'm looking into both of them now. The Ft William thread got me thinking maybe I should look beyond just those two. Ft William seems well-liked, and their pricing looks competitive - especially for someone like me that might just buy it for a year at a time here and there. It also seems to be web-based, and I like that.

Can anyone confirm or deny any of the above re Ft William and/or suggest any other software worth considering besides the three I've mentioned? Thanks for your time.

Does anyone know the potential liabilities for employer or participant if the 20% withholding is not deducted from an eligible rollover distribution?

A practicing physician has a one member LLC with schedule C income of $350,000. The physician owns another one member LLC that is a retail business with Schedule C income of -$180,000. Both incomes are included in the physicians Schedule SE tax tax form.

How much is this person's covered compensation for 401(k) plan purposes?

Thank you

On behalf of a CPA friend of mine I am posting this question. Quite frankly I am not sure there is an answer.

Ten years ago an individual opens what he believes was ROTH IRA with a local institution. Each of the 10 years, the individual makes an annual contribution to the IRA. Each annual contribution is accounted for as a Roth Contribution for tax purposes, etc.

The individual changes CPA's and the new CPA doing his applicable due dilligence in taking over a new client discovers that the supposed Roth IRA established ten years ago was in fact established as a traditional IRA and not a Roth IRA.

The CPA tells me he can amend returns for a period of three years.

Any idea how to handle the other 7 years of incorrectly reported contributions?

If a plan was established as a single employer plan before 1989, but after 1988 the plan sponsor became a member of an affiliated service group and the other ASG members adopted the plan so that it became a multiple employer plan after 1988, is the plan treated as a plan established after 1988 for purposes of IRC 413©(6)(A) so that each participating employer separately calculates its deduction limit under IRC 404?

Or is it only the original effective date of the plan, regardless of whether it was a single employer plan or multiple employer plan as of the date it was established, that dictates its classification for purposes of IRC 413©(6)(A)?

Does anyone know of any guidance on this issue?

Frozen DB experiences 21% of it's active participant count transferring to a sister company (member of controlled group) not covered by the plan. Is this a 20%+ drop in the active participant count, requiring a PBGC Form 10 filing?

We have an ERISA attorney reviewing a dc document (it's a new comparability plan), and he is questioning the gateway allocation. The plan has last day and 1,000-hour requirements and is providing 3% SH.

There are two participants who received a 3% SH but have terminated employment before year end and both are in the covered test.

The ERISA attorney is having a hard comprehending that those two participants require a gateway minimum (5% in this example) because the document does not explicitly state the gateway minimum overrides the last day/1,000- hour requirements. The gateway definition only states that it must be give to NHCEs.

He further says that since this is discretionary contribution, the HCEs should lower their allocation (ie to 9%) instead of having to give those two participants an additional 2%.

Any opinion would be appreciated.

Thanks

The program says you are not eligible if you have recieved a notice of intent from the DOL. Does anyone know if that means I am ineligible to file for all years. For example, if I recieve a notice of intent for 2009, can I still file under DFVC for 2008?

In addition, if I do file and I am not eligible. by filing and sending in my check, have I waived my ability to argue reasonable cause for the 2008 year?

Has anyone been through this or know how the DOL will apply?

Thanks

Sponsor wants to allow for transfers between the plans as the employees switch from Union to nonunion and the reverse.

Document allows for it.

I know the money must be kept separate.

what about the forfeitures? Would those transfer back to the original plan?

What about participants with loans?

Seems like a lot of work to me for participants that just don't want to get two statements.

Am I missing anything?

Pat

I am curious to know what others are paying in 401k plan administration fees to their plan administrators? We have about 12 million in plan assets and are being charged .57% that is broken into two parts:

.37% by the administrator for their own revenue

.20% Expense that is passed to a third party financial consultant

Trying to figure out if our fees are resonable or not?

Thanks in advance

This probably falls in the dumb question arena, but when a non-profit organization sponsors both a DB and DC plan I assume there would be no multiple plan deduction limits. In this case are we ok just making sure we adhere to the 415 limits under each plan but without regard to the normal deduction limits ? Thanks in advance.

I believe colonoscopy screening for patients 50 yrs and older are covered as a preventative service under PPACA. However, what about a colonoscopy screening that reveals a polyp and the polyp is removed, without patient consent, then the procedure is billed in full because it is now a surgery and not a preventative screening. Is that legit? I'm having a tough time finding the particulars of how this should be billed under PPACA.

Can someone please explain to me what is required for an IDP Plan Document which was NOT restated on-cycle for EGTRRA, but DID make all of the amendments required (EGTRRA, final 401k, rmd, ppa, HEART, etc)./ The client obviously never submitted for a DL (which WOULD require restatement), but I didn't think every plan was automatically required to restate as a condition of qualification.

This IRS web-page does not indicate anywhere that it's non-amender program is for plans that did not RESTATE their document - only that it is for plans that have not made the required amendments.

http://www.irs.gov/retirement/article/0,,id=205524,00.html

Thanks in advance...

Can anyone confirm if a publicly traded REIT or limited partnership or REIT mutual fund is subject to UBTI if purchased as an investment in a retirement plan?

Since 2004 the ADP Test has been run using Current Testing. However, the doucment stated Prior Year testing would be used.

Looking for some suggestions on how to correct. Do we use VCP and have an amendment to the plan stating current yaer was the testing method for all plan years after 12/31/2004? The plan is definately outside the SCP time period. We are trying to make the correction as painless as possible for the Plan Sponsor.

I am trying to figure out what happens when a Plan is late in signing its amendment to convert a plan to a nonelective “safe harbor.” In this example, assume that Plan A intended to adopt the safe harbor nonelective amendment prior to the beginning of the year, but for some reason failed to do so and the amendment was not signed until November of that first year. Would this mean that they must pass discrimination testing for that year or can they do a VCP to get IRS approval for the adoption of the amendment retroactively to the beginning of the plan year. I have reviewed the regulations and realize that there is not an exception to the 12-month rule (nor anything specific in EPCRS), but I am wondering if anyone has any experience under VCP with this issue.