ER sponsors PS plan with discretionary PS contribution based on uniform allocation formula. ER is switching to a high deductible health plan and wants to ease the burden on ees by offering them an election to have any PS contribution contributed to the ee's HSA account (up to applicable limits). Can the ER do this? Would an ee that makes this election be "treated as" receiving an allocation under the PS plan (see 1.401(a)(4)-2©(ii))? I think it is a bad idea but need something more to convince the ER. Thanks!

This report will give a listing of all plans on the system.

this is not run out of Report Writer - rather you open the report in Crystal

View/Print Preview

This version will only print the most recent plan year of any given plan (not all plan years)

the 'select' option is set to pull only DC plans (but you could change that if you want or have DB plans.

the report is currently what I call a 'sample' of what you could pull - it currently shows NRA, top heavy status for next year and the vesting schedule (I think of the first account), but obviously could be modified to pull any particular item from plan specs you might want.

Hello all. I read a few posts on this subject from a few years ago, but I'm still not clear on this.

I have a broker with two groups that wants to set up one POP and one POP/FSA plan for these two groups. The group employees hundreds and at times 1000’s of seasonal employees. Some of these seasonal employees work full time, year round but are still considered seasonal, and are not eligible for their underlying benefits. They basically want to set their plans up for the office and sales employees and exclude all seasonal employees from the POP and FSA (their definition of seasonal employee has been recorded in their corporate minutes and is used to define who is eligible for their healthcare) .

Is it okay to exclude all of their 'seasonal' workers. Also, does the 'definition' of seasonal employees found in TREAS. REG. § 1.105-11 (1981) " ....any employee whose customary weekly employment is less than 25 hours or any employee whose customary annual employment is less than 7 months may be considered as a part-time or seasonal employee" overridge their definition of seasonal employees?

Lastly, if they are excluded from participating, are they also excluded from the testing? Thank you for any insight on this issue.

If a 401k plan without automatic enrollment chooses a QDIA just in case someone doesn't complete an enrollment form, does that plan sponsor need to provide a QDIA notice each year, even if every participant has completed an enrollment form and chosen investments?

A year ago I found proof to submit to my employer that I indeed can have a Flexible Spending account with an HDHP, I simply researched it on the internet, and I therefore was allowed to do so for the 2011 year. I can't find any information on it now. Everyone gives me the same thing "you can not have a Flex plan with an HDHP and you can not have a FLex plan with an HSA (well, you can within limits, but I'm not talking about that here)". Well, I've proven that you can, I already did, but now people say I shouldn't have been able to.

I DO NOT have an HSA and I don't want one. The reason is I need the entire amount of the Flex account available to me in January, and I pay for it every paycheck for the rest of the year. Where can I find information as to the reasoning why I CAN have an HDHP with a Flex account. If I indeed can't do that, where is that proof?

Secondly, is an employer legally allowed to contribute money into a flex plan, like they are allowed to contribute to an HSA? Again, I don't have and don't want an HSA, I need a flex plan.

I'm so confused.

Thanks.

Qualified Charitable Distributions are available ONLY from IRA's, not qualified plans. Correct?

Does anyone know if a services agreement with a service provider, which covers recordkeeping services provided to a 401(k) plan, and a group annuity contract issued to the plan as its investment option, would fall under the category of "executory contracts" as defined in the Bankruptcy Code? I suspect that they do because there are obligations which still have to be performed on an ongoing basis under both agreements. The issue has arisen because the plan sponsor is now filing for bankruptcy and if these two agreements are "executory contracts", the sponsor may exercise its right to "reject" or "assume" both agreements.

Thank you.

My client ABC Company allows participants to make up missed contributions from the time missed during a military leave. While they do have a payroll process in place, the participant would like to send a check for the amount of the missed contributions. The participant is aware of the loss of the pre-tax benefit by doing so. Is a participant permitted to make up the contributions to the 401k plan outside of payroll deferrals?

As we celebrate the start of the December annual election period for 409A unsecured nonqualified deferred compensation plans, we want to pause and ask ourselves:

HCE Class Employee – In light of external secure lifelong plan alternatives available today to all 401(k) HCE’s, does it really make sense to risk your paychecks in an unsecured 409A benefit plan with your current employer?

Employer - – In light of external secure lifelong plan alternatives available today to all HCE Class employees, does sponsoring an unsecured 409A elective deferral benefit plan to a restricted group of HCE’s reinforce the corporate culture you want to communicate to your employees and the world today?

I have a plan on Relius Admin .... participant was hired 3/20/10 and only worked 300 hours in 2010. As of her 1-year anniversary, she had only worked 500 hours. She went to full time at about that time and as of 9/30/11, she had worked 1,100 hours in calendar 2011.

The plan has quarterly entry, eligibility service is anniversary date with a shift to calendar, one year of service/age 21.

I have always taken the position that if not 1,000 hours in the first anniversary year, then the person has the next calendar year to satisfy the requirement and if they do, would enter on the first entry date in the next plan year.

Relius, though, is allowing this person to enter on 10/1/2011 because she had 1,000 hours in 2011 before the final entry date in the year.

Just wondering if others have seen this and whether you agree with my position or with Relius.

Thanks.

James

What are people doing about DB plans that have already been amended to comply with section 436 now that the IRS has issued a sample amendment? Should a plan sponsor simply replace the previously adopted provisions with the sample amendment or try to tweak the language already in the plan to come as close as possible to the sample language? In one case I've seen, the plan language spells out the regulations (not incorporated by reference), but there are slight differences in the layout/order of the information and in the wording. If the sample amendment is adopted to replace the previously adopted language, can the plan still rely on the 411(d)(6) protection provided by Notice 2011-96 with respect to any differences that may exist between the previously adopted plan provisions and the sample provisions (i.e., what if some slight difference exists between the sample language and the plan's prior 436 amendment so that the adoption of the sample amendment to replace the prior 436 amendment eliminates a protected benefit?). Notice 2011-96 provides, "To the extent that the adoption of the sample amendment in the appendix to this notice by the deadline described in this section III causes the elimination or reduction of a § 411(d)(6) protected benefit under a plan, the elimination or reduction is made only to the extent necessary to enable the plan to meet the requirements of § 436 and therefore does not cause the plan to fail to meet the anti-cutback requirements of § 411(d)(6)." This language seems to cover a plan's adoption of the sample amendment even where the plan has already adopted a 436 amendment that it is now replacing with the sample amendment. Thoughts?

I understand that a participant may only elect an in-plan roth conversion upon a distributable event. How does this apply to money that the employee rolled in to the plan from a former employer's plan? The money is 100% vested and the employee may withdraw it at any time. My thoughts are that it is not eligible for conversion unless the employee experiences a distributable event under the current plan (i.e. distributable event under the former plan was termination of employment but money was rolled into current plan).

Thoughts??

WRERA makes changes to Section 415 of the Code. Do these changes significantly affect multiemployer pension plans, in asmuch as requiring employers to change pension language?

Employee took lump sum benefit (including savings plan, pension and enhanced severence package) in 2002 (age 54) and rolled entire benefit over into 2 IRAs. employment from 1966 -2002 (36 years) and married in 1977. Divorce was filed in 2010. The IRAs have been used as income since 2008 (age 59 1/2).

the Employee is claiming 11/36 of the original payout as non-marital (years worked prior to marriage). The alternate payee is claiming that the lump sum was converted to IRAs in 2002 and are no longer a qualifying plan. If the coverture fraction was to be applied, it is used to determine the alternate payees portion (25/36). In order to claim any portion as non-marital the former employee would have the burden of showing the amounts of funds in both the pension and the savings plan.

Comments? Has anyone ever seen or had any knowledge of a "reverse" retroactive QDRO enforced?

Another 8955-SSA Question.

Final Form 5500-SF filed in 2011 for 2010 Plan Year. Technically Plan has been closed out. Is anyone filing an 8955-SSA to report Participants who have been paid their vested entitlement Code D, who were previously reported as Code A? Would this open the Plan to a new statute of limitations? Yes I realize that it is only for 1 year.

Final Form 5500-SF filed in 2008 for 2007 Plan Year. Technically Plan has been closed out. Is anyone filing an 8955-SSA in this situation to report Participants who were paid their vested entitlement Code D, who were previously reported as Code A? Would this open the Plan to a new statute of limitations? The 3 year statuate has already run out.

Any help is greatly appreciated.

Thanks.

Richie

ok, posted again. same old puzzles as before.

but I never get tired of it.

130 songs to identify, with a list of 260 or so songs from which to pick.

enter the song number (not the name) in the yellow box and the sheet should indicate if you are correct.

Dang it, I still can only remember only about 85% of them, and I look at it every year.

actually, I hold there are no wrong answers, just better answers than others.

it was neat to pass this out to someone the other night and ask

what about #27?

the response "Its a knight saying shhhhh"

and then the face light up and "Oh, the answer is ..........."

"this is going to be fun!"

I'm sure this has been asked, and I did search in the forum, so I apologize if it's been addressed already - I have a QACA plan where their first scheduled deferral rate increase to 4 percent is on 1/1/2012.

Which eligible participants get increased to the 4 percent minimum and who should not be touched?

1) Those who did not make an affirmative election and are at the default of 3 percent today?

2) Those addressed in #1, plus those that did make an affirmative election, but at a rate of 3 percent or lower, including those that chose to not participate?

Also, when there is a scheduled increase, are participants to receive any special type of notice outside of the normal annual QACA notice?

Thank you in advance.

do folks (us practioners) generally contact the plan sponsor of a small plan once they find out that they are not exempt from the schedule I plan audit requirement and advise them to contact a CPA firm to get it handled?

what if they don't have ample time to get the audit prior to filing of 5500 due date?

curious how this issue is handled logistically.

Do some of you contact clients just after the plan year ends to make this determination and inform them at that time? For example in January 2012 we can find out if a plan is bonded sufficiently at end of 2011 and then advise at that time.

thanks

Any help with this is greatly appreciated.

If I was setting up a 401K plan (just myself, no employees), it is my understanding that I can serve as the Trustee of the plan provided it is established and maintained correctly. But there are no IRS rules which would prevent me from serving as the trustee.

Recently someone sent something to me....but I don't think it is truly in relationship to this question that suggests that an individual cannot serve as the trustee and it has to be an independent source...and I am not talking about IRAs, rather 401Ks.

I don't think this is correct but would love any feedback on this question. Thanks.

John

Question - and this is theoretical - is it possible for a DB plan to be overfunded for 415 purposes, and yet still have a required minimum funding contribution? If so, how is this possible? Is there a "disconnect" between minimum funding calculations and 415 maximum calculations that makes this possible?

Thanks!