We have already amended several plans for PPA, but we recently discovered that we did not include the language regarding rollover to Roth IRAs. Is this language necessary? Will we have failed to properly amend the plans if we do not include it? Can we simply handle this by including Roth IRA rollover language in the plan's rollover documents?

i found out about husbands pension thru social scurity office when i applied for disability was denied but recieved a letter in the mail about ex husbands now decessed pension i was beificary to. got in contact with company and they need a death cirtifacate i provied that then thay asked for a QDRO and provided that. they told me they are gonna have there lawyer look and it send it to accounts department and i would recevie it two weeks later recevied a letter of denined letter said i have 60 days to appeal got a lawyer ex husband has two adult children this is my question do i have any rights i was told his adult children from previous marriage have all right over me his second wife he left no will but i was named beificary of his pension at the company were he named no one else and children were adults at time of marriage we were married more then 10 years please some advise

We have a terminated 403(b) plan with annuity options. A participant who is in the process of divorce cannot get her spouse to consent to a distribution. The distribution forms specifically state that spousal consent is required. The financial institution will not distribute without spousal consent.

What can be done in this situation? What are the rules?

Client sends me letter he received from the Bank, who is trustee of the pension plan. The Bank took the client and associate to lunch and the cover letter as well as 8 pages of 5500 crud address that the value of the lunch was $29 and change. The client, of course, has no idea what this is so ships it to me. I know what to do. I laugh. Not only have all the attendant costs of reporting now exceeded $29 (and change), but also the Plan has fewer than 100 participants (which the Bank would have known if they knew anything about the client or the Schedule C applicability), so Schedule C does not apply.

Fortunately for the client, he did not send this package to an advisor who would then bill him for reading the crud and responding to him. Ain't I nice?

We have an employee that we are trying to verify service credit for the 401(k) for a parent company.

From 1998 - 2006, he worked for a control group of the parent.

Anyone that transferred from that control group to our main company 401(k) did have their vesting and years of service "brought over".

He did not transfer. He terminated from the control group in 2006.

So, he never did transfer, he was terminated from the control group company. Then two years later the parent company hired him in 2007.

The parent company did not have his service on file, since he never transferred, but he was technically an employee of the company since 1998. He was in a separate 401(k) plan that he eventually was paid out from and had its own vesting and service (that would have carried over if he transferred, which he didn't).

Should his time with the control group count for the company? Or should it not, since he didn't transfer?

Thanks

My employer use a PEO for all of there insurance and payroll needs. As part of my benefits package, I am allotted a specific amount of money. I am allowed to use this money to pay the preimum on insurance, AFLAC products, ext. However I am not allowed to take it as cash. I am also allowed to use this money to fund my health saving account.

My issue with this is that my PEO only allows me to use the bank that they are set up with. I feel as if I should be able to use any bank I so desire. They are forcing me into using a bank that I do not want to use. Does any one have any thought on this

Kyle

Working on a Takeover plan, current document is written to include service with Predecessor Employer for elig/vesting/contribution. However they do not list any specific companies. Their intent to include service worked in that specific field no matter where it was.

We use the Sungard/Corbel document, any suggestions on how to write that into the plan?

We are starting to get ready for the new participant disclosure regulations. What kind of issues are others having with this process?

I have a client we helped self correct an operational failure -- enrolled participants on a quarterly instead of monthly basis - plan was amended and did not get picked up operationally. We put money into the plan in accordance with the IRS correction methodology. The amount was de minimus in comparison to total plan assets but it did affect quite a few participants for a number of years. Now in an audit situation, the examining agent is saying that we did everything right in his view and that the self-correction was appropriate but his manager believes that the failure was not "insignificant." Has anyone had any experience with the IRS challenging the issue of whether the failure was "insignificant"? If so, what was the ultimate outcome? Thanks in advance for any input.

Is it possible for a 403(b) plan sponsor to not make matching contributions for employees in a particular job classification? In a qualified plan, I think this can be done by defining compensation for purposes of matching contributions as excluding amounts earned in an ineligible job category, provided that it satisfies the nondiscrimination testing. Is the same possible for 403(b) plans?

I am posting this here because many life insurance agents work with these plans.

Does anyone know how or where I can get a copy of the MDRT information retrieval system?

I'm pretty familiar with how and when plan level forfeiture accounts need to be used. My question is regarding participant level forfeitures. Are forfeitures after a 5 year break required to be completed within a certain amount of time? I know when they CAN be completed but is there any guidance about WHEN they MUST be completed?

Thank you.

I guess Friday is suppose to be something special.

oh yeh, it's payday.

Plan is terminated, but the business no longer exists. One participant remained to be paid and distribution forms received recently. How should the 20% federal income tax withholding be submitted using EFTPS? Should a business account be set up using the Trust ID for the plan?

Just want to double check...

I have a plan that has a 10% contribution that goes to all employees-meets all the Safe Harbor requirements. They want to make an additional contribution to 2 HCEs (replacing a db arrangement). So, I know I need to perform the general test/new comparibility test. The question is: can the plan make this 10% contribution a Safe Harbor contribution and still use that amount to satisfy the general & gateway test?

I admit that I have not kept up very well with the attribution rules when it comes to LLC, Partnerships, S-Corps and Sole Proprietors.

Are the attribution rules still the same under Code Section 318?

LLC members, greater than 2% Shareholders of an S-Corp and Sole Proprietors still cannot participate in a Cafeteria plan, correct?

Are the spouse, children, grandchildren and parents also unable to participate in the Cafeteria plan as well?

From the information that I have researched, it appears that they are all excluded from participation.

Can someone please confirm this for me?

Thank You

Here's the situation: I have a new client which currently offers a 401k Plan with an Employer Match equal to 100% of the first 9% deferred. The match is immediately 100% vested. I am wondering if I should make this a Safe Harbor plan to give me an automatic pass on the ADP test. I understand the match formula will not provide a pass for ACP testing. I have a couple of questions:

Is it OK to offer Safe Harbor Match of 100% on the first 4% of deferrals made and regular Employer Match of 100% on the next 5% deferred? I have not been able to find an example of this type of formula in the various examples cited in IRS examples and trade articles. Why not offer a Safe Harbor Match of 100% of the first 9% deferred? That would be easy, but right now the employer monies are available for hardship withdrawals. Making all 9% match ineligible for hardship withdrawals might make the decision to go Safe Harbor more difficult for the sponsor. I thought if only 4% were made Safe Harbor they may be more apt to adopt the Safe Harbor provisions.

Has anyone seen this type of formula used in a Plan?

The owners of Company A sponsor a 401k Plan, which excludes leased employees, and also own 100% of Company B. Company B has approximately 10 employees who are leased through a management company (i.e. not employed directly by Company B). Company B terminates its relationship with the management company and hires the 10 employees directly on 10/1/2011. Do these 10 employees now become eligible for the plan sponsored by Company A? If so, are they considered hired on 10/1/2011 and must meet the eligiblity requirements, or does their service as a leased employee count for eligibility?

Dr. A turned 70 1/2 in 2003. He is a greater than 5% owner. He completed a 242b notice back in the 80's so he wouldn't have to take an RMD. He is retiring this year. In preparation of retirement he met with his broker in regards what to do with the money that is still in the retirement plan. The broker had asked if Dr. A had been taking RMD's from the retirement plan. Dr. A who has other investments outside of the retirement plan had taken RMD's required for those accounts, but not the qualified plan (due to 242b notice). The broker was unaware of the 242b notice that prevents RMD's for qualified plans. Still this caused a scare in DR.A. To make himself feel better, he requested from his lawyer a copy of the 242b notice, just to make sure everything was fine. When the lawyer went to retrieve the 242b notice, he could not locate it. Both the doctor and the lawyer remember the 242b notice being filed.

What happens if the 242b notice is misplaced? Since it was required to be filed so many years ago, I would have to imagine that the chance of this happening is quite high. What are the ramifications? I assume for starters he would need to "catch up" on all missed RMD's (years 2003-2011, not counting 2009). What is the likelyhood of the excise tax being waived? His account balance is currently $700k, so the RMD's (and corresponding tax) would be quite high. It does not sound like anyone is planning on using this as an "excuse". It may have actually been misplaced.

If a plan changes its QDIA fund mid-year, and a notice of the change, information about the new fund and mapping plans is sent to all participants, is a new QDIA notice also required?