What I'd like: not too difficult for an average user to figure out, can be installed on multiple computers (or a server) so each user can prepare their own exp stmt (web-based would be acceptible too), multi-currency would be nice but at least be able to designate a currency for each report, if it has "mgmt approval" features then those can be bypassed, and, not expensive (either onetime purchase or minimal per use fee).

I've looked online: most spreadsheets are too simplistic or too confusing for the average user and most software is too expensive per user or wants to charge for months even when you don't use it.

Please post or message me with any suggestions. Thanks!

- The plan is made up of two companies (A & B). Company A provides mostly financial and some administrative services to company B. Companies A & B are separate corporations.

- Owner 1 owns 100% of both companies. Owner 1 sold his "ownership" of Company B to Owners 2, 3, and 4. "The new stockholders are not controlling or voting stockholders. The "ownership" is purely for the receipt of Company B's income distributions and dividends. The only voting and controlling owner is Owner 1"

- When Owner 1 was the only key employee, the plan was not top heavy (just under 60%). If Owners 2-4 are considered key's the plan would be come top heavy (they contribute 401k)

- If they become Key, then additional contributions would have to be made (3% top heavy less match). Plan is audited plan, so the additional contribution, while small in terms of a percent, would still amount to a significant expense. They only want to contribute the match.

Question: Are the new "owners" considered to be actual owners of company B? Can it be considered that company A performs a management function over company B?

Ideally if only owner 1 is the key, then they should be in good shape. Owner 1 does not contribute 401k.

Client missed auto enrollment of several participants. The plan is cross tested, each participant is their own group and makes profit sharing contributions (2.5% to each participant). Provided that the non-discrimination testing is still satisfied, can the PS be 'shifted' to cover the QNEC and missed match (Formula is 25% up to 6%)? (All dollars in PS source would be shifted to avoid issues with cross test) Corrective allocation would be 1.5% QNEC + .75% match = 2.25%. Can a sponsor allocate a QNEC that is slightly greater than the amount required to make the correction? Would this be allowable? Any thoughts anyone?

I apologize for the basic questions and the lateness of the request. We have a 403(b) and are new to the audit and 5500 processes. We have just been informed by the auditors that we need to file the 8955-SSA. Since we need to gather all of the info for the auditors anyway, we decided to try to tackle the 8955-SSA ourselves.

Please clarify the following:

1. In Part III, line 9 are we to add (code A) only those participants with balances but haven't started to receive benefits? Or are they omitted only if they have been paid out entirely?

2. If those reported have yet to draw anything, how do we report on 9(d) and 9(f)? (Our providers provide many payments options.)

Thank you, everyone, for any advice you can offer!

I am interested in determining a reasonable expectation of an attainable net (pre tax) profit margin for a non producing third party administration firm with fewer than 500 clients. The firm is in Ohio with clients primarily in Ohio and neighboring states. For example, on revenue of $500,000, is it reasonable to expect 10%, 15% or 25% after all expenses including salaries (EBITDA) ?

Am I reading this right? Is the new IRS User Fee for Form 5300 Application for Determination Letter now $2,500? We are getting ready to submit some Cycle A individually designed plans (e.g., ESOPs). I am shocked the fee is so high. I am hoping against hope that I am misreading this. Thanks.

Once the Safe Harbor Notice goes out for 2012 then the plan provisions as stated must remain in place or you lose the safe harbor pass on ADP/ACP and top heavy, right? I have an advisor who wants to look at amending a safe harbor plan document in February and "re-disclosing" the new provisions but I'm telling him that this will blow up the safe harbor and make the plan subject to testing. Where can I find documentation on this? Whitepaper?

My company as had several people on a temporay layoff that were not able to pay their insurance premiums. Now that they are back we need to deduct for the premiums owed. We do have a Section 125 plan so the premiums would be deducted pre-tax however some employees will not be caught up on the amount owed by the final payroll of 2011. Can the missed premiums be deducted in 2012 as pre-tax along with the 2012 premiums?

IRC 408(g) states that "This section [408] shall be applied without regard to any community property laws." I'm trying to determine the proper application of that provision in the following situation.

Owner of IRA lives in a community property state and names spouse as sole primary beneficiary and adult child as sole contingent beneficiary of his traditional IRA. Owner dies and spouse timely executes a disclaimer of owner's interest in the IRA. Disclaimer goes on to recognize that the effect will be that the disclaimed property will pass as though spouse had predeceased the owner.

The result intended by the parties was that the spouse would retain a 50% intererst in the IRA, as the primary beneficiary [she disclaimed the community property portion] and that the remaining 50% would go to the adult child as contingent beneficiary.

Applying 408(g) to this situation, it would seem that there is no community property interest in the IRA. If that is the case, wouldn't the owner's interest in the IRA be 100%, rather than 50%, with the effect being that the spouse is waiving her entire interest in the IRA? The entire IRA would then pass to the contingent beneficiary, as though the primary benficiary [spouse] had predeceased the owner.

I'd welcome any thoughts on whether my read of 408(g) is accurate.

Two partners have a DB and 401k Plan. Let's say each have $150,000 in self employment income before any deduction for the DB contribution. They make a $200,000 contribution to the DB plan, which they split the deduction for.

They both alos make the full 401k deferral contribution to the 401k PSP. What is their limit for a profit sharing contribution. Is it 6% of compensation after deducting the DB contribution and 1/2 self employment income tax? Ie 6% of $150,000-$100,000-1/2 SE tax? Or is it 6% of SE income before any deductions?

Company X has 10 employees. 2 are owners. 8 are leased employees. What are the problems with Company X having a 401(k) Safe Harbor Plan? Can leased employees defer to this plan or must they defer to a plan of the leasing organization? If they defer to a plan of the leasing organization can Company X contribute a Safe Harbor Match to this Plan using deferrals contributed under the leasing organization plan, or can they contribute the Safe Harbor Match to the leasing organization firm and get "credit" under the Company X Plan? I suspect that the best route would be the 3% Nonelective from the Company X Plan deposited to the leasing organization firm's plan. Any and all thoughts are appreciated. Thanks!

I have a plan with an active career average benefit formula. (annual accumulation plan) There are two participants receiving $0 compensation for the plan year, so they do not receive a benefit accrual for the plan year. However, they're accrued benefit is actuarially increased because they are both post NRA, and the plan takes the greater of the two.

I would think that for 1.401(a)(26) purposes they would not be considered benefit, however under 401(a)(26)-5, it states that in general "an employee is treated as benefiting under a plan for a plan year if and only if, for that plan year, the employee would be treated as benefiting under the provisions of §1.410(b)–3(a)".

Under 1.410(b)-3(a), it states that an employee is considered benefit in a defined benefit plan if "the employee has an increase in a benefit accrued or treated as an accrued benefit under section 411(d)(6)."

Technically, the participants do have an increase in their benefits accrued. Would you consider them benefiting for 401(a)(26) purposes?

Thanks for any feedback on this,

Jeff

is there any relief for illiquid assets with a difficult to determine FMV?

I decided to give the IRS letter forwarding program for lost participants a shot; I had a plan with 5 such participants and wasn't making any progress. Mailed the letter on May 24, 2011...just received confirmation, dated December 16, that they were forwarding the letters.

So don't be holding your breath if you try this.

This question was posed to me but this is not my area of work:

Participant submitted request for $1,000 for 2012 flexible spending. HR told her it wouldn't round out correctly at 24 payrolls (41.67 * 24 = $1,000.08). HR told her she needs to submit a round number and made her fill out $40.00 for total of $960.00. Is there an issue here?

The same HR btw did not inform those ee's who did not participate in 2011 of their option to participate in 2012. Any issue here?

There has been plenty of discussion on these boards regarding reporting of distributions of nonqualified deferred compensation to beneficiaries after death of the participant.

In short, if any of the deferrals vest in the year of death, FICA is reported on the employee's final W-2 and a Form 1099-Misc is issued to the beneficiary. If FICA has already been paid, you just need the Form 1099-Misc.

The question I have is what tax rate do we use? Do we use the employee's tax rate, or the beneficiaries tax rate? What if it is paid in installments beginning in the year of death--employee's rate for the installment that year and beneficiaries rate for payments in subsequent years?

I would appreciate any advice and any citations you have available!

If employer elects to use the Full Yield Curve (FYC) as the Interest Rate Basis for a plan year, how is the present value of prior years amortization amounts calculated? More to the point, the rates of the FYC are provided on the half year basis (every six months). Is it specified anywhere that the yearly rates should be used to PV the prior years amortization amounts or is it acceptable to use the half year rates (six month rate, 18 month rate, 30 month rate, etc.)?? Any cite reference would be appreciated. Thanks.

can anyone other than a former spouse receive an award pursuant to a COAP? It appears to me that the Attorney Handbook on this subject provides only for a former spouse to receive a benefit unlike the QDRO regime in which an Alternate Payee may be a spouse, former spouse, child or other dependent.

I think it has something to do with cats - or at least MEWAs (Multiple Employer Welfare Arrangements)

a few snippets of info from:

http://www.gpo.gov/fdsys/pkg/FR-2011-12-06.../2011-30919.htm

Section 2520.104-20 and the instructions for the Form 5500 and Form

5500-SF provide for exemption from certain reporting and disclosure

requirements under Title I of ERISA, including the requirement to file

Form 5500 Annual Return/Report, for unfunded, fully insured, or

combination unfunded/fully insured welfare plans that cover fewer than

100 participants. Under the proposed amendments to Sec. 2520.103-

1©(2) and Sec. 2520.104-20, and revisions to the instructions for

Form 5500 and Form 5500-SF, all plan MEWAs subject to the Form M-1

requirements would be required to file Form 5500 Annual Return/Report,

regardless of the plan size. The limited exemption under Sec.

2520.104-20 would be removed for plan MEWAs subject to the Form M-1

requirements. In addition, such plan MEWAs would not be eligible to

file the Form 5500-SF.

The Form 5500-SF does not include specific Schedule A

insurance information, and the Department believes that plan MEWAs

subject to this proposal that claim to provide insured benefits

should be required to complete the Schedule A so that enforcement

officials and the public have information about the insurance policy

and insurance company through which the MEWA is providing insurance

coverage.

Under the Notice of Proposed Rulemaking, content of the annual

report under Sec. 2520.103-1 would be amended to require a plan MEWA

subject to the Form M-1 requirements to include a proof of compliance

with Sec. 2520.101-2 (filing the Form M-1) as part of the Form 5500

Annual Return/Report. Accordingly, the Department is proposing to add a

new Part III to the Form 5500, which would ask for information

regarding whether an employee welfare benefit plan is a MEWA subject to

the Form M-1 requirements, and if so, whether the plan is currently in

compliance with the Form M-1 requirements under Sec. 2520.101-2. Plan

administrators that indicate the plan is a MEWA subject to the Form M-1

requirements will also be required to enter a Receipt Confirmation Code

for the most recent Form M-1 filed with the Department. Failure to

answer the Form M-1 compliance questions will result in rejection of

the Form 5500 Annual Return/Report as incomplete and civil penalties

may be assessed pursuant to ERISA section 502©(2).

We picked up a new client a couple of years back that made a mess of their plan. Over several years, one of the Trustees withdrew almost all of the plan assets and used the money to help fund company expenses. The prior TPA prepared valuations and 5500's showing a portion of some commercial real estate owned by the business owners as belonging to the plan. Nothing was done to transfer ownership of the real estate. The 5500's did not report any PT's. A participant complaint lead to a DOL investigation. At that point, their corporate attorney sent them to us for help.

We went back through their records, identified all of the withdrawals, calculated lost income and presented a proposed correction to the DOL for them to repay everything, including the lost income. The DOL approved our proposed correction. The DOL investigator said that since they were cooperating and restoring all of the plan's losses, the case would be handled informally. That meant no closing letter and no DOL penalties. The corrective deposits were made early this year. After providing documentation of the deposits, the DOL investigator told me their investigation was closed. We prepared 5330's for each year showing the PT's for the improper use of the funds and they paid all the excise taxes. The 5500's we prepared for 2009 and 2010 properly reported the PT's.

The Trustee just received a letter advising him he is the target of a federal grand jury investigation and inviting him to testify. It also mentions possible criminal indictment. He is contacting his attorney today.

Now for the question. Has anyone heard of a plan related case where criminal charges were filed against someone who cooperated and repaid the full amount of the losses? The only DOL criminal cases I recall seeing are those where the target(s) did not cooperate.