I know this is a 5500 question and I asked it on that board, but need an answer quickly and haven't gotten it there.

Assuming all the other requirements are met, when determining whether or not a plan has to file a Form 5500EZ due to having assets under $250,000, is that number based on the actual assets at 12/31/2010 or does it include accrued contributions for the year.

Example, plan has $225,000 in assets at 12/31/2010 and contributes $30,000 during 2011 for the 2010 plan year. EOY cash basis assets = $225,000, EOY accrual basis assets = $255,000. Is this plan required to file?

Somoeone called and proposed this:

Have a SIMPLE IRA for two years. Because in a SIMPLE the match can be as low as 1% for two out of 5 years, they do 1% for two years, to take advantage of the "cheap" contributions (i.e. it's only a quarter of the SH Match, but ~75% of the contribution limit). After the two years, discontinue and do a SH 401k.

Is there a problem with this?

What do you do where you do not have enough information to file a Form 5500 by the filing deadline? Wait and submit under DFVCP, or file incomplete with a statement?

Assuming all the other requirements are met, when determining whether or not a plan has to file a Form 5500EZ due to having assets under $250,000, is that number based on the actual assets at 12/31/2010 or does it include accrued contributions for the year.

Example, plan has $225,000 in assets at 12/31/2010 and contributes $30,000 during 2011 for the 2010 plan year. EOY cash basis assets = $225,000, EOY accrual basis assets = $255,000. Is this plan required to file?

Is there anything an employer can do who simply cannot meet their funding deficiencies? They have two year's deficiencies and they want to explore the possibility of contacting the IRS to ask for clemency regarding the 10% excise taxes? They feel that the plan would be better served if these excise taxes were deposited into the plan to meet minimum funding. They want to know if there is any such program the IRS may have for plans in such a situation. Given the economy, they can't be the first small business who can't meet minimum funding.

Benefits have been frozen. They do not have enough assets in the plan to cover all benefits, even with the owner waiving his benefit if the plan were terminated. They do not want to go through distress termination and do not have the funds to even pay an ERISA attorney to help them through this. They have not applied for a funding waiver since that is so costly.

Anybody have any solutions, or an IRS contact?

curious what others do when submitting the lost earnings for participants on any of the 401(k) investment vendors such as JHancock, American Funds, Nationwide, etc. with regard to how the

deposit is coded. I don't believe it should be made as a "contribution" as that would impact the current year's tests.

I think it could be coded as a "transfer in" on most vendors; just trying to get my arms around the mechanics of the actual payment to the Plan participants.

thanks in advance.

I am reviewing a Money Purchase Plan 5500.

It would seem you would answer Q3, correct?

Can Q4 even apply to a MPP? The instructions would seem to say there should be an answer to Q4 for a MPP.

Thanks.

For 2010, many of the plan's deferral contribuitons were late, I reported amounts on 10a on short form. The contributions have all been funded as well as the late earnings and 5330 filed. Do I need to attach anything (schedule of delinquent payments) with the SF form that shows payments made and when? I don't think I do I just have to have everything in order if/when DOL letter comes. Thanks,

If an employer has 2 safe harbor 401k plans can the annual (safe harbor) notices be combined into one notice for both plans? The safe harbor provisions of both are the same and other provisions are similar- just different employees who are eligible for participation. All employees could potentially be eligible for either in the same plan year, or both, at different times (again within the same plan year- which is also the same for both plans.)

more poorly behaving 1 participant plan sponsors.

say plan has 300k in assets.

owner/participant is age 69 and has worked past NRA

pvab = close to 300k

in 2010 owner withdraws 130k (in about 4 payments during 2010) and prepared a 1099R.

no benefit election forms, etc. prepared

plan allows for QJSA to commence at NRA if working or lump sum option

not married and normal form is life annuity.

owner now terminating the plan and will distribute balance.

as far as i see it the 130k withdrawal is a plan operation failure and could disqualify the plan

resulting in potentially loss of corporate deductions and entire pension taxable, etc.

is that a correct interpretation?

If a defined benefit plan year ends 1/15/11, what is the extended due date for the form 5500?

If the plan year ends 1/14/2011, what is the due date for the 5500? What is the extended due date?

A DB plan amendment will be adopted during 2011 to change a July 1 - June 30 plan year to the calendar year effective 1/1/2012 so that there will be a short plan year from July 1, 2011 - December 31, 2011. The benefit formula is 1% of FAS x YOS, where FAS is determined on a July 1 - June 30 basis. As of 12/31/2011, the accrued benefits for all actives will be calculated. Effective 1/1/2012, a participant will accrue benefits under the same formula but using FAS determined using historical calendar year compensation. If greater, the 12/31/2011 grandfather applies.

As of 1/1/2012, the AFTAP is calculated to be 80% before applying the amendment (i.e., just with the grandfather). After applying the Amendment, the AFTAP is 78%. Can this amendment take place without the Plan Sponsor making additional contributions to increase the AFTAP to 80% after the amendment ??? If not and the employer does make a contribution, does this mean the plan year has not changed or that the plan year has changed, but the part of the amendment that changes the computation compensation period does not take effect?

My opinion is the Plan Amendment consists of two separable provisions -- the change in plan year and the change in compensation compensation period. There should be no problem changing the plan year. However, it seems that the change in compensation period, while it does not alter the benefit calculation formula per se, does in operation increase benefits and so would be precluded from going into effect.

Comments ?

I know this topic was cover in these boards about 5 years ago but I am still can't find a definite answer. During a takeover, client was asked for a signed copy of their DB Plan doc (they had provided an unexecuted copy). They cannot locate a signed copy (and most likely never had one) in their files or archives. I have read everything from the "plan doesn't exist" or it's "disqualified" to "it's no big deal, you can provide signed board resolutions or a determination letter showing establishment of the plan effective date". I don't see anything in VCP that covers this exact issue. Thanks.

Employee waives medical coverage when hired. Employee doesn't not have other medical coverage. Employee is married. Is this a qualifying event and is the employee allowed to enroll in medical plan because he added a dependent even though he currently has no medical coverage?

The Form 8955-SSA instructions do not specifically address this.

Here is my question:

Since the IRS gave an extended due date of until January 17, 2012 to complete Form 8955-SSA for plan years that end before April 1, 2011, does the box special extension under Part I, Line C need to be checked?

Thank you,

Annette Leerhoff

Does anyone have any recent information on the use of a DB Plan Sub-Trust owning Life Insurance to keep it out of the taxable state. I cannot seem to find any recent articles on the subject.

I would appreciate any info you have.

1065 is amended and generates extra income for partners. Can the partners make additional profit sharing contributions together with the amended?

I'm assumign the answer is "maybe" but if and only if the return was on extension through octboer 17, and the additional amounts are funded by October 17th. Because the contriubtions are deducted on the 1040, many people suggest that this is when you have to fund the contributions by for a partnership.

Any thoughts?

Why do kids that are into heavy metal music want to become actuaries when they grow up?

I'm at a new company that has the following parameters in place for new employee initial enrollment:

All benefits are effective on the first of the month after date of hire. Employees may make elections for 30 days after eligibility starts. Example, an employee who starts 9/10/11, will have a benefit effective date of 10/1/11 and have until 10/31 to make changes to his/her elections. I have been told that all elections made in this initial 30 day window will have an effective date retroactive back to 10/1/11. I am concerned because I do not know if this is permissible for certain benefits.

HSA account - From what I know about HSA's, the effective start date of an HSA is tied to when an employee actually establishes the HSA at the bank. HSA establishment guidelines vary from state to state depending on the particular state law pertaining to trust/custional arrangements. Some states do not consider an HSA established until it has been funded. Expenses that are incurred prior to the establishment of the HSA are not qualified medical expnses under the HSA. It is being communicated to the employees that they can seek reimbursement from the first of the month following hire date. Can someone please confirm that

FSA account - I believe that Sect. 125 allows for employees to make elections that are retroactive up to 30 days from an employees hire date. Meaning if an employee is hired on 9/10 and makes and election within 30 days, the law allows for the FSA effective date to go back to 9/10. However, what I am seeing in practice at the new employer - with a Hire date of 9/10, they are allowing emoployees until 10/31 (beyond the 30 days from start) to make elections and telling them that it is retroactive back until 10/1. Is this permissible.....I don't think it is. If the eleciton is made after 30 days of hire, the effective date of the plan would be the day the employee signed the document...right? Can somone provide some insight or point me to a document that supports this.

Thanks in advance.