Fund mapping on a plan resulted in over 1500 Confirmations being generated. During the project, communcations were sent to Participant's advising them of the upcoming change. The client does not want these confirmations to be released as long as there are no legal or compliance issues that could arise. They're concern is around the the volume of Participant activity to their Service center as a result of releasing these confirmations.

Question:

Is there any legal or compliance issues with not generating confirmations for this particular transation? Please cite the Code or Regulations if this is prohibited. Thanks

National Doughnut Day: Friday is the day America celebrates the doughnut. (First Friday in June)

National Doughnut Day originated with the The Salvation Army in Chicago in 1938 as a salute to the women who served doughnuts to U.S. soldiers during World War I.

The Salvation Army's "doughnet lassies" continued that service during World War II and cemented the doughnut's place in the American diet. If you want to try to duplicate the doughnut lassies' work in your kitchen today, The Salvation Army is providing their original recipe.

If you're not in the mood to celebrate National Doughnut Day in the kitchen, try heading down to your local Krispy Kreme or Dunkin Donuts.

Krispy Kreme is offering a free doughnut to all customers at participating locations.

At participating Dunkin Donuts, customers will get a free doughnut with the purchase of a beverage.

I am looking at an employer who maintained both an MP and a PS plan, effective back in the early 1980's. The last plan document that they have signed has an IRS advisory letter from 1985 (Pre-TRA!). We want to update the documents and then go through VCP. Do you see any problem using VCP given how long its been since their last document?

Also, can we make the jump from these 1985 document to current in 1 step (using up-to-date EGTRRA documents) or will we have to have an updated TRA document, then an updated GUST document, and then finally the EGTRRA document?

Thanks

Non-profit entity maintains a 403(b) plan that is exempt from ERISA pursuant to the DOL safe harbor. If the entity authorized a single in-service withdrawal, but committed no other acts that would violate the DOL safe harbor, has it still lost its reliance on the DOL safe harbor due to that single event?

A 401(k) plan is sponsored by a partnership. The partnership is comprised of three seperate corportations. Together everyone is part of an affiliated service group. Only two of the three corporations currently sponsor the plan as adopting employers. Can the 3rd corporation adopt the plan in the middle of the year and make 401(k) deferrals and receive the safe harbor nonelective contribution? The only employee of the 3rd corporation is the owner of that corporation.

We always do a notice, although I see that is doesn't seem to be required for non-pension plans. I am thinking that if a 401(k) plan has safe harbor, then it would need a notice RE: stopping the safe harbor.

Agree?

I'm drawing a blank here on how to grandfather a particular accrued benefit on a takeover. The actual formula is pretty complicated (and poorly written), so these are just hypothetical numbers, but they should illustrate the point:

Initial formula 3% of high 3 times years of service

The formula was amended after this participant had 10 years of service (30% accrual) to 2% of high 3 times years of service. There is no fresh start.

Participant terminates at 14 total years of service (28% accrual under new formula).

28% of average pay at the participant's termination exceeds 30% of the participant's average pay at the amendment date.

What is the ultimate benefit?

a) 28% of high 3 at termination or

b) 30% of high 3 at termination

In other words, was the actual accrued benefit grandfathered or was the accrual percentage grandfathered (and applies to new high 3 prospectively)?

We are working on a QDRO and the alternate payee is demanding to have access to the participant account so she is able to "monitor" the value. I think her purpose for this is to try and time when she submits her paperwork for the distribution.

Does an alternate payee have such rights?

Thanks for your help!

Under the section entitled Crediting of Hours of Service the 401(k) plan counts each hour for which he is paid due to vacation,......or leave of absence. So, am I right in thinking that there will be no break-in-service and the executive will simply pick up where he left off when he returns to the office. I suppose he can continue to defer into the plan based on his continued pay, but he would not be entitled to a match or profit sharing contribution while he's away, right? I'm getting hung up on the break-in-service definition that says "no Employee shall incur a "break in service" solely by reason of temporary absence from work not exceeding 12 months...." This leave does exceed 12 months. Is it the fact that he's being paid during the leave make the difference?

I have two plans that are a controlled group - however the plans have different plan year ends (one is 5/31 and the other is 6/30). How are these plans handled for testing? Thanks.

Should individuals in the payroll/account payable department which have information regarding necessary payroll deductions for medical/health fsa coverage be "behind the firewall"? Or would the functions these individuals are performing not even implicate HIPAA?

Drinks are on me. Received an email from IRS that they are refunding the $64.25 PTIN application fee.

I know the IRS is looking at more DB plans that choose NOT to file for determination upon termination. Does anyone have a link that gives reasons why it is a good idea for a sponsor to file for determination?

Thanks

Can an Estate that is a beneficiary of a 401(k) plan make a nonspouse rollover to an IRA?

Can an estate open an IRA? I'm specifically trying to figure out if an Estate that is a beneficiary of a 401(k) plan can make a nonspouse rollover to an IRA.

We have a number of new clients who have documents from another Document provider. We are asking that the clients change their document to our doucment provider.

I thought a read a discussion recently (but cannot find) that you should not restate a safe harbor plan during that year as it affects the safe harbor status of the plan.

Does anyone recall reading this thread?

The participant took his pension in a lump sum and rolled it over into IRA. Divorced 9 years later. Non-marital portion of pension was first 11 years of employment. Married 33 years at time of filing. Participant wants to QDRO IRA according to original plan. (pension had a 5&5). Participant also began taking withdrawals from IRA 3 years ago. at age 59 1/2.[ Can the IRA be QDRO'd after 9 years? topic="QDRO"

I have an existing 401(k) plan with a calendar plan year that wants to add a SH provision mid-year. I believe that this is may be possible if the plan sponsor adopts a "wait and see" SH QNEC provision and provides the appropriate notices. Also the plan must use current year method and execute the appropriate plan amendments. Is my understanding correct or not correct?

An individual is employed by two companies.

One company has a SEP and the other has a 401k plan.

She participates in both plans.

My impression is that the total deferral is still 16,500 for 2011 and thus if she defers 8,000 in SEP she can defer up to 8,500 to 401k for a total of 16,500.

Is that correct? Real matter is can she defer to both plans? She earns enough compensation for such deferrals.

thanks

An ee was terminated at the end of April and offered COBRA. The father contacted the employer yesterday and said that after being hospitalized in the ICU for the past few weeks, the ee died yesterday. And in going through the paperwork at his son's house, the father has found the COBRA notice. Can the father elect COBRA on behalf of his son and make the necessary premium payments? It's still within the election period. Thoughts?