Hi I am quite new to administering 412(i) plans and have only bookish knowledge about this and I have an issue.The plan was designed at the participants age of 58 and he was supposed to make only 7 payments(age 65) which was fulfilled in the year 2009.but he has gone ahead and made contributions for the year 2010 and 2011 even before consulting (extra 2 payments) and the amount in question being $220,000 is there any recourse to this and save him from taxation he is nearing 68 now..Requesting an answer ASAP

My employer has had a SEP plan for about 25 years and I've recently discovered that about 20 of our employees are not enrolled in the SEP plan. Some say they have never heard of it, others don't want it and many just claim they don't understand it and that is why they have never enrolled. Regardless of the reason, we have about 20 current employees who are not enrolled.

1. How do others get employees enrolled?

2. What do we do about employees who no longer work for us but were eligible to participate and didn't?

3. What are we liable for and how do we correct this problem?

My understanding is that everyone must participate and that we must go back and fund the missing money plus interest...but I could be WAY off here.

Any advice and suggestions are welcome, as this is a newer role for me.

Thanks!

Plan allows for installments for someone who retires or terminates after age 55. Suppose someone 55 elects installments and then two years later is rehired. Does your plan stop the installments? Do you have a process for this with the recordkeeper? Does your plan allow the installments to continue for the pre-termination money and set up a new account for the rehire deferrals?

just wondering if there is any IRS guidance on what might constitute a significant cost increase such that it is a permitted election change... The regs are silent, but I wasn't sure whether there was a PLR or a Rev. Rul, etc... 10% okay? Need 30%? Just curious....

Thanks

I have a plan with only hces (majority owners)... the plan is underfunded.... can Hce A waive part of his benefit, Hce B waive part of his benefit, and Hce receive an increase in his benefit? They want this to happen so each will have the same pvab at the time of distribution. My initial thought is no.

Client has a Section 125 plan document that covers both "premium conversion" for health and dental insurances, and medical and dependent care FSAs. While there is only one document, the dollars elected for premium conversion are unrelated to and not in any way dependent upon the dollars elected for either FSA, and vice versa. We are in the middle of the first plan year (calendar year), and realize that if the plan is tested for discrimination on a combined basis, the plan will fail the nondiscrimination tests. However, if the premium conversion component can be viewed as a separate POP, that component passes via the safe harbor. Under the proposed regulations, can we treat the premium conversion component as a separate POP which automatically passes? If not, can we amend the plan retroactively mid-year to break it up into two plans: a POP and a plan for FSAs?

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PPA states that in a plan where the participant has the right to direct the investment of the assets of their account that once each calendar quarter a statement must be furnished. Is it a regulatory requirement to include participants' vested balance on quarterly statements? If a client can only confirm vesting on an annual basis and the vested balance is only displayed on the 4th quarter statement, is this in compliance with the regulatory requirement?

The US Supreme Court issued an opinion today in Cigna v Amara - http://www.supremecourt.gov/opinions/10pdf/09-804.pdf.

The opinion is 34 pages long and discusses Cigna's change from a defined benefit plan to a cash balance plan. The Supreme Ct also discusses SPDs.

I'd like to work at home processing 5500s. Is anyone aware of a company I could partner with to do this? Thanks!!

My plan has immediate eligibility for pretax and 1000 hours for match. I have that have less than a year of service and of course one of them contributes. I am trying to figure out how to run my test. Our initial thought was anyone who is match eligible be tested in the "Main" group...but this is easier said than done...So here our my options I think?

1) Based on 12 mos/semi entry: 3 HCEs-only one of which is match elgible. Run ADP/ACP test which both pass. Run coverage in the same manner

2) Treat the plan as those who are match eligible vs those who are not match eligible. Run coverage the same way.

Please let me know your thoughts!

Thank you in advance!!

This is a general question. PPA states that in a plan where the participant has the right to direct the investment of the assets of their account that once each calendar quarter a statement must be furnished. Is it a regulatory requirement to include participants' vested balance on quarterly statements? If a client can only confirm vesting on an annual basis and the vested balance is only displayed on the 4th quarter statement, is this in compliance with the regulatory requirement?

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I have the following originals:

1988 5500 form and instructions;

1989 5500 form and instructions;

1990 5500 form and instructions;

1991 5500 form and instructions;

1992 5500 form and instructions;

1993 5500 form and instructions;

1994 5500 instructions;

If you want any/all, please e-mail me.

IRA holds ~$100,000 spread over four publicly traded oil & gas pipeline MLPs generating ~$6,000 dividend income. 2009 990-T and 2010 8868 declared only the UBIT reported on K-1s. Owner now suspects that is probably not correct and wishes to retain adviser who understands required reporting so that amended returns can be filed if that is what is required. Is anyone knowledgeable with this issue available for this assignment?

IRA beneficiary already received her 2011 RMD 30 days ago. Now she would like to rollover a part of that RMD back to her IRA within the 60 day limit, and distribute that amount as a "qualified charitable distribution". I don't see a problem with this. For reporting purposes we would report:

1. original RMD distribution + additional qualified charitable distribution on 1099-R

2. part of RMD distribution in an amount equal to QCD on 5498 as rollover

She would still be meeting her RMD since the QCD and the rollover amount net zero.

Any problems with this?

We just received a fax from a government agency today -- the deadline to respond is May 10, 2011.

Great Scott! Now I just need a nuclear reaction to generate the 1.21 gigawatts of electricity.... Too bad one of the adminstrators is already out with the DeLorean. Maybe they think plutonium is available in every corner drugstore . . .

Marty!

Can a QACA safe harbor match be applied to deferrals over 6%, assuming the statutory requirements are met? In other words, can I have a QACA safe harbor match that provides 100% on the first 1%, plus 50% on the next 9%?

Given: RMD's apply to Roth monies inside qualified plans, but not to Roth IRA's.

Obviously, RMD rules are in place to ensure that taxes are ultimately paid on tax-deferred monies.

But is there a rule that states that when an RMD is taken, that the participant cannot choose to have the withdrawal made from his Roth account?

I have searched everywhere and asked everyone I can think of. I can only conclude that there is no answer and that the IRS didn't think through these rules very well when they decided to require the inclusion of Roth monies in the calculation of the RMD for qualified plans.

In my situation, the plan does not allow for in-service withdrawals, yet anyway. The business owner converted about $500K of pre-tax monies to Roth monies in 2010 (had a huge NOL in 2010 so no taxes were due). His RMD is about $40K. I would like to be able to give him the choice of taking $40K in income in 2011, OR taking the $40K from his after-tax Roth account, thus only having to pay taxes on the earnings portion of the Roth.

Any input would be much appreciated. I cannot find the answer in Sal's Book although I've been told that it says the participant can choose the money source.