A plan makes its 2009 Profit Sharing contribution in August 0f 2010. For purposes of the 415 test, is the 2009 Contribution counted in the 2010 testing? If so, then the 2010 contribution which will be made in 2011 would it be counted in 2011 415 Testing. The contribution is based on current year compensation, just not paid until the following year.

I'm sure I should know this, but I don't and I am also not sure how to set it up in Relius to test unless I just don't post the contribution Until the year it is actually being made.

The Form 5500 EZ for 2009 and 2010 do not appear to have any way of indicating that the plan is a 412(e)(3). How would they know that the plan is exempt from providing the financial information, etc?

I can see if you filed a form in 2008 or earlier, that would have been indicated on the form. But a new plan as of 2009 and forward has no way to notify them. Just want to avoid a letter from the IRS about it.

Thanks

Client has 403(b) plan. Plan doc says defintion of comp includes deferrals. Payroll company deducted cafeteria plan deductions and then calcuated 401k deferrals on that compensation (comp less cafeteria plan deductions).

To correct, employer needs calculate difference and make up deferrals plus lost earnings. And correct match as well. Right?

Thanks!

Posted on the IRS website as of 6/11.

Hi,

I was solo participant in my corp's Solo 401K Plan. The assets were less than 100k so I never filled in 5500 forms.

In 2009 I dissolved the corporation and in August of 2010 rolled over 401k assets to IRA. Since the form 5500ez was not available at that time, I foolishly forgot to file FINAL 5500EZ FORM

Question:

1. Technically speaking, how will IRS or Labor Department will even know that I had to file 5500 (final) form?

2. Could I just file for 2010 full year (rather than short year), therefore avoiding the penalty? is there any way the IRS would know when my plan was terminated?

Please advise.

Hello,

I was wondering if someone may be able to point me in the right direction. I have a plan that pays their employer matching contribuiton on a per payroll basis. They are now asking if they can amend their plan document during the plan year with regards to their employer match. What they want to do is add a true up provision to the employer matching contributions. Am I correct that if they were SH, then they could not do this as they would lose the SH "protection" for nondiscrim testing. But, since this is not a SH plan and this benefits all EE's, does the plan have this option? Any help would be greatly appreciated. Thanks

A client's welfare benefit plan is being audited by the DOL. The auditor has provided us a list of items she wants to review. In a couple of places it says she wants a list or log of items distributed. For example, she wants a sample Certificate of Creditable Coverage and a copy of the Women's Health Cancer Notice and a list or log of all Certificates and Notices sent out since January 1, 2008. The carrier sent them out but did not keep a list or log. The carrier says there is no statute or regulation that requires them to keep a list or log. All I know is my client is the one being audited and that we will have nothing to show the auditor. Has anyone else run into this and how did it sit with the DOL?

If I am making a corrective amendment for 401(a)(4) within the 9 1/2 month timeframe, must I file with the Service under VCP? It looks like EPCRS is calling this a demographic error, that requires a filing. Or does that only apply if I am past the 9 1/2 month window? Thanks!

Does anyone have the 2010 Form 5500 planbooks published from Sungard yet?

This client is a fiscal year plan that ended 8/31/2010, so this is their 1st EFAST2 filing.

They are my only large plan, so I have not filed any 5500s with an attachment on EFAST2 as of yet. And yes, it is due on Wed 6/15....CPA just sent me the final Sch H and a draft of the financial stmt w/IQPA. They are waiting for the client to sign off on it. Note the draft they sent to me is not signed by the CPA (she usually signs her company name on the Independent Auditor's Report page). When this was sent in paper form, both the auditor's report page and the financial statements were bound up together. The draft copy that was sent over this am was the same - both pieces together is the same PDF file.

Is this ok?

What is the attachment supposed to be called - "FinancialStatements?"

Thanks for your help! I need to publish this on Monday for the 2 trustees to sign so I can transmit it by Wednesday!

Can a company grant phantom "units" which basically function the same as cash-settled SARs granted with a FMV exercise price come within the exemption to 409A or must they be true SARs?

For the brother-sister controlled group test, a "common owner" includes a trust. But beneficiaries' interests in the trust (if 5% or more) have to be attributed and treated as the individuals' ownership. Does this mean you would remove all of the attributed ownership from the trust's direct ownership to avoid double-counting? I think this would really only have an impact if an individual had ownership in one company by virtue of attribution from a trust, and also direct ownership in another company, creating common ownership for him/her in both (even though the trust itself isn't a common owner).

This could have the strange result of both the trust (as its own entity) and individuals who are owners by attribution from the trust being in the "5 common owner" determination. Then you would have to remove duplicate ownership from the total and identical ownership counts.

Similarly, if a corporation is an owner of one or more of the companies being tested, the individuals who own 5% or more of that corporation would then be treated as direct owners of the companies it owns.

Does this seem correct?

Thanks.

My wife enrolled to HDHP and opened HSA account starting from 01/01/2011 and can contribute up to $6150 during the year of 2011. I also included to this plan. We are both 55+

My company's enrollment starting from July 1, 2011 t0 June 30, 2012.

- Can I enroll to my company's Health plan? We have a PPO, Dental, Vision. I want to enroll as Employee Only, payment is much less, and I'm planning some dental work (implants, crowns, ...) during this year.

- Can I participate FSA?

If YES:

- How much I can contribute? (Company has a limit $5000)

- Can I claim not covered by insurances rest of Dental payment for implants, crowns, ...?

Thanks in advance

Has anyone seen any authority on whether a plan administrator may require distributions to be made via direct deposit? The anti-alienation regs (sec. 1.401(a)-13) permit direct deposits, but do not specify whether a direct deposit must be initiated by the participant. Also, the protected benefit regs (sec. 1.411(d)-4, Q.1) state that "administrative procedures for distributing benefits" are not protected benefits. Any thoughts on the permissibility of requiring that distributions be made via direct deposit? I am not convinced this is a state law wage issue, and in any event the plan sponsor already requires employees to receive wage payments via direct deposit, so the employer seems to feel there is no problem with state law, at least as regards the wages.

Thank you.

I have been asked to complete a Form 5500 for both a Profit Sharing Plan for a Collectively Bargained Group that has a total of 53 participants at the beginning of the year and 54 participants at the end and a 401(k) Plan that has 14 Participants (BOY & EOY). Both filings are for the same company. In 2009, the firm that completed the filings for this company completed a regular Form 5500 with Schedule's A & I.

Is there something I am missing or would they have been eligible to file as a small plan in 2009? Since they filed a regular 5500 in 2009, do I have to stick with the Form 5500 and the schedules.

Thanks

Dr. A is an Affiliated Service Group with Co. B. Dr. A. has a 401k safe harbor plan. Co. B does not have a retirement plan. I aggregated the two groups for 410b testing. The test did not pass. What happens at this point? How can an employee from Co. B be brought into the plan to pass testing when that company has not adopted the plan? All of the employees with Dr. A are benefiting so there isn't anyone to include from his group.

I have a PS plan that has an age weighted formula, the document says that you have to allocate top heavy minimums ONLY to non-keys. Does this mean that a client who only wants to allocate 3% PS to cover TH, he could not just do a straight 3% across the board? Either he would have to allocate 3% to non-keys only and keys would receive 0%, or would he have to allocate more than 3% so that the keys could also get the TH min? No way to allocate 3% TH to ALL participants?

How is the best way to refund health deductions from a defined benefit plan? There are many opinions discussed but none seem viable. What do you do if you have to refund a health deduction? Refund from the trust, modify future payments, what?

Ok, so I have a print out from Relius that has the different Transaction types, the Transaction Code, SubCode and Expected Sign (+, -, None) to use when creating a transaction import file... now I just need to figure out how to take that and get Relius to do what I want.

Can someone tell me how to add a Transcation SubCode to my transaction import file? I can't find it as a choice in the import/export setup area.

So for example. I have a participant that received a distribution. So they have a Di Transaction. I want to change some of the distributions to show that they are hardship distributions (subcode 1) for example.

I want to add this to my complete transaction import that includes my gains, contributions, distributions, etc. Is this possible?

We were discussing an EOY Cash Balance Valuation today. We use the 30 yr treasury for the ICR (November). For the actual interest credit rate that get the EOY Balance we use the rate preceeding the plan year. We are now in a debate on whether we should use that same rate for projecting balances out for the FT and NC or should we use the next novembers rate.

There are good arguement both ways, I guess I'd just like to get other's opinion.