We have an unfortunate situation with respect to a takeover plan.

The prior TPA (now retired) was supposed to send us a number of takeover documents that the client did not keep copies of but now the owner of the TPA firm won't return anyone's calls or e-mails (we had spoken with him about six months ago and he said he was going to send us everything but he never did). We've tried sending letters certified / return receipt mail, etc. and everything has been signed for by someone in the household so we know he's aware of what's going on but he won't send us the documents we need in order to take over the plan.

The client recently had their attorney write the former TPA a demand letter but so far there has been no response.

Any thoughts on what to do in this situation?

Can anyone clarify the requirement in PPA for a DB sponsor to post the Schedule SB on an "intranet used for the purpose of communicating with employees" if it has one? There has been no guidance from DOL regarding this that we are aware of, and now have a client asking the question.

I received the following question from one of my clients.....

A participant has applied for a hardship withdrawal. She wishes to take it from her Roth account (403(b) Plan). Based on the IRS Q&A that I viewed on line, the withdrawal will be prorated between Roth contribution basis and earnings. That was not what I was expecting, given that the maximum withdrawal is limited to the participant’s career-to-date contribution total.

Please let me know if you see anything different about the basis/earning proration."

Can anyone comment on this question or provide a response?

What are the implications if a Recordkeeper does not display the vesting/vested balance, or a disclosure that they are unable to provide an accurate vested balance on the quarterly participant statements?

Let's say that the total excess asset is $100,000 and that all of it was transferred to a qualified replacement plan. I understand that 25% is exempt from the 20% excise tax. How is the other 75% reported and treated?

Any guidance would be greatly appreciated.

An employer has contributed more than the 25% deductible limit for 2010. The contribution was made in 2011, so they can use the excess toward their 2011 safe harbor liability.

My question is: Does the 25% limit apply to deductibility only? Are they allowed to contribute more than 25%, even if they don't deduct the excess?

I know it would be crazy to contribute more than you can deduct, but is it allowed? Everywhere I look just refers to the 25% limit as the maximum an employer can deduct.

thanks

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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