Good morning,

I was trying to do some research and look for court cases where a Plan Administrator was penalized because they were not running their cafeteria plan correctly (i.e. according to the written plan document and regualtions). Does anyone know of any court cases that would address this? I know that S125 audits are few and far between. Any assistance would be greatly appreciated.

Once a multiemployer plan enters critical status does 305(f)(2) of ERISA prohibit it from making actuarial adjustments to those participants who retire past normal retirement age?

If not, can the late retirement increase be treated as an adjustable benefit?

The title says it all. I am 24 and just began a roth IRA with Schwab. I would like to submit funds this week but I just don't really know how to get started. I like to manage these types of things on my own so I kind of just like to learn a little bit of what is recommended for me and then go from there. I am young and obviously don't want to be extremely aggressive with what I invest at this point. Schwab told me that they do have consultants that they can set you up with over the phone to kind of get me started and I was wondering if this is a good idea to listen to their advice or not.

Basically my question is, what would be the best types of options for me just starting out? I have heard that mutual funds are something to look into and to diversify your investments. Can someone here point me in the right direction (I'm not necessarily looking for anything specific, just ideas of what the heck I should do) as far as how to invest? Is this consultation with Schwab a good idea? If you could please talk to me in the most laymen terms possible it is appreciated, I'm not dumb, just new at this I guess. Thankyou all very much for any advice you can give me.

Same situation as this fine article:

http://benefitslink.com/modperl/qa.cgi?db=...esign&id=11

However, the "spin off company" is a 501©3. Can they co-sponsor the 401K or the controlling organization?

This isn't my area of expertise, so pardon if this is a stupid question.

PA company.

Company XYZ has 100 employees. 3 are leased to a non-profit XYZ community programs (XYZCP). XYZCP has its own board and is a 501c3. Company XYZ is a for profit with over 100 owners.

Currently, the 3 leased employees are under all the benefits plans of company XYZ, NOT XYZCP.

How should we proceed? I've done a bit of research, which I'm 95% confident of. But I wanted some other opinions to check myself.

I don't know too much about KEYSOP's.

Can anyone expound upon what they are and are they subject to 409A like a nonqulaified plan?

Employee made deferrals in 2010 before being eligible to do so, but the mistake wasn't discovered until 2011. The deferrals and match will be moved to suspense/forfeiture account. Employee will be made whole through payroll outside of the plan, but in which year will those reimbursed dollars be taxable---2010 or 2011?

Company A has financial problems so Company B comes in and purchases A and keeps the company name. After the purchase B terminates some employees and then rehires them back a few days later. Employees still have money in A's plan. Can A's plan terminate or would it be considered a takeover?

Is there other questions/information we should find out?

Thanks!

Plan provides QNEC to Ee A of 2% to pass the ADP Test. The GWM ius 5%

1) When I run (a)(4) WITH QNEC's I find that I need to give A a 3% contribution to get him the GWM

2) When I run (a)(4) without QNEC's, A is no longer benefitting in the nonelective plan, and therefore, he does not need the gateway minimum.

3) HOWEVER, once I give profit sharing to A, I cannot run cross-testing without profit sharing (because that would be ridiculous . But when I go back and run testing without QNEC's, he's not getting the GWM!!!! So now I need to give A another 2% profit sahring.

In summary, when I do QNEC's, I have to give the full THM in profit sharing.

Someone please tell me I'm overhthinking this, and it is really not as I say...

Employer terminated a solo-401(k) and did a direct rollover distribution in 2010. Also established a new PS Plan effective for the 2010 plan year. Looks to me like a "successor plan" issue. If so, which event - the distribution from the 401(k) plan or establishing the new PS plan - is actually the 401(k)(10) "violation", what are the ramifications of same - and any way to "fix"? What if no contributions are made to the new PS plan for 2010?

Almost hesitate to ask, as I am fully aware that logic and IRS regs are often mutually exclusive, but does anyone have any idea as to the original "thinking" behind the successor plan rules?

Thanks for any and all input!

I recall hearing somewhere that there was a time period in which a plan (DC) had to be paid out after the termination date. does anyone know or have a cite?

Client wants to deposit set amount now and use whatever amount that is in excess over the minimum required amount for 2011 (undetermined at this time) towards any 2012 minimum required contribution. Doable?

Assume it fits within the deductible range permitted for 2011 & 2012.

easy question for all those veteren ft william users...my 2010 5500 validation is telling me that the 'Sponsor's name is red or blank".

I can't seem to clear the error.

any ideas?

Problem solved...it didn't like the client's name the way I had it! The first 2 letters of the Company name are initials (not separated) and they went in 2009 with no problem.

FT William wanted the 2 letters separated; i.e. if the client name was A.S. Smith Company - in 2009 I used "AS Smith Company" and it went through EFAST2 fine but FT Wm wants me to put "A S Smith Company" with the space between the letters.

Who knew

OK, how about this one? Brand new DB plan (yes, there are some) effective 1/1/11. Plan is adopted on 3/1/11. Employee terminated on 2/1/11, but was otherwise eligible as of 1/1/11. Plan says if employee terminates prior to the date the plan is adopted, employee is not a Participant, even though he was employed and otherwise eligible on the plan's effective date of 1/1/11. Can do or no can do?

Association X is incorporated for the purpose of providing education to members of y field. Association X has member employers in y field. Association X provides approved apprenticeship training to the employees of its members.

Is this an ERISA plan? A MEWA? Can association avoid being considered either by running the accounting for the training programs through its general assets?

We are taking over a 401(k) plan from a payroll vendor.

The client did not file 2009 5500 until mid December. Client included a letter explaining the difficulties with the EAST2 system that was clearly supplied by the former tpa:

"This filing was delayed due to the following difficulties with the electronic filing system......"

Then listed network, error message, and other problems.

So this clearly was NOT a DFVC filing.

Now IRS sends a letter proposing a $1500 penalty for the late filing.

2 questions:

Does anybody know if there is a way to find out if DOL accepted the reasonable cause and is not going to penalize? It makes a difference as to IF there should be a DFVC filing

If the client sends a reasonable cause letter to IRS, and it is rejected, can they still get relief with DFVC

Don't you love competing agencies who barely communicate?

If a spouse of a recently deceased participant receives a check related to an RMD payment is the spouse able to deposit that check into a joint account she had with the participant, or would the trustee need to put a stop on it and adjust the acct. Is she able to cash the payment as long as she understands that it will be taxable to him?

Item 8e on the Schedule MB asks for the “difference between the minimum required contributions” with and without the amortization extension. I have a client, who took an amortization extension, however the “minimum required contribution” was zero before and after the amortization extension was recognized (due to large credit balance) and therefore the difference is also zero.

There are no instructions for this line item so we can’t really tell what the IRS intended, but since they asked for the difference in the “minimum required contribution” and not the difference in the charges to the funding standard account, I think the answer would be zero.

However, zero seems to be generating an error from EFAST when you try to submit the forms.

Has anyone else encountered this problem?

I have a substantial traditional IRA but would like all my US assets back in the UK so that my estate is more simple. I was wondering if anyone knows whether I could move this to a UK pension fund and what potential tax charges this could make me liable for. I am a UK domicile and UK tax resident and I am now in my 80's.

Any help would be greatly appreciated.

I have a 6 person plan (PS/401K); 3 owners A, B, & C. 2 children (1 of Owner A, 1 of Owner B). 1 Non-Highly Compensated Employee. 401(a)(4) General Test is failing miserably. Test will only pass when Owner C, who does not want to participate in Cross-Testing Contribution and would rather take more income, and the children of the owners are excluded from the Cross-Testing Contribution. Thus when test passes, only 2 owners and 1 employee receiving an allocation. Can I exclude these three participants from the Cross-Testing Contribution? If so, are they excluded from the entire plan, including salary reduction? All input greatly appreciated.