I have a qualification failure (failure to adopt discretionary amendment) that qualifies for an Appendix F streamlined submission. Please correct me if I'm wrong, but it appears that I submit Appendix F, the user fee and any other enclosures I identify in the Appendix. That means no plan document is necessary, no complete description of the failure, no Appendix C checklist etc... I think I'm reading it correctly, and it makes sense to only include what I identified above since this is supposed to be "streamlined". Please let me know what you all think. Thank you!

Is Formo 8905 needed for a VS restated 401(k) /PSP plan (for determination letter).

Thanks for all responses.

Hi all,

I have been trying to research the answer to this question for some time, but have run into a wall it seems. Here's the scenario:

Plan has W-2 compensation as definition of comp

Company offers sick/disability insurance

Employees take leave (maternity, etc.) and receive benefits from insurance

Insurer/employee(s) have requested that the company report the benefits and tax withholdings so they can include them on W-2 for the employee

Insurer pays the employee for the benefits, the company has no control over payments

So the questions are, since the benefits are included on the W-2, and W-2 comp is the definition in the plan, how do the participants defer on this kind of compensation? Is this not ineligible compensation to defer on since the company can't withhold deferrals?

If it is included as compensation, this will affect the deferral %, which could potentially affect the matching contribution.

I'd love you all's responses. Thanks in advance for the help. I'm a short time reader on the board, and this is my first post.

I remember reading something once that provided guidelines of the employer's rights during a DOL or IRS audit. It specifically addressed who can be present during the audit, it is different for IRS than for DOL. Does anyone have a good resource for this information? thanks!

Client failed the ACP Test in 2009. Instructions were sent to make a corrective distribution of the money. Now it is 2011 and and the client has provided investment statements and the correction was not made. What are the consequences?

Thanks.

Quick question. I realize that the annual compensation limit is $245,000 and that the deferral limit is $16,500 plus another $5,500 for those who are catchup eligible. For an annual true up, an employee making $300,000 would who maxed out at $16,500 would have the match calculated on the basis of 16500/245000=6.73%. This 6.73% would be used with the matching formula to calculate the proper match.

My question is if this person was catchup eligible and deferred the total $22,000, would their match be calculated on the basis of 22000/245000=8.98% or is $16,500 a limit for calculating matches much like the $245,000 limit??

Thanks

Anyone use FT William for their plan admin software? I would appreciate any feedback.

Where there more than one top 25 HCE requests a lump sum, must the determination of 110% (or 1%) take into account the effect of the payment to the other HCE? Or is it permissible to evaluate both HCEs independently and disregard a lump sum distribution to another top 25 HCE?

A Cycle E filer is preparing a determination letter application for Jan. 31, 2011. In the course of preparing the application, it is discovered that plan was not timely amended for some interim amendments. The restated plan document will be amended to reflect the changes retroactive to their respective effective dates. Do you have to file a separate VCP submission to ensure yourself of the modest $375 compliance fee, or can you skip the separate VCP filing if you specifically identify the interim amendment non-amender failures in your determination letter application (i.e., in the transmittal letter)? Stated differently, if you don't undertake a separate VCP submission, are you at risk for Audit Cap treatment and a significantly greater compliance fee even though you have highlighted the non-amender failures in your determination letter application?

I know we needed to test the ACP on 403b plans, but do we now need to test for ADP

As I understand it, if someone has a missed opportunity to make a deferral, the Employer should make a QNEC of 50% of the missed deferral. Also, the full match should be made.

What does that mean?

Match formula is 50% of deferrals. If the missed deferral is $1,000, the ER will make a QNEC of $500. How much is the match? $500, which is 50% of the missed $1,000? Or just $250?

Sole Prop's owner formed an LLC and owns 100%. When the Sole Prop dissovles this year, all employees will work for the LLC. What happens to the plan?

We are looking for a way to check for the death of pensioners to avoid issuing pension checks to participants who have died and whose families had not notified the Fund of same.

Anyone have any suggestions for companies or services that we could utilize.

Thanks for any help!

Plan of 79 participants non-leveraged, individually designed ESOP has to be submitted prior to 1/31/11.

I have the following items ready for submission:

1) Form 5300 (App. for Determination)

2) Form 5309 (App. for Determination of ESOP)

3) Form 8821 (Tax Info Authorization)

4) Form 8717 (User Fee)

5) User fee to Treasury for $1000

6) Notice to Interested Parties

7) Plan doc. restated effective 1/1/02 and subsequent amendments and last determination letter

I feel I have everything I need. Does anyone see a glaring omission(s) ?

Thanks

I have an unforeseeable emergency that is due to my dad's medical expenses. He had to have open heart surgery last week. In order to get a distribution from my 457 plan, do the medical expenses have to be for me, my wife, or my child (a dependent)? The plan refers me to the 457 definition of an unforeseeable emergency.

What is consequence if employer switches to an off calendar year fiscal year, but maintains calendar year plan? I see deduction timeframe will change since employer tax return deadline is different and 415 deadline is changed.

Any other issues?

Thanks!!

We are a TPA and have been advised by our custodian who handles withholding and Form 1099-R reporting that an error in 2010 withholding can no longer be corrected since it's now 2011. I always thought this could be done by filing a Form 843, Claim for Refund and Request for Abatement and Form 941c, Supporting Statement to Correct Information. Then the excess 2010 withholding would be "refunded" in the form of a credit to the payor's account. But, maybe this is ancient history? The custodian says that at this time their Form 945 filing must match their total Form 1099-R filings and that "adjustments" are not allowed. Now I know the IRS can make rules that don't make sense but is that the case here? Mistakes happen and it doesn't seem right we cannot make the appropropriate corrections for the participant. Any ideas? Thanks in advance for your help.

A client of ours received a request to do a telephone survey with Abt SRBI on behalf of the IRS. Their plan had been audited and closed last year (no issues).

I have not heard about any outsourcing of survey work by the IRS to other firms - does this seem legitimate?

Thank you all for your help. I've decided to drink a vial of soldering acid rather than continue to deal with meaningless federal rules and regulations. The camel's back straw was when the IRS announced its new user fees. From ASPPA:

CAUTION: Beginning February 1, 2011, the IRS requires that a Courier 10 point font only is to be used when preparing an application[e.g., 5300].

Wonder what happens if you script, bold it, or type in all upper case?

We've had a long running argument in my firm in regards to the following:

Have a cross-tested plan, 8 groups, typical plain Jane crosstested. Allocations chosen per group and allocated pro-rata within the group

One year, a young person leaves and that totally changes the results of the cross-testing, so some in our office say, just run the allocation integrated, it can be tested on a contribution basis and as long as it passes which of course it would, you're fine.

Here's my argument and if someone can give me proof, I'd be forever gratefu or maybe I'm wrongl. Doesn't that integration level have to be in the adoption agreement, so wouldn't we have to have a plan amendment stating that the allocation is now being performed on an integrated basis??