Does anyone know where is can get 401k averages by industry? I'd like to help my clients improve their plans by showing them a comparison of their plan to it's industry averages. Specifically, I'd like industry averages on participantion, deferral, and matching rates. Any ideas?

DB plan has been frozen since 2002 - and the plan sponsor is now filing for bankruptcy. Does anyone know if the employer is required to give any sort of Notice to plan participants?

A 401k plan failed compensation ratio testing and the general test due to the exclusion of overtime. This was for plan ending 6/23/2009. Plan is now correcting by preparing retroactive amendment to add back the overtime and provide the make-up nonelective contributions. What type of amendment is this? Is it a 401(a)(4)-11g amendment that must be done within 9 1/2 months? Does the group that is receiving the make-up contributions have to be named, with dollar amount of contribution stated, or can the plan's definition of comp just be retroactively amended with a statement that missed nonelective contributions will be made to all NHCE's for example?

Thanks!

Plan provides that once an employee becomes a participant there are no restrictions on receiving an allocation of the employer contribution. No hours requirement, no last day rule. Calendar year plan, participant terminated 2/15/10 and worked less than 500 hours, but receives an allocation. Is this participant excludable from 410(b) and 401(a)(4) testing?? Thanks.

Where are people planning on getting their new engagement letters for complying with the new DOL Fee Dissclosure regs? I know some of you work for big Company's and your legal departments are probably writing their own, but for the whee little TPA's out there like me, what are you doing? Is anyone expecting a free version from say, John Hancock, or perhaps provided by Corbel?

I could ask them directly, but I'll bet someone out there knows!

I have a doctor and his wife, both 45 years old.

2 employees ages 30 and 53.

The doctor's pay credit is 50% of comp.

The spouse is not getting pay credit.

The 2 employee are getting 2% pay credit.

The plan clearly fails the 401(a)(4) test. Correct?

And also fail the ABP test as well. Right?

There is no way this plan design passes the nondiscrimination testing. Right?

Thanks for all responses.

Company has a money purchase plan. They received several favorable determination letters on an individually designed plan. There is no mention of a trustee in the plan and when we went to restate (placing it on a volume submitter) and inquired as to the trustee, the company said they were told by their attorney that they didn't need a trustee. Is there ever a time when you can avoid listing a named trustee in a money purchase plan? I've never heard of this and my suggestion was to assign a trustee as soon as possible yesterday.

More than a few insurance companies provide as a part of the package of investments and services for a retirement plan a "Fiduciary Warranty" that a plan's investment alternatives (within the provider's platform) will meet some specified ERISA conditions, and the insurer will indemnify the plan against its losses that resulted because, and bear the attorneys' fees of defending against a claim that, the plan's investment alternatives did not meet the specified conditions.

The salespeople continue to tout these indemnities as a real value.

Here's my question for practitioners: has any employer tendered a claim under one of these Fiduciary Warranty promises?

If so, was it a good or bad experience for the employer? Did the insurer promptly start paying the employer's attorneys' fees? Did the insurer allow the employer to choose the law firm; or did the insurer try to push the employer to the insurer's preferred law firms?

Or is a "Fiduciary Warranty" all sizzle and no steak?

Inquiring minds have asked me; is it possible to provide a resolution from year to year electing to be a Safe Harbor (match contribution) plan vs. amending the plan each year? We recommend to our clients based on demographics and costs on a year to year basis whether being a Safe Harbor Plan is beneficial. For example; a plan may be a safe harbor for 2010, but not for 2011 and then again for 2012.

My opinion is the Plan would still specify it is a Safe Harbor and doing otherwise would create an operational defect.

Please let me know your opinion.

Thank you!

I received an odd question the other day: an employer was advised that PBGC has issued a ruling requiring prospective withdrawal liability calculations to be made assuming that all employers are withdrawing at once, like a complete termination. The only fact I am told is that the plan has had 50% of employers withdraw in past 7 years. It is apparently a new PBGC ruling.

I have no idea...any thoughts would be appreciate???

Plan documents not withstanding, can a beneficiary roll a distribution into a participant's 401(k) plan?

For example:

An employer maintains a db and a dc plan.

Joe is a participant in both plans.

Joe dies and Alice is the sole beneficiary of both plans.

Can Alice roll Joe's db benefit into Joe's dc plan?

What discount rate ranges are you seeing? Are you seeing difference between those used for publicly trade companies and those used for privately held industry?

a SARSEP fails adp test, are refunds to HCE's determined using same method as a 401(k)? First step, you reduce each HCE ADP until it passes the 1.25 spread of NHCE starting with HCE with the highest ADP, then determine excess contribution then allocate excess first to the HCE with the highest deferral amount and reduce down accordingly?

Hi, I have a Hardship Withdrawal request for a dependent who just finished the semester and has a past due balance. Does this qualify? Or must it be for a current or future semesters? The IRS reasons state:

Payments of tuition and related educational fees, as well as room and board expenses, for up to the next twelve (12) months of post-secondary education for the Participant, Participant's spouse, child, or dependent (as defined in Section 152 of the Code).

Thanks!

Anyone know where I can find the covered compensation for 2011?

In case readers did not see the BenefitsLink Buzz posting from December 13 about Janell Grenier:

http://www.legacy.com/obituaries/oklahoman...p;pid=146247608

As of this writing, Janell’s excellent blog and website are still online:

http://www.benefitscounsel.com/

How to submit withholding amts from a ps plan is a new concept for me, as i have just determined one of my plans' new investment company does not submit the withholding amounts. Apparently they are still sitting in the trust and it is for me the consultant to determine. Since the total amount is under $2500, looks like they can file form 945 and 945-V and mail in a check to 'United States Treasury'. Can i just be sure, there is nothing I need to do by this Friday, year end 12/31/10?

Individual purchases bond via individual's IRA in company in which individual is owner via family attribution and of which individual is an employee. The bond was issued by an unrelated entity.

Issue #1: Assuming the individual's attributed ownership in the company is less than 50%, the company would not appear to be a disqualified person under 4975(e)(2)(G). But would it be a disqualified person under 4975(e)(2)©, which states a disqualified person is an employer any of whose employees are covered by the plan (in this case, the IRA)? Or does the issuance of the bond by an unrelated entity render the transaction indirect enough that it is not a prohibited transaction? Or is the company not a disqualified person under 4975(e)(2)© at all if the company was not involved with the establishment of the IRA?

Issue #2: Is the individual also a disqualified person under 4975(e)(2)(A), which states a fiduciary is a disqualified person, since the individual directed the investment of the IRA?

Issue #3: Assuming yes to Issue #2, is there any way to cure the prohibited transaction and avoid the application of 408(e)(2), which provides the IRA is no longer an IRA as of the first day of the taxable year in which the prohibited transaction occurs, and deems the assets of the IRA to be distributed to the IRA owner? Can the transaction be reversed or unwound in some way? Or is the IRA owner stuck with the resulting taxable deemed distribution of the IRA?

Section 401(d) states the contributions on behalf of any owner-employee may be made only with respect to the earned income of such owner-employee which is derived from the trade or business with respect to which such plan is established. Therefore, if an individual is a partner in a partnership, and also has a Schedule C business, the contributions for his Schedule C business cannot include the self-employment income of the partnership if the partnership has not established a plan. Question: Can an individual in such situation, make a full $49,000 contribution for both the Schedule C business, and his allocable share of partnership income since each is considered a separate employer? The businesses are not part of a controlled group or affiliated service group. The individual has self-employment income from each business in excess of $245,000.

lets say I had an individually designed DB plan and they want to restate to a prototype. Would they be able to do it by the deadline coming up for prototype db plans or would they have had to stick to the 5 year cycle for individually designed plans? They were a cycle B and they did not restate by 1/31/2008.