IF you want a 403b for the exedcutive director and 401k for the employees, I assume the 401k must have immeidate eligiblity to satisfy universal availability, correct?

We are looking at purchasing a web based client management system, but were hoping to find something with a workflow management/BPM piece along with it. Please let me know if you have any recommendations.

Yes I did complete item 4 on the original 5500 filed for this plan to show the change in EIN.

The IRS Letter request I received this week says the 5500 was not received and the letter indicates if due to a change in EIN just complete Section I of the letter which is simply company name, address, EIN filed, plan year ending filed with and fax back. But there was one other question in Section I that asks for the date filed with EBSA and Acknowledgement number. Since this form was not filed electronically, obviously it does not have such a number. So I made the mistake of calling the number on the letter - the DOL.

I was told that when there is a change in EIN, that I need to file an amended return for the prior year (2006) checking the box for a final return and showing no participants or assets at the end of the 2006 year and showing all assets transferring to the "same plan" with the new EIN. Then amend the year in question (2007) and check the box for the first filing for the plan. Both these amended returns would need to be filed electronically. Then I was told on the letter, rather then complete Section I for a change in EIN, I should complete Section II and check the box indicating the plan terminated or merged into another plan. I was informed that until I do this, I will keep receiving letters looking for forms on the old EIN, because this is the only way DOL can delete looking for a form on their system! When I later spoke to a supervisor I was told a company can't change their EIN? We have had several of these due to incorporation in another state, change from partnership to LLC, etc.?

I have several problems doing it the DOL way:

1) The year we terminate the plan we would report no assets at year end, but there was never a time without assets in the plan, and the audit report for the year would not match or have reconciling notes to the 5500

2) If we say the plan terminated or merged into the same plan under a new EIN, rather than just a sponsorship change, we may disqualify the plan by not having proper documentation to show such a merger

Not to mention this would be a lot of work!

Has anyone else had this experience?

If so please share your thoughts.

Situation is that dual status county hospital adopted a 457b top hat plan. Some kind of misunderstanding with the 501©(3) status and governmental status. So now they propose to convert the tophat plan into a governmental plan, to avoid plan termination and taxation to the executives. I am unclear on how to convert an unfunded top hat plan. I could see freezing the plan and allowing payouts as employees terminate, and adopt a new 457b governmental plan.

Does anyone have any thoughts and any other ideas?

Thanks!!

Does the definition of "employee" for purposes of IRC Secs. 105 and 106 inlcude "former employees" (i.e., retirees)? And, if so, what can I cite to for this proposition? Many thanks!

We have three SARs to mail (401k, pension, VEBA). Can we combine them into one mailing, and mail to a combined mailing list? This would mean that some would receive a SAR who are not an actual 'participant' for one or possibly two of the plans. I cannot find any documentation that says we cannot send a SAR to additional people other than participants.

Thank you for any assistance or direction you can provide.

I am working on a Cash Balance Plan with an offset Profit Sharing Plan. I understand the Profit Sharing allocation must be allocated on a uniform bases in order to satisfy the requirements, but does the "uniform" apply to both the HCE's as well as the NHCE's?

The Employer has two Owners who wish to participate in the Cash Balance Plan and are willing to contribute the Safe Harbor 7.5% Profit Sharing allocation to the NHCE's in the Profit Sharing Plan. They would like, however, not to contribute the 7.5% for the other two HCE's in the Plan. Is this possible or does this violate the "uniform" clause?

Our small DB plan just filed its Form 5500 on October 15. So is the new annual funding notice due within 30 days?

I find the news regarding this fascinating:

A large rally was scheduled for central Paris in the afternoon as demonstrators stepped up protests against a government proposal to raise the national retirement age from 60 to 62.

.......

and in this country they talk about raising the SSRA from age 67.

...............

...About 1.1 million people have demonstrated across the country, French media quoted police as saying. Unions put the figure at 3.5 million nationwide as the rolling strike goes on for more than a week now.

Students from high schools have been skipping classes to join the strikes. Some students told CNN in Paris that they are worried they won't be able to get jobs if the current generation hangs onto jobs for an extra two years.

..........

I must have been out of it in when I was in high school. I never would have thought about skipping school to strike because I might not be able to find a job. looked it up, unemployment there around 10%

If no action is taken the rest of this year, does the $500/$1,500 plan start-up employer credit go away as of 1/1/2011?

Thanks

Apparently, the question of whether forfeitures may be used to reduce safe harbor contributions to a plan was discussed in an IRS Q&A session today at the ASPPA Annual Conference. Did anyone hear the exact response?

Deferral plan provides that value of participant's account balance is based on value of employer's privately held stock. Employer does not have valuations for any other purpose, so plan provides that value of stock will be determined by valuation method established by employer in good faith.

Does the reservation of discretion regarding stock valuation cause a problem, particularly with the language in 1.409A-3(i)(1)(i) and (ii) regarding amounts being objectively determinable and not being subject to the service recipient's discretion? The specific issue would be whether the discretion causes the payment amounts not to be objectively determinable (language from -3(i)(1)(i)) or not subject to an "objective nondiscretionary formula" (langage from -3(i)(1)(ii)), and thus not payable at a specified time or pursuant to a fixed schedule.

A small professional service employer had a DB plan for 5 years, terminated it and distributed benefits by 12/31/09.

They are now seeing the tax bite of not having the plan and want to adopt a new DB plan effective for 2010.

Is there a problem adopting a new plan within one year of terminating the prior plan?

If a frozen cash balance plan uses an interest crediting rate that is in excess of a "market rate of return" under the final and proposed regs that were just issued, does the frozen plan have to recalculate benefits for all participants using the lower interest rate? If so, for what years would the lower interest rate be applied?

I have calculated the gains on the late deposits for one of our clients. The total earnings that they need to remit excise tax on is approx. $1300.00. On the Form 5330, do we need to report each individual late remittance separately? Some of the gains calculations are so small on an individual principal amount ($1.00 or less) that was late that no tax is actually due on it.

Is it permitted to report the late payments as a monthly total rather than each individual amount on its loss date?

I'm a TPA that administers 125 plans. I have a partnership that has a 125 plan. I've been notified that the partners have changed (one partner left, another came on) so there is a new name, and the partnership has a new tax ID number. All other group info remains the same. Do they need a new 125 plan, or just amend the current plan? Thanks for any direction.

Group of Drs each with their own Corporation and each Corporation adopts the Cash Balance Plan. The corporations have fiscal years from 10/31, 11/30 and 12/31. The Plan is a calendar Year. How are the deductions determined for each Corporation.

We just updated Relius Gov't Forms from sp4 to the current one. We waiting until after 10/15 since things seem to be working.

I noticed on the plan info sheet that the "Filing for Plan Year" comes up with an error if left blank. The help on this form say that it must be answered if filing for a plan year prior to 2009. Is everyone just putting 2009 if it's for the 2009 plan year?

Can an IRA LLC (the sole member of which is the IRA custodian for the benefit of the taxpayer) receive a rollover of the taxpayer's qualified plan benefit without violating the prohibited transaction rules?

Taxpayer is getting ready to take 2010 MRD from Retirement Plan/IRA. Question is if the taxpayer decides to convert a portion of the IRA to a Roth, does the conversion satisfy the 2010 MRD requirement? I looked through the questions and do not see this addressed. Thanks for any replies.