A calendar year plan with $700,000 of unfunded vested benefits for 2009 has an active participant reduction (from 1/1) of 21% in 2009 and again in 2010.

It appears that this plan would be exempt from a PBGC Form 10 Active Participant Reduction report for 2009 if the 2008 UVB as reported on Form 10 was less than $1 million, and similarly the 2010 criteria would be based on the 1/1/2009 UVB. Is this right?

(The plan is over 100 participants).

For Relius Gov't Forms was on Service pak 4 and just updated to the latest paks (I didn't do it earlier just in case it broke stuff before 10/15).

The forms are not printing. Any ideas? I know this question was asked earlier this year (and answered) but could not find it.

I am wondering if the IRS has taken a different stance on partial plan terminations because so many companies are having mass layoffs. It doesn't seem logical that all of these companies would be required to bump everyone up to 100% vesting in these horrible economic times. Or is the answer just, "too bad, so sad, that's the way it is regardless of what kind of economy we're in"?

We inherited a DB plan that has a 100% J&S Normal Form of Benefit for married participants and single life for unmarried.

For terminated participants, must we provide the Qualified Optional Survivor Annuity? I would think not since the normal form is 100% J &S.

Working on a business that is a partnership (LLP). Partnership offers a Section 125 Cafeteria plan. I know partners cannot participate. However, can a spouse of a partner participate? Can a son of a partner participate? Our current question involves an Adult Child of a Partner. Does it matter if partner is greater than 5% or less than 5% partner? Can you give reference in Treasury Regs (or other regs)?

H&W VEBA Trust amended in 2008 to segregate funds into two accounts--one for retiree, one for active. Understand that funds cannot be comingled, but what if the self-funded Plan is terminated. Could all of the funds be used to pay benefits for either group?

What is the required timing for funding (remitting to the Recordkeeper/Trustee) matching contributions; and the deadlines for funding annual profit sharing and annual match contributions? Can someone point me toward where I can find Regulations on this topic?

Social security benefits received prior to full retirement age are reduced $1 for every $2 of earnings (or is it wages?) above a specific amount. Does anyone know whether elective deferrals are considered wages for this purpsoes?

Example. Employee is age 62 and decides to begin early social security payments while also working part-time. Employee is eligible for employer's 401(k) plan. Employee makes $30,000, and defers $22,000 into the 401(k) plan. Are earnings only considered to be $8,000 for purposes of determining if employee's social security benefits will be reduced? (I assume that earnings will be the full $30,000, whether or not any amounts are deferred into the 401(k) plan, but I can't seem to find a definitive answer.)

What is the required timing for funding (remitting to the Recordkeeper/Trustee) matching contributions; and the deadlines for funding annual profit sharing and annual match contributions? Can someone point me toward where I can find Regulations on this topic?

A plan provides for QJSA as the normal form of distribution. A participant retires, but never consents/elects distribution of his benefit. RMDs commence. The Plan is then amended to eliminate the QJSA and provide for lump sum distributions only.

I don't believe the retiree's annuity starting date has commenced as distributions were made under 401(a)(9). So I believe that the amendment to eliminate optional forms is in effect for this participant's benefit and the Plan is permitted to pay the retiree a lump sum distribution of the remainder of his benefit on the next RMD date. Anyone agree/disagree? Thanks.

They let their participants invest in the same banks CD's. Is this a PT? I seem to recall there were some hoops they had to jump through to avoid a PT - I didn't think it was just a straight exemption of any kind.

My understanding is that the IRS has indicated that it will has yet to issue sample amendments regarding the Code section 436 limitations. However, I do not believe these have been issued (I can't find them).

I anyone still expecting these to be issued? Has there been any indication as to when they might be issued? Or is everyone just drafting their own amendments, rather than wait for the IRS?

Thanks.

Ok gents and ladies, this is my predicament:

I have a client who recently realized that he has about 7 plan participants who (originally participants made loan payments through payroll withholding which were inadvertently stopped after the employer switched payroll systems) have defaulted their loans. To make matters worse, these 7 loans have lapsed their 5 year payment term. Thus, correction under Rev. Proc. 2008-50 Sec. 6.07 is limited to the following remedy:

General rule for loans.

Unless correction is made in accordance with this section 6.07(2) or (3), a deemed

distribution under § 72(p)(1) in connection with a failure relating to a loan to a participant

made from a plan must be reported on Form 1099-R with respect to the affected

participant and any applicable income tax withholding amount that was required to be

paid in connection with the failure (see § 1.72(p)-1, Q&A-15) must be paid by the

employer.

Now, my boss is of the opinion that the withholding requirement imposed to the employer is a penalty. In other words, he is of the opinion that the withholding is required and be paid by the employer regardless of whether or not the participant received a transfer of property or cash from the plan at the same time the deemed distribution occurred.

I took a look at Q&A 15 and it says that the 20% withholding that would be applicable to the deemed distribution that occurred in a date later than the date the loan was made (as in this case) is only required if the the participant received a transfer of property or cash from the plan at the same time the deemed distribution occurred (not the case for any of the affected participants here). My take on it is that withholding is not required in any of these cases as per Q&A 15 language.

My question is: Is the withholding requirement compulsory for the purposes of the VCP correction procedure as a penalty to the employer (trumping the Q&A language) or is it only required if the participant received a transfer of property as per Q&A 15?

Does anyone know how to get this out of IFILE?? I need to do an amended through web-client (because our name showed up as the plan administrator on the 5500, which is unavoidable in IFILE, I've been told...

A group of companies with 401(k) plans was probably a controlled group. We were trying to get ownership percentages so we could get them on the right track, but in the meantime some stock was bought or sold, and as a result they are no longer a controlled group. Now I'm trying to figure out how to treat them for 2010. It doesn't make sense to go through hoops to make them comply with the controlled group rules for 6 months, or whenever the transaction took place. What happens when controlled group status goes away part way through the year?

Question about webclient. I need to amend a 2009 because the wrong attachment was originally filed with teh 5500. I've clicked the amend button in webclient and status is a "amendment in progress". Do I just delete the original amendment, attach the revised and then efile or do I need to republish?

So client want to file today on paper for a late 2008 form 5500 (today is 10/15/2010). I read that this is acceptable but today is the last day that paper will be accepted. My question, where do I send? I am wondering if the address has changed from the instructions, does anyone know?

Thanks,

A owner of a 1 participant plan wants to purchase real estate with plan assets.

He wants to receive a loan. To my knowledge the plan can obtain a loan if a bank is willing to do so.

Are there any know differences with a loan to pension plan versus an individual?

The owner wants to know if he can personally guarantee the plan loan. I don't believe this can be done unless of course the corp could make a deductible plan contribution that would be used to pay any loan payment due, etc. Make sense?

Any other observations?

If a plan uses a loan to purchase real estate would the amount of income/appreciation associated with the loan (indebtedness) be considered UBTI?

I know UBTI does not apply to real estate, but not sure if this exception holds when there is a loan.

thanks

• We have a fully funded HSA plan with a limited FSA.
  
• We also have a PPO with a regular FSA plan that employees can choose if they don't qualify for the high deductible plan.
  
• Currently, have a little less than 50 employees, but that number does go up and is expected to go up to over 100 in the next few years.
  
• The company self administers the FSA plan. What HIPAA issues do you see?
  

Thanks for the help...

Elderly client got check books mixed up and wrote a $10,000 charitable contribution from the profit sharing account.

I seem to recall charitable contributions could be made from IRAs (up to $100,000), but that the legislation trying to extend it to qualifed plans never went anywhere. I also seem to recall that provision also was set to expire for IRAs but can find the year of expiration. IRS Pub 590 for 2009 indicates it was still in effect for 2009.

Questions

1. Am I right this is not allowed in qualified plans?

2. Can it be treated as a taxable distribution of $10,000 from the qualified plan and then a $10,000 charitable contribution for her accountant to deal with on Schedule A of her 1040?

Any thoughts are appreciated.