We are a TPA taking over a 403(b) plan and have some questions.

1. The current 403(b) is not a group contract but instead based on individual are participants allowed to transfer their money to us as even though the plan is not terminating. There is not a distributable event but I have heard that under 403(b) regulations participants can still transfer to a new provider...is this true?

2. If the client decides they want to terminate the 403(b) and start a 401(k) plan with us, is there any wait to do that? (i.e. 12 month rule?). What if they terminate their current 403(b) and start a new 403(b) with us is there a 12month wait for that?

3. What are the document requirements, our understanding is if the plan has employer contributions they are required to have a written document but if they only have deferrals no document is required?

4. Finally 5500 requirements, is it true that all 403(b) plans are now required to file the entire form - (asset information etc). if for any reason the participants are unable to move their money from the current custodian (+ we are unable to have terminated participant move their money over) will we need to have the old custodian provide us with asset statements every year to record keep and file the 5500 form?

The last thing I could find on this was that they pick up contributions were subject to FICA

Is that still true?

Christopher

Has anyone ever asked TIAA CREF why their downloads do not include full SS#'s? IT makes working with their downloads incredibly difficult to match up with a client prepared cenus... Are they planning on changing this? I assume they've been inundated with this complaint...

Company A is purchasing Company B (both Dental offices).

Company A has a 401(k) Plan. Company B doesn't. Company A plans on keeping the employees of company B only temporarily (until they can find other jobs)...about 6 months. Can Company A make use of their eligibility requirements for those employees of Company B? In other words, do they have to take into account the time with Company B or can they make them wait 1 year to be eligible for the plan?

I know it seems like a silly question, but I am somehow second guessing myself.

Thanks for all your help.

a plan wrote checks to 8 participants who did NOT cash them. The largest amount was $387.92 and there were 5 checks that were for less than $2 The plan can remove them for plan purposes, yes?

Client switched from separate welfare plans (health, dental, EAP, group term life) to "wrap document" effective 3/1/09. We filed returns for the individual plans, each with a short plan year, and picked up with the single 5500 for the wrap document 3/1/09. At the time we filed the short plan year returns for the individual welfare plans, there were still claims outstanding so we did not file "final" returns. Now there are no outstanding claims. I tried to amend the previous filings on EFAST2 by simply checking the "final return" box but I continue to get an error message when I try to validate them prior to submission. The error message states that the requirements for a final return have not been met and refers me to the 5500 instructions. The only problem I can see is the participant count. Line 6 still shows active participants at the end of the year (because there still was a health plan, for example, it was just changed from a separate plan to part of the wrap document). Should I change the active participant count to zero for the final returns?

Thanks!

Attorneys A and B are 50/50 partners in a law firm. Attorney C is a "junior partner," who gets a 1099, which he reports on his individual Schedule C.

Is Attorney C an independent contractor (and not an employee) of the law firm? Or is the sole proprietorship likely to be considered an affiliated service group with the law firm?

Thanks for any insights!

I have a plan where the plan sponsor went through an asset sale a number of years ago. The plan has been frozen forever and is significantly overfunded. The corporation that sponsors the plan doesn't really exist anymore, yet the plan still holds shares of the company. The auditor has determined the value of these company shares to be $0.

Company stock would clearly be a non-eligible asset and therefore preclude the sponsor from filing a 5500-SF, however, the sares have no value. Since they have no value, do you think they would be permitted to file the SF?

We sponsor a DB plan that has a lump sum included as one of the payout options, along with a list of annuity choices, at retirement. We are contemplating terminating the DB plan and starting up a 401k plan as a replacement.

An advisor has approached us and said that so long as we are fully funded (and let's say we are, cuz I think we are), we can terminate and then distribute lump sums to all the employees, who will then have the choice of rolling over their lump sum to the new 401k.

I mentioned this to our actuary. He said that's not how it works, that employees can only get a lump sum upon termination of employment, and then only if they are of retirement age. So a 42-year-old, for example, would have to wait until he was both age 55 and left our employ before getting a lump sum. He said steps would be to freeze then terminate then pay (from plan assets) an insurance company to take over operation of the plan.

Can both the advisor and the actuary be right?

A single employer sponsors a frozen (1993) db plan covering about 40 participants. FT=1,000,000 and assets=$500,000. The following appears in the Annual Funding Notice that Relius spits out:

I'm blanking on what is supposed to be filed with the PBGC in this situation. I do not see where a low FTAP [and this plan is not even subject to AFTAP certification] is a reportable event.

HELP !

Burp, Inc. authorizes Andy the Actuary to submit our 5500.

Whata Burp, President

============================================================================

Andy the Actuary acknowledges receipt of Burp, Inc.'s authorization to have me submit their 5500.

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Burp, Inc. acknowledges that Andy the Actuary notified me of receipt of my authorization for him to submit our 5500.

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Andy the Actuary confirms that I have received Burp, Inc. acknowledgment that they received my acknowledgment of

their authorization for me to submit their 5500.

============================================================================

And keep a goin' . . .

I’m a QPA and hope to have my CPC at the end of this year (I’ve passed all the other exams first try, so hopefully will do the same for the CPC…knock on wood). I have a stable job for a stable firm. We haven’t had a lot of trouble during the recession. We’ve lost some clients, but we’ve also gained some. We haven’t grown much, but we haven’t shrunk either. We still have our 401k match and we got raises and bonuses this year (and expect to next year as well).

I am planning to move next year, probably to Seattle (although Philly and Boston are also possibilities). I’m a bit nervous that I will be facing the dreaded job market in 6 months or so.

I’m wondering, - just as a general question for anyone, anywhere - how does the TPA job market seem to be in your area? Does it seem to be fairing better or worse than the overall job market in your area?

The last time I was job hunting, I only sent out one resume and was hired by that company. I doubt it’s going to be that simple this time around.

We are trying to help a client with filing a late Form 5500 for the 2009 Plan Year. It's a calendar year plan and a Form 5558 was filed for 2009 to extend to October 15. Since the extension was filed we have found out that the plan was terminated back in 2008 and the final assets were distributed in May 2009. This made the Final 5500 due date 12-31-09. I was thinking we just needed to file under the Delinquet Filer Voluntary Correction Program until I read that the program was not available for one-participant plans.

This plan has an effective date of 1-01-07 and only has one participant but has filed the regular (not EZ) 5500 in 2007 & 2008. The plan is a member of an affiliated service group. The one-participant in the plan was the only shareholder and the company was disolved in 2008. My questions are:

Is this really a one-participant plan and the DFCVP is not an option for correcting?

Will the fact that the plan has filed a regular 5500 for 2007 & 2008 and not a 5500-EZ or SF cause any problems? And since the plan has filed the regular 5500 in the past, is that the form we should use for the Final 5500 for 2009?

Lastly, if DFCVP is not an option for correcting, what is the proper way to correct this?

Thanks for any guidance on this!!

Does anyone know if the 15 year catch-up is mandatory or is it optional. I know regular catch-up is optional. The Relius Corbel document gives you a choice so I would think it is optional. A vendor is telling client it must be included. Thanks

If an employer and union pick one of several alternate schedules under a rehabilitation plan in year 1, I understand that the schedule remains in effect until the end of the CBA, even if the plan sponsor changes the schedules. My question is - at the end of the collective bargaining agreement, say year 3, if the employer and the union cannot agree on wage concessions to pay for the schedule that was chosen in year 1, can they at that point opt for the default schedule under the rehab plan?

I am preparing a Schedule C and had a question on eligible indirect compensation.

I need to report 12B-1 fees from an investment manager,

What if I am not sure the Plan Sponsor was provided with the written disclosers to be considered “eligible” indirect?

Is a fund prospectus enough to satisfy the written disclosure rules?

Are Church plans subject to IRC 410(b)?? Thanks.

With respect to individuals under age 26 who are described in section 152(f)(1) of the Code, can a plan require that the adult children be U.S. citizens or live in the U.S.?

I know Line 6 on 5500 pretty much dictates when the plan is eligible for Large plan status and an audit. Line 6 is based on the number of ELIGIBLE participants at the beginning of the plan year. If a participant was eligible and terminated during the plan year, they would be included in Line 6. My question is, if a participant separated from service prior to the beginning of the plan year, but had not been paid out, would they be included in Line 6?

Can a 403(b) have a short eligibiltiy period or not? I have an ERISA Attorney drafted 403b with a 90 day wait. I can't find anything in this reg that is specifically failed. The term "permitted" as used in the first paragraph is defined in the second. In there it references all relevant facts and circumstnces including "the period of time during which an election may be made." What's more, nowhere in here does it specifically say "eligiblity must be effective on date of hire." My orignal thought was that most employers/"prototypes" use immediate eligiblity as a de facto safe harbor, but that a short eligiblity period might not be per se a problem. Thoughts?

(b) Universal availability required for section 403(b) elective deferrals—(1) General rule. Under section 403(b)(12)(A)(ii), all employees of the eligible employer must be "permitted" [term "permitted" defined in next paragraph] to have section 403(b) elective deferrals contributed on their behalf if any employee of the eligible employer may elect to have the organization make section 403(b) elective deferrals. Further, the employee's right to make elective deferrals also includes the right to designate section 403(b) elective deferrals as designated Roth contributions.

(2) Effective opportunity required. For purposes of paragraph (b)(1) of this section, an employee is not treated as being permitted to have section 403(b) elective deferrals contributed on the employee's behalf unless the employee is provided an effective opportunity that satisfies the requirements of this paragraph (b)(2). Whether an employee has an effective opportunity is determined based on all the relevant facts and circumstances, including notice of the availability of the election, the period of time during which an election may be made, and any other conditions on elections. A section 403(b) plan satisfies the effective opportunity requirement of this paragraph (b)(2) only if, at least once during each plan year, the plan provides an employee with an effective opportunity to make (or change) a cash or deferred election (as defined at §1.401(k)–1(a)(3)) between cash or a contribution to the plan. Further, an effective opportunity includes the right to have section 403(b) elective deferrals made on his or her behalf up to the lesser of the applicable limits in §1.403(b)–4© (including any permissible catch-up elective deferrals under §1.403(b)–4©(2) and (3)) or the applicable limits under the contract with the largest limitation, and applies to part-time employees as well as full-time employees. An effective opportunity is not considered to exist if there are any other rights or benefits (other than rights or benefits listed in §1.401(k)–1(e)(6)(i)(A), (B), or (D)) that are conditioned (directly or indirectly) upon a participant making or failing to make a cash or deferred election with respect to a contribution to a section 403(b) contract.