The 09 and 10 FABs set out situations where a plan sponsor is allowed to ignore accounts in 403(b) plans if certain conditions are met. A frozen 403(b) plan has not had any contributions or loan repayments flow from the plan sponsor for over 3 years. They have filed the previous Form 5500 (obviously an easy task, given no participant data is requested). If all participants meet the FAB requirements, what does the 2009 Form 5500 look like? Do they file it, but report 0 participants and 0 assets? I've got to think this question has been asked before, but I can't find it anywhere. Thanks in advance for any guidance.

The 09 and 10 FABs set out situations where a plan sponsor is allowed to ignore accounts in 403(b) plans if certain conditions are met. A frozen 403(b) plan has not had any contributions or loan repayments flow from the plan sponsor for over 3 years. They have filed the previous Form 5500 (obviously an easy task, given no participant data is requested). If all participants meet the FAB requirements, what does the 2009 Form 5500 look like? Do they file it, but report 0 participants and 0 assets? I've got to think this question has been asked before, but I can't find it anywhere. Thanks in advance for any guidance.

I have a plan that adopted a loan policy pre-GUST. They did not adopt a new one until the EGTRRA restatement when there were required updates to the administration of loans. Does a loan policy stay in effect until a new one is adopted? Assume that no legislative changes are required in the interim.

I have a client who has never had a 5500 filed, since 1994. I prepared the 2009 5500-SF and filed it on time. I am ready to prepare and file thru the DFVC his 1994 - 2008 forms. I will use the 2009 form and IFile them all, as instructed, but my question is: May I use the SF or do I have to use the regular loongg 5500?

THANKS to all who can answer.

When using forfeitures to pay admin expenses, must they first be allocated to participant accounts (say, pro rata, based on account balance) and then swept from the various accounts and used to pay expenses? I saw something that indicates this......which sounds like a huge headache..

A retirement plan SPD is supposed to be written for the average participant (rule of them is w/a 8th or 9th grade level education). That being said, many recordkeepers, have subscribed to a major plan document provider service, who is issuing SPDs that are so incomprehensible, confusing, and conflicting, we as the Plan Sponsor, just can't issue to the participants. Any suggestions on how I can get or create an easily readible SPD? We are thinking of asking for a reduction in our fee from the recordkeeper and hiring a vendor who specialized in this to write it for us. I've tried reaching out to the document provider, but they have not responded as of yet.

Employer with a standardized prototype plan has 1 Year of Service requirement for eligibility. The employer mistakenly believed that eligibility must be met each year, and when an employee cut back to less than 20 hour per week work schedule, the employer told them they could no longer defer. Seven months later the employer has asked us how to fix this. Would this fall under the EPCRS correction requiring the employer to make a QNEC for the lost deferral opportunity?

Let's say a Cycle B filer adopts a new individually designed plan in 2010. (Modification of a pre-approved VS plan document - from whom I have no idea as I haven't seen it, although I think perhaps Datair ight have been mentioned.)

I'm just trying to figure out if I'm nuts. The normal deadline would be 1/31/2013, right? But if client wanted to submit sooner, it appears that it would be eligible for preferential review under Section 14 of Revenue Procedure 2007-44 - excerpt below. Would you agree?

(2) A new individually designed plan whose next regular on-cycle submission period ends at least two years after the end of the off-cycle submission period during which the plan sponsor submits its application. For this purpose, a new individually designed plan is a new plan that as of the date the application is submitted with respect to the plan would be a new plan within its initial remedial amendment cycle under §1.401(b)-1(b)(1) of the regulations, as summarized in section 2.03 of this revenue procedure (determined without regard to the extension under section 5.03 of this revenue procedure).

Plan was terminated effective 1/31/2009. What compensation period do I use for the ADP tesT? Just January, or full year pay? I cannot find anything on point...

How does the minimum coverage test apply to 401(k) and (m) portions of a plan? Reg sec. 1.410(b)-8(a) seems to provide that the 401(k)/(m) portions must pass the test as of the last day of the plan year, but Rev. Proc. 93-42 sec. 3.08 provides that a plan with salary reduction and matching contributions can use snapshot testing (as of any day of the plan year) to comply with the minimum coverage testing requirement. Which day (last day or snapshot day chosen by employer) should be the testing day?

A prospect appears to have been filing a Form 5500 for their 457(b) plan by somehow combining it with their 403(b) plan's Form 5500. It appears that the initial 120-day DOL filing after the plan was executed had not been done for the 457(b), so the 5500 filing is required.

I see no reference on the Form 5500 instructions for items to complete or not complete for a 457(b) plan. Any idea what actually would need to be completed for a 457(b) plan Form 5500?

Have you ever heard of filing a 5500 where both the 403(b) and the 457(b) plan names are both listed for the plan?

Client has 2 employees. One owner, other not. Both are HCE.

If the client elects TOP PAID GROUP ELECTION, who is in the top of the test?

Number of employees equals 2. 20% of 2 is 0.4. Rounding up the count is 1. Is this 1 in addition to the owner, so my HCE count would still be 2 or is the count just 1 and the owner take that spot.

Can I get a discussion on this?

Has anyone heard of a mulit-employer plan, which either requires or allows the union members to contribute to the actual pension fund? I have had a couple client say they swear they paid into the pension plan, but I think they are confusing union dues with pension contributions. Any thoughts?

One of my clients received a Benchmark Survey of Financial Services Transactions between U.S. Financial Services Providers and Foreign Persons (Form BE-180). The survey must be completed by 10/1/2010. Do you know if this form should be completed by the financial institution (i.e., Recordkeeper & Trustee) or the client.

Hello - For 403(b) purposes, compensation under 415 is defined as "includible comepsnation". Includible compensation for ministers is in turn, defined in the 403(b) regulations as earned income under 401(c0(2). That section refers to 1402 which in in subsection 8, includes the housing allowance. This is inconsistent with everything else that I have read, including the 2001 plr (which was issued before the change by EGTRRA) and is discussed on another thread. Can anyone confirm if I am reading this correctly/incorrectly? Thanks.

Hi -

We offer our employees self-insured medical plans. For 2011 tax year, we will have to report the value of the team member's health insurance coverage on the W-2. Easy enough. However, my quesiton is this... if we were fully-insured, that would involve providing the employer's portion of the full premium. But, we're self-insured. So, do we simply report the employer's portion of the COBRA equivalent or do we need to get deep into the bowels of the plan and determine the amount the company truly paid for the plan (claims, admin fees, etc.) and then divvy up accordingly? I'm assuming (and hoping) it's the former, not the latter.

Thanks.

I realize the law prohibits 401(a) 403(b) plan mergers, but why can't a 401(a) profit sharing only plan be amended to add a 403(b) plan feature and then have a 403(b) only plan merged into the amended 403(b) profit sharing plan?

I have a plan that has the following eligibility and entry date requirements for the match portion of the plan: 1 Year of Service, entering monthly. The match portion of the plan has no allocation conditions for the match allocated on a payroll by payroll basis. Additionally, the match portion of the plan allows for a “true-up” contribution for all eligible participants who are actively employed on the last day of the plan year OR terminated during the year due to death, disability or leave of absence.

Based on the above:

1) The plan has no coverage issue for the match portion of the plan as there is no allocation condition to receive “regular” match. Therefore, disregarding any excluded employees, 100% coverage.

2) The plan has a BRF issue due to the fact that there is an allocation condition related to the match “true-up” contribution.

3) In order to satisfy the BRF testing for the match issue, the plan only needs to satisfy the Availability test.

4) There are two portions to the Availability test: Effective Availability and Current Availability

5) The Effective Availability test is a “facts and circumstances test” and it states, that based on all of the relevant facts and circumstances, the group of employees to whom a benefit, right, or feature is effectively available must not substantially favor HCEs. Based on the allocation conditions of the match “true-up”, the plans appears to pass the Effective Availability portion of the Availability test.

6) The Current Availability test is a mathematical test which is run virtually the same way as a ratio test for coverage testing. (The ratios for the NHCEs and the HCEs is calculated by taking the number of participants for who the BRF is available divided by the total number of participants who are not excludable under coverage.) The Current Availability test is passed if the ratio calculated greater than the safe harbor percentage defined in §1.410(b)-4©(4)(iv).

Does anyone disagree with the above six points?

Question: If the plan sponsor excludes a division from it definition of eligible employees (and does not allow them to participate), do they have to be included in the denominator of the BRF ratio calcs? (I think the answer is yes, but would like verification.)

If anyone else has any additional information that they think would be helpful for the above, please feel free to supply it. Thanks in advance.

My company has the 401(k)/Profit Sharing Plan which is the safe harbor plan but the profit sharing plan is subject for 5 year vesting schedule. We have recently done the lay-off that could cause of the partial termination. Question: Will the profit sharing money become fully vested due to the partial termination?

Is it ok to fill in the irs.gov 2009 form 5500ez and print and use it? As opposed to needing to use relius or prosystem, etc.

Unfortunately the irs.gov web site does not have a 2009 schedule sb form. Anyone know where an approved form for printing and submitting to IRS is available? Perhaps it is not available since it is not required to go with 5500ez.

and using dol web site is tedious just for sch sb.

thanks