A state govt entity makes periodic contributions to its plan (no-coda). Distributions are paid in house and the plan reimburses the corporation. The corp then reduces its contribution by that amount, so for example if they were due to make a $20,000 contribution, but paid $5000 in distributions, they only would deposit $15,000. Is this allowed? They are pooled accounts.

unlike your office, where everything is entered correctly all the time, I had to come up with a way of checking data, which over the years, well, is just not correct.

this census report will print messages under the following conditions: (its getting out of control, but it does catch things!)

(after eligiblity has been run- some message make no sense if you run the report before eligibility is processed)

1.ee term prior year but has comp this year hint:must be rehire or maybe its just the last paycheck that showed up in the new year.

2. ee is Age 70 1/2 (actually age 69 1/2 but what the heck, I like to know a year ahead of time)

3. Bad date of birth (this came about because the import didn't include the century, so the year imported as 2048 rather than 1948)

4. 0 comp but active (ee must have quit but no one told you)

5. ee is inactive or ineligble and no reason provided (probably as a result of takeover and ee wasn't coded properly. I think this could play mind games with the 5500 participant count)

6. ee is inactive but has no term date (don't ask me how I ended up with this, different users with different abilities and multiple over-rides over the years, anything is possible.)

7. number of break in svc if > 3 (just in case he should forfeit at 5 and Ididn't run a forfeiture transaction)

Since I don't use home e-mail address, I put secret messages in there such as "ee paid out in 2009" just cuz.

It has been my understanding that a document sponsor has the exclusively right to amend or determine who is eligible to amend their prototype. Also, I understood that amendments by secondary parties resulted in an IDP for which a determination letter would need to be obtained. Allowing just anyone to prepare a valid amendment could cause chaos for the TPA but I was wondering if that gudeline was statutory, part of the determination letter process or part of the service agreement between a document provider and the plan sponsor. Any thoughts?

What’s the difference between an accountant and an actuary? An actuary is like an accountant, only without the personality.

What’s the difference between an introverted actuary and an extroverted actuary? An extroverted actuary will look at YOUR shoes.

One-liners

There are three kinds of people in the world; those who can count and those who can’t.

A pair of jumper-cables walk into a bar and the bartender says, “You can have a beer, but don’t start anything”.

A horse walks into a bar and the bartender says, “Why the long face?”

I have a client that terminated their DB plan in 2007. They have been approached by a consulting firm claiming they have a strategy to recover portions of past PBGC premiums. Has anyone else run into this and know what the strategy might be ? Of course, they take a percentage of the recovered premiums. This also seems a little strange to me.

A Native American tribe established a 457(b) plan years ago to permit employees to make pre-tax deferral contributions. Their consultant advised them that they were eligible to do so as a state or local government employer. After the law changed to permit tribes to establish 401(k) plans, the 457(b) plan was frozen, but accounts remained in the plan and some of them are now quite large.

In fact, the tribe is not a state or local government and therefore was not eligible to establish this plan. The tribe would like to terminate it, but of course is concerned about minimizing the tax impact. I believe that there was a similar problem years ago with tribes that had established 403(b) plans. When the problem came to the IRS's attention, the tribes were permitted to "correct" the problem under EPCRS by terminating the plans. Participants were allowed to roll over their distributions. (I believe this arrangement was also enacted into law as part of PPA.)

I'm sure this tribe is not the only one with a problem 457(b) plan. Has anyone else encountered this issue and/or does anyone know of any IRS initiatives to fix the problem?

It is not uncommon for employers sponsoring plans with few participants to write paper checks for lump sum distributions at the federal income tax withholding. We are likely to have:

Proposed Regulations Expand the Use of Electronic Payment System and Discontinue Paper Coupons Next Year

WASHINGTON — Consistent with a Financial Management Service initiative announced in April of this year, the IRS today issued proposed regulations to significantly increase the number of electronic transactions between taxpayers and the federal government.

The proposed regulations (REG 153340-09) would eliminate the rules for making federal tax deposits by paper coupon because the paper coupon system will no longer be maintained by the Treasury Department after Dec. 31, 2010. The proposed regulations generally maintain existing rules for depositing federal taxes through the Electronic Federal Tax Payment System (EFTPS).

Any guesses whether or not the EFTPS will apply to pension payments. As an aside, I looked at the website and it appears the only way say to make estimated taxes is to provide the IRS with your personal checking/savings account routing number.

Fairly plain vanilla DB plan; uses high 3-year average compensation out of last 10 years preceding termination (not last 10 "years of service," but last 10 years). Employee works 20 years and leaves. Comes back five years later and completes 3 or four additional years of service and terminates again (younger than NRA). Upon rehire he took a lesser position paying less than he made when he left the first time. His high 3-year average drops significantly, so much so that even with the additional years of service his accrued benefit is less than what it was before he left the first time! Is there some overriding rule in ERISA that says this is not allowed to happen? Assuming there isn't, do DB plans ever have plan language to prevent this from happening?

Client does not want to fund the 2009 Safe Harbor Non-Elective Contribution. They want to know what the consequences are. The only thing I can think of is that the plan could be disqualified for not following the terms of the plan.

Any chance they could fund the NHCEs but not the HCEs?

Thank you.

Kate Smith

can someone verify the abilyt to file a 5500-SF for 2009 even if the plan answered YES to loans on the 2008 Schedule line 3f

Asssume the plan(s) are with John Hancock and not a money purchase plan.

a colleague point to the 5500 preparers manual as stating (PRACTICE POINTER) that if you answered YES and entered an amount on line 3f (participant loans) of the 2008 Schedulke I, it most likely does not meet the requirements for the simplified reporting.

Any one have a clarification/comment on that?

I have a client who is trying to terminate a 403(b) TDA plan. Their current carrier is telling them they cannot terminate this plan because the carrier does not offer an individual QJSA product. The carrier suggested they find a carrier that does have a QJSA product and roll the group 403(b) plan over to this new carrier and terminate the plan at that point. I would like to provide my client with a list of carriers that will take this transfer and then terminate the plan and offer the QJSA individual product to the plan participants. I also need to find out the cost of doing this. I welcome any suggestions, I am located in the Pittsburgh, PA area.

Does anyone know the specific IRC Section or Treasury Regulations that states that amounts distributed from a Roth IRA are not permitted to be rolled over to a designated Roth account under section 401(a) or section 403(b) plan?

My client believes that they submitted their 2008 5500 even though it does not show up on freeesrisa.com. I called the EFAST2 helpline and the plan came back as not received. The system said it should be resubmitted. Hence my question:

Has anyone resubmitted before getting a letter?

Since they are sure they mailed it in they are not interested in submitting using DFVC.

Can they resubmit via EFAST2 using "other attachment" to explain that is was sent in on time but not received?

Question realates to Small Plan Audit and Bonding. I have a plan that has employer stock as an OPTION. We are filing a 5500 and Schedule I. I am wondering abou the required bonding. The employe stock is over 5% of the plan assets. Employer stock is not traded. (small company) I don't understand the Qualifying Employer Securities below. I looked up the sight and I still am confused. Do they need a bond covering the entire amount of the Employer Stock to get out of the Small Plan Audit Requirements?

Thanks

Pat

I"n the case of an individual account plan, any assets in the individual account of a participant or beneficiary over which the participant or beneficiary has the opportunity to exercise control and with respect to which the participant or beneficiary is furnished, at least annually, a statement from a regulated financial institution referred to above describing the assets held or issued by the institution and the amount of such assets;

Qualifying employer securities, as defined in ERISA section 407(d)(5); "

Filing a Schedule A with a LTD plan. Is it mandatory to complete question 11 regarding "did the insurance company fail to provide any information necessary to complete Schedule A"?

Plan terminated 12/31/09, but 5 people still have balances. Should we show in item 5 that there are still 5 participants and 5 people with account balances? Just wanted to make sure we don't show zero participants, etc. thanks

Participant would like to reinstate back into the ABC Plan. When participant rolled out of the Plan, all of his money was traditional pre-tax; however, when he rolled it to the IRA, it was converted to Roth. Since the Plan does allow Roth rollovers, is it permissible to allow the money to be restored as Roth?

Plan is an off-calendar year of 5/7 - 5/6. Entry dates are defined as "Semi-annual. The first day of the 1st month and the 7th month of the Plan Year" There is nothing specific to semi-annual entry dates in the BPD.

My question - would you take this definition to mean that entry dates are actually 5/1 and 11/1? The 11/1 date I'm ok with - but the 5/1 date would be in the prior plan year so I don't get how that would work.

Example: Plan year 5/7/2009 thru 5/6/2010

First Entry date: 5/1/2009???

Opinions, please!

It seems we are seeing conflicting information in EBIA, ASPPA and on these boards. If someone would be so kind as to fill in the following blanks regarding the depositing of Employer contributions for Plan and fiscal year ending 12/31/09:

1) If you have NOT filed an extension for your entity's tax return, a discretionary match must be deposited before _________ for a 2009 or deduction or before _________ for a 2010 deduction.

2) If you HAVE filed an extension for your entity's tax return, a discretionary match must be deposited before _________ for a 2009 or deduction or before _________ for a 2010 deduction.

And then the same two questions for:

Safe Harbor Match

SHNE

Employer Discretionary (PS)

QNEC

Most of these I am sure are the same but I want to get this all straightened out once and for all. We have generally provided clients with more stringent deadlines but I would prefer to have the most accurate info. Thanks in advance.

Is it mandatory that the plan offer the HEART Withdrawal?