Is anyone charging for the extra reporting requirements for the centers for Medicare and Medicaid Services. It's the requirements imposed by the SCHIP extension act.

Thanks

Is it correct to say that HEART Act plan amendments are NOT necessary for defined contribution plans that have full and immediate vesting because there is no loss of benefits regardless of when/how you die?

Is there citation for this somewhere, either way?

Thanks in advance.

As I understand the final 430 regs, there is automatic approval for changing a plan's valuation date in 2009. Is this correct?

Charles

Plan with a BOY valuation date. Company paid premiums for insurance held in the plan which are, therefore, treated as plan contributions.

A few questions:

1. Are the premiums discounted to the valuation date just as other contributions are?

2. If late quarterly installments apply, would the premium be used to satisfy the installment(s)?

If so, is there a requirement that the premium amount paid be used toward the installment if it was paid earlier than the "regular" plan contribution?

Thanks!

We are working on the contribution for a new comparability plan (no deferrals) for the 2009 plan year. There are two groups- owners and all other employees. Eligibility is ages 21 and 1 year of service, entry is 1/1 nearest completion of eligibility.

Definition of compensation is w-2 for all tests and limits.

One of the NHCEs terminated in 09 with less than 500 hours. ABT was passed and so was 401(a)(4) for prior year.

Plan passes gateway but not ABT with current NHCEs for 2009. We do have an employee hired 9/08 who would otherwise be excludable because she had not met the 1 year eligibility

IF we bring this employee in as of 1/1/09, all tests are passed.

Is this Ok and must this person receive credit for 1 year of service as of 12/31/09?

I am attempting to install 2009 relius government forms version 4 full to a second computer which operates in an xp environment. I have the same problem, however, trying to install any of the 2009 versions.

It starts to install and then aborts with a cryptic message:

Feature Transfer Error

Feature: Support

Component: App Executibles

File: [blank]

Error: Access Is Denied

Is the problem with the license? If so, how do I change the license to permit the new computer if the old one has died?

The DB plan service company is asking $1800 saying "IRS regulations now require that your plan be restated in its entireity"

This is above and beyond their yearly servicing fee and is couple hundred more than what I pay to them every year.

Is this a legit need or am I being taken for a ride?

Thanks

Also, anyone can refer another company in Phoenix AZ area that handles DB plans? I think I may be done with these guys.

Hi, I am searching for the help of an enrolled actuary. I have contacted several for help, but none were willing to assist. The IRS wants a 412(i) Plan that I installed and administer either unwound or retroactively converted to a regular 412 DB Plan. It is a 1 participant Plan with 4 contribution years (2003 through 2006). What we are trying to find out first is the amount of contributions that would be disallowed (if any) when calculated as a regular DB by an actuary. Attached are the facts of the plan including Salary and Benefit History as well as Contribution and Earnings History.

Of course, I am willing to pay for services rendered.

Thank you, in advance, for your assistance.

Rene J. Neyrey, CLU, ChFC

[Edited to remove participant name from attachment]

Historical_Factsheet.pdf

I just found out last week that the Florida Retirement System has me classified as retired. In 2005, I rolled over an ORP account to another qualified retirement plan. Under Florida law, I am now retired because of this. I had a job offer rescinded because of my retired status with the FRS so I am trying to find out if I have any options. When I did the rollover in 2005, I did not sign anything that said I understood I would be considered retired. I think some law was passed retroactively and would like to know when the word "retired" was put on my account. I am wondering if it was just July 1, 2010 with the passage of HB 479. I am only 46 years old and now my future career opportunities are extremely limited because of this situation. The FRS will not allow me to reverse the rollover.

The linked-to paper argues that health coverage reform sets up incentives for an employer to design its “self-insured” group health plan to motivate those who consume more medical care than others to prefer individual insurance over employment-based coverage.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1651308

Do you think that the authors’ theory is realistic?

The authors suggest that one inducement for an employee (and his or her family) to leave an employment-based plan might be the employer’s cash-wages payment in an amount somewhat more (recognizing some tax differential) than what would have been the employer’s “contribution” to the employment-based health plan. [Pages 22-23 of the paper, pages 23-24 of the .pdf] Is this realistic?

If an employer were to offer such a cash-wages payment, would the choice run into constructive-receipt issues? Or would Section 125 protect those who chose the group health coverage as not having had constructive receipt of the available but not-taken cash payment?

Plan sponsor failed to make 2007 minimum required contribution which is $100,000. Excise tax due for 2007 = 10% * 100,000. Client froze the plan in 2008 to "stop the bleeding". Minimum required contribution for 2008 is $120,000, which is the $100,000 from 2007 plus an additional $20,000 shortfall installment. Plan sponsor made no contributions for 2008. Is the excise tax due for 2008 = 10% * 120,000, or 10% * 20,000? My understanding is that it is 10% of the entire minimum required contribution (10% * $120,000) even though a portion of the 2008 MRC is due to unpaid MRC from prior year. Is this correct? [For simplicity sake I am not taking into account any discounting that would apply to the $100,000 contribution from 2007].

My wife's company was just purchased by a much larger company. Her share values in her ESOP increased by 250%. The total value is over $200,000. She became fully vested immediately.

There will be 2 distributions, 1 within 90 days and the 2nd distribution will be within 1 year due to IRS review.

We are currently in the 28% marginal Federal tax bracket and pay about 22.5% taxes. We live in New York State.

Here are my questions/observations:

Is this distribution handled as a retirement account liquidation (non-Roth IRA or non-Roth 401K)?

Will it have to be rolled over within 60 days to a non-Roth IRA or non-Roth 401k or else risk being taxed on it as ordinary income and also have to pay the 10% early withdrawal penalty (excise tax), thereby moving us up into 33% or 35% marginal Federal Tax Bracket?

Or, will it be handled as Capital Gains and will it be considered short-term or long-term or a combination thereof?

She has been with the company for 6 years and been an ESOP participant for that time.

Thank you in advance!!

Michael

Here is the situation:

There is a company called Company A. Employees participate in an FSA:

* On January 1, 2010, assume $1,000 is available in John Smith's FSA.

* On June 30, 2010, Company A is sold to Company B. Former Company A employees now work at Company B.

* After the sale, FSA coverage continues under the Seller's plan (Company A) through the end of 2010. This follows Revenue Ruling 2002-32.

* However, for the remainder of 2010, the Buyer (Company B) deducts $500 from John Smith's pay check to re-imburse Seller for a portion of the FSA amount (recoupment).

Question: Does this violate the Uniform Coverage Rule and IRS Chief Counsel Advice No. 201012060?

Thanks for your input!

I have a QDRO that states that the alternate payee is to receive 28% of the participants benefit in the plan (dc plan-daily valued). The QDRO does not specify treatment of an existing loan balance. Of course, there is one. I am of the thinking that the loan balance is an "asset" or alternate investment in the participant's account - and therefore the loan balance is included when totaling up the benefit prior to calculating the 28%. Is this correct, or have I lost my way somewhere?

HAs a model 204(h) notice been released by the IRS? If so, where can I find it? If not, does anyone have a good reference for a list of the requirements for the notice? Thanks!

HAs a model 204(h) notice been released by the IRS? If so, where can I find it? If not, does anyone have a good reference for a list of the requirements for the notice? Thanks!

Management Fees are withdrawn by the broker/dealer directly from the plan assets. The broker/dealer then pays the RIA. What should be reported on the Schedule C?

Anyone know where I can find old DOL Opinion Letters? Specifically, I am looking for 77-07 and 77-08.

Thanks

I am a TPA and having a hard time getting the requested Schedule C Fee Disclosure information from various Investment Managers / Custodians.

Are they legally required to provide this information and what legislation / documentation can I site that will show they that they are legally required to disclose the fees?

Any help is grealty appreciated.

If a participant in a 457(f) plan is promised $50,000 provided he is continuously employed from January 1, 2010 through December 31, 2012, is the $50,000 includible in his 2012 income, or in his 2013 income? The statute and regulations refer to income inclusion in the "first taxable year in which there is no substantial risk of forfeiture." Given that the forfeiture lapses on December 31, 2012, presumably it is includible in his 2012 income. I'm just concerned that the statute could be read to mean 2013 was the first year in which there was absolutely "no" risk of forfeiture.

Thanks.