A little discussion going on here internally - I'm taking a poll. Do you believe that QJSA requirements apply to a 1 person plan not otherwise subject to Title I of ERISA? Specifically, see Treasury regulation 1.401(a)-20, Q&A 3(d). Thanks.

We are working with a group of individuals who because of ownership % have three unrelated companies. Currently, one of the companies would be in an audit situation and the other two would not. If we put the companies onto a multiple employer plan, would all three companies need to be audited? I am thinking the answer would be yes...but would appreciate any thoughts.

An employee was termed in April 2009. Was entitled to a safe harbor contirbution for those 4 months. The employer always extends and makes the contribution in September 2010.

The employee takes a 100% distirbution of her account around Dec 2009.

She is rehired in June 2010. (did not know that)

The contirbution is made in September 2010 and John Hancocks system is set to distirbute in the same manner as the previous distribution if you do not let them know in 7 days (not sure of the time frame). The plan sponsor or TPA does not stop it and the money is distirbuted while she was employed (direct deposit to hert account on file with John Hancock).

What are the ramifications of the distirbution?

The instructions to the draft Form 8955-SSA specifically states "The 2009 plan year information cannot be combined with the 2010 plan year information and filied on the 2010 Form. You must use a different form for each year."

Before the draft was released we decided we would report any 2009 on 2010 form. I really dont see a problem with this and it will save us on having to mail paper copies of these as it is anticipated that these forms will be filed electronically for 2010, but that is even quite questionable.

Any opinions would be appreciated.

I just read a bulletin that said the IRS, in a Q and A session, has taken the position that forfeitures can not be used to reduce the employer's safe harbor non-elective contribution and also cannot be used to reduce the employer's qnec contribution to pass a failed ADP test.

Does that sound correct? Am I missing something?

I have a participant who died in 2005. He was born in 1932 and his wife in 1930. His remaining life expentancy (minus 1 year each year) is now less than the spouse's recalculated life expectancy. Can I switch over now to the Single LIfe Table to calculate the minimum she needs to take this year?

Thanks

From BenefitsLink Newsletters:

"No news items are available today, due to the peaceful death this morning of the mother of BenefitsLink Publisher David Baker."

Our prayers are with you and your family, Dave.

Non-PBGC DB Plan is overfunded for 2010, so no contribution will be made. Deduction limit for DC is 25% of covered comp, correct? Want to make sure I'm reading 404(a)(7) correctly.

What are people experiencing? Have a couple that are at 6 months now with no response.

We have a client with a large plan that needed to file their 5500 by 10/15. The audit wasn’t done so we advised the client to file anyway (in accordance with the DOL EFAST2 Q&A Q25). Currently the filing is listed as “Filing Error” with the DOL.

The audit is finally ready. Any suggests on the best way (cheapest?) to handle the new filing?

I’m assuming that the “correct” way is to simply amend the filing, attach the audit, and re-submit.

However, I’m thinking if we can simply submit under the DFVC, it may be the cheaper alternative.

Does anyone have any input on this? Can I even submit under DFVC if the client already submitted?

Have a client with a late 5500EZ? Realize there is no program for them to use apparently so what's the process. Just file and include a letter begging for reduced penalties?

Anyone using Relius 16.0 yet? Any comments?

Plan has a 8/31/10 year end valuation yearly, for the 2010 rmd which account balance would I use, the 8/31/09 or the most recent 8/31/10?

Thanks

Sadie Hawkins Day

When: Always on November 13

Here is a holiday that originated from a cartoon. It all began in Al Capp's "Lil Abner Cartoon in the 1930's. In the cartoon series, the mayor of Dogpatch was desperate to marry off his ugly daughter. So he created Sadie Hawkin's Day. On this day, a race is held and all the single men were given a short head start. If a woman catches her man, he had to marry her.

Sadie Hawkins Day races and events grew in popularity during the course of All Capp's long running cartoon. This holiday (largely popular because of the cartoon) died out after 40 years when the cartoon was discontinued. It can occasionally be seen celebrated on college campuses.

......................

for those married men: how much of a head start were you given?

I guess for the ladies: how much of a head start did you give him?

We have a small 401k PS Plan that is terminating, I know a resolution is needed for termination. However, I am unclear what type of notice is required for participants in a DC plan. Are they required to receive the 204h notice reduction of benefits? Is there any other notices that they need stating the plan is terminating?

Thanks all.

Can an ACA commence the automatic deferrals 60 days after a participant enters the plan as opposed to the first payroll period after entry? For example, assume a plan has a 6 month eligibity requirement. After 6 months, a participant enters the plan. The participant has the opportunity to elect to defer, but does nothing. If the participant has not elected to make deferrals during the 60 day period, then the plan's ACA provisions would kick in and automatically defer 2% of compensation. The participant would be able to change that autmatic election at any time. I can't find anything that would prohibit this.

Have a Terminated PS/ESOP Plan. The ESOP was coverted to cash many years back and was actually terminated prior to the PS being terminated but it's one plan. We've been distributing to participants from the ESOP for a couple years now. The client is trying to wrap it all up now and avoid another years tax form filing.

Because there is QJSA language still in the plan therefore spousal consent it required, I assume I cannot roll to an IRA such as PenChecks for balances over $ 5000. What are the steps I need to take to get these distributions made or rolled for those participants who are not responding?

What notices do I need?

I did the research but honestly, I was overwhelmed so I turn to you.

Thanks.

I am not sure if this topic should be posed here or in another retirement plans sub-forum.

We're considering changing the definition of Compensation in our US qualified plans (pension and savings) to W-2 (Treas. Reg 1.415©-2(d)(4)) from the short list/safe harbor alternative (Treas. Reg. 1.415©-2(d)(2)) Is there guidance on how to deal with transition issues in such a change? If so, please advise...provide cite. Thanks so much.

IRC Section 432(a)(1)(A) states that a plan sponsor cannot accept any bargaining agreement that provides for the reduction in the level of contributions or the suspension of contributions for any participants in the Endangered Plan.

Since this is the case, is an employer ever able to voluntary withdraw from a plan once it has been certified Endangered? Assuming the employers bargaining unit wants to withdraw, would the fact the plan is Endangered preclude that option?

Is there a way to withdraw short of union decertification?

A non-PBGC, single participant plan terminated in 2008. Assets have not yet been distributed. The sole participant attained NRA on 1/1/2010.

For calculating his lump sum payable as on 12/1/2010 should a late retirement actuarial increase be credited to his accrued benefit?

His assets are much lower than his lump sum but for accuracy in calculating termination benefit I want to clear my doubt whether this participant is eligible for this increase since the plan has terminated 2 years back.