Client is a non-profit with an ERISA-covered 403(b) plan. They believed (based on a seminar the finance officer attended) that they had until the 15th day following the end of the month deferrals were withheld to deposit the deferrals with the insurance company, and they've been doing that for quite a few years. Now they are facing the compliance question about late deposits on the 5500. They've become aware that the 15-day limit was not a safe harbor.

The question on the 5500 concerns only 2009 deposits, but presumably if they answer yes, the DOL is likely to take an interest in earlier years.

Has anyone had any experience dealing with the DOL on a correction for this? Would it be reasonable to take 1996 as the date when this violation began?

I have an employee who deferred and vested $50 prior to 2005. Since 2005 he has deferred and vested thousands. We had a slight operational failure that needs to be corrected under Notice 2008-113. I'd like to treat the $50 as subject to 409A so that we can make one correction under Notice 2008-113, instead of two (one for the thousands deferred after 2005 and one for just $50).

Is it ok to treat grandfathered nonqualified deferred compensation as subject to 409A?

Does anyone know if there are penalties for not keeping participant deferral election forms? If a participant originally elects to defer 10% of their salary, for example, and then changes to 1% (completes a new form and gives it to his employer), but the employer does not keep the new form, even if the change went into effect?

I have a 401(k) plan that is audited each year. In reviewing the personnel files, the amount on the election/enrollment form is not the same as what is being withheld per payroll. Potential penalties?

thank you

Plan has been a large plan for the past few years. This year the participant count at 1/1/2009 fell to 111. I would like to file a Form 5500 SF. Is the plan still a large plan for 2009 or can I use the 80-120 participant rule and file a Form 5500-SF?

This is the languag from the Form 5500 Instruction Booklet:

Exceptions:

(1) 80-120 Participant Rule: If the number of participants reported on line 5 is between 80 and 120, and a Form 5500 annual return/report was filed for the prior plan year, you may elect to complete the return/report in the same category(‘‘large plan’’ or ‘‘small plan’’) as was filed for the prior return/report.

Thus, if a Form 5500 annual return/report was filed for the 2008 plan year as a small plan, including the Schedule I if applicable,

and the number entered on line 5 of the 2009 Form 5500 is 120 or less,you may elect to complete the 2009 Form 5500 and in accordance with the instructions for a small plan, including for eligible filers, filing the Form 5500-SF instead of the Form 5500.

I have bold and italicized the words that I am relying on to be able to complete a 500-SF. If you can elect to complete in the same category and then can elect to complete in the other category....

Any thoughts....

Thanks.

does anyone know whether an arbitrator may go beyond the scope of a disputed issue, for example to decide that a withdrwawal had not occurred where the parties do not disagree that it has?

According to Revenue Procedure 2009-36, individually designed gov't plans can elect to use Cycle E as their EGTRRA remedial amendment cycle. When submitting for a letter, I believe they would need to include plan document changes for Cycles C and D cumulative list changes. Does that mean the Cycle C and D cumulative list changes just need to be adopted by the end of Cycle E or should they have been adopted already? HELP!!!!

We recently received a copy of a restated plan document that incorporated an amendment from 2005. Our (and the client's) intent was to make a specific employee (NHC) eligible for the plan as of 12/1/05.

Normally, we would draft the amendment to indentify the individual specifically. Unfortunately, the draft of the amendment actually reduced eligibility from 1 year to 3 months (401(k) only), and entry dates from semi-annual to monthly (all sources). This did allow the individual to enter the plan as of 12/1/05, but would obviously have impacted all eligibility calculations from then to the present.

Both the company and our firm have continued to operate the plan on the 1 year service and semi-annual entry terms.

1. Can we say this was a mistake in the drafting of the amendment, and this should only have applied to 2005?

2. ??? Suggestions?

Scenario: gov't agency sponsors a MPPP. Allocates X% to staff, Y% to Exec Director (who is an HCE). Do we need to cross test? Am getting differing opinions within the office and have not found anything specific in my research.

Thanks!

Newly eligible employee completed company designed plan election form, selecting health plan and authorizing health insurance deductions pre-tax. However, the employee never completed insurance application and was thus never enrolled in the plan selected on company election form. Deductions (pre-tax) have been taken since the effective date of eligibility (3/1/10). Employee has decided that he now wants to opt out of medical coverage because he never got his ID cards. We think we should leave it up to the insurance company to help us fix our error by making the decision to back-date and enroll the employee, or deny and we refund the premiums (taxable) that we have taken since 3/1/10. Thoughts anyone???

Hello All,

Would anyone be able to provide me with some guidance on the journal entry flows for 457b and 457f plans.

A plan is active and uses a group annuity as 401(k) investment vehicle. Years ago the plan had invidual annuities as the investment vehicle and no contributions have been made to those annuities in probably ten years. Due to surrender charges on them, the participants had option to transfer 10% annually to their group annuity account as such was not subject to the surrender charge. Question: in my opinion, the participant may not roll over his individual annuity to an IRA if he is actively employed as the individual annuity is part of the Plan assets - his broker, however, told him he can. Answer?

A 20 participant DB plan will be terminating effective 8/31/2010. NOIT was provided to participants timely.

All benefit accruals were frozen in 2008 and all participants were provided with 204(h) notices at that time.

Is there any need to again provide a 204(h) notice upon plan termination? The rate of future benefit accruals will not be significantly reduced as all benefit accruals were already frozen in 2008.

Rev-Proc 2007-44 seems to have a caveat noting that not all amendments required for a terminating plan appear on the cumulative list. Does anyone know about any guidance or explanation about these deficiencies?

What do Form 8752 and Section 7519 refer to?

What official directive directs that a retirement plan must accelerate its amendment schedule when the plan terminates?

I have used CCH's Pension Plan Guide online since 1999 (and before that, the CD version and before than the hardcopy version, dating back to 1990).

Annual renewal is around the corner and I'm looking for an alternative, comparable product. The reasons are there have been some pretty steep price increases over the years, and the addition of IntelliConnect in 2009 was, in my experience, an IntelliDISConnect. (Prior to IntelliConnect, I thought the product was much easier and faster to use.)

For those that have had experience using this product but have switched, what did you switch to? Are you happier with the other product? Is your replacement product easier or faster to use to locate authorities or already known cites?

For those of you who may have been using a different product and have switched to PPG, what was the other product? Do you regret having made that choice?

Thanks in advance for all pertinent comments.

Is it permissible for a plan to grant units under a 409A-covered LTIP at a value based on the close of hte prior year? Company is closely held and intends to grant units throughout calendar year.

We will most likely be offering our traditional PPO plan and a new HDHP. Does anyone have any pointers, tips, etc. for Open Enrollment materials and teaching employees how the HDHP (along with a HSA) works?

Thank you for your help!

We are an employer who adminsters the DB retirement plan (28,000 participants) and retiree medical plan in-house. Various other departments within our organization utilize Documentum for electronic storage, and we are contemplating using it also for our employee benefit plan records.

We are familiar with the records retention requirements for benefit plans and are exploring an electronic media storage option.

Do any of you employers have experience converting to electronic storage for your plan participant files (e.g. benefit election forms, tax withholding, beneficiary designations, QDRO's, etc.), and if so, can you please offer any tips and/or considerations which should be addressed when evaluating this option. We also maintain separate retiree medical files (which may contain PHI) that we hope to also convert to electronic media.

Any insight is much appreciated.

Benny

Where can I find a checklist and program for health insurance and HRA Plans?