Our small DB plan just filed its Form 5500 on October 15. So is the new annual funding notice due within 30 days?

I find the news regarding this fascinating:

A large rally was scheduled for central Paris in the afternoon as demonstrators stepped up protests against a government proposal to raise the national retirement age from 60 to 62.

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and in this country they talk about raising the SSRA from age 67.

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...About 1.1 million people have demonstrated across the country, French media quoted police as saying. Unions put the figure at 3.5 million nationwide as the rolling strike goes on for more than a week now.

Students from high schools have been skipping classes to join the strikes. Some students told CNN in Paris that they are worried they won't be able to get jobs if the current generation hangs onto jobs for an extra two years.

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I must have been out of it in when I was in high school. I never would have thought about skipping school to strike because I might not be able to find a job. looked it up, unemployment there around 10%

If no action is taken the rest of this year, does the $500/$1,500 plan start-up employer credit go away as of 1/1/2011?

Thanks

Apparently, the question of whether forfeitures may be used to reduce safe harbor contributions to a plan was discussed in an IRS Q&A session today at the ASPPA Annual Conference. Did anyone hear the exact response?

Deferral plan provides that value of participant's account balance is based on value of employer's privately held stock. Employer does not have valuations for any other purpose, so plan provides that value of stock will be determined by valuation method established by employer in good faith.

Does the reservation of discretion regarding stock valuation cause a problem, particularly with the language in 1.409A-3(i)(1)(i) and (ii) regarding amounts being objectively determinable and not being subject to the service recipient's discretion? The specific issue would be whether the discretion causes the payment amounts not to be objectively determinable (language from -3(i)(1)(i)) or not subject to an "objective nondiscretionary formula" (langage from -3(i)(1)(ii)), and thus not payable at a specified time or pursuant to a fixed schedule.

A small professional service employer had a DB plan for 5 years, terminated it and distributed benefits by 12/31/09.

They are now seeing the tax bite of not having the plan and want to adopt a new DB plan effective for 2010.

Is there a problem adopting a new plan within one year of terminating the prior plan?

If a frozen cash balance plan uses an interest crediting rate that is in excess of a "market rate of return" under the final and proposed regs that were just issued, does the frozen plan have to recalculate benefits for all participants using the lower interest rate? If so, for what years would the lower interest rate be applied?

I have calculated the gains on the late deposits for one of our clients. The total earnings that they need to remit excise tax on is approx. $1300.00. On the Form 5330, do we need to report each individual late remittance separately? Some of the gains calculations are so small on an individual principal amount ($1.00 or less) that was late that no tax is actually due on it.

Is it permitted to report the late payments as a monthly total rather than each individual amount on its loss date?

I'm a TPA that administers 125 plans. I have a partnership that has a 125 plan. I've been notified that the partners have changed (one partner left, another came on) so there is a new name, and the partnership has a new tax ID number. All other group info remains the same. Do they need a new 125 plan, or just amend the current plan? Thanks for any direction.

Group of Drs each with their own Corporation and each Corporation adopts the Cash Balance Plan. The corporations have fiscal years from 10/31, 11/30 and 12/31. The Plan is a calendar Year. How are the deductions determined for each Corporation.

We just updated Relius Gov't Forms from sp4 to the current one. We waiting until after 10/15 since things seem to be working.

I noticed on the plan info sheet that the "Filing for Plan Year" comes up with an error if left blank. The help on this form say that it must be answered if filing for a plan year prior to 2009. Is everyone just putting 2009 if it's for the 2009 plan year?

Can an IRA LLC (the sole member of which is the IRA custodian for the benefit of the taxpayer) receive a rollover of the taxpayer's qualified plan benefit without violating the prohibited transaction rules?

Taxpayer is getting ready to take 2010 MRD from Retirement Plan/IRA. Question is if the taxpayer decides to convert a portion of the IRA to a Roth, does the conversion satisfy the 2010 MRD requirement? I looked through the questions and do not see this addressed. Thanks for any replies.

A plan has immediate eligibility for full time employees. Part Time Employees must work 1000 hours to be eligible for the plan. When running the coverage test, how do I count the part time employees. Non-excludable, not benefiting since none of them worked 1000 hours? Or are they excluded since they did not meet 1000 hours? Would it raise a BRF issue since the "right" to defer is delayed for this group/class of employees?

Any help would be appreciated!

Does anyone know if these figures were released yet and if so, where i can find them?

Although there was no COLA change from '09-'10 there was still some modifications to the phase out limits, I need to determine if 2011 will see another slight increase.

Thanks!

I work with DC plans, but am in a DB plan at my part time job. The company removes 7 cents for every hour I work each weekly pay period and puts it in the plan. In order to be vested, I must work at least 750 hours per year for 4 years that I am a participant. Any service prior to becoming a participant does not count.

I started in the plan in August 2004. I have only worked between about 600 - 650 hours per year, as I only work 2 days a week over there. Since I never work enough hours each year, I don't earn the vested service. You can become vested by reaching a monetary plateau, of which I am almost halfway there.

My main question is that I thought it was required that DB plans issued statements to participants at least every three years. I get the SAR, but have never gotten a statement in the 6 years I have been in the plan. Shouldn't I be getting something, even though I am not vested, as I am putting money in this plan ($244.34 as of 7/8/2010)?

My part-time employer is one of the largest employers here in central FL and we do have a company intranet, but I have never been able to find info on the plan specfic to me here.

Thanks for your thoughts.

I have a Plan that is 90% owned by a LLC and 10% owned by another company. This would tell me it's a control group. However the client indicates that the company who owns 90% are investors of about 20 people who receive K1's and do not have any ownership in the 10% company? Can I think of this as a holding company? I asked that he send over the % for each of the 20 people. 3 of these 20 are employees of the Plan. Any thoughts or other suggestions.

A co-worker just came to me with this strange question/scenario. Potential client is an American co that apparently has a satalite office that is in Canada. The office is staffed by Canadians and paid in their country's money. The potential client is thinking of setting up a 401(k) plan.

Can they set up a plan that excludes this office?

Realizing this is a stretch to ask, but I have one source who talked about this legislation that he claimed led to the "gross indemnity" requirement in hold harmless agreements between k12 SD and 403b vendors, particulary in California, Texas and I believe Ohio.

Thanks in advance,

Steve

Not sure if I have this right. A top heavy 401k plan uses matching contributions to satisfy the SH requirements. A PS contribution will be made with the owner getting over a 15% allocation, so a 5% gateway applies to the NHCEs. The SH match can be used towards both the gateway amount for the NHCEs and the 3% top heavy contribution for the non-key HCEs. The matches and PS allocations are combined for each participant to calculate the EBARs/rate groups, and the deferrals are then added to those totals for the average benefit testing. Is this correct? Thanks in advance for all assistance.