I am using Relius and will file via IFILE for single/multiple employer plans of fewer than 500 participants. Sooner likely rather than later I thought I might muck this up. I created the checklist in a mad attempt to protect myself form myself. Feel free to use as you please and please comment if you find omissions or routinely needed attachments.

EFAST2_5500_Filing_Checklist.doc

I am reading through the new SEC final rule on pay to play for governmental retirement systems. I am unsure whether their definition of elected official includes people who are solely elected by the membership of the retirement systems. For example, if someone on a City retirement system board is elected by the active employees, are they covered by 206(4)-5? Are there the same restrictions on investment advisors (it would certainly seem consistent with the SEC's intent). The retirement system certainly looks like the SEC is treating it as a governmental entity.

My client has a Safe Harbor Plan. The Safe Harbor is met by doing a Non-elective Match of 5%.

The employer wanted to know if they can have the HCE only be Matched at 3%. They are looking to do this to save the company some money.

My client has a Safe Harbor Plan. The Safe Harbor is met by doing a Non-elective Match of 5%.

The employer wanted to know if they can have the HCE only be Matched at 3%. They are looking to do this to save the company some money.

Can they have a different Safe Harbor Match for the HCEs then the NHCEs?

If an employer has a 401(a) plan that allows for the employee contributions to be picked up do these employee contributions count against the 402(g) limit or are they totally considered employer contributions?

My client, found that a participant's pre-tax contributions have been submitted to us by the client as After Tax Monies. For the past 4 to 5 years she has all After Tax money in her account. Due to this, she has not received any match. What are the steps to correct this? The client will change the way they submit her information to us. But we need to move the money from the After Tax Source to the Pre tax Source and also give her the match and any earnings. What needs to be done with her w-2 and yearly personal taxes?

I am trying to upload a large plan with Attachments, everything is attached correctly but when I publish the plan I receive the error "error occurred while trying to upload the attachments to the plans you published". I have published another large plan is was able to attach and publish. The enable filing is on. Any ideas?

We are taking over administration for a plan that has been in existance for 4 years and is on a John Hancock platform. The piror TPA never filed the Schedule A or D. They also never filed a Schedule R. I was wondering what the penalty would be for a plan that files the Form 5500 on time but does not file all the required schedules.

Thanks for any info!

The employer is responsibile for selecting the investments for non-elective PS contributions going into the plan. EEs handle the investments of their own deferrals and the match. The employer discovered that, for several years, the PS assets hadn't been invested in accordance with instructions that were sent to the Trustee many years ago. He admits that he hadn't been closely monitoring statements and didn't discover the error until recently. The employer is willing to make the earnings adjustment, but this error doesn't seem to fit under the "covered transactions" section of the Voluntary Fiduciary Correction Program. Should it be submitted under that program anyway? We're also wondering how far back he needs to go. Isn't there a statute of limitations?

I just inherited a 403(b)(7) plan (not an organization exempt from filing under Title I of ERISA) that never prepared the old "limited filing" Form 5500's for the years it was in existence. I have been provided the necessary information to prepare the 2009 Form 5500-SF.

Using the new EFAST2, how do you think I should go about preparing the late returns? Using the limited filing option? Not filing the late returns and have the tear-stained letter ready? I don't think the client would be able to retreive the financial information for the late years, except for maybe 2005-2008.

Anybody have an opinion? Thanks for any replies!

Hi,

We normally do not handle defined benefit plans but are trying to help a client. The client has a single person 412i plan. They had a prior recordkeeper that installed the plan and maintained the plan document - which appears to be up to date. The do not wish to have their prior recordkeeper handle the termination of the plan.

We are terminating the plan document - obtaining a terminating amendment from the plan document provider (datair - which is what we use for our defined contribution plans).

We are filing for termination with the PBGC.

My question is, can the client roll his money out of the defined benefit plan before receiving a statement from the PBGC? He wishes to roll the money out now. He is the only participant in the plan. I thought he had to wait for the PBGC to issue their statement before he could distribute - but since this is a single person plan thought I should check into this.

Thank you.

A participant terminates on 12/31/2008. His final paycheck is paid in 2009. Is that employee included on the 2009 ADP/ACP test? No last day rule for match. Would they also receive a SHNEC on that compensation?

What is the first step to make investment that makes our life happy even after retirement?

A one participant/owner implements his own profit sharing plan.

No other employees.

His plan has say 100k in assets.

The owner wants to invest in art work with some of the plan assets.

As far as I know this is an allowable investment. Does anyone know for certain that such an investment is permissible? Or know otherwise?

Thanks.

A one participant/owner implements his own profit sharing plan.

No other employees.

His plan has say 100k in assets.

The owner wants to invest in art work with some of the plan assets.

As far as I know this is an allowable investment. Does anyone know for certain that such an investment is permissible? Or knowotherwise?

Thanks.

We are finding more and more accountants are telling us that when they figured the amount of self-employment earnings for line 14 of the K-1 they have already taken into account the self-employed individual's (SEI's) own contribution.

Now, I am not an accountant, but I have researched the self-employment issues with regards to qualified plans extensively. My understanding of the way it SHOULD be done is that only the deduction from the common law employees would be taken out before computing the amount for line 14. The deduction for the SEI's own contribution is taken on the Form 1040.

Has anyone else been told this? Am I wrong in my statement about how it should be done?

If the accountant's are doing it this way, are you grossing up the amount on line 14 by the SEI's own contribution before calculating the deduction for 1/2 of the self-employment tax (which again I believe should be the proper way since my understanding is that the self-employment tax is figured before the deduction for their own contribution)?

Let me know your thoughts!

Thanks,

Laura

Im sorry if this has already been posted somewhere--I have searched and cant find an answer.

Question:

Can a plan stop the accrual of benefits for a participant who remains employed by the sponsoring company past the plan's normal retirement age? I know the plan is not required to pay benefits, but can it cease accruals. If the plan sends a suspension of benefits notice, does that allow then to cease benefit accruals?

Thanks as always

Hi,

We have a client who is on the datair volume submitter plan document. They are a calander year plan. The client signed their 2007 amendments on 2/20/09. At the time, I thought this was correct because 415 would have come into effect on 1/1/2008. For this client, we had found some other amendments that were signed late and had filed under vcp to correct those - but this 2007 amendment was not included in vcp. Datair says that the 2007 amendment should have been signed by 12/31/2007 because it included wording to comply with the Heinz Act 411-d regarding vesting.

So now the plan is being audited by the IRS. I am stressed that this 2007 amendment will cause problems. Can anyone give their thoughts on wether this should pose a problem. I am going to argue that there is anti cutback wording in the document that would protect the vesting issue.

Thanks for any help.

Apparently (I've been asked to post this) Relius generates a validation error when a lookback month is entered in line 21b when the full yield curve has been used, and this validation error prevents filing.

Are there others out there who have experienced this and perhaps found a solution, or is everyone leaving that blank even though they may have used October 2008 rates?

We have a plan that had 2 late deposits in 2009 and we have calculated lost earnings and prepared Form 5330. Some of the lost earnings are for Roth deferrals in addition to the pre-tax deferrals. Do we deposit the earnings to the Roth deferral source or should all earnings be deposted to the pre-tax source? I haven't been able to find any guidance on it and we have differing views here in the office. Any thoughts are appreciated.