What is the required timing for funding (remitting to the Recordkeeper/Trustee) matching contributions; and the deadlines for funding annual profit sharing and annual match contributions? Can someone point me toward where I can find Regulations on this topic?

A plan provides for QJSA as the normal form of distribution. A participant retires, but never consents/elects distribution of his benefit. RMDs commence. The Plan is then amended to eliminate the QJSA and provide for lump sum distributions only.

I don't believe the retiree's annuity starting date has commenced as distributions were made under 401(a)(9). So I believe that the amendment to eliminate optional forms is in effect for this participant's benefit and the Plan is permitted to pay the retiree a lump sum distribution of the remainder of his benefit on the next RMD date. Anyone agree/disagree? Thanks.

They let their participants invest in the same banks CD's. Is this a PT? I seem to recall there were some hoops they had to jump through to avoid a PT - I didn't think it was just a straight exemption of any kind.

My understanding is that the IRS has indicated that it will has yet to issue sample amendments regarding the Code section 436 limitations. However, I do not believe these have been issued (I can't find them).

I anyone still expecting these to be issued? Has there been any indication as to when they might be issued? Or is everyone just drafting their own amendments, rather than wait for the IRS?

Thanks.

Ok gents and ladies, this is my predicament:

I have a client who recently realized that he has about 7 plan participants who (originally participants made loan payments through payroll withholding which were inadvertently stopped after the employer switched payroll systems) have defaulted their loans. To make matters worse, these 7 loans have lapsed their 5 year payment term. Thus, correction under Rev. Proc. 2008-50 Sec. 6.07 is limited to the following remedy:

General rule for loans.

Unless correction is made in accordance with this section 6.07(2) or (3), a deemed

distribution under § 72(p)(1) in connection with a failure relating to a loan to a participant

made from a plan must be reported on Form 1099-R with respect to the affected

participant and any applicable income tax withholding amount that was required to be

paid in connection with the failure (see § 1.72(p)-1, Q&A-15) must be paid by the

employer.

Now, my boss is of the opinion that the withholding requirement imposed to the employer is a penalty. In other words, he is of the opinion that the withholding is required and be paid by the employer regardless of whether or not the participant received a transfer of property or cash from the plan at the same time the deemed distribution occurred.

I took a look at Q&A 15 and it says that the 20% withholding that would be applicable to the deemed distribution that occurred in a date later than the date the loan was made (as in this case) is only required if the the participant received a transfer of property or cash from the plan at the same time the deemed distribution occurred (not the case for any of the affected participants here). My take on it is that withholding is not required in any of these cases as per Q&A 15 language.

My question is: Is the withholding requirement compulsory for the purposes of the VCP correction procedure as a penalty to the employer (trumping the Q&A language) or is it only required if the participant received a transfer of property as per Q&A 15?

Does anyone know how to get this out of IFILE?? I need to do an amended through web-client (because our name showed up as the plan administrator on the 5500, which is unavoidable in IFILE, I've been told...

A group of companies with 401(k) plans was probably a controlled group. We were trying to get ownership percentages so we could get them on the right track, but in the meantime some stock was bought or sold, and as a result they are no longer a controlled group. Now I'm trying to figure out how to treat them for 2010. It doesn't make sense to go through hoops to make them comply with the controlled group rules for 6 months, or whenever the transaction took place. What happens when controlled group status goes away part way through the year?

Question about webclient. I need to amend a 2009 because the wrong attachment was originally filed with teh 5500. I've clicked the amend button in webclient and status is a "amendment in progress". Do I just delete the original amendment, attach the revised and then efile or do I need to republish?

So client want to file today on paper for a late 2008 form 5500 (today is 10/15/2010). I read that this is acceptable but today is the last day that paper will be accepted. My question, where do I send? I am wondering if the address has changed from the instructions, does anyone know?

Thanks,

A owner of a 1 participant plan wants to purchase real estate with plan assets.

He wants to receive a loan. To my knowledge the plan can obtain a loan if a bank is willing to do so.

Are there any know differences with a loan to pension plan versus an individual?

The owner wants to know if he can personally guarantee the plan loan. I don't believe this can be done unless of course the corp could make a deductible plan contribution that would be used to pay any loan payment due, etc. Make sense?

Any other observations?

If a plan uses a loan to purchase real estate would the amount of income/appreciation associated with the loan (indebtedness) be considered UBTI?

I know UBTI does not apply to real estate, but not sure if this exception holds when there is a loan.

thanks

• We have a fully funded HSA plan with a limited FSA.
  
• We also have a PPO with a regular FSA plan that employees can choose if they don't qualify for the high deductible plan.
  
• Currently, have a little less than 50 employees, but that number does go up and is expected to go up to over 100 in the next few years.
  
• The company self administers the FSA plan. What HIPAA issues do you see?
  

Thanks for the help...

Elderly client got check books mixed up and wrote a $10,000 charitable contribution from the profit sharing account.

I seem to recall charitable contributions could be made from IRAs (up to $100,000), but that the legislation trying to extend it to qualifed plans never went anywhere. I also seem to recall that provision also was set to expire for IRAs but can find the year of expiration. IRS Pub 590 for 2009 indicates it was still in effect for 2009.

Questions

1. Am I right this is not allowed in qualified plans?

2. Can it be treated as a taxable distribution of $10,000 from the qualified plan and then a $10,000 charitable contribution for her accountant to deal with on Schedule A of her 1040?

Any thoughts are appreciated.

I'm not sure where to put this question, so I'll go "general". Has anyone any experience in qualifying a PR db retirement plan? Is it like here where you can be operational and then apply for a determination letter or do you have the plan approved before assets are deposited?

I have someone who wants to spin off its PR population into a PR plan before 12/31/2010 to take advantage of Rev. Rul. 2008-40. Is this possible at this late date since there is no PR plan in place?

Thanks for any response.

An individual was a plan participant and was vested when she terminated employment after 3 years on the job. She made no deferrrals, and there were no employer contributions allocated to her account--therefore, she never had an account balance (i.e., she had an accrued benefit of $0, in which she was 20% vested). She then was rehired 10 years later.

I assume that means she is a "nonvested participant" (as defined in IRC Section 410(a)(5)(D)(iii)) and therefore subject to the rule of parity (IRC Section 410(a)(d)(D)). Agreed?

Or, does (iii) mean that she is not "nonvested" because she has a nonforfeitable right to an accured benefit and it's just that this particular accrued benefit turns out to be $0? In other words, does the answer turn simply on whether she is vested or not vested, with the question of whether or not there's an account balance being immaterial? (The latter argument falls apart if you consdider employee deferrals, because an individual is always 100% vested in deferrals, and that argument would therefore cause an individual never to be nonvested once eligible to defer.)

Thoughts/comments?

Plan is in 410(b)(6)© transition period following closing of acquisition. It wishes to maximize the transition period, but also wishes to amend its 401k plan to add an auto enrollment feature. The addition of the auto enrollment feature will allow the plan to be considered a safe harbor plan (it already has a level of matching contributions that meets the criteria). Would this amendment be considered material so that it would disrupt the transition rule?

So I passed my ERPA Exams (yeah!), and submitted my application. They make it very clear that it will take at least 60 days to process. When you call up to check on the status of your application, the recording tells you that if it has not been 60 days, hang up and call back when 60 days have passed.

For me, my 60 days will happen the week following the ASPPA National Conference (which I am attending).

A while back, I contacted ASPPA, who told me to e-mail OPR to ask if there is any way for me to apply that CE to my ERPA requirements whenever my enrollment card shows up. Three weeks later, OPR responded to me saying "that's a good question, I'll check on it and get back with you........"

I still haven't heard back from them.

Does anyone know if there's any kind of precident for this with other enrolled persons (enrolled agents, enrolled actuaries, etc.)? or am I just out of luck?

What should a company do if it sends distribution materials to a terminated vested participant prior to the participant reaching age 65 and the participant does not respond? Does 401(a)(14) require distribution to begin or can the company rely on the provision in the regulation that says "notwithstanding the preceding sentence, a plan may require that a participant file a claim for benefits before payment of benefits will commence" and not begin payment until the participant applies or reaches age 70 1/2 - whichever comes first? (The plan says that benefits must begin at age 65, But also requires participants to file an application in order to receive benefits.) Thanks!

Are people going nuts trying to get clients to signh the hard-copy by 10/15, or taking it on faith that if they efiled by 10/15, and subsequently sign the hard-copy they should be all set as long as its within a couple of days?

Generally, or course, not an issue but on 10/15 it becomes an iomportant question!

We have a participant over age 70.5, non-owner, who worked part of the 2010 year, can she still opt out of taking her RMD for 2010 or does she have to be active at the end of the year?

Does anyone know of any circumstances under which an employer can offer a SIMPLE-IRA to one class of employees and a 401(k) profit sharing plan to a second class of employees? This is a single employer with one tax ID number.