Participant retired last year, not a 5% owner, he was 70 1/2. First distribution due 4/1/2010 but suspended under WREA. Participant should take a 2010 RMD by the end of 2010. However, participant is going to be rehired this year. How does this impact the RMD - can it now be further suspended until the year he retires for good?

Any help is appreciated

Working on 2009 calendar year plan. Sponsor paid some per-diems in 2009 for work performed in 2008. Plan has immediate eligibility. Do these employees get counted in testing or no because they weren't actual employees during 2009?

Thx

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Using the 6 IRS approved safe harbor reasons, does a participant have to be in the foreclosure/eviction phase to be eligible under that reason, (i.e. does the plan sponsor need to see an actual Evicture/Foreclosure Notice). Participant has provided copies of his mortgage statements showing he is "late" by 2 months but it does not reference foreclosure proceedings. What is sufficient proof for this reason?

With respect to a 401(k) safe harbor 3% nonelective plan, can an employer amend the plan during the plan year to exclude a category of participants (i.e. leased employees/ or part-time)? Can you make such exclusions and still stay within the safe harbor? Citations are appreciated. Thanks for your help.

For a tax exempt employer with an ERISA 403b plan, is there an automatic extended due date if the employer files the Form 990 with a 3 month extension and otherwise qualifies for the extension - ie plan year and tax year are the same. So if a calendar year plan, 990 is due May 15 but employer extends to August 15. Does August 15 become the automatic due date for the 5500 rather than July 31? I know the rules for a corporate employer, but not too sure on the tax exempt side.

I have to file an amended Form 5500 for 2007 and 2008 for a calendar year plan. Can I mail them?

A terminated employee in a plan without any repayment provision is 100% vested and receives a full lump-sum distribution, and is subsequently rehired before a 5 year break-in-service.

It seems that the plan repayment provision is not necessary since he received a full distribution. Can his prior service be disregarded?

Is it acceptable for fiduciaries to use a minimum level of revenue sharing in search criteria when selecting investment options? For Plan Sponsors trying to have the plan pay for itself, it's difficult to manage the revenue sharing without using a minimum in search criteria.

Can anyone verify for me whether or not the new pension funding relief provisions of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 apply to governmental plans?

Thank you!

This is a question about line 19 of the new Schedule R. Line 19 requires defined benefit plans to break down their trust holdings by percent of total assets into five separate asset classes (stock, investment-grade debt, etc.). If the plan hold assets in trusts, accounts, mutual funds, or other investment arrangements, line 19 requires the plan to disaggregate the underlying assets.

Plan A's assets include a GAC (a separate account) from Giant Insurance Company. Giant will not provide a breakdown of assets in the contract; instead, it will provide only the fair-market value of the whole contract, as determined under FAS 157 and state insurance law, and as reported on its 10Q and 10K. Giant's rationale is that it owns those underlying assets; all Plan A owns is the contract.

This makes sense to me, but Plan A's auditors (Huge Accounting Firm) aren't convinced that this is sufficient. Huge won't formally opine either, but points to language in the Schedule R instructions that clearly requires disaggregation of assets held in "accounts" and that provides no exception for insurance company separate accounts. We have been asked, at the last minute, to resolve this difference of opinion between Giant and Huge. I haven't had any luck finding more detailed instructions or even any formal discussion of this issue. Any pointers appreciated, as this is a very time-sensitive question. Thanks.

I have about 20 extensions I need to file for different clients. We usually file these via regular mail with return receipt requested. If we do this individually, it will cost a fortune. Do you think it would be alright to file them together using one of the overnight services?

In testing a DB/DC combination my understanding is that imputing permitted disparity can be included in the DB EBAR or the DC EBAR, but not in both, is that correct?

Hi everyone,

What are the mode of savings in 401k retirement plan? Is it safe?

I have a calendar year DB plan with a BOY val date. I just want to check to see if this is correct:

2008 val asset method = market

2009 val asset method = average (no IRS approval required)

2010 val can switch back to market without IRS approval.

Is that correct?

With HIPAA, is it okay to let the HR people know how many weeks' vacation an employee sold to purchase benefits under a health plan? I can't imagine that it isn't as the HR staff need to know how many weeks a person has left to take, but wanted to double check...thanks,

When does a participant's benefit accrue under a DB plan utilizing an elapsed time crediting formula? If participants are credited with a year of service on the last day of the plan year, and participants' accrued benefits are calculated based on years of credited service, does that mean under the elapsed time formula that participants do not accrue their benefit until the last day of the plan year?

A not-for-profit organization maintains a foundation which is a separate legal entity. Employees of the foundation are on contract and are paid by the sponsoring organization but foundation employees are treated as independent contractors and paid via 1099. I.e., each is a self-employed individual.

The sponsoring employer maintains a defined benefit plan.

Can the sponsoring employer cove the contract employees under the pension plan with the contract employees' 1099 income counted as compensation for pension purposes?

The sponsoring employer does not want to alter the 1099 arrangement so paying the employees W2 is not an acceptable option.

100% owner of a business sells 100% of the stock to a new owner in 2010. Who signs the calendar 2009 Form 5500? The form is being filed AFTER the sale and it was a stock deal so the new owner "bought the plan too."

My position is that the new owner signs, because the new owner is the Plan Administrator. Why should some unrelated 3rd party be filing a 5500? But of course the owner's valid point is "how can I sign as plan administrator if I wasn't the owner for that period?"

Of course, if the prior owner refuses to sign, the new owner has no choice but to sign. But if the prior owner is willing to sign, does anyone see a problem?

Corbel's adption agreement doens't let you elect hardship distribution for non-deferral balances under a 403b7 contract, but DOES allow it under 403b1. Can anyone shed some light on why that is?