Assume a plan uses a calendar year. For withdrawals occuring in 2009, the plan uses one of the permissible withdrawal liability allocation methods which includes an 8% investment return assumption. A participating employer requested a withdrawal liability estimate in 2009 and the plan gave it an estimate of $300,000 (assuming the withdrawal occurred in 2009). Effective 1/1/2010, the trustees changed the investment return assumption from 8% to 5.5% (everything else about the withdrawal liabilty allocation method remainded the same). The trustees did not notify participating employers of this change in advance. The participating employer ends up withdrawing on June 1, 2010 and learns of the investment return assumption change for the first time when it receives the plan's notice of withdrawal liabilty. Its withdrawal liability using the new investment return assumption is $500,000. The participating employer appealed what it describes as an unreasonable change to the assumptions adopted by the trustees, but the plan takes the position that the changes were reasonable for a variety of reasons, that the trustees had the fiduciary authority to make such a change, that such change is prudent for a variety of reasons, and that nothing in the plan documents or applicable law prohibit the change. Does anyone know what rules govern how/when the plan's trustees may adopt changes to the assumptions which underlie withdrawal liability calcs? Thanks!!!

Is there a way to file a "partial" Form 5500 for a large plan if the client is non-responsive or the auditor has not yet returned the audit?

As I understand it, the opinion needs to be attached, so is there a way around this without incurring penalties?

In the past we could just send in a paper copy without it then amend when we received the opinion from the accountant.

What is the difference between:

15 Recordkeeping and information management (computing, tabulating, data processing, etc.)

AND

64 Recordkeeping fees

Do I need both? Is one the service and the other whow they get paid for it?? Same thing for:

27 Investment advisory (plan)

AND

51 Investment management fees paid directly by plan

Does an AFN still need to be issued for a terminated plan.?

Plan terminates 12/31/2008 and IRS takes forever to approve termination, resulting in a mid 2010 payout. Must a 2009 AFN be issued (by 5500 filing date of 10/15/10)? What about next year, is a 2010 AFN needed for the final short year?

I've heard nothing but quiet Yesses on these questions. Is there any new information?

In a plan that uses the safe harbor match, does the document have to include matching on catch-up? I know that mathmatically it doesn't matter, but I think I remember that as a document requirement, safe harbor match must include catch-up contributions. Clarification is most appreciated! Thanks!!

A client has come to us with this situation:

I have an employee that was cashed out of her prior 401k plan.

It is my understanding that if she wants to rollover the funds to her current (our client's) 401k plan, she would have to make the distribution “whole”. Is this correct?

She would like to sign the check over to her current employer and pay the federal taxes that were withheld along with the distribution check. How long does she have to do this?

How do you fix the 1099 that the prior employer will generate for 2010 for a distribution, which they thought was a lump sum and is now a rollover to another qualifed plan?

Thanks for your help

I have a plan with husband/wife retired, but still owning 90%, son is only other employee, he runs the business but owns 10%. Is this considered a “one-participant” plan?? There are no employees, other than son, and he is 10% owner. No other plans either. In past we filed 5500’s – it didn’t matter per se- but now with e-FAS2 I’d rather do EZ if this meets the rule, not sure.

on the average, Yankees spent more for 9 players than Tampa did for the whole team

yet Tampa finished with a better record.

hopefully now someone will beat the evil empire!!!!!

Team 2009 2010 Average

Yankees $201,449,189 $206,333,389 $8,253,336

Red Sox $121,745,999 $162,747,333 $5,611,977

Cubs $134,809,000 $146,859,000 $5,439,222

Phillies $113,004,046 $141,927,381 $5,068,835

Mets $149,373,987 $132,701,445 $5,103,902

Tigers $115,085,145 $122,864,929 $4,550,553

White Sox $96,068,500 $108,273,197 $4,164,354

Angels $113,709,000 $105,013,667 $3,621,161

Mariners $98,904,166 $98,376,667 $3,513,452

Giants $82,616,450 $97,828,833 $3,493,887

Twins $65,299,266 $97,559,167 $3,484,256

Dodgers $100,414,592 $94.945,517 $3,651,751

Cardinals $77,605,109 $93,540,753 $3,741,630

Astros $102,996,414 $92,355,500 $3,298,411

Braves $96,726,166 $84,423,667 $3,126,802

Rockies $75,201,000 $84,227,000 $2,904,379

Orioles $67,101,666 $81,612,500 $3,138,942

Brewers $80,182,502 $81,108,279 $2,796,837

Reds $73,558,500 $72,386,544 $2,784,098

Royals $70,519,333 $72,267,710 $2,491,990

Rays $63,313,034 $71,923,471 $2,663,832

Blue Jays $80,538,300 $62,689,357 $2,089,645

Nationals $60,328,000 $61,425,000 $2,047,500

Indians $81,579,166 $61,203,967 $2,110,482

Diamondbacks $73,516,666 $60,718,167 $2,335,314

Marlins $36,834,000 $55,641,500 $2,060,796

Rangers $68,178,798 $55,250,545 $1,905,191

Athletics $62,310,000 $51,654,900 $1,666,287

Padres $43,734,200 $37,799,300 $1,453,819

Pirates $48,693,000 $34,943,000 $1,294,185

We administer a few DC plans that insist on charging terminated participants the distribution processing fee. We know this is somewhat common. Is this possible with a distribution from a defined benefit plan?

I am using IFILE to create the xml for importing into EFAST2. So far, success.

However, when the 5500 is viewed on EFAST2, the filing does not flow. In short, you would expect to see the schedules in order with the attachments following and then the complete audit report. I see no way to move the attachments around in either Relius or EFAST2.

Can anybody help????

Is there any prohibition on an adopting employer adopting a safe harbor plan when there are fewer than 3 months left in the Plan Year? The plan year IS more than 3 months...

EFAST2 passwords expire every 30 days.

This makes perfect sense because you certainly wouldn't want anyone getting into the website and stealing your life savings or using your credit card. Oh, wait, this is not a personal financial return. Never mind.

"You will be prompted to create a password. The password must be a combination of letters, numbers, and special characters, and must be re-set after 30 days." [note, you cannot reset to the same password] S.O.A.B

I would suggest MMMYYYY. E.g, OCT2010 (all caps). This seems like a good but no-good solution. First, it's not long enough. Second, you may not remember your most recent password if you log into the website sporadically. The user is almost relegated to writing the $%#@ thing down unless someone has come up with a memory algorithm they'd like to share.

ASPPA ASA indicated:

In reviewing IRS announcements regarding who will need to obtain a PTIN, I do not note where 5500s are mentioned. If I have overlooked the obvious, would appreciate someone pointing out where. The 5500 is an information, and not a tax return.

Client had had a SIMPLE with on mutual fund company for several years using the fund company's SIMPLE plan document.

THey now want to enable participants to put their funds into other financial institutions of their choosing.

Is this allowed ?

What plan document swill they need ?

THank you.

Last week I searched the forums and found an answer to this question, but now I can't find that thread again. Here are the facts. I have a 401k plan with a PYE of 9/30. I am trying to determine if the plan is Top Heavy for 9/30/2010. I have one person who is an officer and during the PYE 9/30/2009 she earned 151,000. During PYE 9/30/2008 she earned well below any limit at 85,000.

When I generate a TH report at 9/30/2009 out of Relius Administration, the system identifies this officer as a Key EE because her compensation is in excess of the calendar year 2008 limit of 150,000. My research seems to indicate that the compensation for determination of TH status for the officer is for the "calendar year in which the plan year ends". This comes from Treasury Regulation 1.416-1 T-14Q. Relius, however, is using "logic" in their system that uses the limit in effect at the beginning of the plan year and they are extremely insistent that this is correct.

My bottom line question is this. To determine TH status for 9/30/2010, do I look at the officer's compensation in 9/30/2009? If so, what limit is used?

Thank you

Plan has 4 former participants (no longer employed) and one owner at 12/31/2008. The former participants are paid out in early 2009, leaving only the owner.

For 2009 does this plan qualify as a " One participant Plan" and allowed to file 5500 EZ for 2009?

If so, and it has less than $250 k in assets is it exempt from filing the EZ?

I've been trying to explain that while no 5500 needs to be filed for the cafeteria plan, there should be 5500s filed for the welfare benefit plans. Is it possible that there is no underlying plans because the insurance company handles everything? When I ask for plan documents I only get things that relate to the cafeteria plan.

Hi - I'm somewhat new to the 403b world and had some questions put to me by a broker. I'm not sure how to respond. A local municipality is looking to start up a retirement plan - they currently have a SIMPLE. It will cover school EE's and other municipal EE's. They want to make a 3-5% contribution to the employee's.

Some questions:

1) can they offer a 401k or are they limited to a 403b?

2) Since it is a government agency must the 403b be a non-ERISA plan or can it be an ERISA 403b?

3) If they can offer both 401k or 403b, what would be the advantage of either?

Thank you for any insights you can provide!

That's 100110 in binary.

We have 2 companies A and B, in similar line of business where A owns part of B, but they are not a controlled group. Employees often transfer between companies. Situation we have is employee terminates with A and transfers/is hired by B. Lets assume employee met eligibility in plan A and had been particiipating for years. Plan B credits service with Employer A under the predecessor service provisions. Plan B has one year of service with semi-annual entry dates. Employee is hired on August 5th and has his service credited by Plan B. So when does emplloyee enter plan B? On August 5 or next January 1?

Thanks