Has anyone heard anything about the release of a new 5558?

We are waiting to hear before filing extensions for 12/31/09 Plans.

Thanks.

DPSRICH

Please ignore this message-I would like to delete it. If I can do so, please let me know

NQS

>2 years work experience. working in a samll consulting firm. Any thoughts?

I am working for a small retirement benefit consulting firm. It seems that no one is interested in taking SOA exams. However, I heard that people need to have a SOA designation in order to become a pension actuary in big retirement consulting firms. Any comments?

A one participant plan owner takes a 10k loan in 2008.

We find out now that he defaulted on loan at outset.

So it is a deemed distribution.

It would seem that the person should amend their 2008 tax return and report income.

Should a 1099R be prepared for 2008 or 2010 to report distribution?

thanks

Can a 403(b) plan be established for a non-profit corporation under 501©(3), but only allow employer contributions (nonelectives) - thus allowing no salary deferrals? The employer has no other plan (no 457 etc). Is this a universal availability problem?

The reason for the question is because 415 compensation continues 5 years after separation and the director (a NHCE) would like to set up a plan to provide nonelective ER contributions (which would continue after separation), but they are not interested in allowing salary deferrals.

Anyone encounter this error after Publishing Forms? If so, how did you/Relius correct it? There were no validation error on RGF nor on WebClient.

Thanks.

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I'm looking at a prototype profit sharing plan that states that: Forfeitures occur as of the earlier of (1) the last day of the PY in which the former participant incures 5 consecutive 1 year breaks in service, or (2) the distribution of the entire Vested portion of the Participant's account AND the forfeiture will be disposed of in the PY in which the forfeiture occurs. Pretty standard. Forfeitures may be used first to pay admin. expenses and the remainder will be "allocated to all Participants eligible to share in the allocation of profit sharing contributions or Forfeitures in the same proportion that each participant's compensation for the PY bears to the compensation of all participants for such year." This plan has variable annuities for investments and can't have a forfeiture account set up using the same investments. The investment co. wants an allocation of the nonvested money of a distribution at the time of the distribution. It seems to me that the allocation can't be made until the end of the year to find out the % of compensation, but that it also has to be done before the year end (since the forfeiture is to be disposed of in the PY in which the forfeiture occurs). It doesn't make sense for that to be in the document if it's not a feasible option. Can we use the 2009 compensation to determine the % of comp for the participants' reallocation or do we have to wait until the final payroll in 2010 and then quick get the allocation done as of 12/31/10?

Hello,

I was wondering if anyone had heard of a union defined contribution plan--money purchase plan actually--that has a provision prohibiting participants from receiving benefits under the plan for at least one year after they discontinue work in a particular industry?

Basically, my client was a union worker for many years, but now he works for himself and he wants to access his money purchase pension plan. The plan says he can't b/c he is performing work similar to that covered by the union. I've heard of this with defined benefit plans, but never defined contribution plans.

Anyone have any experience? Is this OK?

As always, thanks!

Back in the good old days (they were more old than good!), it was common practice to fund a DB plan by purchasing paid-up deferred annuities. Each year, additional annuity contracts would be purchased for increase in accrued benefit. Thus, the Plan was fully insured and except for some final benefits cost, was pretty routine to terminate.

So, presuming the Plan/Trust so permits, the Plan can still fund with paid-up annuities.

Suppose we have a frozen non-collectively bargained single employer frozen DB plan that is covered by the PBGC. The Plan has not been amended to terminate. An annuity quote is obtained and the Plan is sufficiently funded to purchase nonparticipating annuities with precisely zed dollars remaining.

Could this annuity purchase be effected as an investment decision? If so, could the plan then be terminated without the PBGC having conniption fits? Same questions but annuities are purchased only for those in pay status and terminated vesteds?

I am looking to purchase used books and materials for

1. the ERPA-SEE exam - specifically ERISA OUTLINE BOOK 2009 (or 2010 or 2008)

2. Joint Board for the Enrollment of Actuaries EA2-a and EA2-b books

Kindly respond to my post and feel free to post your own needs for used books to this topic, so that a community may assist one another.

An existing Profit Sharing Plan adds 401(k) deferral provisions effective 7/1/2010. Since the 401(k) portion of the Plan is only effective for part of the year, I believe that you may do the ADP test based on the full Plan Year or just the part of the year (7/1/2010-12/31/2010) when the 401(k) portion was effective.

Assuming that the ADP test is done based on the partial year, does the maximum compensation taken into account need to be prorated? So if someone earns $150,000 during the 2nd half of the year, can you use that figure or must it be reduced to $122,500 ($245,000 x 50%)?

I know that if this was a short plan year, you would be required to pro-rate, but techncially it's not a short plan year.

Also, in a situation where participant enters a Plan mid-year, their compensation is not required to be pro-rated.

I'm hoping that this would be considered more like when a participant enters mid-year and therefore the compensation adjustment is not required. But I want to make sure!

Thanks.

BTH

Client has Safe Harbor 401(k) plan with SH Match requirement. The total employer contribution for the 2008 tax year was $20,000 for Safe Harbor Match and $60,000 for the Employer Discretionary Profit Sharing Contribution. The client made a timely deposit of only $60,000. Assuming we can use a portion of this deposit for the required safe harbor match, the client still has an issue with what they put on their 2008 corporate tax return.

What are the client options if they still want the total $60,000 allocated as a profit sharing contribution? If they deposit it now is it deductable for 2010 and/or does the 10% excise tax penalty apply for a nondeductable contribution for 2008.

What would be the issues if the only deposit due had been the Safe Harbor Match and it was not deposited by the corporate due date? Penalties?

Participant, age 68, is taking a total in-service distribution. He is rolling the distribution into an IRA. $48,000 of the balance is after-tax money.

Can he receive a non-taxable $48,000 lump sum distribution and rollover the balance to his IRA?

Thank you.

Kate Smith

We were advised by the DOL that the Form 5500 had to be signed by the Plan Administrator (Plan Sponsor optional) in order to be accepted. In fact had to amend a 5500 for just that (filing signer signed as Plan Sponsor and not Plan Administrator). The 5500 instructions on page 6 seems to indicate this as well.

I have been reading the Form 5500 filing guide from Sungard and they indicate that the "DOL will not consider a filing that has only a plan administrator's electronic signature as a proper filing".

What has everyone been doing?

Does a 403(b) plan sponsor have a responsibility to keep a copy of each prospectus on file (assuming the retirement plan vendor can provide one to any employer or the plan sponsor upon request)?

Has anyone ever found a way to still comply with ERISA and yet make the SAR a little less obvious as to how much is in the trust? I have a few plans where the owner has a million dollars in the plan and the one or two employees have a couple of thousand in the plan due to turnover and the owner hates how obvious the SAR makes it as to how much is in the plan for him.

Thanks.

James

A participant elected payout under a 20 C & L starting 1/1/2004. Participant died 12/31/2008. Client has been unable to locate designated beneficiary. Attorney has advised not to pay survivor benefit to estate lest beneficiary show up at a later date and the plan could be on the hook for paying the death benefit twice. Presumably, this is sound advice?

In any event, participant received 60 payments so 180 payments are due.

Suppose on 1/1/2013 beneficiary is located. What should be paid to beneficiary? [the plan is silent]

(a) 180 payments starting 1/1/2013

(b) 48 back payments plus 132 payments commencing 1/1/2013

© 48 back payments accumulated with interest plus 132 payments commencing 1/1/2013. If ©, what interest rate should be used when the plan -- which is 3,000 years old -- states a single non-age specific factor (.865) for conversion to 20 C&L and the underlying interest rate (and mortality table) is not stated in the plan?

Suppose we have a top heavy 401(k) plan with 15 participants where the key employee (over age 50) made $100,000 and salary deferrals of $5,500. No employer or match contributions were made. When we run the ADP test, our system tells us he would only be entitled to $2,100 of catch-up. This would mean $3,400 would be considered non-catch up and they would fail the test. This would also create a top heavy minimum correct?

Shouldn't we be able to use the entire $5,500 as catch up not subject to ADP testing and top heavy?

The interim final rule re grandfathered plans under PPACA states:

Most employer group plans that I am familiar with enter into insurance contracts for one (sometimes two) years. For a calendar year plan, the policy, certificate, and contract all will state that the plan starts on January 1, 20XX and ends the following December 31. Is a rollover of the contract to the next year considered a "renewal" and not a "new policy, certificate, or contract of

insurance" such that the grandfathering status can remain (assuming nothing else in the policy changed)? Or will all policies lose the possibility of grandfathering upon their expiration date?

I think the former result is the correct one, but the language isn't clear to me and I have had one health insurance expert tell me that the latter is the correct interpretation.

Does the result change if the insurer modifies the language of the rollover communication to state that it is a renewal and not a new policy, etc.?

Thoughts?