Myself, along with two other employees are participants in a 412i plan that is terminating. There have been four outside parties involved with the administration and termination of the plan and have reason to believe that many things have been done wrong. We have been given inconsistent information from each party and have had information withheld from us. How can I find an advocate to review and advise on our behalf as we are in way over our heads trying to understand this complicated plan and termination process.

We are wondering whether a fee that we charge for the distribution of a participant's account is to be included in Box 1 of the 1099R. If so, should it also be included in the taxable amount box?

Thanks for your help!

Hello:

This one seems to has me going in circles.

Participant is a FT Employee and has worked and been eligible for the 401(k) plan for 4 years. Participant decides they want to change to PT status. Plan excludes PT Employees until or unless they work 1000 hours during an eligibility computation period.

The answer would be easy if they were moving into a different type of excluded class (i.e. union emloyees, nurses, etc), but this PT status has me struggling. Given the IRS's sensitivity to this PT/Temp class exclusion, I am not sure how this should be applied.

If they change today into PT status, but have worked 1000 hours already in 2010, would they really ever be PT, or does the "hours clock" start over from the day they enter the PT excluded class?

Obviously the risk is if they exclude them, and they should not have and a good amount of time passes before discovery, they will owe QNECs to correct, whereas if they include them and it is determined they "guessed" wrong, the correction would be to get the money out of the plan. Just not sure

Thanks in advance for any insight into this application.

Andmik

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Is there a problem granting 100% vesting when certain employees are hired and they previously worked at certain medical facilities and are now being hired by a certain employer, lets call it an anesthesilogy PA. If HCEs and NHCES of the group being hired are treated the same, there is no discriminatory treatment. But granting this group 100% vesting and immediate eligibility while new hires of the employer have to work 3 years for 100% vesting and one year to be eligible, creates BRF testing does it not?

I appreciate any insights, thanks!

I have a plan that lays off employees during the winter. When the employee comes back we refinance their loan to be sure the finish the loan in the original time period. One participant came back and made a few loan payment but his loan need to be paid up by 6/1. He still has a $500 balance. He needs to pay off in full now or the loan defaults correct? It is a deemed distribution not an offset correct since he has not had a distributable event? This also limits him to not being able to take a new loan in the future right?

Also, I have a plan that stopped making payments on a participants loan b/c the participant could not afford to make the payments anymore. The plan just told us they did this months ago. The loan is in default now. Is this also a deemed distribution since the participant still works there?

When running testing using net comp, if the owner has K-1 income of say $250,000 AFTER all employer/payroll tax deductions, are other people reducing the comp by the $16,500 in deferrals to test consistently?

I'm not sure there is any basis for doing it this way, it just seems like the right thing to do...

First year of Non-profit organization is 2010. There are no owners and three of ten participants are earning more than $110,000 in 2010. Are there any HCEs in 2010 if there was no employer in 2009? Thanks.

FT Williams has a report that indicates whether a 5500 has been accepted and the date.

One plan was accepted the other day, just for the heck I tried the DOL website

(you can enter EIN, plan name or whatever,

http://www.efast.dol.gov/portal/app/dissem...?execution=e1s1

yes indeed, its already out there for full public viewing.

In order for an HCE to take a lump sum from his employer's DB plan, he was required to invest 125% of the distribution amount in a restricted IRA. There is a Security Agreement in place. He invested the assets in a variable annuity. The financial institution is both the owner and the beneficiary of the annuity. The participant is the annuitant. This took place about 3 years ago. Now, we're trying to determine what options are available to him if he wants to get out of this annuity (understanding that the Restricted IRA provisions must remain in effect wherever he invests). Paying the surrender charge will be the first deterrent, but if he decides to bite the bullet, the Security Agreement says that the DB Plan Administrator and the Participant can agree on a successor custodian or trustee and provide the current financial institution with transfer instructions.

The original investment representative is now out of the picture, and the replacement rep doesn't seem to understand what this Restricted IRA is. I'm hoping that the fact that the institution is the owner and beneficiary under this annuity won't cause a problem. Any thoughts from those of you who have run into this type of arrangement before? I don't see any problem with the Restricted IRA itself -- I'm just not sure that an annuity was the way to go.

I have a small DB plan where the owner is taking his RMD. During 2009 he took $9995. This is and END OF YEAR valuation so the assets as of 12/31/09 are less the $9995 he took. There is no Target Normal Cost for the year.

When calculating the Funding Target, since it's based upon the accrued benefit as of the first day of the plan year, would I add back the $9,995 RMD distribution that was taken on 12/01/2009 for "calculation purposes" for and End of Year valuation?

Seems to me if you need to "pull out advance deposits" you should "add in" distributions....right?

How soon does the average plan force out termed associates? Monthly, quartely, day after terming?

We have not been doing forced distributions as we shoull have, nor has our record keeper. We want to clean this up. Our plan spells out force outs, under $5,000 but only for the amount-- not the timing. We do have a fair amount of rehires, so we want to be careful.

Thank you

A client has approached us to be their TPA.

The client has a 403b Plan and a separate Profit Sharing Plan.

The client never adopted a written plan document by December 31, 2009. The 403b plan just has salary deferral, no employer money.

What do we do about not adopting a written document by 12/31/2009?

The client would like to merge the 403b Plan into the Profit Sharing Plan. Can this be done? Can the 403b assets be transferred to the Profit Sharing Plan? Does the 403b plan have to be terminated?

Looking for some thoughts....

Thanks.

I need a little help!.

I have a group health client (63 employees) where the employer currently pays 100% of the premiums for both Employee AND Dependent Health Coverage, They wish to continue this practice for all of their current employees however they do not wish to pay for benefit coverage for any future new employees, and they've asked me how they might effectively do this. The idea is to not reduce any benefit their current employees have while reducing their future cost exposure.

I can't think of any way they can effectively do what they want, but I can't find a statute that specifically precludes this type of "discrimination". Any ideas would be greatly appreciated.

A public school is the employer. Can the employer contribute to a 457 or 403(b) plan for an employee if the employee chooses not to elect the medical insurance offered by the employer. If the employee was to take the medical insurance, the employer would pay a portion of the premium. There is a cafeteria plan in place for this employer.

I am perplexed. The definition of "includible compensation" appears to allow contributions to a 403(b) for five years after an employee's termination of employment. The 403(b) explanation at irs.gov confirms that understanding.

On the other hand, RIA has the same definition for includible compensation but then (citing the regulations) indicates that the exclusion does not apply to former employees. What am I missing? Can a contribution be made by the former employer which is taxable income as contributed?

In his self-directed account, the owner of a company is invested in his company stock (about $120,000 worth). He gradually wants to buy back these shares. Under what conditions may he purchase the stock from the plan?

Are paid interns considered common-law employees and, if so, can they be categorically excluded from participating in a plan (subject to the minimum coverage and nondiscrimination rules)?

There is some discussion in my office as to whether 13B should be marked No or left blank. We haven't filed any plans yet so can someone provide me some information on whether a plan is rejected with or without line 13B completed?

Thanks.

How much relief is available under the operational failure guidance for non-exempt SARs? I can study the Rev Proc but maybe someone can advise on how, in very general terms, generous the relief is.