Plan started 5/1/09, and is a 12/31 year end, we received schedule A info from insurance carrier for the policy which ran from 5/1/09 through 4/30/10, ending persons covered was 167.

Do I complete the Sch. A insurance carrier policy / contract year as ending 4/30/10? I reviewed this and it is my understanding that contracts are reported in the plan year that they end, if so then this policy would not be reported until 2010...is this correct?

Thanks for any help.

It looks like we may get a break for 2010 from freezing benefits as long as the 2008 AFTAP was at least 80%.

So for example, if you have a calendar year plan and your 2008 AFTAP was 85% and you did not get a certified AFTAP for 2009 and 2010, benefit accruals would not be frozen until 10/1/2011 unless your 2011 AFTAP was certified at 80% or more by that date. Of course the other benefit restrictions would apply.

Does anyone disagree with this?

Is there anything special that needs to be done?

Can anyone comment on the pros and cons of maintaining grandfathered status for a health plan? Is losing the plan's grandfathered status that much of a negative?

We were asked to review a DB that has been frozen for about 8 years. It seems as though the Employer had no interest in making any more contributions.

Aparently the only people still in the plan as of the current year are those who were in the plan as of the freeze date. when I asked the employer why no one has come into the plan since the freeze date, I was told the previous administrator told him since no new participants would accrue any benefits, they were not participants.

Proper 204(h) notices were given, the plan was amended to cease benefit accruals and all required as well as optional amendments have been prepared and signed.

The employer has received a letter from IRS that the plan is being audited for 2008.

Any ideas on how to proceed - they do not want to use the current administrator, some disagreement over fees!

Client contributed approx. $50,000 above minimum in 2008 (1st year of plan, BOY val date). But since the funded ratio for 2008 is technically 0% can this prefunding balance not be used to offset the minimum required for 2009?

We have a participant who is in quite a tough spot. She is making next to nothing every week, her husband died as well as her son within the past year. She is running out of liquid assets and she already has an existing loan for $28,000 or so. The loan is nowhere near maturity and she essentially cannot pay it.

What options would she have at this point? Would this qualify as a hardship if it technically does not fit into the safe harbor rules? Could she avoid the 10% penalty if she had the funds in her account to take a hardhsip. She cannot take another loan; it would put her over 50% of her total account balance.

If anyone has any experience with this, I would appreciate any feedback, suggestions, etc.

Thanks.

Pursuant to my reading of the PPACA regulations, it appears that dental and/or vision benefits that are offerred under a spearate insruance policy or contract would not be benenfits subject to the age 26 requirement as now imposed under PPACA and the issue about whether the benefits are an "intergral part" of a group health plan is simply irrelevant for purposes of this analysis.

Thoughts on this opinon are appreciated.

Is it necessary and useful to provide a SAR if each participant is self directing their entire account, receives statements and has on line access?

I suppose the SAR would provide info re: bonding.

thanks

Has anyone used the Streamlined VCP Appendix F, Schedule 4 to correct an ineligible employer's sponsorship of a SIMPLE IRA? Specifically, Employer became part of a controlled group via stock purchase in 2004. One entity has a profit sharing plan. The other has a SIMPLE IRA. I know about the 2-year tranisition period following an asset sale, but we are beyond that time.

My question is.....the Streamlined VCP application gives the proposed correction method of simply ceasing all SIMPLE contributions. There is an option to ask the IRS to approve retaining the SIMPLE money in the IRA accounts rather than distributing as excess. Has anyone been successful with this?

Also, the other entity has a profit sharing plan. The employer either wants to: (1) terminate the PSP and put everyone under the SIMPLE, or (2) terminate the simple and add everyone under the PSP - maybe convert to a 401(k) safe harbor. I know option one would have been available during the transition period, but that is gone. If they elect option two, do they have to wait until the beginning of the year to add the employees to the PSP. Since the SIMPLE would be terminated as a matter of law, it may be allowable if the PSP allows. Any thoughts?

Thanks!

Here is the situation:

Employee worked for company "A" in the 1980s and was a participant in an ESOP. Employee left company "A" and the company was acquired by company "B", who was subsequently acquired by company "C". Company "C" has no information about company "A's" ESOP. Any idea how the former employee could get access to this ESOP?

Please respond if you have filed an EPCRS for a multiple employer defined benefit plan. I am interested in discussing compliance fees.

Thank you!

I always get confused with these tests.....

Here is the situation (3 Plans):

1) 401(k) Plan with Match (with multiple match formulas) and 2 separate PS contributions (3% and 4.5%)

2) MPP Plan with service based formula

3) 401(k) Plan with Match

Everything passes coverage on its own (taking the CG into consideration) except the 4.5% contribution. I can "aggregate" the 3% & 4.5% to pass the ratio test. Doing this would then require General Testing. Question: for the General Test-do I just include the 3 & 4.5% contribs or do I need to include the MPP contribution? If I don't include the MPP, it is subject to its own General Test, Correct?

For BRF, I would "test" each level within the first plan and count the level in the 3rd plan as not benefiting? In other words, they would be in the denominator of the counts? Or do I have to "test" their level against plan #1's?

Does anyone have a link to the old IRS Tax Savers Credit Notice that was in Spanish?

Form 5307 asks whether the plan has received a determination letter. If you check no, it says you must submit copies of all prior plans and/or adoption agreements.

My thought on this is that the prototype approval letter does not count as a FDL and the sponsor must submit all prior plan docs. Or am I reading too narrowly? If my interpretation is right, is there any practical limit on how far we have to go back if the plan has always been a prototype? Does the IRS really want reams of old master documents and adoption agreements? We're a VCP nonamender so we do have to get a FDL.

Any experience with this would be appreciated! Thanks!

Is anyone aware of a product of this sort in existence or in the works?

Presumably when regulations issue on how nondiscrimination rules will apply to insured arrangements it may have to change but just wondering if anything exists at the present time.

160.410 (Affirmative defenses) provides that no civil penalty will apply to violations which are "corrected" within a 30 day period (or such additional period allowed by the Secretary). What is the appropriate "correction" method where the violation is a breach resulting from mailing PHI to the incorrect individual?

We are preparing the applications to file with the IRS and PBGC for a plan termination. There are 98 participants in the plan (some active, terminated vested and retirees). The company is going to purchase annuity contracts for all the participants. The plan does not pay out lump sum benefits (unless under $5,000).

On the Notice of Plan Benefits instructions I don't see what is included in this situation for the active and terminated participants when the company will purchase annuity contracts. In other situations where there will be a lump sum, you show actuarial equivalence and the 417(e) rates, etc. I think I would include the basic data (name, birth date, hire date, term date, NRD, salary history, monthly accrued benefit in the normal form of payment).

Then I would include a statement that ..."the Plan Administrator intends to purchase an annuity contract which will provide all plan benefits in accordance with the terms of the plan." They will receive a Supplemental Notice of Annuity Information that will include the possible insurers.

Sound OK?

Is a DC plan required to meet the cross-testing gateway requirements in order to calculate the average benefit percentage test on a benefits basis? The question has been asked a couple of times in this forum and the answer is believed to be no.

In the regulations, it is clear that if there are DB plans in the mix and the optional rule under 1.410(b)-5(e)(3) is used for the ABP test (include DC plans only), the testing must be done on a contributions basis. However, if there are no DB plans, it seems to be less clear. The IRS has informally said the gateway requirements apply (see Joint Committee on Employee Benefits Q&A with the IRS and US Dept of Treasury based on a meeting with staff May 11, 2002, Q&A 6). Therefore, I am interesting in hearing how others have concluded that the gateway requirements do not apply.

Thanks

I have a plan that allows for a participant to direct their salary deferrals only; their safe harbor and their profit sharing go into a pooled account that is directed by the trustee. Would you consider this 404© compliant? My boss wants me to code their 5500-SF with a 2F and I disagree.

With the new rules on deposits we have people starting to send contirbutions in prior to the paydate. My undertanding is that if this is done the contribution can be considered an employer contribtuion not employee deferrals.

Is the date that is important here the paydate or period ending?

For example if the employee earned the money but has not been paid yet would it be feasible to process a contribution prior to the paydate?