I found a q&a on this topic but is dated July 2005. Can someone confirm that this is still how one would do the 5500's for Welfare Plans that are going to be "warpped" into one document and therefore one Form 5500 for the next plan year.

Mark the returns for the un-wrapped welfare benefit plans as the Final filing and indicate that the plan has 0 particpants ar the end of the plan year. Then the next year mark the 5500 as a "first return" for the wrapped plan using a new plan number.

Please share your expierence or any suggestions for reference material to confirm this.

Thanks!

Prospect wants to update their plan for missing 20+ years of documents and amendments. They want to submit under VCP as a nonamender, get approval, then terminate the plan. The do not want to request a Determination Letter.

If a plan submits as a non-amender to go back as far as 1986, even if the 3 newly adopted documents are prototypes for TRA'86, GUST, and EGTRRA, doesn't Rev Proc 2008-50 require the plan to also submit for a determination letter?

During the recent IRS phone forum that dealt with EPCRS the presenter stated that forfeitures could not be used to make QNEC’s for correcting a failed ADP test. This was because Reg 1.401(k)-6 requires that the QNEC come from nonelective contributions that satisfy vesting (100%) and distribution requirements under 401(k) when contributed to the plan. Forfeitures are derived from contributions that were not fully vested when made so they cannot be used.

Does anybody think this interpretation could also be applied to employer 401(k) safe harbor contributions? Would employers not be allowed to use forfeitures to fund the SHNEC or SHMAC?

A trustee said at a union meeting that the management and union trustees altered the trust document so that selection and removal of the trustees would no longer be done by management and the union. Instead the power would now be only that of the trustees. The reason they did this was to prevent the International union from making any changes in the event the local union was trusteed. Would this not be a breach of their fiduciary responsibility?

An employer has two calendar year 401(k) plans, one for the union employees (UEEs), one for everyone else. The union was going to break up. Before they did, the union plan (UEE plan) was amended with an effective date that begins August 1, 2010 - the same date that the union no longer exists. That amendment allowed the same employees, now non-union, to continue to participate in the plan.

The other 401(k) plan is a safe harbor 401(k) plan.

1. Can the plans be aggregated for coverage (for periods after 7/31/2010)?

2. Can they be aggregated for non-discrmination?

3. Would the 410(b)(6)C) exception apply? (I don't think so)

I've been looking off and on for 4 years for info or where to go next. My dad had a pension plan with Atlantic Richfield. I have written to every place and person that I can find. Mostly I get returned to sender. Anybody know what I can do next.

I see one brief blurb in the preamble, and in the final funding regs themselves, in section 1.430(g)-1 of the funding regs issued 10/15/2009, that "seems" to say to use the prior Rev Procs issued regarding insurance valuations for FUNDING purposes and the preamble part specifically cites Rev Proc 2005-25 and 2006-13. However, I believe those Rev Procs verbiage only deal with valuation of insurance policies for distributions.

Any thoughts out there as to whether it is clear that we should be using these 2 Rev Procs guidance for valuing insurance policies for FUNDING purposes too ? Thanks for any opinions.

Plan is using prior year testing and the client does not like the limit on the HCEs. Unfortunately the current year results are worse. So, they have decided to do a QNEC so they HCEs can defer more.

The client understands the QNEC must be deposited before 12/31/2010. So far so good. It appears the QNEC must be based on the compensations for the NCEs for last year (2009). The document allows me to limit the QNEC to those employed at end of year 2009. THis means that we can compute the QNEC based on the anticipated deferrals for THIS year for the HCEs such that the test will be passed.

Did I miss anything?

I need to amend a 2008 Form 5500 to change it from a "single employer plan" to a "multiemployer plan" per the request from an IRS auditor.

This return was a limited information filing for a 403(b) plan. I understand from reading the FAQ's on EFAST2 that I can file via paper until October 15.

Can someone tell me if I have to use the 2008 Form or the current year form to file the amended return.

Thanks

hope this has not been asked exactly before. my question is

two fold:

1). for purposes of applying limits under 404 is earned income always inclusive of

the 401k salary deferral(i.e., we do not reduce for the deferral for

25% limit, 6% overlook, 31% combined etc.).

2.)is the treatment identical for 415. in other words for compensation

purposes, is the 100% of three year average also applied to earned income

ignoring salary deferrals but with regard to other qualified plan contributions?

this client was way above the 401(a)(17) limit in 2007 and 2008 the first two years of

the plan, but that is not the case for 2009. it is a one person k/db combo.

The owner of a company would liek to set up a one-man DB plan for the plan year ended 9/30/2010. The company had other employees up until 4/30/2010, but now he is the only employee. If he implements a one person DB plan, would the initial plan year need to be a short one from 5/1/2010? And would he only be able to use his compensation from 5/1/2010-9/30/2010, or would he be able to use his full year compensation?

If a 9/30 PYE switches to a 12/31 PYE, does the $5,000 threshold for Sched C reporting get adjusted down to $1250 for this short one-quarter period?

Participant failed to pay property taxes on his principal residence. The tax lein sold at auction. The purchaser of the tax lein is going to forclose. The regs provide that Payments necessary to prevent the eviction of the employee from the employee's principal residence or foreclosure on the mortgage on that residence; will qualify for a hardship.

Is there any guidance that suggests that payment of the tax lein to prevent forclosure is permissable?

Thanks in advance.

A plan sold a piece of real estate and received cash and promissory note in exchange. The plan is now terminating and the sole participant will roll the vast majority of the benefit into an IRA. The participant will also be assigned the plan's interest and rights in the promissory note. How is the value of that interest in the note determined for reporting and income tax purposes? Is it simply the amount of the outstanding principal and interest owed on the note? Should the value be something less than that since a default is always a possibility and there's no guarantee that the participant will receive the full amount?

Is there any difference between SF line 7 (boy) asset and SB line 2 asset?

Is there a difference between 5500-SF Line 7 assets (boy) and Schedule SB line 2 assets?

I am taking over a Plan where the Plan Document has not beed amended for at least 5 years, and does not have the GUST, EGTRRA or PPA Amendments.

I remember someone telling me about a Correction Program that the Plan can enter to bring it current.

Does anyone have any information on this and the cost assocaited with it?

Any help is greatly appreciated.

does anyone see a problem with this type of situation. An RIA fiduciary service provider who is also acting as TPA to the plan also offers RIA services to terminated participants with respect to their IRA rollovers. The fee charged to the participant is always the same fee rate that the participant's assets were being charged for TPA services prior to the participant receiving a distribution.

Can a plan impose a 2 year eligibility to receive safe harbor contributions?

Business has been sold and long-standing PS plan is terminating.

Plan has J&S provisions.

One participant with account over $100K doesn't want to get his wife to sign off on distribution.

They are estranged but not officially divorced.

So he won't complete the paperwork to request a distribution.

What are the plan's options for getting this account paid out?