When registering on the EFAST2 website, what is the User Type for a TPA that will be filing on behalf of their clients? Filing author, filing signer, schedule author, or transmitter?

A plan has a zillion dollars of FSCOB and no PFB. FT/Assets 2010 > 80%. Any problem with the getting a signed election now (in 2010) to apply the FSCOB to reduce 2011 quarterlies?

The 2009 MRC for a calendar year plan was $20,000. On January 1, 2010 election was made to apply $20,000 of the FSCOB to cover 2010 quarterly contributions of $5,000 each. In July 2010, the valuation is performed and it is determined the 2010 MRC is $0.

So, what happens to election? Is approximately $20,000 of FSCOB effectively burned, or is $0 burned since there were no quarterly contributions due for 2010?

It would seem that in establishing such an election the appropriate wording would be to state "to the extent required." I presume this is doable since I took the quote directly from the reg.?

Most of our defined contribution plans have Total Participant Directed accounts. For Plans where participants fail to make an Investment election, we place their (the Participant's) Investment in a Money Market. We describe this as the default investment option. I'm curious as to whether we should mark off code 2T on the 5500 SF, Section 9a? I wasn't sure what others are doing with similar default options...leaving this blank because this isn't a QDIA or if they're adding 2T to this section? Any guidance would be appreciated!

Called AFunds this morning to see where required information for question 8f is located since their annual plan expense report explicitly states info is not to be used for 5500 filings. Repeatedly was told there were no other reports, the annual summary could not be used and this was all detailed in the recordkeeper direct agreement client signs when starting the recordkeeper direct program. Question - anyone here get better and more proactive information that me from American Funds on how to answer 8f? Any advice given will definitely be appreciated. Thank you.

Hi,

Plan has participant directed accounts for deferrals and pooled for Er contributions. Plan document states distributions when admin. feasible. Valuation is done yearly for pooled Er funds. Is there any issues with doing a quarterly valuation when there are distribution requests (and no valuation for quarters that do not have distributions)?

Thanks!

I'm looking at a 1989 Multiemployer DB document. It says that actuarial equivalency is based on "1951 GAT projected to 1964"

Can anyone translate what that might be or if such a thing existed and if so where it might be locatable?

Plan is sponsored by US company owned by a foreign company. French citizen that has been working at US company and participating in the 401k is leaving the US company and returning to France to work for the "mother" company.

I believe there are no issues with making a distribution.

What are the tax/rollover issues for a foreign citizen (French) to take a rollover? Is there a treaty that determines when the distribution is taxed or if there is a special provision for foreigners?

Has the IRS published statistics or related information on the number of nonamender governmental plans filing under the EPCRS Program?

Have you utilized the EPCRS Program for a nonamender governmental plan? If so, what type of entity sponsored the plan (e.g., state government, municipality, state agency, etc.).

Here's to Doug Adams.

and remember, Don't Panic.

Nationwide has provided Schedule C information including payments to NW, TPA and financial advisor. Are preparers of 5500-SF for small plans including the total of all of these payments on 8f? Thank you.

A client in 2009 had merged the 401k plan of a subsidiary into the Parent company's 401k plan. The subsidiary 401k plan was funded in part by a GAC, which contained some assets (say 20%) which could not be liquidated at the time of the merger, and thus, the GAC still exists outside of the Parent 401k Trust (the liquid assets were liquidated and transferred to the Parent 401k).

Should the subsidiary 401k plan's GAC be reported on Schedule A for the Parent 401k's Form 5500? Are there any special issues we should be aware of?

Thanks.

hello all!

We have a client who set up a 401k profit sharing plan.about 30 participants.They asked that we assist with establishment of accounts at Schwab and want each participant to complete an application to establish their own self directed account.The money will likely start in the participant's money market type account and then be available for each of them to invest as they choose (i.e. no menu of investment options) and access on-line just as if they had their own savings account with Schwab.

Is this a permissible type of self directed arrangement?

thanks!

If not doing a VFCP filing and simply putting in lost earnings and filing Form 5330 how are the earnings calculated?

Would the plan still have to use the "Old VFCP" method comparing the highest returning fund to the IRS underpayment rate?

Was the elimination of the highest return option an incentive to get Plans to file under the VFCP?

How are others handiling this situation in practice?

Comments are apprecitated.

Thanks,

If a 403(b) plan is frozen, must participants be vested in any nonvested matching and nonelective employer contributions in the same way that participants must become vested in a frozen qualified profit sharing plan?

We are looking into freezing our small-ish DB plan and then terminating it when we have enough money in the plan to be able to purchase annuities and close it out once and for all. Our actuary tells us we're currently short of the amount needed to do that and that annual contributions will need to continue.

A broker approached me and said we could buy annuities now in the name of the plan, stop making contributions, and just allow the amount on the annuities to build for a few years and then terminate. Is there likely to be a catch? I presume we'd be far over-paying for the annuities. Or something.

What's this guy talking about?

Subchapter-S corporation on extension for 2008 until 9/15/2009.

Client deposits discretionary employer contribution on 9/15/2009.

For reasons unknown, the safe-harbor match is not deposited until 11/15/2009.

Principals usually receive the maximum annual additions under IRC Section 415.

As I understand the situation, the amount of the safe-harbor match is treated as an annual addition for 12/31/2009 rather than for 12/31/2008. Assuming that the safe-harbor match for 2008 (deposited on 11/15/2009) was $9,200 for Charlie Shareholder, his maximum “new” contribution for 12/31/2009 (excluding the 2008 safe-harbor match) would be equal to $39,800 rather than the normal $49,000.

Are there any exceptions to the IRC Section 415 contribution crediting rules that would help in this situation?

Any other thoughts?

Thanks for your consideration of this problem.

Charlie Laur

I'd like to see what BenefitsLink people think about the following hypothetical situation.

A person serves as an administrator of a retirement plan for the limited purpose of instructing the recordkeeper and insurer to pay final distributions. The former employer ceased operations many years ago. If the employer kept records of the plan's administration, they are long gone. The termination administrator, based on her experiences, suspects that the plan might be tax-disqualified, but lacks evidence to prove or disprove whether the plan is qualified.

Given this uncertainty, the termination administrator does not want to send a standard 402(f) notice because she does not want to take responsibility for even an implied statement that the plan is tax-qualified. Rather, the administrator would prefer to edit the notice, adding the following:

This notice describes Federal income tax treatments and rollover opportunities that could apply if the Plan qualifies for tax treatment under Internal Revenue Code section 401(a). The termination administrator will obey the Plan's terms that allow you to instruct that your distribution be paid to an eligible retirement plan. However, the termination administrator does not know whether the Plan is tax-qualified. If the Plan is not tax-qualified, this notice's explanations of Federal income tax treatments and rollovers would be incorrect.

Assuming that the termination administrator isn't worried about dealing with inquiries (she'd answer them all by saying that the notice speaks for itself), are there downsides to using the disclaimer and warning?

Client has a DB plan and a Participant left employment 10 years ago, but has a vested benefit. At the time of termination the plan's only form of benefit was an annuity. 3 years ago the Plan was amended to permit participants to receive a lump-sum. Participant is about to become age 65 and wants to elect a lump-sum.

My question is can the participant who terminated 10 yrs ago elect to receive their benefit in a lump-sum? Or do they have to receive an annuity based on the plan provisions at the time of termination?

Thanks.

Is everyone leaving line 11 blank or checking no when the plan isn't subject to the minimum funding requirements?