Is a limited parternership considered an eligible asset?

Is a life insurance policy (with cash value) considered an eligible asset?

Couldn't find anything definitive in the instructions.

Thanks!

I dunno about this...employee worked for Wachovia Bank, now is in one of our plans and elected a rollover to the plan. Wells Fargo, which took over Wachovia, sends a check for part if his account and a stock certificate for the employer stock part.

I know that the stock could have been distributed to him, but I've never seen stock going from one plan to another. I'm inclined to take it and sell it in the new plan (pooled brokerage account so it can be done) and give him credit as a rollover for the sale amount. We sure don't intend to hold that stock just for him and I don't think it was a proper way to distribute it. Comments?

I'd appreciate any help on a determination letter application we are filing for a cash balance plan.

Line 11a of the 5300 asks "For defined benefit plans - Method for determining accrued benefit." There is a very short blank there. The instructions don't really explain it further. The Plan is a cash balance that recently transitioned to a DB, so my inclination would be to answer this that the accrued benefit = the frozen accrued DB benefit + the actuarial equivalent of the hypothetical account. This would not fit in the small blank though, so I'd have to do an attachment. Am I missing a better easier way to answer this question?

I've seen 5300s for CB plans prepared elsewhere that put 133 1/3 on Line 11a.

Thanks in advance!

My code in my possession is as of 1/1/2008 so it may not be accurate enough in this situation.

Anyway, if a db plan is not covered by pbgc than it is my understanding that an SAR is still required.

Agreed?

thanks

I'm looking for opinions.....small "one man" Defined Benefit Plans.

Some of my small DB plans are less than 250K in assets and won't need to file a 2009 EZ. The way I read it, we are required to provide the client with a signed Sch SB. Is there some kind of time frame in providing that to the client?

What are your thoughts on a fixed interest credit for a cash balance plan? Are you doing it? What rate?

Also, what are your thoughts on "meaningful benefits" under 1.401(a)(26)-3©? Is 1.5% of compensation enough?

Thanks

How long are monthly brokerage statements required to be kept for a SEP IRA? The only guideline I can find is 6 years after last transaction for pension plan documents (IRA, Keough, SEP). That would mean pretty much keeping statements forever and alot of worthless paper in storage. IRS guidelines for IRA's do not mention brokerage statements but says to keep the the annual Form 5498 to confirm contributions, distributions and FMV.

Any help would be appreciated.

Thanks,

Roger K.

Based on the assistance required to be given to certain foreign-speaking participants in the SPD regs, do you think there is some comparable obligation with respect to maintaining a 404© plan so that it removes fiduciary responsibility from the plan sponsor, trustee, etc.? In other words, how can a Spanish-only speaker exercise independent control over assets in his/her account without some assistance?

Without such assistance, do you think the plan loses 404© protection as to those foreign speakers?

If a decedent did not satisfy his or her RMD in the year of their death, can a surviving spouse beneficiary transfer the RMD to an IRA in their own name and take the RMD from their own account by the 12/31 deadline? Or is the transfer to the spouse's own IRA treated similar to a direct rollover in the sense that the RMD would not be eligble to be rolled into the new IRA?

I've come across an opinion, citing Treas. Reg. 1.408-8 Q&A-5, that the RMD can be transferred, however that reference appears to only talk about the requirement for takign an RMD in the year of death and does not discuss from where it can be taken.

I THOUGHT it was pretty clear that the earned income for a limited partner was calculated solely by taking into account their Guaranteed Payments, based on 1402(a)(13). But the question I am now struggling with is that in spite of this exception, do I still need to reduce their comp by their own employer contribution (eg, ps contributions allocable to their own account)?

1402(a)(13) says they can disregard the distributive share of the income of the partnership, but their own contriubtions would not have been deducted on their anyway, so I'm not sure they fit into the exclusion?

Can someone tell me if I am correct. We just took on a new plan in 2009. In 2008, they had 135 participants at the beginning of the year and 123 at the end of the year. They filed a 5500 with an audit for 2008.

In 2009, the beginning of the year participant count is 118 and the end of year participant count is 87. They are still required to have an audit for 2009?

This plan is being merged in with another plan in 2010 so we will do a final 5500 in 2010 with a beginning of the year participant count of 87. The audit is still required if they did not file a Form 5500SF in 2009 even though they do not have over 100 participants.

I came across this DB plan in an odd situation that needs advice. The facts: one-man DB plan got overfunded by a million plus dollars due to risky investments that paid off. The owner dies and benefits are due to his wife, the beneficiary. The issue relates to the excess assets. I see that there are two options.

1) We are not sure the sponsoring entity is still in operation, but I believe the beneficiary should get paid out, the excess assets should revert to the sponsoring employer, and the IRS will laugh all the way to the bank to deposit the excise tax.

2) The wife can continue sponsorship of the plan with her own company (not sure at this point if she even has her own company) and gradually absorb the excess assets.

Other options are not obvious to me at this point. Any advice and direction is appreciated. Thank you.

Is anyone charging for the extra reporting requirements for the centers for Medicare and Medicaid Services. It's the requirements imposed by the SCHIP extension act.

Thanks

Is it correct to say that HEART Act plan amendments are NOT necessary for defined contribution plans that have full and immediate vesting because there is no loss of benefits regardless of when/how you die?

Is there citation for this somewhere, either way?

Thanks in advance.

As I understand the final 430 regs, there is automatic approval for changing a plan's valuation date in 2009. Is this correct?

Charles

Plan with a BOY valuation date. Company paid premiums for insurance held in the plan which are, therefore, treated as plan contributions.

A few questions:

1. Are the premiums discounted to the valuation date just as other contributions are?

2. If late quarterly installments apply, would the premium be used to satisfy the installment(s)?

If so, is there a requirement that the premium amount paid be used toward the installment if it was paid earlier than the "regular" plan contribution?

Thanks!

We are working on the contribution for a new comparability plan (no deferrals) for the 2009 plan year. There are two groups- owners and all other employees. Eligibility is ages 21 and 1 year of service, entry is 1/1 nearest completion of eligibility.

Definition of compensation is w-2 for all tests and limits.

One of the NHCEs terminated in 09 with less than 500 hours. ABT was passed and so was 401(a)(4) for prior year.

Plan passes gateway but not ABT with current NHCEs for 2009. We do have an employee hired 9/08 who would otherwise be excludable because she had not met the 1 year eligibility

IF we bring this employee in as of 1/1/09, all tests are passed.

Is this Ok and must this person receive credit for 1 year of service as of 12/31/09?

I am attempting to install 2009 relius government forms version 4 full to a second computer which operates in an xp environment. I have the same problem, however, trying to install any of the 2009 versions.

It starts to install and then aborts with a cryptic message:

Feature Transfer Error

Feature: Support

Component: App Executibles

File: [blank]

Error: Access Is Denied

Is the problem with the license? If so, how do I change the license to permit the new computer if the old one has died?

The DB plan service company is asking $1800 saying "IRS regulations now require that your plan be restated in its entireity"

This is above and beyond their yearly servicing fee and is couple hundred more than what I pay to them every year.

Is this a legit need or am I being taken for a ride?

Thanks

Also, anyone can refer another company in Phoenix AZ area that handles DB plans? I think I may be done with these guys.

Hi, I am searching for the help of an enrolled actuary. I have contacted several for help, but none were willing to assist. The IRS wants a 412(i) Plan that I installed and administer either unwound or retroactively converted to a regular 412 DB Plan. It is a 1 participant Plan with 4 contribution years (2003 through 2006). What we are trying to find out first is the amount of contributions that would be disallowed (if any) when calculated as a regular DB by an actuary. Attached are the facts of the plan including Salary and Benefit History as well as Contribution and Earnings History.

Of course, I am willing to pay for services rendered.

Thank you, in advance, for your assistance.

Rene J. Neyrey, CLU, ChFC

[Edited to remove participant name from attachment]

Historical_Factsheet.pdf