Schedule MB filed in November showed the fund is at 70% funding. When should the participants have been notified and when should the recovery plan have bee put into place?

As a participant am I allowed to ask for and receive the minutes of the trustees meeting? Do I ask the trustees or the administrator for the minutes?

I can't seem to pin down whether the exclusion from income for accident and health plans applies to dental and vision benefits. We are self-insured, and considering early implementation of dependent coverage to age 26, but we want to apply the same rules to all benefits and want to make sure we're not setting ourselves up for overly complicated administration. What am I missing?

Corp 1 is owned 100% by Person A (only employee)

Corp 2 is owned 50% by Person A and 50% by Person B 50%

Corp 1 establishes Solo 401K for Person A (only employee)

Corp 2 establishes Simple IRA for 3 employees (Person A and 2 others).

Since Person's A interest in Corp 2 is not greater than 50% , it does not

fall under classification of Controlled Group.

Do you guys see any problem(s) with this arrangement?

Please advise.

Thank you

Can I report 403(b) elective deferrals and 401(a) matching contributions on the same 5500? Does it matter whether I treat them as the same plan?

Thank you in advance for all assistance.

A plan was restated, effective 1/1/2005 and executed in March 2005. Subsequently, the plan adopted multiple amendments in 2007 and 2008.

This is a Cycle A individually designed plan. It is my understanding that the restatement period began on 2/1/06 and ended on 1/31/07.

Was this plan effectively restated for EGTRRA?

I'm pretty sure what the answer is going to be but...can an individual make a tax-free gift from their own IRA to another person's IRA? (basically a transfer)

I'm taking over a 10-person 401k plan that was effective and funded in 2008. No 2008 5500 was filed, so late fees are up to about $7,000 at this point. What is the best/cheapest way for this company to rectify the situation?

We received a letter from EBSA saying that they didn't receive a 2007 Form 5500 for one of our clients. The client insists it was timely filed, so we responded to EBSA to that effect and sent a copy of the filing.

Our mailing was returned not once, but twice, with a note saying that 5500's for 2009 and thereafter must be e-filed. We spoke with an EBSA official, who said that any returns filed for 2007 and prior must now be e-filed. He indicated that this would include the one that our client filed in a timely fashion, but that they (apparently) didn't receive.

I can almost understand the need to e-file past returns that were never filed. But all we're doing here is responding to an EBSA letter by sending them a copy of what WAS filed on time.

Any comments or advice?

TIA,

Scott

This issue has been coming up with greater frequency of late and I am trying to track down the source. Basically, IRS DL examiners are requiring plans to replace "termination of employment" with "severance from employment". We like to say "separation from service" which is ok some of the time, not ok others. When I look for the origin of this position, I get bogged down in 409A. Can anyone point me in the right direction?

Any thoughts on whether the cost of an RFP for a new TPA could be paid from the plan? Seems like a settlor function, but the RFP does relate to the adminsitration of the plan, the selection and monitoring of a service provider is certainly a fiduciary function and the participants could benefit from reduced administrative costs with the new TPA.

My husband is enrolled in an FSA at work, and has pre-tax dollars being withheld from his paycheck each pay period. The employer forwards the funds to a local Insurance agent to hold, and then we have to submit receipts to the Insurance Agent for reimbursement. In June of 2009, we submitted one receipt that was more than enough to account for his plan election for the entire year, but the agent continued to send us monthly checks through January of 2010, only after he had received the funds from my husband's employer.

The forms we were given for enrollment are clearly for a section 125 FSA plan, and carry the name "FlexSystems" from TASC, but that company has no record of the employer or our flex account.

I have asked both the employer and the insurance agent to clarify this, but the employer depends on the answers given by the agent, and the agent won't return my calls or emails.

Am I correct in thinking that since these were pre-tax dollars, that this FSA is subject to section 125 of the IRS code, and the full amount of the plan election should be available on day one of the plan year?

Employer's qualified plan permits Roth accounts. Participant, who is under age 59½ and has an AGI well in excess of $100,000, has made substantial after-tax contribution to the plan in prior years. Is it feasible to convert these prior contributions and accumulated investment income to Roth within the plan? If so, is it necessary to file an 8606 form and/or what records should be maintained with respect to the transaction?

Situation is in order for me as a TPA to be able to perform certain tasks on one of the mutual fund websites for my clients which are clearly not fiduciary, the authorization I need to perform those tasks, will also give me the ability to allow a distribution. So, if a participant submitts a request online for a distribution and it needs authorization, my electronic sign on into the plan could be used to authorize the distribution if I so chose to do that. Although I would never do this, we always have Trustees sign on distributions, the option would be there. So, although we would never exercise this option, will that make us a fidicuary, and if so, what are my options. Can we get a letter from the Trustees stating that we are only allowed to perform certain tasks with the authorization power we need?

Why do termianting plans have to restate for EGTRRA? If they have a vaild GUST doc and all of the pretinent amendments, I don't see why they would have to do a full restatement--I would think they are already operating under the proper rules & regs.

Any idea why the IRS wants these restated? Is it a money thing; do they want the Determination Letter fees?

The Instructions for Line 6 of Form 5307 tell an applicant that is a member of a group under common control to "[a]ttach a statement showing in detail: 1. All members of the group, 2. The relationship of each member to the plan sponsor, 3. The type(s) of plan(s) maintained by each employer, and 4. Plans common to all members."

If the application does not seek any assurance about whether the plan would meet any coverage or non-discrimination rule, is it really necessary to furnish this information? What (if anything) does the IRS do with the information?

A volume submitter plan generates a plan document signature page where a representative of the employer/plan sponsor is listed to sign the plan (eg. an officer of the employer) and the trustee is listed to sign the plan.

If the plan has two trustees (say a husband and wife) do both trustees have to sign plan or is one sufficient?

Thanks

Ignoring many other issues that the following scenario creates, would the following be excluded from an employee's income under IRC Section 106?

Employer X has new employees. Employer X does not maintain a group health plan. However, the new employees continue to be eligible to participate in their former employer's self-insured group health plan (not via COBRA; they simply continue to be eligible, even as non-employees). Employer X is going to pay a portion of the new employees' premiums directly to the former employer. Is the premium amount paid by Employer X to the former employer's group health plan on behalf of Employer X's new employees excluded from said employees' income under IRC Section 106?

I beleive the primary issue is what "employer provided" means under Section 106. Does it just mean "employer paid" or does the employer have to maintain the plan in some way? Of course, a similar issue is raised in the context of employers that pay premiums on individual policies for its employees, which I beleive has been held to be exempt under Section 106.

Any thoughts would be greatly appreciated.

Ptp defers 16,500 of Roth into a PYE 12/31/2009 qualified plan. He terminates his position and defers 16,500 of Roth into the qPYE 12/31/2009 ualified plan of his second unrelated employer. The year ends and he discovers that he has violated 402(g), but does not inform his current employer of the violation. Based on this scenario, he would have to "claim" the 16,500 (not CUC eligible) on his 2009 taxes. He would then be subject to taxation when the funds were withdrawn. The issue is since it is Roth, what are the tax implecations. He would not be paying taxes on the 16,500 for 2009 as he has already paid taxes on it (Roth). No earnings would be on the 2009 tax return as he never took a distribution. When he takes the money in the future (assuming that he has a qualified Roth distribution), he would not have to pay taxes on any of it.

Does this sound logical and correct? If so, why would anyone in this situation (or a similar situation) where 402(g) has been violated due purely to Roth deferrals ever inform either plan of the over contribution prior to 4/15? What is the implication for his personal taxes? My untrained tax eye does not see any.

Any comments are greatly appreciated.

So let me explain a little bit. I am turning 19 and I want to start saving now. I opened a Roth IRA with my bank and will invest $200 a month until I retire. I was not aware that when I started a Roth IRA I had to do my own investing

Im not sure what to invest in stocks MF or what

Any ideas?

P.S I would like if this were a setup and check here and there a couple times a year.