Are 403(b) Church Plans excused from filing a Form 5500 if they offer an Employer Match

If employer wants their payroll or HR person to be the one to file the 5500 with the DOL, can they? Do they use their name, or the name of the company? The employer does not want a third party to file so that they don't have to submitt the signed pages of the 5500SF.

Also, aren't the 5500 forms already available for public viewing on the internet? I can't find where they would be...just wondering what the big deal is about having TPA's signing if the form is already out there... in the past were the signatures not shown? Can someone tell me where one goes to view a past 5500 form that was filed?

Hi All,

I have my own individual 401(k) with TD Ameritrade under my S-corp, and with myself as the only participant. In the past, 5500-EZ did not require characteristics codes, but the form has changed for 2009. I am a bit confused about what codes I should put on the from, and TD Ameritrade is not being very helpful. I have a plain-vanilla individual 401(k), nothing fancy, with elective deferrals and company profit sharing.

So far I know I need 2E: Profit Sharing, 2J: 401(k) feature, and 3D: pre-approved pension plan (as I have a opinion letter number from TD).

Do I also need 2R: participant directed brokerage accounts, as I manage my own investments? What about 2T - total or partial participant directed brokerage? I think I need 2R but not 2T, but this is confusing. Any other codes I might be missing?

Any help is greatly appreciated.

Regards,

lzk

Please advise if you are familiar with any state or local law that imposes pension funding requirements on a state or city and the basis for the requirement (e.g. statute, ordinance, or case law).

In the case of a third party signing/submitting in behalf of Plan Sponsor, DOL EFAST2 Q&A indicates to attach first two pages of the 5500 with plan sponsor/plan administrator signatures. ASPPA No 22-10 on its sample filing authorization form says Page 1.

Has the DOL changed it's position on what needs to be attached?

A client has come to us with a 457 plan. The client is a township government office. They tell us that their 457 document was written to give an Employer Match to any employee who makes employee contributions to a 529 plan. The rate of match is 50% of the first 8% of employee contribution. The match is calculated based upon the total employee contributions to both the 457 plan and the 529 plan. Is this allowed? Has anyone ever come across this issue before?

Thanks for your input.

I am pretty sure this transaction is wrong on many levels, but not sure even where to begin.

Plan susupended their match. It had about $200,000 in the forfeiture account. The plan used the forfeitures to fund pretax contributions. So, they plan "withheld" $500,000 in pretax contributions and only wired $300,000 in funds and used the forfeitures for the balance.

Pretty sure this is some sort of prohibited transaction...Please let me know your thoughts. Would this be considered "criminal"? As recordkeeper, what is our obligation to report this and to whom do we report?

Thanks!

What do you do if you have unallocated funds to deposit due to nonelective contributions and you do not have an investment election form on file because the pariticpant chose not to defer? Now the participant cannot be located and the plan is going to terminate. Can a default fund be used even though it is an individually directed and controlled contract?

Normally you need participant consent.

Any one had a similar circumstance?

I have very few audit plans, so this is probably an easy answer for those of you who do . . .

Is there any reason that the professional fee for a plan audit--if that fee is reasonable--cannot be deducted from plan assets (if the document permits)?

But I'm suffering from brain cramp. I'm certain I saw something about the IRS potentially having an issue with splitting the pre and post tax money, and doing a direct rollover of only the pre-tax - seems like they said you could only do this under the 60 day rule, and not as a direct rollover, or something like that? My search isn't turning it up. Anybody recall this issue, or something similar?

Changed My Question:

Employer maintains 2 plans: Plan 1: calendar year 401(k) and Plan 2: off-calendar dc plan with only employer contributions.

Plan 1 fails 2009 ADP test. $1,000 of Participant A's excess deferrals are treated as catch-up contributions.

No 415 problems on aggregate basis or otherwise.

Plan 2 tests 2009-2010 fiscal year 415 (on aggregate basis) counting 401(k) salary deferrals made during fiscal period plus employer contributions for same period. Participant A's annual additions for fiscal period exceeds 49,000 by $5,500 (because salary deferrals are not limited on fiscal year basis). Does Participant A get benefit of full catch-up, or does $1,000 recharacterization under and for purposes of Plan 1's ADP issue reduce the available amount to the fiscal year plan?

I am unfortunately having to short sale our home. Under the Debt Forgiveness Act, the total difference of the principle vs sale amounts cannot be forgiven because a refi was done and the mortgage balance does not represent the sole cost of the home or improvements. The amount in question is approximately $90K. Filing for Insolvency to defer the difference not covered under the Act is an option. Without knowing how 457bs are considered in these cases, we would otherwise clearly meet the criteria for Insolvency, however I cannot find IRS ruling if 457b funds are considered assets in these cases. IRS's own Insolvency work sheet only asks for "interest amounts". I know these funds are normally protected. I have access to these funds w/o penalty but would still have the tax liability. Is there any resource or first hand experience with this matter. I am trying to avoid BK if possible. Any help would be greatly appreciated. Thank You,

From the

IRS Employee Plans News

The Employee Plans News is a periodic IRS newsletter with retirement plan information for retirement plan practitioners.

Special Edition - July 2010

Beginning with returns for the 2009 plan year, the Schedule SSA (Form 5500) has been eliminated as a schedule of the Form 5500 annual return/report and is replaced with Form 8955-SSA. Plan administrators must file this new form with the IRS and not through the EFAST2 filing system.

Plan administrators are not required to file the Form 8955-SSA for the 2009 plan year and subsequent years until guidance is issued by the IRS. The IRS anticipates the guidance will establish a special due date, expected to occur in 2011, for the 2009 Form 8955-SSA.

After the Form 8955-SSA and related instructions are available for filing, plan administrators should expect to have a reasonable amount of time to complete and file the form by the special due date. The information reported on the new form will be similar to the information previously required for Schedule SSA.

Caution: The special due date for Form 8955-SSA will not affect the time for filing the applicable Form 5500 or Form 5500-SF for the 2009 plan year through EFAST2.

a one participant plan has invested in art work.

To my knowledge such an investment has always been permitted.

A person said that there is an IRS ruling (fairly recent) that now prohibits such investments. Actually I would expect it to be a DOL ruling if anything.

Does anyone know of any rulings that prohibit such investments or changed the rules regarding these types of investments?

Are we in agreement that investing in art work (especially for a one person/owner plan) is permitted?

Of course the plan I am referring to is not an ERISA plan as there are no employees.

Thanks

Is the Cash Balance "compensation credit" fixed by formula per plan document?

Or is there a "minimum" and "maximum" contribution amounts that allows flexibility for plan sponsor (just like traditional DB plan)?

as a welfare or pension plan, where payment triggers are termination, CIC, death, disability?

If so, not sure whether this arrangement would qualify for top-hat exemption.

In the 2009 EZ Instructions, strict reading for Questions 6 and 7 indicates that only activity during the plan year should be reported. In 2008, one could use either accounting method (cash or accrual). Is this an IRS oversight, or are all 5500-EZ filers meant to be moved to a cash basis?

If a plan makes corrective contributions under SCP, do those count toward TH minimum?

A prospect wants to their SPD for their cash balance formula to state something like the text below (instead of naming the individuals or the specific officer titles with their specific accrual formulas like the plan document does):

"Group A will consist of senior executive officers. For each Participant of Group A, the cash balance credit will vary by officer. For details, see your Plan Administrator if this affects you."

We're thinking that this may not satisfy the disclosure requirements for a summary plan description.

Could the SPD be this vague and be alright? If not, what methods are others out there using to disclose accrual formulas in a not-so-revealing fashion?

In regards to filing 5330s for late 401k deposit. In 2008 the plan had a late 401k deposit of about 500. It was discovered in 2009 so the earnings were calculated (about $35) and deposited as earnings in the 2009 plan year. The Form 5330 was done with the 2008 5500 ($12 penalty). For 2009 we have to report the late deposit again on the 5500 b/c it was corrected in 2009, but I have also read that I have to do another form 5330 - is that correct? What amounts do I put on the 5330? Any help would be appreciated.

Thanks.