Greetings,

I recently decided to take the ERPA exam in a desire to learn more about retirement planning. I am aware of the ERISA Outline but cannot afford the book. I was going to use some QPA materials I can access for free in addition to purchasing the QPA study exams. Would this be sufficient for preparing for the ERPA exam?

Note, I do not have any professional experience practicing in the field. My purpose in pursuing this designation is to learn about retirement planning and ultimately provide consulting services as an accountant and enrolled agent to small and medium businesses.

I appreciate any advice or recommendations in preparation for the ERPA exam.

GeorgiaEA

We have a deferred vested SERP participant who became eligible for payment on 1/1/2009 (due to turning age 55). Several attempts were made to contact him, including using the IRS locator service and the SSA, but he cannot be found. What must be done to comply with 409A at this point? Any suggestions would be appreciated!

Under Section 9003 of ACA (I guess that's what we're calling the health care act), FSAs will generally no longer be permitted to reimburse for any over-the-counter "medicine or drug." Two questions:

1-Currently, I am able to be reimbursed under my FSA for contact lens solution. Will I be able to continue doing so because lens solution is not a "medicine or drug"?

2-Section 9003 applies to "amounts paid with respect to taxable years beginning after December 31, 2010." How is that applied to FSAs with grace periods? For example, can I be reimbursed for Tylenol that I purchase in 2011 during the grace period if I use amounts left over in my account from 2010?

Any thoughts are appreciated.

We are trying to reconcile conflicting instructions and not certain whose direction to follow. (My current employer's procedures often call for the plan trustee to act in situations where I would have expected the employer to act.)

The plan in question was originally established for company A, with the owner of the company as the sole trustee. Last year we received instruction from the trustee to restate the plan with Company B as the new sponsor. As we investigated the relationship between the two companies we learned the as part of a bankruptcy proceeding the ownership of company A was transferred to another individual. The trustee started company B and hired the majority of the employees that had worked for him at company A. The new owner has instructed us to terminate the plan.

Whose direction would you follow in this situation?

OK...here is my question. I have ana Age Weighted plan with two people. The owner is age 66 and the employee is age 39. It's an Age Weighted plan Corbel Prototype. Salaries are $160000 for owner and $33500 for employee. They are only making a $5000 contribution and if you allocate that under an age weighted formula the Key guy gets most of it. Now, the plan is Top Heavy....under the age weighted formula the owner would get a tad over 3% and the employee under 3%. Do switch to standard PS allocation of 2.58% accross the board or do I give the EE 3% and let the owener get the rest?

Thoughts?

A client failed ADP testing in 2007 and never processed the refund. Under a self correction, couldn't they distribute the refund with earnings, provide a QNEC to NHCE's in the amount of the refund allocated pro rata on comp and then file Form 5330 for the late refund?

Any guidance would be great.

Thanks

How low would you go? 5% vested? 10%? In the present situation, participant needs an 18% of pay contribution for a total of about $5,000.

Our DB plan does not have a lump sum option. If we were to add one, by what percentage might our liabilities increase? What has been anyone's experience with this? Have any of you actuaries run a model on an actual plan?

i have been out of Kodak since 1986 and i need a copy of the original SIP agreement ( if such a thing is available) that i signed AND a copy of a recent statement. how do i go about getting them ??

We have a participant who has elected to defer a flat dollar amount. This payroll his compensation is not sufficient to withhold the full flat dollar amount due to garnishments from his pay. How do we handle this? Do we make up the difference on some future payroll?

Company X forgot to exclude sick pay as allowable comp under a 415 safe harbor comp definition. Now they are trying to correct it back to 2007. Should it be treated as a 402(g) correction or what?

A DB uses a Vol Submitter and has never been submitted to the IRS for a LOD. The DB excludes people by name. My understanding is that this is not allowed under 410(b). Is this correct?

I have a client that would like to make their discretionary PS contribution in a manner that defines compensation as only including bonus pay. Assuming that this definition of compensation would pass the 414(s) test is this allowed? We currently use a prototype document that contains an "other" line that allows for adjustments when defining compensation. Could you simply write in that for purposes of PS only bonuses will be taken into account and all other forms of compensation will be excluded?

Thanks for the help!

ok - the latest and greatest in the line of what's up????

Anyone else have clients receiving letters from the IRS on the #945 withholding claiming that the deposits do not match the amount on the form?

I'm on my second one already today and both clients say they did submit the withholding and thankfully have the EFTS slip from their bank. I'm having them respond and send in the backup info, but am wondering if we are in for a whole slew of these....

A 403(b)(7) plan has employer matching and employer nonelective contributions in addition to elective deferral contributions. The plan doesn't permit age 59-1/2 and hardship withdrawals. The plan is transferrring to a 403(b)(1) annuity contract and would like to allow 59-1/2 withdrawal from all accounts and hardeship distributions of elective deferral contributions.

Can the plan add the in-service distribution provisions going forward under the annuity contract?

Assume Plan that covers about 150 participants provides lump sum as greater of PPA and 71GA/PBGC.

A former HCE is age 60 and can retire at age 62 with unreduced benefit. As of 1/1/2009, AFTAP was 73%, which included assumption (right or wrong) that employee would elect lump sum at age 62.

Given the near zero probability that the Plan will be 110% funded in two years, the HCEs benefit will likely be distributed in an annuity form.

Question: Should the FT be valued assuming a lump sum will be paid or should it more realistically assume a monthly annuity form of distribution?

If an executive has a $1.5 million base salary and defers $500,000, does that mean the company can deduct 1,000,000 of base salary this year, and then, assuming the executive has left the company at payout, deduct the $500,000 plus earnings at that time. The current bonus is structured to allow full deduction for cash bonus.

Thanks

Has anyone attended a good web-cast or workshop related to the revised Schedule C which provided some good case studies and examples of the completed Schedule C based on the case study fact pattern? If so who sponsored the web-cast or workshop?

Please help. Lots of discussion on whether or not we have to continue to file a schedule R for the 2009 plan year. If the plan is otherwise eligible to file the SF form ( small plan, waive audit not required to file scheudle A or D. BUT DID have distributions in the 2009 plan year. We are getting mixed answers from numerous resources. Can you please tell me how you are handling the schedule R for DC plan under 100 lives who did have distributions.? Any input would help...Thank you!

We have been contacted by an individual who claims to have a power of attorney from the sole trustee of a 401(k) plan that we administer. We have not yet seen the document.

I thought that long ago I had heard that one can give a power of attorney as to one's personal affairs, but not as to one's fiduciary duties. Is that correct?