Plan document states that it allows rollovers from 408(a) and 408(b). No reference to 408(k) - which is the code section for SEPs. Can the plan accept a rollover from a SEP-IRA?

Following a number of TPA/provider changes, the employer discovers that the amount of old after-tax basis--for the few participants with after-tax contributions--is not known, and may not now be determinable. What alternative is there to treating everything as pre-tax upon distribution?

Has anyone seen anything from the IRS regarding when they will issue EGTRAA letters to volume submitter plans? I know they initially said they were going to issue them beginning March 31st, but I haven't seen anything since then. The list of M&P and VS plans on the IRS website has not been changed to show any letters being issued. Any help will is appreciated!

Client adopted a prototype profit sharing plan through financial advisor. Client recently terminated it and with help of financial advisor sent in a Form 5310. Appears that IRS is now asking for a plan doc from 1991. Client moved offices a number of times over the years and could not locate original document. Financial advisor appears to not have a copy either as she says financial advisor company was not required to keep a copy so she did not do so. My initial thoughts are to have client turn over every stone to see if he can locate a doc from 1991 incl adoption agreement. I assume that there will be a closing agreement necessary since it is in the midst of a Form 5310 review? Any thoughts on avenues to locate a copy of the original doc? Thanks for any suggestions....

Our plan document calls for a PRSA benefit based on a 50% JS form of benefit and a survivor benefit is paid using the 50% JS form if the participant dies prior to the annuity starting date. However, it was pointed out this may not be correct per IRS Reg. 1.401(a)-2, Q&A 18, because of the last sentence in that Q&A whcih states:

"Q-18: What is a qualified preretirement survivor annuity (QPSA) in a defined benefit plan?

A-18: A QPSA is an immediate annuity for the life of the surviving spouse of a participant. Each payment under a QPSA under a defined benefit plan is not to be less than the payment that would have been made to the survivor under the QJSA payable under the plan if (a) in the case of a participant who dies after attaining the earliest retirement age under the plan, the participant had retired with a QJSA on the day before the participant's death, and (b) in the case of a participant who dies on or before the participant's earliest retirement age under the plan, the participant had separated from service at the earlier of the actual time of separation or death, survived until the earliest retirement age, retired at that time with a QJSA, and died on the day thereafter. If the participant elects before the annuity starting date a form of joint and survivor annuity that satisfies the requirements for a QJSA and dies before the annuity starting date, the elected form is treated as the QJSA and the QPSA must be based on such form.

The Plan appears to be inconsistent with the Q&A since the plan will pay based on a 50% JS but the Q&A seems to requires the payment be based on the election the Particicpant may have made 180 days prior to the annuity starting date.

Has anyone dealt with this question?

We have a situation where the facts are that there is a single person money purchase plan established back in the early 1970's. Participant properly contributed to the plan during that time until his death in 2008. His wife is the sole beneficiary. Upon review of the plan, it was discovered that it was never properly amended since its initial establishment. The plan also failed to file Forms 5500-EZ once it reached the asset requirement. The participant also missed one RMD in the year prior to his death. What do you recommend to shut this plan down? Prepare all the amendments since the 70's, file under the late amender, make the proper RMD distribution, then file a request to terminate? The only thing that has been done is the late Forms 5500 were filed. The spouse wants to receive the money as soon as possible and we are trying to move forward.

Any suggestions would be greatly appreciated.

How are people handling the participant notice requirement for missed quarterlies with an EOY val? Has there been any guidance on what's "reasonable" for the timing? Is it even adminstratively feasible?

is anyone else getting IRS letters from returns several years ago that just state that a balance is due and must be paid, along with teh interest, by 4/29/10. The letter doesn't say anything about why there is anything due and just gives an interest rate schedule for under/over payment of taxes. There aren't any taxes due with a Form 5500 so I'm not understanding the letters....They specifically say they are for Form 5500 but I really don't get it. We have 2 clients now sending us these letters

Are we the only ones?

I have a plan where the current document allows for withdrawals of rollover monies at any time. Client wants to eliminate all in service distributions.

I realize that this is a protected benefit but am confused on how to protect it - do I protect the right to in service withdrawals or rollovers for all participants, even if they have never rolled money in, if so this means that I can really only eliminate the right for new hires after the date of the restatement?

I am working on a 403(b) plan that has a pro-rata profit sharing allocation. All participants receive a 3% profit sharing contribution on a per payroll basis with no end of year or hour allocation conditions.

The plan sponsor thought they could contribute an extra contribution to three highly compensated employees on December 31 and did so without consulting us. Now the plan has about $6,000 of employer money which should not have been contributed to the plan. The organization I am dealing with is a 501©3 org. so deductibility is not an issue. Is their another excise tax that I should be worried about?

Any thought would be appreciated?

§72(p)(2)(D)(ii) states that "all plans of an employer (determined after the application of such subsections) shall be treated as 1 plan."

Does this mean that if an employer (Public school district) has both 403b and 457 plans available, that there is an aggregate $50,000 available for loans between the two plans? Or is there an exemption that allows one to have $50k borrowed under the 403b, and an additional $50k borrowed under 457?

Can a calendar year business which sponsors a SARSEP terminate the SARSEP mid year and establish a 401k plan for the duration of the year?

a local church is being told by an auditor that they are required to have a plan document. The church is not a client of mine but is merely asking for some information so I'm working off of some assumptions. We believe the plan is a 403(b)(7) with mutual funds not a 403(b)(9), however there is an employer contribution. Now, does that mean the 403(b) is required to have a written plan document (prototype-ish for example) or even with the employer contribution, will agreements with the provider suffice for a 403(b)(7) "written plan document"? Thanks in advance.

I have had a DBP for my C corp-(only employee) and am moving overseas. I was told by actuary that 2 options are (1) Termination with or without IRS determination letter, and (2) Rollover in to IRA.

Not clear to me whether I must first terminate to rollover and what the realistic risks of being audited are if I dont go down IRS determination letter pathway which takes 6-12 months.

I do not want to cash out now.

Help??

What fiduciary obligations if any does the sponsor of a governmental 457b in Florida have regarding offering loans when there is more than one vendor and the vendors are not monitoring the loan limits? If a participant exceeds the loan limit under 72(p) there are tax consequences to the participant. What about for the employer - prohibited transaction rules under ERISA and the Code do not apply. All I can think of would be state law fiduciary issues regarding not monitoring the loan program and thereby jeoparding participants' retirement savings?

Any ideas?

Can someone please point to where "plan year" is defined in PPACA?

More then 10 years ago our firm had a consultant come in who did some research and gave us a report on how our fee schedule compared to others in our local area. The consultant specialized in Pension TPA business. This was useful not only in seeing how other firms structured their fee schedules (flat fee vs a la carte) but to see if we were consistently under or over the market. The firm that did the analysis for us no longer seems to be in business.

Is anyone aware of any other company that provides such a service?

Thank you.

If a person has retired and has absolutely no reportable income other than the income from Roth conversion, does his income from Roth conversion invite social security tax? The person in question does not qualify for social security benefits or any other usual retirement benefits.

Hello. I have two clients that are members of a controlled group. Both companies are owned 100% by the same 4 people in the same percentages. Each plan is a straight 401k plan. No match, no Profit Sharing. All aspects of the plan are the same. The owners were paid in both companies but only participated in one plan (and they were the only employees and participants in that plan). I do believe this might be a problem.

Each client each had their own GUST document. And each filed their own Form 5500. Is that okay? Should they be combined into a single EGTRRA Volume Submitter document?

Please advise. Thanks.

Medical office with about 25 ee's and 6 doc's, wants x-tested plan, however, a few doctors do not want to fund anything but the min and of course a few doctors want to fund the max. How / what would be the best option of classes for the doctors? The ee's are going to be in two classes - staff and management.

Thanks in advance.