I'm nearly certain I've seen discussion of this, perhaps at an ASPPA conference or something, but I'm darned if I can put my hands on anything.

Participant terminates employment on, say, Sept. 1, 2009. 12/31/09 valuation is processed, distribution paperwork sent to the former participant, who signs the distribution request paperwork on February 14th, 2010. Participant is subsequently rehired on February 20, 2010, BEFORE any distribution is processed.

Plan does not permit in-service withdrawals.

I believe distribution cannot be made. But I was just wondering if there is anything "official" from the IRS or in the regs that specifically states this. As I said, I'm certain I've seen discussion, and I think on these boards as well, but I've done several searches and can't seem to find it. Thanks!

A census taker visits some number of families and determines that on average they have 2.6 children.

(a) What is the least number of families in this census?

(b) Given that the least number of families was polled, how many children in total did the families have?

© So, (a) and (b) are too easy? Agreed. So, in how many ways may these children have been distributed among the families (e.g., one family could have had all of them, or they could have been split among two families, etc.)?

Calendar year 401k plan uses prior year testing method for ADP/ACP. Some employees terminate in late December and are paid the following January, with elective deferrals coming out of the last paycheck (I think these are matched as well).

Sponsor would like to exclude such contributions from ADP/ACP tests.

Here is language from definition of "includable compensation" in the prototype document:

To be included in determining an Active Participant's "deferral ratio" for a Plan Year, "includable contributions" must be allocated to the Participant's Account as of a date within such Plan Year and made before the last day of the 12-month period immediately following the Plan Year to which the "includable contributions" relate. If an Employer has elected the prior year testing method described in Subsection 1.06(a)(2) of the Adoption Agreement, "includable contributions" that are taken into account for purposes of determining the "deferral ratios" of Non-Highly Compensated Employees for the prior year relate to such prior year. Therefore, such "includable contributions" must be made before the last day of the Plan Year being tested.

Are there any permissible methods to exclude these contributions from ADP/ACP?

Thanks for your help.

As part of the accountant's audit report for the New Jersey state pension plans:

http://www.state.nj.us/treasury/pensions/p...ioncombined.pdf

on page 20 there's this:

"Income Tax Status

Based on a May 2007 declaration of an outside tax council retained by the Attorney General of the State of

New Jersey, the five pension funds/systems (TPAF, PERS, PFRS, JRS, and SPRS) comply with the qualification

requirements of Section 401(a) of the Internal Revenue Code."

Apparently complying with 401(a) is important enough for a government plan to note in the audit report.

The problem is that the plans do not comply with at least three sections of 401(a):

401(a)(16) - maximum benefits - Lots of 47 year old cops retiring with benefits over 415 limits.

401(a)(17) - maximum salary - Lots of school superintendents making over $245,000.

401(a)(29) - Obviously minimum funding requirements are not satisfied under PPA

Would this mean that New Jersey's plan is not qualified and whatever has been set aside is taxable to plan participants?

Please help. We are not in agreement in our office....

What 403b plans HAVE to file a Form 5500 for 2009 and beyond? All? Some? Only ERISA plans?

Is there a comprehensive list of employers that must file the Form 5500?

Thanks for any guidance you can provide.

We have a small employer that allows his employees to go out and get individual health plans, which run through the section 125 plan pre taxed. We were always aware these had to be individual plans - but can't really find the definition of "individual plan" A member of the employers went out and got a State Bar plan (in his name) and is calling it an individual plan. When the policy is part of a group trust - doesn't that disqualifiy it from an individual plan? Any comments or revenue ruling on this one would be greatly appreciated!

A large VEBA had 100+ whole life insurance policies. The policies have been surrendered. The cash went back into the VEBA and is being used to pay retiree benefits. The cash received was more than the premiums paid, so there was a gain. Is that gain taxable to the VEBA? the person whose life was insured, the retiree getting benefits?

The insurance company issued 1099s in the name of the person whose life was insured. That doesn't make sense to me. If the money went back into the VEBA, I wouldn't think it would be taxable at all. However, VEBAs aren't my forte, so I'm asking for help.

403(b) about 25 participants, some have loan balances, same company has a 401(K) that has a loan and rollover provision. Can they rollover the loan balances to the 401(k)? My guess is YES. Another question, what if the participant who wanted to rollover the 403(b) loan balance had an outstanding loan in the 401(k)? The 403(b) loan rollover would not be treated as a new loan would it?

403(b) about 25 participants, some have loan balances, same company has a 401(K) that has a loan and rollover provision. Can they rollover the loan balances to the 401(k)? My guess is YES. Another question, what if the participant who wanted to rollover the 403(b) loan balance had an outstanding loan in the 401(k)? The 403(b) loan rollover would not be treated as a new loan would it?

since they are updating some things on the computer and somewhat shutdown processing stuff, I have turned to the dark side (no, I am not running DB plans)...

this is the ugly 'invisibles', the clothes are there but the person (people) aren't and you have to figure out what the movie is, from the clothes or the background setting - then type the title correctly into the box correctly to see if you are correct. after nasty ADP testing season you deserve to get frustrated by something else (other than poor basketball picks)

I have a client that is an LLC and has provided K1's to partners of the entities that own the LLC. The income I guess is an amount to cover their taxes. The Accountant will not provide K1's stating that since the entities own the LLC they are not eligible for the Plan. However if the partner is receiving the K1 not the entity shouldn't they be eligible for the Plan?

So....after much controversy within my office, what is the opinion of the rest of the community with regards to Schedule SF rather than Schedule EZ, in regards to confidentaility issues and such.

I guess, when is an appropriate time to use an SF?

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One of my plans has a participant who should have entered the plan in 2007. She only works part-time, and the ER thought she wasn't eligible, and never sent me information on her.

So, they have to give her a Safe Harbor contribution for 2007 & 2008. I figured those out with earnings, and the ER will deposit the amounts.

My question is: do the amounts have to go on 5330 as a prohibited transaction?

If I rollover funds from a Traditional IRA to a Roth IRA before April 15, 2010, can I apply it to the 2009 tax year (1040A, Line 11a)? I know contributions can be applied, but not so sure on rollovers.

Thanks.

Anyone had experience with a firm of "environmental engineers"? Trying to figure out if they would be considered professional service employers, so as not to be subject to premiums. I called the PBGC but got transferred 6-7 times (literally) and no one could get me an answer. Thanks!

I work for a company which acquired another company. Below is the scenario:

The acquiring (parent) company - has a medical plan which is a combination of self-funded (or unfunded -- that terminology always confuses me; the company pays claims out of general assets, of which the employee pays a portion) and fully insured (some states and clients require insurance contracts so there are a few of those; those premiums are paid directly to the insurance company).

The acquired company (which was acquired in the middle of the fiscal/calendar year) - has a VEBA. The VEBA is about 10 years old, and although they may have used it to advantage in the past, currently they are just moving cash to the bank account to cover claims, much like an unfunded plan -- no advanced funding or investment being done.

During the year of acquisition, the acquired company was held as a separate subsidiary and the plan audit and Form 5500 were filed with just the financial information for that subsidiary.

NOW the acquired company has been fully integrated into the parent company (it's no longer a subsidiary). All claims are now paid through the parent company's TPA, using the general assets of the parent company. There were some residual run-off claims from the old plan of the acquired company that happened in the first part of the year (which were paid by the parent company through general assets), but any current year claims are being paid through the parent company's TPA from general assets of the company.

The questions are - do I now have to combine all of the parent company and acquired (now absorbed) company data, and get that audited for the 5500, just because there were run-off claims that were associated with the VEBA? Do I have to get an audit next year simply because that VEBA exists, even though then it won't be used at all? Will that go on until I officially terminate the VEBA?

Yes, I will be talking to the accounting firm about this, but I would like an objective opinion that isn't influence by potential audit fees (yes, that's cynical, I know).

Any insight would be most appreciated. My knowledge of VEBAs is solely based on what I can find to read about it.

Thanks in advance.

Donna

If someone wants to refinance for the max proceeds available, then generally they do not get a new5 year term. Btut there is an exception whereas the OLD loan balance can be repaid down to zero in the original 5 year term, and the new loan proceeds can be amortized over a full 5 year term. The number one complication here is that the payments need to DECREASE after the original balance is paid off.

Is any actually doing this? Or is this just being ignored?

Can anyone point me to a good article on what obligations an employer has upon a violation under 409A? Just for some reference, I am especially interested in this in the case of a stock purchase deal where the buyer figures out the violations post-closing? Looking for article discussing reporting, filing amended returns back to the date of the failure and any W-2 penalaties and penalities for not withholding or paying FICA taxes that might fall on the buyer.

Many thanks!