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.

The final 409A regulations contain 24 examples under 1.409A-2(b)(1)(9) on subsequent deferral elections but this scenario is not addressed:

Plan defines "payment date" as the later of participant reaching age 65, or his termination of employment.

On which event/date does the 5 year minimum subseqent deferral rule depend?

Participant is less than 1 year from his 65th birthday but plans on working another 5 to 10 years. He has over 40 years of service with the employer.

First, is there a substantial risk of forfeiture just due to the "later of" language and the participant's good faith intention to continue working? Does the fact that the participant is a substantial but not majority owner of the entity make any difference?

In other words does the plan on its face have to have a more material risk of forfeiture?

If so can the participant now change the definition of "Payment Date" to the later of age, say, 70, and completion of, say, 50 years of employment? Or just leave 65 as is, and make later trigger his "separation from service on or after completing 50 years of service"?

Any comments appreciated.

Have a profit sharing plan with a two year eligibility period and 100% vested immediately. The plan is cross-tested and a 5% gateway is provided to all non owner employees.

Suppose they want to change the plan to a safe harbor 401k with a 3% SH employer contribution.

They want to keep the two year eligibility for profit sharing.

They must provide the 3% SH to all employees with one year of service. Must those employees also be provided a 5% minimum gateway as those with two years of service do?

Thanks

My client purchased qualified Er securities with Roth deferrals and that stock has since appreciated. How do the net unrealized appreciation rules work with roth deferrals?

Plan details as follows:

Funding shortfall for 2010 : 250,000

Present value of prior years shrortfall charges : 300,000

new shortfall amortization base : (250,000-300,000) = -50,000

New shortfall installment : -8,000

Prior year's shortfall installment : 60,000

Total amortization installment for current year : (60,000-8,000) = 52,000

My question is that since current year shortfall is lower than PV of prior year’s charges, so there is a negative base and a negative amortization for current year. This in effect is reducing last year’s amortization installment. So should I leave a –ve base or should it be zeroed out as follows:

Funding shortfall for 2010 : 250,000

Present value of prior years shrortfall charges : 300,000

new shortfall amortization base : (250,000-300,000) = -50,000

New shortfall installment : 0

Prior year's shortfall installment : 60,000

Total amortization installment for current year : (60,000-8,000) = 60,000

Thanks in advance for all help in sorting out my confusion.

When should the trustee prohibit a participant from taking a distribution? Trustee knows an employee is about to be divorced, but no QDRO has been received, etc. OBviouly, participants who know a divorce is coming would have a significant incentive to close their accounts before a divorce...

There is a supreme court case that specifically says a multiemployer plan trustee must act solely in the interest of plan participants when wearing his fiduciary hat. See Amax, 453 U.S. 950. I am looking for cases in which a fund or participant has brought a fiduciary-breach case against either a labor or employer appointed trustee, where the plaintiff is alleging that the trustee has acted in the interest of the appointing party rather in the interest of the beneficiaries. Any law review articles or cases on point?