Assume an employer adopted a plan and received a letter on its GUST document. The employer subsequently adopted an EGTRRA volume submitter document and then in late 2009 adopted an EGTRRA prototype document. The employer plans on submitting the Plan for an individual letter by the April 30, 2010 deadline.

As part of the 5307 submission we need to include all documents since the last determination letter, which includes that EGTRRA volume submitter document. Are we required to submit a list of modifications for that EGTRRA volume submitter document when we apply for the individual letter?

Treas. Reg. 1.402-1, Q&A-4© says "The beginning of the 5-taxable-year period of participation is not redetermined fro any portion of an employee's designated Roth account. This is true even if the entire designated Roth account is distributed during the 5-taxable-year period of participation and the employee subsequently makes additional designated Roth contributions under the plan."

So, a participant can withdraw his or her entire designated Roth account balance without restarting the 5-taxable-year period.

The Question: What if that same participant separates from service and withdraws the entire account balance, the account is closed, and then the participant gets rehired and starts contributing to the employer's plan again? Does the 5-taxable-year period start over?

Assume a divorce agreement that provides that Dad maintains hospitalization, major med, dental and vision until emancipation (as defined) unless child attends a post-secondary educational institution. In that case Dad continues to maintain the coverages until the first of he or she reaches age 23, permanently discontinues said education or graduates from said institution.

Will the health reform extension to age 26 modify this type of provision by operation of law or will we have to go in and amend/

any thoughts?

If a DC plan has failed to distribute an RMD, would you enter this on the Schedule I, Line 4L? Or is this really meant to only report distributions that have been requested but not paid, etc.?

In the past, when a plan terminated (say in late 2008 and got all funds disbursed January 2009), I would usually complete the form 5500 for the 2008 plan year on 2008 forms and I would also complete the Final form 5500 for the short plan year 2009 on 2008 Forms.

Since 2009 Form 5500-EZ has not yet been released, and the form 5500-EZ is still allowed to be filed on paper, does anyone know if we can use 2008 Form 5500-EZ for Final plan years filing for 2009?

What about for normal plan years who may file form 5500-EZ?

Most of the information I come across through various sites are geared towards EFAST2 and the 5500 SF. But I am trying all together to avoid e-filing for those clients who are not computer savvy.

Your help is much appreciated.

Thanks.

Cant seem to find any guidance on this? Any help appreciated!

I realize that logic and PPA is a contradiction in terms, but please let me know if i'm correct in following example regarding shortfall amortization charge:

1/1/09 valuation:

FT= 100,000

AVA= 110,000

COB= 15,000

PFB= 0

PV of Prior Charge= 20,000

2008 Amortization Charge= 5,000

Since AVA-PFB > FT, there is no amortization base set up for 2009 year, but since the AVA-PFB-COB < FT, the 5,000 charge does not get wiped out and is again charged for 2009.

But consider that if the 2009 shortfall calculation is followed through we get FT-AVA+PFB+COB= 5,000 shortfall. Since this amount is less than the 20,000 PV of prior charges would otherwise create a shortfall credit for 2009.

So instead of being able to utilize a shortfall credit for 2009 that would have resulted in a lesser cost, because the AVA-PFB > FT, there is no charge (or credit) for 2009 which results in a higher cost than what would have been created if the shortfall calculation could be carried through.

Is my calculation and assumption correct and if so is there logic behind it?? Thanks.

I took over the design and document work for a plan that has a TRA '86 d-letter, but not a GUST II d-letter. For GUST II, it was timely restated using a VS document.

We've restated it for EGTRRA using a prototype document.

I'm considering making an application for an EGTRRA d-letter. In assembling the plan documents since the TRA '86 d-letter, I've noticed that on two of the interim amendments, the VS sponsor signed/dated, but the employer signed but did not date. Also, the date is faint on the GUST II restatement VS adoption agreement, but upon 4X magnification can be discerned (and it was timely).

Should I make an interim amendment failure VCP application due to the lack of dates on the two interim amendments?

(I know of a plan that its TRA '86 restatement docs were signed but not dated, and that resulted in a $3,500 penalty when caught on GUST II d-letter application.)

General TPA habits question...

What do other TPA's provide in communications to HCE's for the coming year in a plan that fails?

e.g. Do they send a list of HCE's to the plan administrator.

or

Do they produce a letter and send directly to the participants?

assume current year testing

Plan has been currect year testing from 2005 - 2009.

Would like to amend to prior year testing for ADP and ACP.

Can the 2010 testing be amended now, or would that have to have been done by 12/31/09?

Thanks.

Neither corp delivers svcs to the other, so no ASG issues.

Case 1:

Corp A is owned as follows by 4 docs and a separate corp

doc a 12%

doc b 12%

doc c 12%

doc d 13% - total 49%

corp b 51%

Corp B is owned 100% by indiv x and y evenly

docs own no part of Corp B

Are A and B Bro-sister?

Case 2:

Corp A is owned as follows

doc a 6%

doc b 6%

doc c 6%

doc d 3% - total 21%

corp b 79%

Corp B is owned 100% by indiv x and y evenly

docs own no part of Corp B

Are A and B Bro-sister?

I am 52 yrs old and started a DB plan in 2006 which is currently active with a planned retirement date of 10/2019 when I am 62 yrs old. My annual taxable income has ranged from low 200's to mid-300's last couple of years. I also have a Profit sharing plan with a balance of about 62K which I no longer contribute to. I called my CPA to ask if I could start a ROTH IRA and he told me yes. Still I am confused about exactly how to do this. When I called Schwab, the administrator of the DB plan and asked if I could open a Roth, they referred me back to my CPA.

What is the deal; can I open a Roth, and if so how?

Thanks,

Those awaiting final regs might wish to consider that it required the IRS 13 pages in Rev Proc 2010-16 to define "last known address."

Employer is considering a wellness program as a part of its group health plan that will offer premium discounts for those employees and their covered spouses who satisfy certain health standards. Must these discounts be carried over and made available to individuals who become eligible for COBRA under the employer's plan and who are able to satisfy these standards? Thanks in advance for any input.

Considering a plan with no early retirement provisions, but allowing Lump Sums upon termination. Reading 417(e)(3) and Reg. 1.401(a)-20, Q&A 17, is it still the case that we have to offer the QJSA annuity available immediately if the Present value is above $5,000?

Seems a little counter-intuitive to be offering annuities when there is no early retirement. Has there been any update or guidance on this?

This falls into the category that clients don't always follow instructions that they normally follow and to quote Forrest Gump, "It Happens."

A 300+ life DB plan for a not-for-profit organization does not provide for in-service distributions. Further, the plan provides for a late retirement date that is the first day of month coinciding with or next following the actual retirement date. An HCE turned 65 on October 4, 2009 and indicated he would actually retire on November 9, 2009. In August 2009, the HCE was given an election package that provided for a lump sum distribution effective December 1, 2009. Instructions were provided not to distribute payments until on or after December 1, 2009 and then only if HCE had terminated employment as planned on November 9, 2009 (which he did). The same personnel have been administrating the plan for years.

On November 9, HCE terminated employment and was handed a lump sum check on November 9 for $1,020,000, which was the payment for December 1 distribution date. Had the distribution been calculated as of November 9, the amount would have been $1,016,000.

Thoughts?

IRS sent a CP-403 for 2007 5500 for 2 plans of the employer.

We have a USPS mail label showing the return filed timely, but no signed original.

If we send a newly signed file copy with evidence of timely filing, what happens if DOL later asks for return. Have we made any additional trouble? If IRS accepts it as a timely filing, is that enough?

When determining HCEs for a Puerto Rico Test, is there any flexibility in the rounding method? For example, with 16 employees, 1/3 would be 5.33. So should there be 5 HCEs or could there be 6?

Any thoughts, greatly appreciated.

Yesterday...

Income tax was due, I had to pay...

All the funds I tried to hide away...

I don't believe, I'll eat 'till May.

Suddenly...

I'm not sure that I am fiscally...

Ready for responsibility...

Oh yesterday, came suddenly.

Why, I

Owed so much, I don't know, I couldn't say

May be

Forms were wrong, how I long, for yesterday.

Yesterday...

Seemed like prison time was on its way...

Now I need a place to hide away...

While keeping IRS at bay.

Why, I

Owed so much, I don't know, I couldn't say

May be

Forms were wrong, how I long, for yesterday.

Yesterday...

Taxes due, I filed come what may...

Losing all deductions that's my way...

Of giving IRS my pay.

mm - mm - mm - mm - mm - mm - mm.

If a 457(b) plan wishes to terminate in 2010, must the plan document first be amended for PPA, HEART, and WRERA prior to distriubtion of plan assets?