I know this was talked about before, but i couldn't find the post.

I have a Eoy CB plan where I allocate 100k, but because of PPA, I can only contribute 68k. How are people getting the funding close to the allocation amount?

Where can I find annuity purchase rates for New Comp Xtesting for various mortality tables? I'm trying to build a model that will make it easier to find the best testing solution?

I have kleptomania, and when it gets bad, I take something for it.

Suicidal twin kills sister by mistake.

My short-term memory is not as sharp as it used to be. Also, my short-term memory's not as sharp as it used to be.

I may be schizophrenic, but at least I have each other.

Kentucky: Five million people, fifteen last names.

Nobody is perfect. I am a Nobody. Therefore I am perfect

Money isn't everything, but it sure keeps the kids in touch.

Corduroy pillows are making headlines!

I want to die while asleep like my grandfather, not screaming in terror like the passengers in his car.

An ER has a 401k plan that has received both elective deferrals and profit sharing contributions. The plan only permits in-service distributions once an EE reaches NRA. The plan documentation is by way of the ER's adoption of a pre-approved prototype.

ER would like to adopt an amendment that will allow in-service distributions of profit sharing for the rest of 2010, but not thereafter, and then only for those who would be having the payout rolled into a Roth IRA. The amendment would 'sunset' the in-service distribution opportunity at the end of 2010.

1) May an ER restrict the types of in-service distributions it decides to permit to just Roth IRA rollovers?

2) Is the sunset at the end of 2010 a prohibited cutback of a protected benefit? or since it was an aspect written into the very amendment by which in-service distributions is allowed, is it okay?

3) Would the prototype plan be considered a individually designed plan for just 2010, and return to prototype status come 1/1/2011?

4) Any other problems?

I know it's late on a Friday night, but can anyone point me to a Code section or Regulation section that dictates how long must retirement account historical data be maintained?

My husband’s employer has an FSA plan with a plan year from 7/1/2009 to 6/30/2010. Last July he requested $1,200 be deducted from his pay for FSA. To date we've only used $400 of the $1,200. I do not believe his FSA plan is defined as limited or special purpose.

Just recently my company converted from a PPO plan to an HSA plan for a 1/1/2010 to 12/31/2010 plan year, so it overlaps my husband's FSA plan. In this situation, what do we do? Can we continue to use the FSA funds even though they are not defined as limited/special purpose? Am I free to make contributions to my new HSA plan? Would we be okay if we just make sure the total of pre-tax dollars in the 2 plans don’t exceed the $6,150 HSA limit for 2010? Or are limits different for HSA's and FSA's.

When asked this question, the medical insurance broker for our company suggested:

"You cannot contribute to both FSA and H.S.A accounts. Because you and your spouse elected the FSA and it is in the middle of the plan year you have to use that money first. Once that plan ends then you can start putting funds into your H.S.A account. Example: medical and pharmacy bills will need to be paid with the money from your FSA. After July 1st you can start using your H.S.A."

If that's correct, what happens if I run out of funds in the FSA account prior to July 1. Can I start contributing to my HSA before July 1?

If I can’t contribute to the HSA until July 1, how does that affect the maximum limit I can contribute to the HSA for the year? The annual cap for 2010 is $16,500. Does that mean if I can’t start until July 1 I can only contribute 50% of the limit, or $8,250? Or can I still contribute $16,500 for the calendar year, but it would just all be in the second half of the year?

Any help you can offer would be greatly appreciated!!

The rules seem clear that when a highly compensated employee is eligible to participate in 2 plans of an employer that the elective contributions are aggregated in determining the actual deferral rate for the employee in both plans. This rule is in both plan documents.

OK - so if a corrective distribution is required from plan but the elective contributions in plan 1 are NOT sufficient to correct, can payment be made from the 2d plan? Neither plan document contemplates this possibility.

It's really complicated because the plans have different plan years.

Can anyone provide a specific ruling, etc. that permits matching contributions to be stopped? I know you can do it on a prospective basis, but nothing to back it up. Any help would be appreciated.

An accountant asks if he must include accrued interest - shown on the IRA statement - in calculating a Required Minimum Distribution.

Any ideas?

I see they gave small Plans 7 business days to remit deferrals. What is the rule for large Plans? Is it 2 business days or just the vague DOL reg of ASAP but not later then the 15th day of the month following?

My employer has lost a large number of clients in the past year. In an effort to avoid lay offs, document work for another company has been brought in. As I've been training on how the new company does things, I've learned that they routinely back date their amendments. Although I don't agree with that practice, when the amendment is to change trustees or plan name, I'm not terribly concerned about it. However, in the first 10 amendments they sent us, one of the amendments is to remove a safe harbor non-elective contribution effective 1-1-10 and another is to remove a fixed non safe harbor match with no accrual requirement effective 1-1-10.

My manager, whose background is mutual fund recordkeeping,, not qualified plans, is struggling to understand why this is a problem. If we are ultimately directed to write the amendments according to the direction of the other company, what sort of problems might I create for myself, personally? (I'm reminded of the Nazis who claimed innocence of war crimes because they were following orders....)

Ok, this is a first for me...

One of my clients (who has a high turnover rate due to the line of work), had several terminated participants with small balances. The client requested from the investment company that they be forced out of the plan (which the plan allows for balances under $1,000). For the distributions over $200 (but under $1,000), 20% federal withholding was taken out and sent to the DOT. A few of the participant checks were redeposited (voided checks) at the investment company because they weren't cashed within 6 months. The issue I have is that no 1099 will be issued for those whose checks were cancelled since the participant did not receive the check (or cash the check whichever the case may be). However, I would have to report the withholding on the 945 correct (since the DOT did receive the withholding)? How will this work? If the IRS tries to tie out the 1099's reported withholding with the 945 reported withholding it will not match.

Has anyone ever had this issue? If so, how did you handle it?

Thanks so much in advance!

The 10% Penalty exception for Distributions applies to employees who terminate employment during or after that year in which they turn age 55. I get that.

But what happens when the PLAN terminates? Do those who are age 55 get an exception? And what date to use – plan term eff date or plan distribution date?

Can a QACA plan, which has the auto enrollment provision and safe harbor, have a one year waiting period for the safe harbor match? I assume it operates the same as a traditional safe harbor plan, but wanted to see if anyone had a different opinion.

I realize that a husband and wife who both have day care accounts, whether from the same company or different companies, can only have $5000 in total elections and the rest would have to be treated as taxable income. However, is there anything preventing a case where husband and wife both work for the same company and each elect the max for their individual medical FSA's? The only thing I can see at the moment is that the plan administrator would have to ensure that there is no double-dipping of claims.

I have a corporation that made its first distributions (to owners) in 2009 from a Target Plan, a Keogh plan and a DB plan. I don't see where any of these plans applied for separate EINs in the past. Do these plans have to have EINs that are separate from the corporation's EIN in order to complete the 1099-R? Or can they merely file using the corporation's EIN?

Are there regulations relating to how a funding deficiency is allocated within a multiemployer plan? For example, one reasonable interpretation may be to allocate the funding deficiency as a percentage of contributions made to the plan. Maybe the answer to my question is included in the participation agreement?

Any direction would be greatly appreciated.

Thanks,

Doug

This may be a silly question, but...

A plan has 25% deferral limit and 25% after tax limit with a combined 25% limit for both sources. If the person goes over the combined limit, can pretax money then be reclassified to become catchup to bring them below the 25% combined limit?

Does anyone have any thoughts on whether someone responsible for determining if a DRO is a QDRO would be a plan fiduciary under ERISA? I would tend to think they would since this determination involves exercising discretionary authority in the administration of the plan, but just wondering if there is any black letter law or at least a consensus on the issue.

Specifically, we represent an annuity provider who believes they might be responsible for making QDRO determinations with respect to ERISA 403(b) plans. I'm trying to explain to them that this should be the plan administrator's responsibility and it would be a bad idea for them to do it because it would make them a plan fiduciary.

Any thoughts are appreciated. Thanks.

What is the recourse if a participant requests a hardship from their plan and submits that appropriate proof that later turns out proved to be fraudalent. Participant already received the money. I believe this is correctable under SCP with the participant required to pay the money back. What if the employee is terminated because of this act? Still have to pay the money back? How do you get it from them? They now have a separation from service and are requesting a distribution. Can you hold it up until the repay?