I never came across something like this...

A participant turned 70 1/2 in 2010. He is actively participating in the company 401k.

He has an outside IRA that he would like to roll into the 401k plan to avoid the RMD.

The plan doc allows for the RMD to be at retirement date instead of 70 1/2.

Is there anything I would need to be concerned with him bringing in the IRA to the plan?

The only think I see for him to do is to take the RMD for 2010 before rolling it over to the plan.

Any thoughts or concerns?

Where on the Form 5500 does the name of the Trustee appear?

We processed a distribution of a participant's account in full (mistakenly thinking we had a distributable event). Now we need to correct the error. Is an impermissible distribution of a participant's full account considered an overpayment in EPCRS? I am trying to figure out how to correct the error and the overpayment correction is the only area I can find that seems to apply to our situation.

Thanks.

The final 401m regs prohibit prefunding, but mainly to prevent the acceleration of a tax deduction. A tax exempt entity does not get tax deductions. Therefore, if a 403b allocates the match each payroll period, but has a 1000 hour and last day requirement, does this not still violate the prefunding rules? At least in terms of contributions being made before the service is performed.

Any comments?

When obtaining employer census data, do you obtain 2 sets of w-2 comp if it excludes Salary Deferrals from the definition?

Generally in a AA you can select to INCLUDE salary deferrals, which i believe would be Box 3 on a w-2, this comp would be used to determine top heavy, hce, 415, etc, but if the plan has no adjustments to comp, then box 1 of w-2 would be used, yet you would still need box 3 for other plan purposes. This has become an issue of debate in our office.

Hi all,

We are thinking about switching from Bank of America (horrible HSA customer service and administration!!) to Wells Fargo to administer the HSA's for our employees. I was wondering if anyone had any feedback about Wells Fargo's HSA admin.

How is their employer website? Is it easy to make funding contributions? Can you enroll a new employee online?

Have you had a good or bad experience with the debit card, customer support, or with submitting a reimbursement claim?

The monthly fee of $4.25 seems a bit high, and I'm sure that our employees are going to be upset, so I wanted to see if anyone out there has any feedback on Wells Fargo before we make the switch.

Many thanks for your thoughts!!

~Rebecca

An employee has medical insurance through her spouse and and an FSA with my company. She recently found out that her spouse's company is changing their medical insurance as of April 1 to a High Deductible Health Plan with an HSA. We do not offer a limited FSA. Does she need to stop her contributions to our FSA?

Does nayone know if the suspension was passed for 2010?

Plan uses statutory 1 YOS/age 21 eligiblity.

Scenario 1:

Owner and owner's immediate family are the only employees. Owner's Kid is hired on January 1, 2010, and owner wants him in the Plan from Day 1. No other employees have been hired since that date and there are no immediate plans to hire anyone else. Would an amendment that waives eligiblity for anyone hired as of 1/1/2010 be allowed? My assumption is yes, since there are no other NHCE's, and therefore there is no issue of discrimination. If the answer is "no, this isn't allowed" then it would seem that this type of Plan would be precluded from making several kinds of amendments, which would seem wholely inappropriate...

Scenario 2:

Same as Scenario 1, except that there are three employees who have been working there for 5 years who were made to satisfy statutory eligiblity. My feeling is that this WOULD be discriminatory because there are NHCE's in the Plan, and as such the amendment is subject to discrimination testing.

Scenario 3:

Same as scenario 2, except that eligbility is amendmed to be immediate. The employer has very very low turnover and is not growing, and it is not anticipated that any new employees will be hired any time soon.

The DOL website still indicates paper filings. Is that right? We have a new client that has to enter the program for 2004 -2008 filings and pay their $1,500 multiple year cap.

http://www.dol.gov/ebsa/faqs/faq_DFVC.html

Does anyone know the time period employee benefit records should be retained? We have health insurance, life, disability, and 401k records going back many years. It would be great to destroy the old records and free up space. Thank you very much.

Excuse me but is has been a while since I worked on an Offset Arrangement (DB Plan offset by contributions to a DC Plan).

In a DB Plan where there are different benefit formulas for different groups, will I need to pass 401(a)(4) for the DB Plan alone before I apply the offset? Or do I only have to pass 401(a)(4) in a combined arrangement with the DC after the offset is applied?

Thanks for all your help.

Can a participant's account be charged to answer detailed questions? I have a participant who is not a trustee who is asking very detailed questions that require a lot of time to answer. Is there a way to charge this participant's account for this time? It doesn't really seem appropriate to charge the plan sponsor. What else can I do?

Sorry if Tom gets this! One more question. The sponsor has a plan year ending 6/30. For the 6/30/09 plan year, if they do not elect to use the calendar year then they will have an HCE since the 2008 HCE theshold for 2008 is $105,000 vs $100,000 for 2007. Question - is it too late to amend the plan? The 11g deadline is 4/15. I see that PPA requires the top paid group election to be made by end of plan year.

What about the calendar year election?

This is my fisrt post and I am hoping I can get some help/advice on how to get thru the QDRO process. I apologize in advance if my explanation of my situation takes longer than normal.

I just recently got divorced (finalized on 1/25/2010). It states in the court documents/stipulation that I will front the cost of a QDRO in which my ex is entitled to half of my 401k. There's no date or time frame given to when I have to file the QDRO. My attorney doesn't draft QDRO's and he recommend I go to QDROpro.com. As I was doing my research, I noticed that there was information that I was having to provide to get things started (ex-wife's name, address, plan name, etc...) Well, here is where it gets interesting. I e-mailed my HR department needing my plan administrators name since that was on the "checklist" of what I needed to file. I recieved a response back today from my PA and she advised that my 401k account is now frozen from loans and withdrawls.

Well, on the 19th of this month, I was going to request a hardship withdrawl so that I can pay the balance and trust funds to my divorce attorney ($3800). I have requested hardship withdrawals for this purpose twice already since it took forever to finally finalize my divorce. I read that a PA can place a hold on the account but then I read that the PA has to recieve some formal document or court order for them to freeze the account. I have not yet retained a lawyer or actuarial company to draft the QDRO. There has been no paperwork submitted so is it proper for the PA to freeze my account just by me saying that I will be filing a QDRO in the future and merely asking who and where to send the QDRO once its completed? I understand that my ex is entitled to half of my 401k, and I have no issues with that and by all means not requesting a hardship so that she gets less money. We have 4 boys and I want to be able to provide for them the best I can and I know that this money will help them and my ex tremendously. I do however need to pay my attorney for his services and I have no other way without having to take a hardship withdrawal.

If there is anyone that can shed some light on this situation, I would truly appreciate it. Thanks in advance for those that chime in.

Hello

Individual is a participant in a defined benefit plan. She turned 70.5 (1994) while still working for sponsoring employer. As such, she received an in-service pension for about a year until she actually retired around age 73 (1996).

My question:

Which plan document applies to this person? The one when she began receiving a pension payment, or the one when she actually terminated service.

I know the law is that the plan document applicable to a particular participant is the one in effect on their last hour of covered service, but not sure about this situation. Any citations would be wonderful. Thanks everyone!

I keep hearing from the IRS at conferences that the cumulative list won't necessarily list all of the amendments/changes that might be required for a terminating plan. Is anyone aware of any amendment that would be required but that isn't on the most recent cumulative list for a DC plan terminating in April?

My employer terminated our Split Dollar NQDC plan two years ago and last year we recieved payment for our share of the investment. I am still an employee of the company. How should the payment be reported to the IRS. My employer used a 1099-Box 7 which makes me responsible for self-employment tax on the amount. Is this correct? I have gotten several different conflicting opinions that the money should have been reported either as W2 wages or 1099 box 3 income.

A very large multinational conglomerate in the Chicago area is requiring participants in the health plan to mail certified copies of personal documentation to an outsourced location in Florida, stating that these documents are needed to prove eligibility of the participants' dependants. Participants must provide marriage licenses, birth certificates, adoption records, court orders (e.g., for foster children), etc. by sending the documents to a Florida post office box of the outsourced service provider.

Participants are uneasy about sending such personal information to the location, but would not refuse to show the information to a person.

Participants are told that should the records not be sent to the location by May 1st 2010, that the participants' dependents would lose coverage as of June 1, 2010 and would not be entitled to COBRA.

Any advice as to how to proceed in objecting would be appreciated, and any advice as to provisions of ERISA that do not require such measures would also be appreciated.

This company has a history of having violations/loss of employee information through theft or other manner.

Thank you.

The tax software I'm using is saying you can't convert a traditional IRA to a Roth IRA for 2009 to the extent the required minimum distribution for the year hasn't been distributed. I know this was correct for 2010.

Am I wrong, I thought since distributions were not required in 2009 I could still do a partial convert to our Roth. If not ,is my only option to recharacterize? Any other options? Hopefully I'm not wrong.