I have a control group with 7 companies. One company has 3 employees who each own 8% of that company but has no other ownership in the other companies. The other 75% is owned by one of the other companies so it is controlled. Do I count these ee's who own 8% as HCE's and Keys? They own more than 5% of 1 out of 7 companies.

Small employer DB plan established in August, 2009 for plan year ending 8/30/2009. One owner turned 70-1/2 in 2009. Is an MRD required in 2009? Actuary thinks not because there was no accured benefit as of 12/31/2008. Thoughts?

calling Mr. Poje or Fredman:

(This happend to me once before when I did an update and I cannot for the life of me remember exactly all the steps!)

Anyway - my ADP/ACP tests are printing with page numbers since the update. Due to the way that we assemble our valuation reports I do not want the automated page numbers to appear. I know how to modify the standard report in the Relius directory, but seem to remember something about having to take the exisiting file out of my Relius directory and replacing it with my modified file in order for this to work. I can't save my modifications over the original.

HELP!

Thanks in advance!

We are running a plan with a 11/1 to 10/31 plan year. There are about 110 participants in the plan. We prepared the 11/1/2009 valuation and the AFTAP is about 76%. The current Collective Bargaining Agreement (CBA) runs out in September, 2010. The new CBA may keep the same benefits as in the prior CBA. Since the AFTAP is less than 80%, the plan cannot be amended to increase benefits until the AFTAP is at least 80%.

If the benefits in the new CBA are kept the same (and not increased) and the current CBA is that considered an increase in benefits? I am thinking that it is an increase since the CBA ran out but I want to make sure.

Also, what date would you do the APTAP calculation to make sure that it is at least 80%. Would you run a projection of the AFTAP as of 11/1/2010?

Hi,

Plan Trustee did not file form 945, however, the deposits were made in a timely manner and zero was due at year end 2008.

What is the penalties for filing the form 945 late, what are the best ways to resolve? I guess begg for forgiveness ?

Thanks in advance.

Jason

My nonprofit employer of 30 years terminated our 457b Top Hat plan with 5 days notice on November 2. I understand that this distribution is ordinary income for this year and Fidelity Investments withheld state and federal income tax before sending me a check. The accrued monies are employer contributions from the last 27 years and were not reported on my W-2 statements; no FICA or FUTA was withheld or paid. Fidelity assumes that my employer paid those taxes when the amounts were deferred (there was no vesting period). My employer has not mentioned it. My salary has always been well below the Social Security maximum. My questions: who is responsible for those taxes (employee and employer shares) now, are they due on the earnings as well, and are there penalties and interest due?

Does the IRS Notice 2009-97 one year extension of the deadline for Plan Amendment implementation of 2006 PPA changes apply to use of the (graded-in) 3 segment Corporate Bond rates in lieu of the 30-year Treasury Bond Rate for Lump Sum calculations? A cursory reading suggests that the Extension does NOT apply to this change in Lump Sum Interest rates implying that a Plan Amendment must still be in place by 12/31/09 (for calendar year plans) for the change to be valid.

Is that correct ?

We have the situation of a prior TPA who is refusing to send any information whatsoever related to allocations for a series of recordkeeping plans that they have decided to no longer service. are there any guidelines on what needs to be sent or can they get away with this and new tpa needs to start from scratch, hoping to assemble everything, including historical data, inputting manually all current balances, election forms, etc. etc?.

If you work for a plan sponsor and can provide candid, confidential observations on any of the bundled DB service providers listed below I would appreciate it. Please provide observations from personal experience only. E-mails are fine; I don't want to bash anybody in a public forum. However, if you have a good experience with a provider and want to sing their praises, I suppose that would be OK.

Providers being considered for bundled actuarial and total outsource admin services are listed in alphabetical order:

Buck

Hewitt

JP Morgan

Mercer

Watson Wyatt

I have a multiemployer plan that violated the conditions of an amortization extension from the IRS. This produced retroactive funding deficiencies. The plan is now in critical status and has adopted a compliant rehabilitation plan.

Does 412(b)(3) allow the plan to avoid paying the funding deficiency while in critical status? Or does the funding deficiency supercede the application of a rehabilitation plan?

Thanks,

Doug

We have a client who set up a 401k profit sharing plan.

They have about 25 participants.

They asked that we assist with establishment of accounts at Schwab.

They want each participant to complete an application to establish their own self directed account.

The money will likely start in the participant's money market type account and then be available for each of them to invest as they choose (i.e. no menu of investment options) and access on-line just as if they had their own savings account with Schwab.

Is this a permissible type of self directed arrangement?

Thank you.

Plan fails ADP test, but only using up $2,000 of available catch-ups. Can I shift enough NHC deferrals to the ACP test such that the total recharacterization in the failed ADP test will be exactly $5,500? I know the requirement is "passing with and without the deferrals", but can "passing" mean no refunds?

For the plansI am submitting for determination letters for the EGTRRA restatements, how far back is the IRS looking for documentation?

For plans that have a GUST-related DL, I understand it will stop there. But we have a bunch of plans that were on a GUST prototype, and most only have the opinion letter. (And many are on Non-Standardized docs.) We are now putting them on a VS and want the DL.

I seem to remember the folks on the IRS panel at the ASPPA conference webcast saying they are only looking back to GUST docs, and that a plan would only need the opinion letter (and not the DL) because that was part of the reason to have opinion letters in the first place.

I know that those types of events are not the official IRS stance, but has there been any other guidance on the issue?

I have a cross tested profit sharing plan, one person per class. For 2009, some of the profit sharing contribution will be made in employer securities, and some will be made in cash.

The employer wants to individually select the ratio of cash to employer securities comprising each person's contribution allocation. So participant A might get all cash, participant B might get all employer securities, and participant C might get half and half.

Obviously the entire contribution for each person will need to satisfy the ctoss-testing requirements, but is there a BRF issue with respect to the allocation between securities and cash?

Dog

I know I have kicked this around before, but wondering what most people are doing.

I am using Relius VS document. I was always under the impression that it was Relius' legal department's interpretation that a year of service was credited on the last day of the determination period.

Example: Plan with dual entry, age 21 and 1 YOS (with 1,000 hours). Person was hired several years ago and has never worked 1,000 hours in either her first 12 month period or in any subsequent calendar year (using plan year switch). She worked 1,002 hours between 1/1/09 and 6/30/09 and then terminated in August, 2009. Using my logic that the YOS of credited on the last day of the year, I figured she would not enter as she wouldn't get CREDIT for the YOS until 12/31/09, but my admin. system is bringing her in on 7/1/09, because she is getting credited with her YOS on 6/30/09. If she had not terminated, I would have expected her to enter on 1/1/10.

The Relius SPD says that "you will have completed a YOS at the end of any following Plan Year during which you were credited with 1,000 Hours of Service." This tends to back up my thought that this is how Relius' legal staff interprets the provision. (The document's definition of YOS doesn't get that explicit .... it just mentions the 12 month period.)

Thanks.

James

Just wanted to make sure of what date to put in 5330. Excess aggregate contributions were for plan year 2008, not distributed by 3/15/09. The 5330 will be filed this week with the 10% tax. Do I enter this year as the dates or do I enter 2008 for the filer tax year?

Where an IRA beneficiary is also an employee/shareholder of a C corporation owned in part by a terminating ESOP, can the shares in the ESOP be rolled over to the IRA beneficiary, even if the IRA as a result owns more than 10% of the value of all outstanding stock?

Is anybody else getting IRS penalty letters for 2006 or 2007 calendar years? My clients all filed their forms on time and yet they are getting hit with a penalty of $15,000.

Are IRAs subject to 10% limit on employer stock under 407(a)?