I think I should have posted this here:

I recently submitted a claim for benefits on behalf of my client. The claim is for waiving a DB Plan's recoupment efforts. The Plan assets are held in trust by Bank. Legal counsel for Bank wants me to direct all communication to him, and when I submitted a claim to waive recoupment, the Plan Administrator did not respond. The Bank's lawyer responded, referencing my claim as a letter, and didn't address its points at all. What should I do...write to Plan requesting decision from them? The Plan Doc and SPD specifically state there is a benefits committee that responds to disputes and claims.

Was a DC rollover account in a DB plan subject to a Mininum Distribution for 2009? If not, was some type of amendment required?

OK, so as I understand it, we really do have to complete the "Paid preparer" part of the 945. I personally have a PTIN, for this specific reason. So...

they ask for my signature and my PTIN, and my firm's (a corporation - it says "Firms's name (or yours, if self-employed)" - I'm not self-employed) and EIN. But they don't ask for my name, so I'm not giving it to them (except on the third-party designee line, which is a different issue). Does that make sense (that the form should have my signature but not my name)?

Is it correct that they want an *individual* to sign and be linked to a PTIN (or SSN)? For my small company, it all boils down to me anyway, but is Joe Smith who works for Bisys or whomever using his own PTIN? Somehow that doesn't make sense to me, and I get really hung up on things that don't make sense. I relied on someone else's guidance on this a long time ago and now I'm questioning it.

thx

Does anyone have any experience with freezing a 401(a) plan and the steps involved? The plan in question has several compliance problems and the current TPA has not not been fully their obligations and has contributed to some of the operational plan issues.

I recently submitted a claim for benefits on behalf of my claim. The claim is for waiving the Plan's recoupment efforts. The Plan assets are held in trust by Bank. Legal counsel for Bank wants me to direct all communication to him, and when I submitted a claim to waive recoupment, the Plan Administrator did not respond. The Bank's lawyer responded, referencing my claim as a letter, and didn't address its points at all. What should I do...write to Plan requesting decision from them? The Plan Doc and SPD specifically state there is a benefits committee that responds to disputes and claims.

Can a participant specify that a withdrawal come only from their Roth 401(k) or must the withdrawal come out pro rata from both their Roth account and their pre-tax account?

If a participant's account holds assets that are worthless, are the assets formally distributed when the participant is eligible for distribution or is some other disposition or treatment preferable? If assets are distributed, is Form 1099-R issued showing a zero value?

In defining the classification groups for our cross-tested plans, our document calls for group #1: "An allocation up to the maximum permissible amount under IRC §415". All other groups call for a pro-rata allocation among the individuals in each group.

If there is more than 1 individual in group #1, would you interpret the allocation language to mean that you can basically give the individuals in group#1 any arbitrary amount? For example, we give the 415 max to one individual, $15,000 to a second individual, and $0 to the third individual. Granted, it all has to pass 410(b)/401(a)(4), but if it does, would this sound right to you? FWIW, Group #1 is always used just for HCEs.

Thanks

What is the current turnaround time for an IRS Letter of Determination upon plan termination (Form 5310)?

How do you determine net actuarial loss/(gain) in the amounts recognized in accumulated other comprehensive income.

Can the full yield curve with October 2008 segment rates be used for a 2/1/2009 beg of year valuation? I think this is available for plan years beginning in 2009 correct? In this plan there would not be any material change issues.

Thanks.

Can an ERISA 403(b) plan use EPCRS to correct written plan defects that occured prior to 01/01/09? In this case, the plan improperly made loans to participants in 2004 when such loans were not permitted under the plan's ERISA written plan document. Will the IRS approve a retroactive plan amendment to correct this defect under EPCRS?

Notice 2010-6 requires in the "tell on yourself" disclosures, to report the "amount involved in each document failure", the amount reported as income, and the percentage of the "amount involved" that has to be reported.

Do you think "amount involved" means "amount deferred?" I searched the Proposed Regs under 409A-4 for the term "amount involved" and it doesn't exist. Nor does 2010-6 define "amount involved." This whole disclosure thing is so ridicuous - when there is no amount required to be included in income. Is the "amount involved" per participant? or in the aggregate?

Thanks for any thoughts.

CW

A calendar year plan sponsor failed to provide data until after October 1, 2009 so the AFTAP is presumed under 60%, so all restrictions apply.

The sponsor only has one plan, the DB plan.

As far as I know, no amendments to increase benefits are allowed even if a contribution is made.

When the actual data was provided, shortly after October 1, the AFTAP was found to be over 80% (and the sponsor is not in bankruptcy).

However, an amendment is needed under 1.401(a)(4)-11(g) in order to pass testing for the year.

Is a retroactive corrective amendment under 1.401(a)(4)-11(g) allowed? If not, (because of the restrictions caused by the AFTAP being presumed under 60%), can the plan be corrected for the failed nondiscrimination test?

I am seeing two different requirements regarding Who Should Not Use Model 5305.

One resource says employers can use the model form as long as "the employer does not maintain any other retirement plan and has not maintained a defined benefit plan at any time in the past"

Other material, including the 5305 Form (2004) and Publication 560, seem to have dropped the language restricting employers who held DB plans in the past.

I am trying to determine whether a prototype document will be required in these two situations:

1 - Employer maintains PS plan in 2010 but wants to set up a SEP in 2010. Can employer adopt the SEP before the effective date of termination of the PS plan? Let's say it's October and employees have met the requirements for an allocation for 2010. What is the best procedure for moving to SEP-IRA? do we have a problem if the PS plan termination date occurs after the establishment of the SEP?

2. Can an employer use the Model form if he ever maintained a DB plan?

Thanks for any help on this one!!

Hello.

One of your clients just contacted us that they would like to change the safe harbor match language to allow 'true-up' at the end of the year. This would be for 2010. Apparently one of the employees in 2009 (not an owner, but an HCE) made most of his salary deferral payments to the plan in the early part of the year and had his match capped. The safe harbor match is currently deposited on a pay period basis per the document specifications. The employee would have received more match if there was 'true-up' at the end of the year. The current plan document does not 'true-up' the safe harbor match. The plan is a calendar year plan.

Is this something that can be done for a safe harbor plan during the year in question? The client did provide a safe harbor match notice to the employees on a timely basis.

Perhaps because it's late in the day, or I'm having a senior moment, I'm doubting my memory.

Plan has allowed in-service distribution of amounts rolled into the plan from other plans. They would now like to amend to remove that provision. Isn't that a protected benefit as to the rollover balances in the plan prior to the date of the amendment?

Does anyone know what the penalty is or what happens when an employer doesn’t get the notice to interested parties to their employees within 10 days of when they file for a Form 5300 qualification?

How long should copies of old plan documents, carrier contracts, correspondence to employees about plan/premium changes, FSA enrollment forms be kept?

I really need to clean out my office and I hope I can get rid of some of this old stuff.

Doctor group 401(k) allows for self-directed accounts. 2 docs want to invest a portion of their account in a venture capital fund. (One of the docs is one of two plan trustees) Investment would be in the form of limited partnership interests. I have read the limited partnership agreement and private placement memorandum and am trying to come up with the reasons this is not a good idea.

So far my list includes:

-potential prohibited transactions (depending on who the other limited partners are)

-severe illiquidity of investment

-possible UBTI

Can anyone add to my list?