I am looking for the best company to have my IRA ROTH with. I am currently with Ameriprise but I feel they are taking too much of my investments. Can anyone help?

I'm taking over a Defined Benefit-Profit Sharing Plan combo. Last amended 2003.

The defined benefit plan document says "If this is a paired plan the eligibility requirements must be the same." You guessed it, they aren't. DB is six months no hours and the PS is one year with 1,000 hours. Also one is a standardized plan and one is non standardized. Contributions have been under the 25% limit.

I've looked in Sal's book, but can not identify anything on point. There is a document issue, however is there a statutory issue? Also will there need to be a submission under EPCRS, lower the eligibility requirements for the PS plan and make contributions for anyone omitted?

What ERISA obligation/requirement, if any, is there for a multiemployer plan to provide annual (or other) estimates of withdrawal liability to employers?

I'm reviewing an employment contract for an executive of a private company. Among other things, the contact provides that within 60 days of a change in control, the executive may voluntarily resign and would be entitled to a severance payment equal to one year's salary payable in a lump sum within 14 days of separation. At the company's request, however, the executive would be required to continue working for 6 months before any severance would be paid.

While I don't think this qualified for any 409A exemption, I think it complies with 409A. Despite the reference to a change in control, the real trigger seems to be separation from service and the payment is due within 90 days of separation.

Am I missing anything?

Thank you.

Aaron

Employment contract provides for (i) 3 years of severance pay upon termination for any reason (to be paid monthly beginning with the month following separation) and (ii) a 3-year noncompete provision. However, the employer has the option upon termination to waive the 3-year noncompete, in which case no severance is owed.

As I see it, the severance arrangement does not qualify for any 409A exemption. However, it does seem to comply with 409A in that it is payable upon separation and according to a fixed schedule. I also don't see any issue with the employer's right to cancel the severance by waiving the noncompete provision, however I'm not sure I've considered every angle.

Does anyone have any thoughts or differing views?

Thank you.

Aaron

There are so many detailed questions on this forum, I wish there was a thread for 'bone headed' questions that I should know the answer to already.

An employer failed to restart deferrals following an employee's six month hardship 'suspension.' The employee still has a valid deferral election in place. What is the correction method for the company?

Thank you,

Scott

I have been a Permanent Resident (a 'Green Card' holder) for less than 8 years (thus not a long-term PR), but would now like to abandon my PR status so that I don't have to travel to the US at least once a year just to maintain my PR status. Once I leave the country, I don't see any reason for me to return to the US anytime soon. So far I have filed my tax return yearly and on time.

My question: What would be my tax obligations upon reliquishing my PR status and surrendering my 'Green Card' (I-551) and beyond in the future years?

My divorce agreement provides for the transfer of 50% of the marital share of my IRA to my ex.

The numbers are as follows:

The total net amount contributed to the IRA is $24,389.32, of which the marital portion is $10,157.87 and the non-marital portion is $14, 231.45.

The Sept. 2009 statement listed the value of the entire account as $31,167.19 (it's invested in stocks),

What is my ex's marital portion? I figured $6,489. Anyone have anyting different?

His lawyer sent me a letter demainding that I fill out the transfer form and authorize the transfer of 50% of the entire account to my ex (my agreement provides that he get 50% of the marital portion of the account) and that I return the form to him within 15 days or he will request court intervention and legal fees of $5,000.

Meanwhile, my ex has not yet paid child support for the month of October, pays the child support consistently late, and has not paid medical support for our son, which has been due since June 2009, has not paid 50% of the cost of certain house repairs required by the divorce agreement, and has not reimbursed me for 1/2 the cost of a QDRO against his pension as required by the divorce agreeement.

I am going to tell his attorney to have my ex pay what he owes before I send him the transfer form. Anyone have any other thoughts?

Have you ever had one of those moments when the longer you look at something, the more confusing it becomes? I am there. There is probably a simple answer, but I appear unlikely to stumble upon it.

Employees have a way of doing inconvenient things. When a QMCSO is received, the employee earns enough that the employer can involuntarily withhold premiums for the medical plan coverage required by order. Employee maintains a cafeteria plan under which employee can elect cash or pre-tax benefits. Employer changes employee's cafeteria plan election to provide for the coverage required under the order as allowed under 1.125-4(d)(1). At some point later, employee no longer earns enough wages to involuntarily withhold premiums for an extended period of time. This could result from a pay cut or receipt of another support order that has priority over this order, etc. Unfortunately, the employee still works enough hours to remain "eligible" for coverage under the medical plan. This is where it all goes awry. According to the CCPA, we cannot involuntarily withhold the necessary premiums; a sentiment also echoed in the NMSN, itself which specifies the withholding limits. However, the cafeteria plan rules do not seem to include a permitted election change to allow the employer to stop making the 125 premiums for such coverage. Additionally, the rules governing QMCSOs provide that an employer may not stop withholding and disenroll the dependent unless the employer eliminates family coverage for all employees or receives written evidence that the order is no longer in effect or that the children will be enrolled in another plan no later than the date of disenrollment from the plan.

How should an employer handle this situation?

Thanks!

A two spouse Db plan wants to purchas a condo with pension money.

One of the spouses intends to use the property when he is in that town for business.

My initial observation is that it is a PT since a party in interest is using (or benefiting from) the property.

Does anyone know of any exceptions that might apply? And does it matter if when the property is used it is used as a home or an office?

I'm wondering if the property were used as an office and the spouse paid market rate rent to the plan if it would be acceptable as qualifying employer real property. I doubt this could apply if used as a personal residence even if fair market rent is paid to plan.

Thanks.

Will the DOL accept an IRS private letter ruling that a plan is a "church plan" under Code Section 414(e) as authority for the plan to stop filing Form 5500s, or is a DOL opinion letter required also?

I have a plan that uses a modified definition of compensation for the employer contribution. (It excludes bonus, overtime, commissions.) The nonelective contribution is calculated at 4% of modified compensation. When I run the 414(s) compensation ratio test, it fails. At this point, I need to run the 401(a)(4) General Test using a definition of compensation that meets 414(s). I simply use gross compensation. When I run it on an allocation basis, it fails. I then run it on a benefits basis and all of the rate groups pass the ratio test, but the gateway minimum test fails. It fails for 3 NHCE participants (using the gross compensation number) on the 1/3 test. (Obviously, everyone fails the 5% test.)

PLEASE CONFIRM

1) My feeling is that since I am using gross comp as my defined comp for 414(s), I can use the 1/3 of the gross comp to satisfy the gateway.

2) Since there are three NHCEs causing a failure of the gateway minimum test, I can provide an additional contribution to these three employees to satisfy the gateway test. (I will automatically satisfy any 401(a)(4) testing on the additional amount as it is only going to NHCEs.)

3) This will need to be accomplished via an 11g amendment and will also have to provide some additional vested percentage if the employees are 0% vested.

4) I would think that the additional contribution should be a uniform percentage. Therefore, I have calculated the NHCE with the highest additional percentage on the modified compensation (to achieve the gateway min on gross comp) and provided that percentage to each of the three participants. Does this sound reasonable? Or can I provide various percentages in order to simply satisfy the 1/3 gateway minimum contribution (based on gross comp).

Any comments are greatly appreciated.

The 2007 ADP/ACP test needed to be redone. The original tst did not include some pretax and matching contributions. The plan uses the prior year testing method. For the 2007 test, I know I use the 2006 averages. Can I use the disaggregated numbers? In other words, my 2006 test had two group the "otherwise excludable" and all others. Or do I need to revise my numbers to have one subgroup?

LLC, which is treated as a partnership, maintains a Cash Balance Plan and a PSP/401(k). Chief Executive Officer employee works full time for LLC and receives compensation of at least $245,000. LLC expects a partnership operating loss for 2009, a portion of which will be allocated to the CEO.

For qualified plan purposes, is the CEO's compensation $245,000 or is it $245,000 less her share of the LLC losses for 2009?

Thanks.

A DB Plan has 3 active participants, the two owners (husband and wife) and their son. Is this plan required to be covered by PBGC?

Hi - we are fairly new users of Relius - and have found that the canned loan reports in the report writer reports do not seem to accurately reflect activity for the time periods selected. For example - if someon pays off a loan in 2009 but we try to run a report for 2008 for an audit package = that person does not show up.

Has any one had this issue? Or have you created your own custom reports?

Any advise/direction would be greatly appreciated!

I don't have much experience with Post Retirement Life Insurance (PRLI) and i am trying to value the liabilities for a FAS report. I'm sure contracts are different from plan to plan would like to know if there is a basic principle. It was my understanding (or at least what i've been told) that a participant is not covered by the PRLI unless they retire (claim benefits) from active service so we weren't valuing liabilities for terminated particpants. I have a situation where it seems participants who terminate after age 55 (earliest date benefits can be claimed) but do not claim benefits until a later time supposedly become covered upon claiming benefits so these participants would need to be valued. Again, not sure if this is different for all contracts, but would like to get opinions if not actual facts. Any help is greatly appreciated.

SEP-IRAs are treated the same as traditional IRAs for required minimum distribution purposes, right? In other words, the required beginning date is April 1 of the year following the year in which the participant turns 70 1/2. I presume that it does not matter if the participant is still employed by the employer that sponsors the SEP-IRA (and is not a five-percent owner), as it would if dealing with a participant in a qualified plan under Treas. Reg. 1.401(a)(9)-2, Q&A-2(a).

Which official directive states that the effective date for a GUST restatement must occur on 1/1/02?

What official citation directs that a plan, unless a distribution of all assets takes place within on year, will stand as considered ongoing and thus must undergo amendments?