Is my employer required to send me a notice each year that tells me how much I am vested in my defined contribution plan benefit?

If so:

1. When is that notice required to be sent?

2. What is that notice called?

3. Is there any guidance on what that notice must provide?

4. Lastly, is it okay for my employer to send me a "generic" notice that just describes the general vesting provisions of our plan? Or are they required to send a notice customized to my particular situation?

Thank you.

After the 9/15 contribution deadline calculations, and after the 9/30 AFTAP deadline work, and after the 10/15 Form 5500 deadlines, what should I do next?

According to Rev. Proc. 2007-44 at section 18.01, it appears that volume submitters are required to be submitted by January 31, 2011. However, I have been hearing that the real deadline is April 30, 2010 according to more recent guidance. Could someone confirm that the date in 2007-44 was in fact move forward or that I am perhaps misreading that section? Again, this stuff is clear as mud! Many thanks!!!

Person was an active participant under a 401(k) Plan until employment terminated in September. Plan terms require that person can't be paid until after closure of the plan year; meaning, termination distribution can't be paid now. Person just learned that beneficiary diagnosed with terminal illness; meaning, medical bills (and other issues). Plan does allow for Hardships. Can this person get a Hardship Distribution even though no longer employed? Is this question impacted by new standards that allow a beneficiary to obtain a Hardship?

I was laid off from my former employer in July of 2009, they terminated the 401k plan April 30 2009 (their fiscal year ends also on April 30). My questions is: Because the 401k plan ended on April 30 2009, do they have to payout my 401k monies or do I have to wait until next years fiscal year end because I was laid off in July?

I Have a prospect that works for a company that he does not own in any way and he defers $9,000 / year into the 401K plan there.

He also has a business that he owns entirely ( no employees ) that has SEP plan.

Can he contribute the $46,000 limit for 2008 to the SEP plan considering he puts the $9,000 into the 401K plan ?

THanks

Can a defined benefit plan stop a current employee's benefit accruals when the employee goes into pay status at normal retirement age and continues to work, if the pay status is elected by the employee? Does the ADEA allow this because stopping the accruals is not "because of age" but because the employee elected to start benefits?

Like a lot of folks, I am thinking about converting a traditional IRA to a Roth IRA in 2010. Given my age, my wife's age and children's ages - I am assuming that first, my wife will inherit the Roth IRA, and second she will pass it down to our children. Given my personal situation I am using this Roth IRA as my major legacy to the children. Now my kids will likely be in their 30s or 40s when this happens. So my questions are:

Can my children upon the inheritance of a Roth IRA elect to take all of the money at once, or do they get to spread over their life expectancies, or is there some other method?

Do they need to pay income tax on the distributions (like a 10% penalty) if they are under age 59.5 (given the methods of distribution noted above)?

Is leaving a Roth IRA more advantaged for them than a traditional IRA - in terms of when they can begin to get distributions? (I understand the tax advantages.)

An employer is required to make a top heavy contribution for 2008, but the economy has hit this business very hard. They've downsized to only a handful of people and are barely making ends meet. The owner no longer takes a paycheck. There's no way the employer can make the TH contribution. They are probably going to terminate the plan, but that won't help for 2008. Are there any options?

Hi, quick question:

Is it possible for a physician group to have both an HSA and MERP? Or, is it only permitable as an either/or situation?

If possible, are there any restrictions or special regulations that govern?

Thank you in advance!

Calendar year plan, revised safe harbor notice:

2. Contributions for the Plan Year Beginning January 1, 2009.

b. Safe Harbor Matching Contribution effective for the Period January 1, 2009 through May 23, 2009. The Employer will make a Safe Harbor Matching Contribution equal to 100% of the amount of your 401(k) contributions that do not exceed 6% of your compensation. Compensation generally includes all taxable compensation paid to you during the Plan Year (or from the time you enter the Plan), plus your 401(k) and cafeteria plan contributions. If you terminate employment during the Plan Year, you will be eligible to receive the Safe Harbor Matching Contribution if you have made 401(k) contributions during the Plan Year. You are not required to be employed on the last day of the Plan Year to receive the Safe Harbor Matching Contribution.

c. Safe Harbor Matching Contribution effective for the Period May 24, 2009 through December 31, 2009. The Employer will make a Safe Harbor Matching Contribution equal to (a) 100% of the amount of your Elective Deferral Contributions that do not exceed 3% of your compensation and (b) 50% of your Elective Deferral Contributions that exceed 3% of your compensation but that do not exceed 5% of your compensation. In other words, if your Elective Deferral Contribution equals or exceeds 5% of your compensation you will receive a Safe Harbor Matching Contribution equal to 4% of your compensation. If your Elective Deferral Contribution is equal to 3% or less of your compensation then you will receive a Safe Harbor Matching Contribution equal to the amount of your Elective Deferral Contributions. Compensation generally includes all taxable compensation paid to you during the Plan Year or from the time you enter the Plan, plus your Elective Deferral Contributions and cafeteria plan contributions (if any). If you terminate employment during the Plan Year, you will be eligible to receive the Safe Harbor Matching Contribution if you have made Elective Deferral Contributions during the Plan Year. There is neither an hours of service requirement nor a last day of the Plan Year employment requirement fr you to receive the Safe Harbor

Matching Contribution.

Is there any new guidance from the IRS on this? Does their attorney know something I don't know?

Plan terminated in 2008, so the final actuarial valuation was performed for the 2008 plan year. However, the assets were distributed in 2009, so we are preparing a Form 5500-EZ for the 2009 plan year. For Line 10i(1) "Is this a defined benefit plan subject to minimum funding requirements" is the correct answer Yes or No? It is a defined benefit plan but it is no longer subject to minimum funding requirements, especially in the 2009 plan year. The directions indicate if you check Yes then you must have a Schedule SB. But there won't be a Schedule SB for 2009, none is required. So would the correct answer be No?

Are there any "next steps" if the PBGC rejects an application for involuntary termination?

In essence, the Corporation says that company is not "financially impaired". Is there anything like an appeal? Don't see anything in 4041 or 4043.

Thanks for your input.

Situation. ER has 45 employees and a $500 annual deductible group health insurance policy, with 20% co-insurance responsibility of the covered EE and $10,000 maximum out of pocket.

The ER is switching to a $10,000 annual deductible group health insurance policy. So that the EE is in the 'same position, the ER will be instituting a buy-down MERP that has a $500 annual dedutible. ER will pay 80% of dollars $501-$9,999 for the year. Then the insurance kicks in. Once the EE hits $10,000 paid out of pocket under the MERP and the insurance, the ER will then pay any additional co-insurance for the EE.

The new, $10,000 annual deductible group health insurance coverage is subject to COBRA, and will be administered by the insurance company.

Two questions:

1-Inasmuch as COBRA applies to the $10,000 annual deductible group health insurance policy, does COBRA also apply to the buy-down MERP?

2-If COBRA does apply to the buy-down MERP, how would the 'premium' cost for COBRA-continued coverage under the buy-down MERP be determined?

I have a client who has an underfunded Cash Balance Pension Plan (AFTAP is just under 70%). The Plan was terminated and the majority owner signed an election to forego benefits for PBGC purposes. The question is whether this will carry over for IRS purposes to allow the Plan to be considered 100% funded. We've not had a problem in the past because the terminating Plans have always been at lease 80% funded and not subject to limitations on how benefits are paid out (i.e., lump sum distributions of the entire benefit). I know the final Regulations have just been issued under 436, but I could not find anything particularly useful and wondered if anyone had any ideas, suggestions, or citations (or links) they wouldn't mind sharing.

Situation: A 2-ER control group situation where the plan is for only EEs of one ER. An EE of both ERs is plan eligible.

In determining that EE's EBARs, do you use her compensation just from the ER for which the plan is established and benefiting EEs or her combined compensation from both ERs in the control group?

In determining that EE's 'gateway' minimum, do you use her compensation just from the ER for which the plan is established and benefiting EEs or her combined compensation from both ERs in the control group?

Plan terminated in mid-06, last participant located and paid out 12/08, leaving approximately $3600 in plan to revert to sponsor sometime in 09. Since all plan lianbilities have been satisfied, can the 08 filing be considered a "final", even though there is still money in the trust?

Does anyone know of a listing of available managed, balanced and target-date funds that satisfy the QDIA requirements, such as no back end loads or other surrender charges if within 90 days of the first deposit the employee gives an investment directive outside of the QDIA?

A sole proprietor client deposited deferrals throughout the year in 2008. We just received his 2008 Sch C from his CPA and he has negative net income! How do we treat his deferrals? Can we consider this as violating 415 and therefore, we can distribute his deferrals back to him? or since he has no income, are we to consider that we can't even call these deferrals and therefore we forfeit the amount and reallocate?

Is it okay to use a signature stamp when signing Form 5500? If not, is it okay to have client sign a pdf of the Form 5500.