Employee works for both employers in a multiple employer count. For the 5500 participant counts, these employees are only counted once right?

Relius released a technical update today regarding EFAST and short plan year filings. The way I read it, if the filing deadline for the final short year falls after 12/31/09, you have to use EFAST.

Anyone know what might happen to the couple of 5500's I filed several months ago on paper for plans that terminated in June, meaning their deadline would be 1/31/10?????? Should I be worried that they will say they weren't properly filed???

Thanks.

James

For employees whose salaries exceed the contribution limits of IRC 415 and therfore a QEBA has been established to pay the additonal amount over the annual benefit limit. Since the QEBA is not funded can we fund the QEBA by withholding additional from the employee and how can this be done?

Plan states that employee who is president and sole shareholder of solvent company may elect to receive $5,000 this year or upon separation from services, as an award for prior services performed.

Is this a deferred comp plan with a prohibited acceleration clause, or is it NOT a deferred compensation plan because it's constructively received simultaneous with the establishment of the plan?

In other words, is it possible to have a deferred compensation plan where the amount to be paid is undoubtedly constructively received when the plan was created?

A strict reading of 1.409A-1(b) suggests that it is possible (focuses on payment, not timing of taxable income; see also preamble at 19235, third column). However, another sentence in that section may indicate otherwise: "A LBR to an amount that will be excluded from income when and if received does not constitute a deferral of compensation[.]"

I read this language as NOT suggesting that amounts which can be paid in a later year but which are incapable of being tax-deferred escape section 409A.

Does anyone agree or disagree?

Prospect firm is looking to reduce 09 tax liability and currently has a SEP. 2 of the 5 employees are under 3 year eligibility requirement from existing Form 5305. Is it possible to amend an existing Form 5305 to lower eligibility down to 1 year on existing SEP or just setup new SEP with only 1 year requirement to allow funding for all 5 employees?

Client is a sole proprietor with approximately $17,000 in net income. Took no salary and does not wish to. Would like to defer entire net income.

Spouse has high income and contributes maximum to his employer plan.

Does not look like we can do this with a solo-401(k). Can 100% be deferred in a traditional PSP? If not is there another low-cost way to defer all income?

Thanks in advance and happy holidays.

DC plan has a proposed termination of 12/31. If assets are distributed say June 1 of next year, IRS will respect 12/31 termination date and not require plan doc to reflect changes after that date.

What is the authority for requiring compliance with procedural tax qualification rules after the 12/31 termination, e.g., QJSA notices & consent, etc.?

I understand that Michelle's Law applies to Health Flexible Spending Accounts and Health Reimbursement Arrangements, but I think it must apply to Premium Only Plans, too. And is the deadline to get these amendments done 12/31/09 (for calendar year plans)? I sure hope not.

I'm trying to design a defined benefit plan for two participants age 29 and 32 with a compensation of $35,000 each. They already have a profit sharing plan with a 401(k) and are justing looking for an additional contribution of around 6,000 each. Looking for suggestions

thanks

A company maintains a deferral only 403(b) and a SEP that is solely funded by the employer. Are there any issues this employer needs to consider with the new 403(b) regs?

if you have given out the safe harbor notice at least 30 days prior to the start of the new plan year and then decide, still before the start of the new year, that you don't want to do the safe harbor, can you still change your mind and stop it or do you have to give a new 30 day notice to stop it?

thanks!

I thought PPA had changed the way in which excess deferrals were handled, so that they would be taxable in the year of distribution (excluding the case where it's distributed after 4/15 of the year following the calendar year in which it was deferred), instead of the year of deferral. However, as I read through the 2009 Form 1099-R instructions, it says that the deferrals are taxed in the year of deferral. This leads to a few questions: do I have the wrong version? did the IRS not update this? where do babies come from?

Have just been assigned the groundwork for a new plan that my company has overtaken.

The plan document says that for Actuarial Equivalence refer to the PBGC immediate annuity rates as of the first day of the plan year.

I have been trying to get hold of these rates but getting confused.

Are these the same as the PBGC immediate rates for Lump sums(found these on the PBGC site) or no?

Also are these still a single interest rate or post PPA have been changed to refer to 3-segment rates?

Sorry if I sound dumb but please help as to where can I find the same?

This question assumes that a "rolling five" formula is adopted for withdrawal liability from a multiemployer plan and that for the withdrawing employer, a controlled group was created by property transactions in the last year of operations. The operating entity/actual employer failed shortly afterward and is defunct. The second entity owns the land on which the operating entity conducted business, has no other assets, and never had employees.

Would it be correct to calculate any liability for the surviving entity on the basis of the contributions made during the months in which the 80/50 tests are met, and only those contributions and not others during the computation period?

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?