I have a large Plan that has 4 individual Trustees on the Plan Document. The Investment company has set up their own Trust Agreement since they are the directed Trustee. Does the Investment company need to be added to the Plan Document as a Trustee or do we just use the separate Trust Agreement that the Investment Company used? If the Investment Company is the Trustee would I even have the other 4 individuals as Trustees?

Employer A sponsors a 401(k) plan. They are in a controlled group with Employer B - who also sponsors a 401(k) plan.

Employer A has an EIN that falls under Cycle B, but they are using the exception in Rev Proc 2007-44 - 10.06 - which states they can use the remedial amendment cycle for the parent company (Employer B). Employer B has a cycle D, which has to be filed by 1/31/2010.

So - Employer A is filing a 5300 qualification for their plan using cycle D (the parent company's cycle).

How should Employer A complete the plan sponsor and EIN section of the 5300 for the employer that is filing with the Parent Company of the controlled group? Do they use the employers name and EIN on the 5300 or do they put the parent companies EIN and/or Name?

If an employer is challenging some (any) aspect of a trustee's withdrawal liability payment schedule, does failure to make scheduled payments waive the right to continue challenging the withdrawal liability?

Back in '05, a 401(k) plan adopted its 401(a)(31)(B) automatic distribution amendment to provide that on a pre-retirement termination of employment a benefit of $1,000 or less resulted in immediate distribution and anything above $1,000 could stay in the plan unless the participant elected otherwise. The plan sponsor is now thinking it wants to instead have anything over $1,000 and up to $5,000 paid out to an individual retirement plan if the participant doesn't elect distribution of the account. My question is, wouldn't the ability to remain in the plan with an account above $1,000 be a protected benefit, right or feature under 411(d)(6)? Thanks for your input.

If a client wants to suspend RMD's for 2009 (whcih is an optional amendment) is required to get union approval for that change?

Husband and Wife each own separate businesses that are not related to each other. No employees are shared. Both are sole props. They are about as separate as they can be.

Based on this alone, I would say that a controlled group does not exist. Would you agree? I am not certain if there are any children under age 21. If so, then technically a controlled group would exist. Is that correct?

Here's the twist. Both businesses are in Texas, a community property state. Given that, does it change the answer?

Thanks

I am posting this question as rookie and dont know much about the tax code.

I have a medical practice(formed as LLC single owner) and have no employees.

I share office space with another physician (call him physician B)

Physician B employs both the support staff(who do admin work for both of us)

End of the month i just pay the other physician an "overhead check".

I have my own accounting, revenue stream, pay my seperate taxes etc.

Physician B has no retirement plan and so does not provide one for his employees.

I was to contribute towards my retirement every years and I believe I can almost put in $49K (including profit sharing). But my CPA says that I cannot until we fun the retirement of the Physician B employees. I have tried talking to the other physician and he is not interested in getting into the mess of providing retirement etc.

What is the IRS code that is preventing me from contributing to my retirement. I believe something called code 414(m) about discrimination of employees.

I would people to provide me with some second opinion or ideas.

Thanks

First 401(k) with Roth contributions.

Must Roth contributions be held in a separate account? For example, suppose a participant has a brokerage account that contains pre-tax deferrals and employer contributions. Does he need to have a separate brokerage account to contain the Roth contributions or can they be deposited to the same brokerage account. We would, of course track each source of money separately within that one brokerage account.

We have several plans that are missing interim amendments since the GUST restatement and we're having them signed now and filing with VCP. All our documents are Corbel's prototype or VS docs. Do we need to also apply for a determination letter? I'm confused by what I read in EPCRS. It seems like it only addresses that issue for IDPs. I'm hoping that because these docs already have an opinion or advisory letter, we only need to do VCP.

Thanks.

I have tried to find more clarification on this, but had no luck.

I understand that the 2009 Sch. I now has a line item for administrative expenses; does this mean only expenses paid by the plan (i.e. distribution fees, loan fees, pro-rata fees administration fees paid by participant)? Or does it mean the full administration cost of the plan?

A one=person plan has no assets, and never made any contributions to a plan. The employer/trustee did sign the adoption agreement to start the Plan. Must the Plan be terminated (i.e. amendment to doc, final 5500-EZ)??

Thanks

Please let me know if you think the following statement in Notice 2009-68 (the new 402(f) notice) is correct:

"If you do a direct rollover of only a portion of the amount paid from the Plan and a portion is paid to you, each of the payments will include an allocable portion of the after-tax contributions."

Does a mere QE change in status allow a participant to stop any remaining deferrals in the plan year or does the "consistency rule" have to be met? FSA doc doesn't exclude mid year election changes. Are the 10 examples found under paragraph © the only circumstances one can revoke an election mid year?

Scenario not found in examples: Participant A under Company Z's plan elects max $1000 as allowed under plan for plan year. Participant A marries person B mid year. Participant A wants to revoke last two payperiod deferrals and has not made any claims on account for plan year yet. In writing can A request payroll clerk at Z to stop any remaining payroll deferrals to FSA account due to status change?

I read Sec. 125-4 http://web.indstate.edu/humres/docs/Section125-4.pdf

I used changeofstatus.com and got the following results:

Your Plan: Health FSA

You can: Increase volume, dollar, or amount

But... • HIPAA special enrollment rights likely do not apply

• Must be consistent with change

You can: Decrease volume, dollar, or amount

But...

• Must be consistent with change

Again what's the " must be consistent with change" rule?

Any insight would be greatly appreciated. regards Mo'

In the past, employees who have been declared disabled whether by our LTD carrier or by SSDI have remained in our records as active and have been eligible for the same plans and subsidy as an active employee. We recently changed the criteria so that if you are only receiving SSDI, then you will be terminated and no longer have access to any of our health plans.

We have an employee who has been on LTD and SSDI for 2 years but his LTD benefits will end this March. At age 63, he is eligible to retiree from our company but obviously only eligible for Medicare due to his disability. He is also eligible to enroll in our retiree health care plan(s) until age 65. If he were to select our standard PPO plan, is Medicare primary and this PPO plan secondary just like as if he was over age 65?

The owners of a company were the only employees eligible to participate in the first year of the plan. During this first year they invested their account balances in 100% of the company's qualifying employer securities (which the doc allows). Ancillary employees enter the plan during the second year and can choose to invest from a menu of mutual funds, but do not have the choice of QES since there are no shares available. Is there a way to construe the plan as not being disciminatory due to the literal unavailability of the company stock? Thanks in advance.

Does anyone have any current experience with an application for a determination upon termination? How long is it taking these days? I have a frozen mmp terminating 12/31/2009 and would love to communicate a time frame to participants. Thanks!

Guy names his 2 adult kids as 50 / 50 beneficiaries of a sizeable account. Few years later he gets married, and makes no changes to his beneficiaries. Few year's later he dies. And now, of course, there are law suits being filed since the account was very large.

Does the marriage supercede the prior beneficiary designations? It seems that the answer is yes, but our client is asking us to provide some "hard-proof." Anybody have anything that might help? Someone must have sued about this before!!

Hi,

Does anyone know the site (i.e., ERISA Section, IRC Section or Reg) that explicitly defines "within a reasonable period before each plan year" for a standard Automatic Contribution Arrangement (ACA) plan or an Eligible Automatic Contribution Arrangement (EACA)?

Reg Section 1.401(k)-3(d)(3)(ii) defines "reasonable period" for a QACA safe harbor notice. Do the ACA and EACA terms refer to the safe harbor notice requirements because of similar language in the Code?

Thank you, in advance.

May amounts "transferred" from another plan on a nonelective basis, as distinct from "rollovers," be excluded when determining whether an account does not exceed the $5,000 limit for mandatory cashouts under 411(a)(11)?

Hypothetical: A profit-sharing retirement plan has never before allowed an in-service distribution. The plan sponsor might like to add an in-service distribution (including before age 59½ from amounts not attributable to 401(k) deferrals) but only if the participant’s claim includes his or her instruction to pay the distribution as a direct rollover into an eligible retirement plan (including an IRA). The plan sponsor cares about this because it wants to permit an in-service distribution only if the participant will use it to preserve retirement savings. (Yes, I’m aware that nothing precludes an IRA holder from taking a distribution from the IRA a day later.)

Can a plan provide this without violating any relevant ERISA or Internal Revenue Code provision?

If this can’t be done, why not?

If the plan provision is possible, is there another reason why a plan sponsor shouldn’t want to do this?