I am trying to understand more clearly the risks associated with holding retirement assets in a one person Keogh plan vs. moving those assets to a SEP IRA, whether it makes sense to segregate assets in IRAs according to their origin (keep qual rollovers separate from future contributions to IRAs, etc).

I would appreciate any leads to articles that discuss how assets gain, lose protection as you move across account types (i.e. 401(k) to IRA, IRA to IRA, Keogh to SEP.

We may see a lot of movement in 2010 simply due to the Roth Conversion activity, and I want to know as much as possible about creditor protection issues that should be considered before people start moving money to and from various plans.

Here are two articles I've reviewed. Please share any you found to be informative.

http://www.journalofaccountancy.com/Issues...ementAssets.htm

http://www.sbca.net/PTXL0802-Altier-Naegele.pdf.

Just in case anybody did not see it, the IRS posted a bulletin that it will allow a new interest rate election for 2010, so if a plan elected the full yield curve in 2009, it can switch back in 2010. It is on their website under Retirement Plan Community. They seem to be silent on an asset election.

Hi, if a 401(k) plan excludes bonuses from the definition of compensation for purposes of elective deferrals and match, do bonuses also need to be excluded from the definition of compensation for purposes of the ADP/ACP Test? For example, if a highly compensated employee made $150,000 in base salary and a $50,000 bonus and deferred $15,000, does the ADP test base compensation on $150,000 or on $200,000 (base plus bonus).

Preparing a 1/1/2009 valuation that results in an AFTAP of 57.1%. A notice of benefit restriction must be provided to participants to notify them that the benefits are frozen under the plan and that they cannot elect a lump sum distribution if they terminate/retire.

On the notice of benefit restriction what date is the effective date that the benefits become frozen ? 1/1/2009? current date?

Has anyone seen any guidance on whether the controlled group rules apply for purposes of USERRA reemployment rights? This seems like an easy issue, but I haven't been able to find any guidance on it. The USERRA definition of employer at 20 CFR 1002.5(d) does not seem particularly instructive.

hi

the irs had given some relief earlier this year for purposes of int rate selection for 2009 funding

can the october 2008 spot rates be used for the 2009 calendar year required contribution calculation even though the december 2008 rates were used for purposes of the aftap/determining whether restrictions were in place for 2009 when issued back in march?

and, if so, does the earlier aftap need to be recalculated/recertified?

and, if such as recalculation / recertification results in the aftap being above 80%, would the remainder of the 50% lump sums that were restricted to terminated participants so far this year need to be offered to them?

thanks for your help

chris

The sample plan amendments in the Notice give participants a choice to receive or postpone what would otherwise be a required minimum distribution for 2009. Is the IRS saying that particiants must be given a choice to waive the required minimum distribution or can a plan choose to not give a participant the choice and force out the 2009 distribution as if it was required?

Our plan has an employer match. To share in the employer match, the employee has to be a participant on the last day of the plan year. We want to get rid of the match this year. Can we retroactively amend the Plan document to remove the match since the employee has technically not accrued the match (i.e. it is not the end of the plan year and we do not know who will be employed at the end of the year).

Also, we switched custodains in the middle of the plan year. So technically, if I am able to process an amendment, is it only retroactive to the middle of the plan year (the date custodians changed). Any help would be appreciated.

The participant is using a loan to purchase a principal residence so the term will be 15 years. What is a reasonable interest rate to use? Help!

Hi All,

Does anybody have a checklist that they've developed of things to consider/processes to follow when sending employees to a war-risk country or another international assignment? If so and you would be willing to share, I would greatly appreciate it! Our international benefits broker came up empty handed (which is a little disappointing!)

Thanks!

Does anyone have any thoughts on the following:

A plan requires documentation verifying the eligibility of a dependent before the dependent may enroll in the plan (eg. marriage license, birth certificate, etc.) Under the special enrollment rules, if a "request for enrollment" is received within 30 days (or longer if the plan allows) of the event (marriage, birth, adoption or placement for adoption), coverage must begin no later than the first day of the first calendar month beginning after the date the plan receives the "request for special enrollment" for marriage and on the date of the event for birth, adoption and placement for adoption.

What is a "request for special enrollment?" Can the plan require that the dependent verification documentation be submitted within the 30 days (i.e. consider that documentation part of the "request")? Or must the plan enroll the dependent based only on a status change form that is received within 30 days even though the verification documentation is not also provided?

Just to be clear, do we all agree that the QDIA rules are impossible to comply with in the real world, particularly the small employer world? (and I know they're just safe harbors).

-For example, 30 days before the contribution is funded, you may very well not even know if there is going to be a contribution.

-OR let's say you play it safe and tell clients to distribute the notice in January, and then they don't fund until September 15th. An 8 month delay seems like a bit of a stretch for a notice.

-And how many people are really sending out additional annual notices to plan participants who never changed the default?

Real world answers only please

As a follow-up, I had heard from someone who had heard that the money market might return as an acceptable default investment. Anyone else hear that?

I have a client who saw an old plan name in the newpaper (merged into the existing plan about 10 years ago) for unclaimed money.

He was the trustee then and is now.

Any ideas on what can be done with the money? or the proper methods i should use to capture this...

We are only talking about $1,500.00

I have a plan that have several US citizens who work and live in Canada. They are employed by a US company and are participants in the US DC plan. They are paid in Canadian dollars.

Question: I assume they need to be tested in the US plan since they are participating. Do I convert their Canadian salary to US dollars?

Also, are there any special Canadian rules that need to be followed? Similar to PR participants.

Is the rule still applicable in section 152(d)(1)© regarding the taxpayer providing over 1/2 of the individual's support? We are trying to figure out if we need to ask this question before paying a hardship for a participant's mother's expenses.

Hi,

Question: Employer who is the trustee of the 401(k) plan wishes to transfer the plans investments to a new adviser. Are there any standard formalized procedures/laws for notifying the old investment advisor and a legal time from for the old advisor to complete the transfer? Limit on fees for leaving?

Thanks.

erisaauditor

Company A acquires company B in a stock transaction. Company A has a defined benefit pension plan and a 401(k). Company B has only a 401(k) plan. Can company A continue to cover only employees of Company A in the defined benefit plan, or must Company A cover the "new" Company B employees also?

We were told that going forward, we need to change the way we administer our health benefits. We used to always use the effective date of coverage as the qualifying event date as long as the form was received by us within 30 days. Now we are told that we would use the effective date of the date the form is received by us, not the qualifying event date. This doesn't seem to make sense to us, does anyone know where this new legislation is written? Is this a governmental thing?

When must an employer match be deposited to the Plan? The Plan operates on a calendar year (January 1st to December 31st) and the fiscal year is October 1st to September. For instance, if it was 2004, the plan year is January 1, 2004 to December 31, 2004 and the 2004 fiscal year is October 1, 2005 to September 30, 2005. I know if the both plans operate on a calendar year, the employer contributions are due 30 days after the form 1120 (taking into accoutn all extensions).

But, what about in the case when the employer and plan operate on different years? When would the employer contribitions be due?

A portion of a participant's monthly benefit was previously assigned via QDRO. The participant has now requested to start the pension and low and behold, the participant is remarried to the former spouse, and the QDRO was never revoked (I presume this could be done?).

So, presumably we still present benefits as if there had been no remarriage?