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?

Anyone willing to describe the process from the perspective of the plan's actuary of a takeover of a 150 life DB plan who's sponsor went belly up and closed it's doors and boxed and stored what records it had, leaving the actuary/TPA as the only source of any reasonable records of benefit entitlements?

What is the actuary's responsibility? Can it get paid for it's time assisting the PBGC in compiling records?

What happens if employer refuses to contribute a SIMPLE Match, for his employees?

Is there an excise penalty he must pay? If yes, what IRS Form must he use to pay it?

Must the employees sue the employer to get the match ?

What punishment will be administered by the IRS ... upon the plan, on the employees, or on the employer, if the employer simply never contribues the match ?

The employer is a corp. The plan year is 2008. The match was due by 9/15/09. Is the employer allowed to contribute the match "now" (in Oct 2009)? I would think that a late match is better than no match at all.

Is there a penalty or ramiifications for contributing the match after its due date ?

ARRA amended ERISA sec. 602(2)(A) to add that if a person has a nonforfeitable right to a benefit to be paid by the PBGC as of the date of the qualifying event, the maximum period of coverage shall extend to the earlier of the death of the participant or December 31, 2010. This is ARRA 1899F. What is odd about this provision is that there is no requirement that the PBGC benefits be attributable to the sponsoring employer. Is this a drafting error, or did Congress really intend to say that when an employee receives benefits from PBGC as a result of Employer A's underfunded pension, that, when employee loses coverage under Employer B's group health plan, that Employer B must potentially offer coverage to the employee for a longer period of time?

I am trying to understand Section 17.04 of Rev Proc 2007-44 regarding intended adopters. It states that if the employer's 5 year remedial cyle ends "during or after" the 6 year pre-approved cycle, the employer should adopt the newly approved version of the pre-approved plan instead of executing a Form 8905. My client adopted a GUST plan on April 1, 2005 so is not a "prior adopter". They are on the 5 year Cycle D which ends January 31, 2010. Is this considered "during" the 6 year cycle, so they don't have to execute a Form 8905 prior to 1/31/10? And if so, what is their deadline for adopting the new pre-approved plan - 4/30/2010 or 1/31/2010? I am considering having them sign the Form 8905 and adopting the new plan by 4/30/2010. Any guidance will be greatly appreciated!

Would the assets in a secular trust be subject to the creditors of the participant? We're talking about an ERISA plan...obviously one that is not tax qualified.

If my plan changes 401k custodians and administrators (mid-year) and I do a restatement with a new prototype agreement, do i need to change my plan sequence number if the name of the plan is changed?

Additionally, does the previous administrator file form 5500 while the plan was with him and then the new tpa files a 5500 in the same year while he administered the plan or does the new tpa get the required info from the previous tpa to file the 5500 for the full year?

A DB plan provides a normal retirement benefit at age 65 of 70% of average compensation up to maximum covered compensation and 22.75% of average compensation in excess of maximum covered compensation for participants with 35 years of service. Thus, it provides integration in accordance with the simplified Table IV under IRC 1.401(l)-3(e). I.e., the maximum permitted dispairity is .65%.

Now, suppose the benefit commences at age 70. Then, the plan says to actuarially increase the age 65 benefit. Suppose the actuarial increase factor is 1.7. Then, we have 1.7 x .65 = 1.105. But, the maximum permitted dispairity at age 70 under Table IV is 1.048. In short, even though the Plan says actuarially increase it appears that Table IV would limit.

Any comments?

The instructions are not very clear on this.

I seem to recall that it does not have to be filed/attached if total fees paid to all service providers is less than $5,000

Help!

Another very confusing area. The participant was covered by a life insurance contract held in the plan. Upon his death, his spouse received life insurance benefits, which are clearly non-taxable and therefore cannot be rolled over. All PS-58s were reported.

1. Is it true that the difference between the cash surrender value and any basis is taxable, and therefore is rollover eligible? Or I am completely confused?

2. The balance of the account (non-insurance portion) would be rolloer eligible, correct?

2. If both (1) and (2) are rolled over, there would be no 20% withholding, correct?

3. Are there cites for this? I am coming up empty.

Many thanks.

I have an end of year valuation for a 12/31/2008 DB plan with the following data:

Target Liability: 253,789

AVA: 150,354

Pre-Contributions: 43,736

Interest on Pre-Contributions: 721

Carryover balance @ EOY: 74,043

With this data, the 2009 AFTAP will be certified at 47.59%. However, a deemed burn of $42,538 will bring the AFTAP to 60%.

I have two questions:

1. How does the deemed burn affect the 2008 valuation?, and

2. Is the deemed burn reported on the 2008 SB or the 2009?

Joseph Carolan

A client is terminating their 401(k) plan (two principals and three employees). We want to distribute all assets and finalize it prior to December 31, 2009. One participant is going through a disolution. Her husband is being completely uncooperative. He's uncommunicative, doesn't pay his attorney, etc. My thought is to issue the necessary paperwork for her make an election, however since the husband won't sign off, there will be an involuntary rollover to an IRA. Any other options?