Are there any written rules regarding the allocation of fees among participants?

We normally process these pro-rata based on account balance (a 0.5% fee is taken from each participant's account, for a total fee of 0.5% of plan assets).

Now have a client asking if the fee can be taken per-capita:

$2,000,000 in assets x 0.5% fee = $10,000 total fee / 20 participants = $500 paid from each participant's account

I have performed a limited scope audit based on the reliance of a SAS 70 certification. I thought we were to issue a qualified opinion based on inability to apply audit procedures. Or do we issue a disclaimer of opinion? I'm having trouble deciphering the rules. Any clarification would be greatly appreciated. Thanks!

HI,

I have a physician client who is considering rolling her 401k account into a roth 401k account. She had a financial adviser that I believe told her she could do this so that her money would be over a spread period of time? I don't believe this is true. I would think that the total contribution would be taxed in the year that the rollover occurs. Is this correct?

I'm not sure if there would be any benefits concerning withdrawing the funds by converting to a Roth 401k. Does anyone have a good understanding on why her fin. adv. would tell her this would be beneficial to her? I know there could be specific account reasons here, but does anyone know what benefits generally exist for someone who decides to roll their traditional 401k into a designated Roth? The only thing I could think of is that if your tax rate is lower at the time of the rollover than what you expect it to be at the time you would withdraw funds from the traditional 401k account. But, I know this physician is approaching retirement, so I do not see any benefit here. Is there something I am missing? Any advice or suggestions are appreciated!

Thanks

A multi-employer group health plan received an audit notice from the IRS relating to the COBRA subsidy application. They want copies of the "Request for Treatment as AEI" forms submitted by those eligible for the subsidy.

As counsel we reviewed the audit request and assumed that one of the HIPAA exceptions would apply. However, no exceptions appear to cover a general information request that is not accompanied by a summons or subpoena. We also found an IRS memo (2004-034) from the Office of Chief Counsel confirming that plans cannot supply PHI pursuant to a simple information request. (Note that the same information in the hands of an employer is not PHI-- per EBIA and regs).

This problem was brought to the attention of the IRS and the agent is attempting to help us work through these issues. However, they are apparently unwilling to issue a subpoena or summons. Instead the plan is being told that if it chooses not to comply, it will lose the subsidy. Their office is apparently being told that the COBRA subsidy applications are not PHI, even though the DHHS preamble to the HIPAA regulations states that enrollment and disenrollment information is PHI.

Any great ideas on how to proceed? Is there a HIPAA exception that would allow the group to comply without risk of violating the privacy regulations? The group doesn't want to lose the subsidy, but is also aware that HIPAA enforcement is going to ramp-up next year.

It would seem that the Service would need to have some mechanism to deal with this problem. It is not reasonable to ask a GHP to risk violating the HIPAA regulations to collect a subsidy to which it is entitled.

Any suggestions on where I might be able to locate some sample compensation statement formats? Most of the sites I have seen say they are free, but at the end require a payment to view the results. I just was looking at formating ideas and maybe wording ideas.

Thanks!

Has the IRS invented a new way to count?

Notice 2009-77 includes the yield curve and segment rates for August 2009, issued ~ September 11, 2009.

Notice 2009-76 includes the yield curve and segment rates for September 2009, issued October 6, 2009.

Employee is fired/laid off in December 2009. As is common, his coverage under the group health insurance is paid for and continues through Dec. 31, 2009. No further extension beyond the end of December will be initiated by employer, unless employee elects COBRA. Is employee an assistance eligible individual? Stated another way, does he experience a "loss of coverage" on Dec. 31, in which case he would be an AEI, or does he experience the loss of coverage on Jan. 1, which means he is not an AEI? Q&A 14 of Notice 2009-27 suggests to me that the loss of coverage would occur on Dec. 31, but that Q&A does not purport to address my question and as such it is "dicta."

Can an Indian Tribe set up a 457(b) plan as a Governmental organization since PPA

Is there a way our corporation can do a capital call and make the shareholders pay to fund the employer match for our 401(k) Plan? I have seen corporations make a capital call for other issues without an agreement. Do you need a written agreement to do a capital call to make the investors pay for the employer match in the 401k Plan?

I have a QDRO that does not award the AP any distribution from the DB plan except for the following language:

"This Order assigns to the AP an amount equal to 100% of the survivorship portion of the Participant's benefits which have accured during the entirety of the Participant's enrollment and membership in the Plan."

The remainder of the proposed DRO is the fund's model separate interest QDRO. It speaks to the AP being named surviving spouse for 100% of the QPSA. I know this is acceptable, but can you also be named survivor for QJSA?

Any assistance/explanation would be helpful and very much appreciated.

Does anyone have a template for a consent resolution where I can borrow some language, i.e. intro language, some whereas clauses, santa clauses, etc.

I've got an assignment to draft a consent resolution. I've seen them in other jobs but this is a new job and I don't have a sample to guide me.

Any help is appreciated.

I filed for divorce in Calif 4/08. We have a special needs daughter with a revocable special needs trust with my SSN as the tax id.

My will be ex-husband moved his IRAs from one brokerage to another. The new brokerage sent him an "IRA beneficiary designation form" to complete that needs my signature. On the form he specifies 50% to spouse(me); 25% to his daughter by a former marriage; 25% to the Special Needs Trust.

I don't know if the new brokerage knows that we are divorcing.

Question: is this a ploy for me to relinquish a portion of his IRA that is due me in the splitting of community assets?

Thank you in advance for your reply.

Does anyone know if retroactive disability payments would be subject to benefit restrictions?

I have a plan where the AFTAP is 65%. The plan pays an immediate disability benefit commencing when social security deems a person disabled. Sometimes social security takes years to make this determination. For example, the participant might receive a letter in 2009 stating they were disabled in 2007. In this situation the plan would retro pay disability benefits back to 2007. (disability is pure subsidy - not a retirement benefit)

I know the regs say "any payment", but I was wondering if for some reason ancillary disability payments might be exempt.

I have a restricted stock award where an employee will vest in a certain number of shares in a closely held company at the end of this year after sucessfully completing 10 years of service. Assuming the arrangement is not subject to Section 409A, can the forfeiture period be extended by the end of this year for another 7 years under Section 83 without trigerring taxation? Thanks for the help.

An employee is taking an unpaid leave of absence which qualifies as a change in status. Normally, we would change the election upon commencment and change it again upon return. However, in this case, the employee is taking leave until the end of the plan year. There are still some unreimbursed funds in the Medical account and she has not yet made contributions equal to the total election.

Do we simply change the election and try to have her find some reciepts to cover the unreimbursed portion or hurry and get some work done or buy something? Is there a way she can "prepay" to remaining election? Can she somehow incur expenses during the leave and have them reimbursed?

Does anyone know where to find unrounded plan limits for 2009?

Can you make the shareholders pay for the employer match in a 401k Plan? The company does not have enough money to fund the employer match. Is there a way to make the shareholders pay for it?

It seems that an additional Distribution Notice is required to be provided to a participant in addition to the "Special Tax Notice" and the Distribution Form (which we prefill with vesting and fee information) from (John Hancock, ING, etc.). It also seems that if the participant's distribution amount is less than $5,000 ... then this extra notice is not required - is that correct? Are any of your firms preparing this "additional" notice that seems redundant? If so, are you preparing them for all distributions or just for those with less than $5,000? Any responses or thoughts would be greatly appreciated. Thank You!

I have recently learned that if I amend my eligibly of my SEP from a 2 year to a 3 year, any employees that now qualify in the 2 year eligibility will be grand fathered in.

I plan on giving my employees a nice bonus at the end of the year, and would prefer not to be forced to contribute to them via the SEP. So instead of amending the SEP, can I just create a second SEP? I did find research from the IRS and other sources that a business can have multiple SEP accounts.

IE: One with Schwab and one with Fidelity for example. <-- I assume both are prototype SEP agreements

Is the SEP agreement specific to each broker? If so, it would make sense that each SEP account will carry its own eligibility agreement.

Then I am guessing, I can decide which SEP account to fund at the end of the year. So for my favor, this year I will fund the Fidelity SEP with a 3 year eligibility and not fund the Schwab SEP with only a 2 year eligibility.

Does this seem correct? Please help.

And finally, if the above does not work? Can I terminate my Schwab 2 year eligibility SEP IRA and start a new Fidelity 3 year eligibility SEP IRA. I would think that each plan is independent of each other. If I am not happy with the Schwab SEP IRA, why not cancel and start over?

HCE took a loan from his profit sharing plan in prior year.

Now he wants to repay the loan in part by transferring an investment into the plan.

Is that allowed?

He wants to use an investment in a limited partnership.

Thanks for any guidance on this!