A physician defers the maximum into a hospital 403(b) Plan, and then makes a contribution to his own separate PSP to the maximum Section 415 limitation (without considering the 403(b) plan deferral). Permissible?

Sole proprietor filed tax return and made profit sharing contribution based on net sch c income. Later the accountant finds a mistake and income was 50k or so lower. The return is amended. The amended income would significantly reduce allowable contribution.

The deduction for the contribution must get reduced in the amended filing, correct?

If the contribution was made after the end of the plan year, there is no penalty for over contributing, at least as far as that particular year, correct?

What penalties would apply and or corrections can be made if the contribution was made during the year being corrected?

It is my understanding that, under current Hardship rules, a plan's Safe Harbor source cannot be used. Does anyone know a specific cite or reference spelling out this rule?

I have a plan that currently has a NRA of 54 1/2. At this time they may wish to amend it. Forgetting for the moment that this NRA may be unreasonable and Notice 2007-69, let's say that the client amends it to NRA of 62. My recollection is that the NRA is a protected benefit. Is this correct?

Additionally, the plan is currently a new comparability plan. I was using age 54 1/2 to process the EBARs. With the NRA change, what do I use to calc the EBARs. I would guess age 65. The reasoning for this is because age 54 1/2 and age 62 are not uniform as the NRA is a protected benefit. Therefore, when the NRA is not uniform, Age 65 is to be used.

Am I on the right track or way off track. Any comments and cites are greatly appreciated.

We are looking for some information for comparison for our PTO program.

1. How much PTO do your employees receive? Up to 5 years, our employees get 25 days (accrued per biweekly payroll period), and 30 days from 5 to 10 years. Holidays are included in the PTO time (six mandatory holidays per year: New Year, Memorial Day, July 4, Labor Day, Thanksgiving, and Christmas), so if you have these separated, please indicate how many paid holidays you have.

2. Our policy is that after seven unexcused absences in a rolling 12-month period, the employee is "written up" (i.e., receives a written warning) for attendance. An unexcused absence is any absence that is not requested and approved in advance. So, for example, if an employee calls in sick, that is an unexcused absence. Some employees want these not to be an unexcused absence if they get a doctors note. Or, have other exceptions that would reclassify an absence from unexcused to excused. My sense is that seven unexcused absences in a rolling 12-month period is more than generous and therefore our "anything not requested and approved" standard is very good. It is simple to administer and is not subject to "Well,-if-you-retroactively-approved-her-absence,-you-should-retroactively-approve-my-absence" discussions (arguments) with employees.

Thanks for your help!

Hi all,

We're looking for an actuary in the Philadelphia area to do some FAS 106 actuarial work. If you know of anyone, please respond by email: scott2434@rcn.com

TIA.

.. Scott

Hi all,

We're looking for an actuary in the Philadelphia area to do some FAS 106 actuarial work. If you know of anyone, please respond by email: scott2434@rcn.com

TIA.

.. Scott

I was wondering if anyone knows where I can find a definition of the phrase "total client assets under its management and control" for purposes of meeting the $85 million in assets requirement for a QPAM, under PTE 84-14. Thanks for any responses.

Reposting from "plan terminations" board ...

Under a partial plan termination, vesting of the affected participants is required TO THE EXTENT FUNDED. I take this to mean that vesting is granted to non-vested affected participants only if the plan's assets exceeds the Priority Category 5 plan termination liability. Is this a correct interpretation? If so, I would guess that in the current environment, not much extra vesting will be happening. Or said another way, if the assets are below the PC5 liability, who cares if a partial plan termination has occurred?

Thoughts/comments?

Should a participant be reported on Schedule SSA if he/she has received the first in a series of scheduled installment payments?

I'm looking for information on what others charge for qualified retirement plan distribution fees (Terminations, Retirements, Death, Disability, In-Service, Hardship Withdrawals, etc.) from Defined Contribution Plans: 1) How much do you charge, 2) for smaller distributions equal to or less than the distribution fee, do you just have a fee transaction with no distribution made, or, do you waive the fee on small amounts. If you do waive fees on smaller amounts, what is the minimum dollar amount used, 3) Do you charge more for Roth distributions? Thanks for your feedback!

For a 100% shareholder employee of a Sub-S Corp. I have the following ?’s:

1. Is his comp for plan purposes limited to his W-2 or do we also include all or a portion of his K-1 income?

2. Is the deduction for any employer contribs attributable to his account taken on the corporate return with everyone elses (as it would be for a regular corp.) or is it taken on 1040 (as it would for a sole prop. Or a partner in a partnership?

Any cites appreciated!

A two participant plan is basically in existence so the trustee can use it as a bank. He currently has 3 loans with balances totaling 31014.88. The highest balance in the past 12 months was 55999.17. The plan does allow for 3 loans and he does make timely payments. However, this month he has paid off one loan, he now has 2 outstanding and is in the process of taking a new loan to pay off high int credit cards. He has been advised that this will violate the plan provisions. He wants to know possible ramifications if the plan got audited. Is it a taxable event? I explained that on the 5500 he has to report his outstanding loan balances and it would look fishy if his balance was high as compared to total plan assets, which is about $200,000.

The rules are out that we need to amend the plans that have a normal retirement age of less than 62. I have quite a few plans with 55, 59, and 60. Seems a shame to have to do that when some are really retiring at that early age - one participant doctor or lawyer plans.

Does this apply to DC plans also? It really doesnt specify in the notice. Also - does this include the provisions for early retirement age 55? Does that need to be taken away also?

I have attached the article from ASPPA. Thanks

(Right at the top of the ASPPA ASAP it says it's copyrighted and for internal use only, so I deleted it from your post.)

When calculating the excise tax on failure to transmit deferrals timely, if I understand it correctly, the excise tax is 15% for each taxable year that the correction is not made.

I'm not sure when the correction is deemed to be made. Is the correction made when the deferrals are deposited? The interest on late deferrals is deposited? The excise tax on the prohibited transaction is paid?

Can someone help?

Thanks!

Does any have any suggestions for ce credits, I guess I need to get the ball rolling to get enough credits for this year.

I know ASPPA is an approved sponsor, I'll most likely will use them. Just curious to see what everyone else is doing?

The IRS guidance says the notice regarding the election of prior year's funding status is to go to various parties, including "participants." The IRS does not define participant. If the election is to retain the prior year's "good" status (not endangered or critical) do all participants, active term vested and in pay status, receive the notice?

Is a payment contingent on a change in control subject to a substantial risk of forfeiture regardless of the change in control definition (knowing that there must be some risk)? In other words, if an agreement promises to pay an employee $x when there is a change in control, can we design the CIC defintion as we like or must it comply with the 409A CIC definition? We would like to use our own defintion and keep the payment a short-term deferral.

Can a plan utilize a discretionary match formula that matches more than 100% of deferrals and caps the match at X percent? Example match 125% of the first 2% deferred?

Does anyone know if the IRS has published anything stating affirmatively that the waiver for RMDs for 2009 does not apply to defined benefit plans? I’ve seen Notice 2009-9, which mentions applicability to individual account plans, but this is not something that the average participant will understand.

Further, there is a problem that many “experts” are telling participants that the waiver does apply to all plans. The experts include the usual financial advisors, but it also includes the people on the IRS phone lines (including people who are serving as specialists). On IRS.gov, there is a publication that says generically that the waiver applies to qualified retirement plans. I even called the IRS number myself and spoke to a “specialist” who swore that the waiver applied. Participants are refusing to take RMDs, and we need to find something in writing that says in a straightforward manner that pension payments must occur.

I wrote to RetirementPlanQuestions@irs.gov (mentioned in Notice 2009-9) yesterday, but I haven’t heard back yet.