I came across this issue. If the employer wants to terminate an Annuity plan, what happens to the outstanding loans that participants have?

Everything that I have looked refers to situations when there is termination of employment but nothing about when the plan is terminated.

Generally plan documents do no provide for something like that (i think is a good idea to start amending plans to cover it too)

Anyone has any suggestions????

Thanks

I am doing a 2008 402(g) refund now and need to calculate the Earnings.

Are the earnings calculated thru the date of distribution?

Can someone give me an example on how the earnings are calculated?

Does Gap Earnings need to be calculated?

Happy May! The DOL has initiated a broad based investigation of a pension plan. The request asks for information and documentation since 2005. I have a different investigation initiated in 2008 that also asked for information and documentation since 2005. I can't find any rules governing the time scope of a DOL investigation. Any experience, thoughts or ideas? Thanks.

Individual dies intestate, with substantial IRA and Qualified plan funds. Possibly in the state of Texas, if that makes any difference. This is completely unrelated to any plan for which we do TPA work, so I have no vested interest in any potential answer.

Here's my question - under the language of the statute/guidance, the sons could not roll over to an "inherited" IRA for RMD purposes.

There are many PLRS allowing a SPOUSE to do a rollover in this situation. Since the non-spousal rollovers are relatively new, it doesn't surprise me that there are no PLR rulings (that I'm aware of) for a similar nonspousal situation.

My question, for any of you tax attorneys who care to take a stab, is this:

(A) - what is your guess as to the liklihood of success in applying for a favorable PLR ruling allowing a non-spousal rollover?

(B) - not asking you to reveal your fee structure, but if you were to make a guess on a reasonable range of attorney fees and IRS fees to apply for such a PLR, what might that be? For example, less than $10,000? $10-20,000? More?

Many thanks for any input. (Edit was for a typo)

Can you amend a plan to remove the EACA provision mid year?

OK, lets see if I can get this simplified, have a client who is under random audit, everything seems to be in order except timing of 401 k deposits. they were generally made on the 10Th of the month following calculation from prior month. IRS is asking that (audit year is 12/07) that employer provide breakdown of 401k amounts from weekly payroll for years 2006,2007,2008 in order to calculate and assess penalties for late deposits. the issue is who determines "reasonably segregate amounts" versus the employers pattern of the 10th of month following? total plan assets are about 500,000.00 all 401 k contributions about 18 participants total. Plan is not top heavy 2 key/owners have small amount of benefit in plan. Any input appreciated.

I was asked to look at a strange animal.

a target benefit with mandatory contributions????????

the regs have instructions on safe harbor targets which say that you can't fund the benefit with ee money.

does that mean you can do this , making it non safe harbor plan, and if so, how the heck would you even test?

In 2009 the PBCG guarantee is limited to $54,000 at age 65, and assume it is $27,000 at age 59. Also let's assume that in 6 years (in 2015) the PBGC Limit at age 65 has increased to $75,000. A question:

If someone currently age 59 retires in 2009 with a straight life annuity of $65,000 annually, and the plan terminates in 2015, is that person's PBGC guarantee in 2015 limited to the $27,000 since he/she was 59 at the age of retirement, $54,000 because that was the age 65 Limit in the year she/he retired, or is the full annuity of $65,000 guaranteed because the reference number is the increased PBGC limit of $75000 at age 65 in 2015 (noting that this person reached age 65 in 2015)?

Does anyone see an issue with setting the interest rate for a loan intentinally high such as prime plus 3% to discourage people from taking a loan? I realize the rate is supposed to be commercially reasonable rate - but there is next to no guidance as to what that actually means. Looking at various entries in this message board it appears that prime + 1 is the most common rate but is there anything to preclude a higher rate? Loans aren't a protected benefit so I can't come up with a reason that it couldn't be high.

any insights would be helpful.

thanks

I have a corporation that files taxes on a calendar year basis. 2008 taxes were filed timely without an extension. No deduction for employer contributions was taken. They now want to make a contribution for 2008.

2 questions:

1. Is the 30 day allowance to allocation contributions for prior year based on 3/15 if no extension was filed? Or based on 9/15?

2. If they did decide to allocate a contribution in 2008 and deduct it for 2009, could they also deduct the 2009 contribution on an accrual basis in 2009? This would result in the deduction for 2 plan years in 1 tax year. The deduction wording appears somewhat ambiguous, but it seems the alternative would be to perpetually deduct employer contributions on a cash basis.

Thanks for any help!

Wes

Need to allow someone to enter the Plan early and give them a contribution to pass testing. Is this allowed? And if so, how would the corrective amendment need to be worded to allow the early entry?

I have a retirement plan with a 1k mandatory cash out. I'd like to up that to 5k and comply with the roll-over to IRA requirements. Can the mandatory cash-out for all accounts with 5k or less be made retroactive? (I don't think it violates 411(d) but can't be sure). Or can it be only for future terminations?

Any insight would be appreciated.

thanks

We are going to try the IRS service

Can we send 49 letters to them and then another couple batches of 49 without being charged?

What other services including locator services , websites, etc... are out there?

thanks

Laxy

Hello All,

I recently posted this question, but received no responses. Let me rephrase and hopefully somebody will weigh in. This is a new area to me, and obviously I haven’t found a definite answer in the HSA guidance.

The participant elected HSA for 2009 and made a $4,000 contribution early in 2009 to cover the entire year. However, as of April 1 he elected to enroll in the company's PPO, a low deductible plan.

1. Can he remain covered by both plans for the rest of 2009? I’m not sure what benefit this would be, except that he would be able to roll over the entire $4,000 into the next year.

2. In a related matter, can he split his coverage and cover his family under one plan and himself under the other?

3. If he cannot be covered by both arrangements, should he be required to receive a refund of 75% of the $4,000, representing the 9 months during which he was no longer covered by a high deductible plan?

Your thoughts would be most appreciated. Any cites would be as well!

Thank you.

Calendar year Cash balance with no allocation requirements is frozen 2/28/2009.

Is there any answer to how the partners compensation for CB allocation purposes should be determined?

Is it

a. $0

b. 2/12 of what the year end numbers turn out to be

3. Something else?

Thanks for any help.

We are a mid-sized company looking for recommendations for Stock Plan Administrators (or those we should avoid). We’d prefer a full-service model where they offer both the brokerage services as well as the recordkeeping platform but are open to all recommendations.

Haven't had any experience with Self-Directed Brokerage until now. Is there supposed to be something in the Plan Document stating what % of a participants account they can invest in self-directed brokerage? Also, do many of the institutions (ING, John Hancock. . .) limit the % an individual can put into self-directed brokerage portion of the plan?

We are looking for a new COBRA TPA. Does anyone have experience with Ameriflex's COBRA administration? They use Mongoose software. On the surface, their technology capabilities seem good. Thanks!

We are modifying the 2007 year end assets to reflect Madoff losses in a DC plan, so that the owner's first RMD due 4/1/09 (based on 12/31/07 acct balance) is not greatly overstated. We are now working on the amended 2007 Form 5500, and item 4f states " Did the plan have a loss, whether or not reimbursed by the plan's fidelity bond, that was caused by fraud or dishonestly?" Not sure how to answer this question.

The instructions to the 5500 state that a willful failure to report is a criminal offense under ERISA section 501. Hence, this question may only relate to plan fiduciary actions, and not outside fraud, which is what this is. However, if we do answer this question with a yes, it probably could result in a plan audit!!

Has anyone dealt with this issue yet??

Thanks.

We were ready to set up a one-man DB Plan (owner and spouse) but he mentioned that he has another employee. She works for him however, is paid by a different company. The client reimburses the other company for a portion of her salary. Seems like she would be defined as a "leased employee". Assuming this is the case, can she or can't she be excluded from the new DB Plan for this client?