Are health insurance premiums a safe harbor hardship medical expense? such expenses are deductible under Section 213(d) of tyhe Code.

Now that the pass list is out has anyone had success in using the www.pay.gov site to complete the Form 23-EP? I can't find the form on that site and really dislike the idea of mailng a paper form and check to our friens at the IRS. Thanks.

When doing calculations for allocations for self-employed earned income for a retirement plan, does one just subtract the allocation for the employee(s) or does one also subtract the allocation for the employer?

Here's the Story (of a man named Brady ....):

I'm looking for observations on a practical level, not extremely technical.

A client has a 401(k) plan with match that is administered by another firm. Presumably they have certified that the plan meets the ADP and ACP tests.

My firm then implemented a cross tested plan that includes a profit sharing plan component and a defined benefit plan component.

We are to now value the plan for its second plan year.

The client provides data that he thinks is sufficient, but really isn't ideal, unless they just can't get complete data.

For example regarding the 401(k) plan we have account balances as of end of last year but not this year and we have the amount of deferrals and matches for the current year. So in order to compute the average benefit percentage, I don't have year end account balances but can impute some estimate.

For the profit sharing plan (which our firm handles) the client did not provide year end balances, but of course we know the allocations for the first year of the plan. So again we can simply estimate year end balances for non discrimination and average benefit testing.

I don't know for sure but I beleive they do not have sub accounts for the PS plan and just one account with a total value.

As practioners, I am looking for a consensus. Are most of you getting year end account balance data or imputing year end data?

While year-end balances are not imperative yet, after a couple more years the estimates will be all but worthless.

Regarding plan distributions. 2 employees terminated and are due benefits from the profit sharing plan. Let's assume all assets are combined in one account. The plan provides that the valuation date be the last day of plan year or any other date the administrator deems appropriate. These are to be the first plan distributions from the plan. The plan year end is 3/31/09. Logistically any suggestions?

That is, would you just recommend to take the value as of 3/31/09? And if not what day might you use (recommend to client), as the values change daily?

Thanks.

Hello,

Is there a requirement that a retirement plan SPD must have a separate "claims procedure" for any disability benefits? Isn't it enough to use general language in terms of "benefits" if the same claims procedures apply to all types of benefits? I thought the disability language for claims procedures only applied to H&W SPDs.

Thank you!

My question relates to: a participant in a DB plan who has been in pay status for 5 years and we have not been presented with a QDRO. We have calculated the amount overpaid to him, but am struggling if we recover this amount with interest or no interest.

Thanks for your consideration.

Kind of a different situation....

Client has a 2008 DB funding range with approx. 50k-250k funding range due to past service and 50% cushion on max end.

Client actually funded 150k during 2008 but CPA only wants to deduct about 100k for 2008. Since the extra 50k was entirely contributed within 2008, but 50k is not going to be deducted, is it subject to 10% penalty tax. CPA said they'll pay the 10% penalty tax if it applies.

Seems odd to pay a penalty tax on a contribution within the deduction limits but "optionally" not deducted. Does the 10% penalty apply ? I'm thinking it would apply.

Can an plan administrators' QMCSO procedures provide that a QMCSO will not be honored if the QMCSO is not submitted to the plan administrator within 31 days of the date of the order?

Plan's AFTAP is 100%. Participant age 55 can elect early retirement and either start pension or defer to later start date. The lump sum option is available.

Question: Should election package disclose the risk of deferring the start date election that a full or any lump sum may not be distributable in a later year?

Does anyone see a non-discrimination issue or any other issue with a governmental plan (for a state university) limiting loan and hardship withdrawals to only participants who have accounts with the 2 approved vendors (so as to limit the need for Info Sharing Agreements- with vendors of those participants who haven't moved to the approved vendors and other compliance issues). If other particpants want loans they can exchange contracts for a contract with an approved vendor. Any thoughts?

It was released today.

If you are a Windows' user and you load and get error, you may need to update Windows (my computer is XP). Here is the link I followed:

"http://www.microsoft.com/downloads/details.aspx?familyid=5B2C0358-915B-4EB5-9B1D-10E506DA9D0F&displaylang=en"

I scrolled towards the bottom of the page and used this version: NetFx20SP2_x86.exe

The above message is provided as information and proceed at your own risk. My recommendation would be to call Relius for assistance.

The Relius program loaded fine and is a standalone system which is not integrated with the 5500 or SAR systems.

I have not yet compared results.

In the case where a DB and DC plan cover at least one key in both plans and the DB Plan is frozen, what is the DC TH minimum?

I'm a bit confused by this but think the answer should be easy. Assume the DC plan is not a 401(k). Also assume all DB participants are also covered bythe DC plan.

Is the TH min in the DC plan now -

0% if no contrbution is made.

The highest alloaction rate to any key if key receives 0% - 3%

3% if any key receives 3% or more.

5% because there is a DB?

Does the answer change if the DB is underfunded and the employer is making contributions to the DB Plan?

I'm pretty sure the 5% no longer applies becuase the DB accruals are frozen which puts us back in the lessor of 3% or highest key rate world; does anybody disagree?

An FSO performs services for a third party, but those services do not fully compelte the job without another set of services provided by a B organization. See, for example, Example 4 in Prop. Treas. Reg. Section 1.414(m)-2©(8).

Must the "significant portion of the business" of the B organization--necessary for a B org. ASG to exist--result from receipts received directly from the FSO, or can those receipts, resulting from the coordination of efforts, come from a third party?

Say, for example, an architectural firm performs 40% of its services for 3rd parties who are referred by a building contractor, but those payments come from the 3rd party. Neither party would have been hired without the architectural firm's rendering of the design and drawings, for which the third party paid. All else being equal--i.e., the other tests of B org. status having been met (which may not be the case in this example)--would the fact that the receipts received by the B org were not paid by the FSO mean there would not be, and could not be, a B org. ASG relationship?

An S-corp employer (calendar tax year) has a 401(k) plan (calendar year) that allows for a discretionary match.

For 2008, they intend to make a matching contribution, funding it sometime this spring/summer. Their speedy tax return prep firm got everything done before March 15, 2009 and filed the corporation's tax return on time without filing an extension (the client has never had their returns completed by the March 15 deadline for any of the prior 10 years. The tax return included a deduction for the 2008 match ($80,000) to 50 employees, which has not yet been contributed.

Under 404(a)(6), a taxpayer shall be deemed to have made a payment on the last day of the preceding taxable year if the payment is on account of such taxable year and is made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof).

I think it is too late to contribute a discretionary match now for 2008 since the extension was not filed?

Could they contribute and allocate for 2008 and then file under EPCRS to get the match allocated for 2008? Even if filing under EPCRS, no deduction for 2008 would be allowed anyway, or could EPCRS also allow that? No 415 limit issues and no 404 limitation issue would occur even if 2008 and 2009 both get deducted in the same year. To the client, this is mainly an employee relations issue, since the employees were verbally told that they can expect a match for 2008 based on their deferrals (the plan is clearly written as a discretionary employer amount).

We are located in Florida and we are at a site that is subject to FMLA.

We work in a call center and we have 3 scheduled arrival times. 8 am, 9:30 am and 11 am. We have an employee who works the 8 am shift and has a sick child (that she applied and was approved for intermittent fmla for). Because of the child, she is late most everyday (as in hours late). Because the department needs someone there first thing in the morning they would like to switch her to a later schedule (which she won't like).

I don't feel comfortable with them changing the schedule because she is late for a reason that is covered under the FMLA. If they change her schedule then she has to work later which she doesn't have to do now.

Any thoughts?

Thanks

I'm not sure they can do this. She was approved for intermittent leave to care for

Do Summary Annual Reports need to be completed for each plan year included in a delinquent Form 5500 filing under the DFVCP? If so, how would the group find the participants for each year? These are health & welfare filings.

Does anyone know if workers in a Puerto Rican division of a US based company can participate in a Section 125 Plan?

Sources seem to say no, but need some quotable language.

I'm looking for a software solution and would like some input. We're a smaller brokerage looking to administer COBRA for our clients. I'm leaning towards Travisoft so far and was wondering if anyone had any experience with the company that they'd like to share, or an opinion on another vendor to explore. Travisoft seems to have kept abreast of the recent ARRA changes and has updated their software accordingly, as well as posted a blog on the changes to keep their clients up-to-date. I also like that they are set up to handle state continuation of coverage as well as federal COBRA, a feature lacking in other solutions I've explored.

Any and all feedback would be tremendously helpful.

Thanks in advance!

We are almost ready to send our annual funding notice for the defined benefit plan. However, we cannot locate addresses for a handful of participants. We are searching. If we cannot locate them, what should we do? What is our responsibility regarding these participants?

A money purchase plan was merged into a PS/401(k) plan several years ago. The MP plan did not allow for in-service distributions. The PS/401(k) plan was recently amended to permit in-service distributions after age 59 1/2. Will the participant be permitted to take an in-service distribution from the entire vested balance?