If any? COBRA?

If 2008 AFTAP (using 2007 data) was above 80% but when preparing the 2008 schedule SB you can "see" your 2009 AFTAP (using 2008 Sch. SB data) will be below 80% and burning the CB will bump AFTAP back above 80% (less restrictive category);

Do you burn the 2008 CB before using any CB to reduce the 2008 minimum funding ?

OR

Do you burn the 2009 CB before using any CB to reduce the 2009 minimum funding ?

Assume 2009 AFTAP not formally prepared or certified yet if that makes any difference.

We used the Carve Out Method to run the ADP test which eliminated the

"otherwise excludable" employees from the test. The ADP % for the 15 NHCE's

(the main NHCE group that was not carved out) was 4.14% (there were 4 ee's

who were carved out)(Total NHCE's were 19)

Question

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When using the QNEC correction method, does the excludable employee group

need to be taken into account in determining the new NHCE % after the QNEC

is made? (ie does the test have to be re-run without using the carve out

method and use that ADP% which will be even lower to base the QNEC

correction on?) 2. If we can base the correction on the ADP test which only

included the 15 ee's, does the QNEC correction need to take into account the

"otherwise excludable" ee's?

In 2007 the employer accidentally submitted several payrolls twice resulting in an over deposit of the 2007 deferrals. Can they remove the excess deferrals from the EEs accounts place into forfeiture account and then reallocate as a PS contribution at year end?

Other options?

I'm preparing my first SB and was hoping to get an answer to what may be an obvious question. Regarding the weighted average retirement age (line 22), in a small plan where both participants' NRAs are 65 (the document defines NRA as age 65), is the attachment described in the instructions needed? Are the instructions implying that it's only needed if particpants retire at different ages? All help is greatly appreciated.

Running a 1/1/2008 val (just switched from EOY val since 2008 contribution too high). A deemed election will occur to bring the AFTAP to 80%. Say this deemed election reduces the carryover balance by $30,000. So, carryover balance is reduced from $50,000 to $20,000.

Is the remaining $20,000 carryover balance used to calculate the 430(f)(4)(B) assets for the shortfall amortization payment? I would think so but just checking.

Wow, for some reason I'm just drawing a blank here. New plan is adopted this year, for employer with EIN ending in 6. So the Cycle A deadline ended on 1/31/07. What is the deadline for filing for a determination letter for this employer? Is it 1/31/2012, or is it some earlier date? I looked through Revenue Procedure 2005-66, and I'm sure it was there and I skipped right over it.

Thanks!

I know Notice 2007-6 did not provide guidance on the maximum allowable fixed interest crediting rate a plan can provide. What do most people consider to be a safe fixed crediting rate? I think 6% might be pushing it but 5% is probably safe.

Also, can you tie the interest crediting rate to an index but provide a floor and a maximum? As an example, the interest crediting rate will be the 10-year Tresuries with a min of 2% and a max of 5%?

A client filed late in 2006 and wrote letters each year to the IRS they got a letter. They got another letter this year that says they owe $15,070.85 for the late filing.

My question is can they go through the DFVCP and pay the $750 or is that option only for sponsors who didn't file for a previous year? Thanks.

Does a pbgc covered plan have to terminate with the pbgc approval or can it just be terminated and paid out?

Client restates Plan for EGTRRA in October and then calls me says business is so bad he wants to terminate Plan. Resolution to formally terminate Plan dated and effective 12/29/2008.

Safe harbor contribution made for 2008 plan year and 5500 filed (indicating resolution to terminate Plan made during the year on Schedule I) recently. We explain that distribution paperwork will be sent out to all participants this week and he now wants to keep the Plan................... Business is better I guess?

No contributions have been made in 2009. Could I establish a new 401(k) Plan today and since the distributions from the original Plan would no longer be eligible for rollover due to the successor Plan rules, directly transfer all the balances from Plan 001 to Plan 002?

How about merging the Plan into a new 401(k) Plan with the same provisions. Obviously Safe Harbor is out for 2009.

All balances transferred would be 100% vested. I am just looking for a way to keep a Plan going without having to wait 12 months after distributions actually occur.

Any thoughts? I know I could just have hime set up a Simple IRA for 2009.

Thanks

Got a multiple employer plan. Most of the employees from ONE of the employers were let go.

So, the question is: Do apply the partial term rules at the "employer/controlled group" level or at the plan level. I would have to assume it is the employer/controlled group level, but thought I should throw this out there.

A new client has apparently provided a timely 2009 safe harbor notice (plan year-end is Dec 31) which states that the safe harbor match for 2009 will be $1 per $1 up to 6% of comp. The client is now interested in reducing the safe harbor match mid-year to $1 per $1 up to 4%. If the safe harbor match is lowered for the last six months would the plan still maintain safe harbor status for the full calendar year and, if so, what notice requirements might be required?

Thanks.

I have a plan that has a few individuals that terminated in 2006 or 2007. We forced these participants out in 2008.

In several cases they were not employed when we paid them out but were rehired later in the year. Do I need to add these distributions back into my top heavy test since they had hours of service in 2008?

In several other cases we believed the individuals that terminated in 2006 or 2007 were not employed when we forced them out. We learned in March 2009 that they had actually been rehired before 12/31/2007. We weren't notified that they had been rehired until March 2009 during the census gathering process. The client did not report these individuals during the 2007 testing process. In these cases, their accounts should not have been forced out. I believe we need to request that they return the distributed assets? I believe that these distributions should not be added back in as they were paid out in error.

Thanks for your responses.

Easy quick question, is there a list some where of all special enrollment events to allow individuals to be added to the plan. I looked on the DOL website, but didn't find a list. I am looking for the effective date when a student can enroll in the plan (Beginning of the semester when they become full time again or wait to open enrollment?)

I do not normally work on form 5500 for welfare plans. one plan I am looking at has a participant count on the form 5500 page of 1000 as taken from the info by the provider. The other Sched A info given us by the provider says: Approximate number of persons covered at end of policy or contract year and lists 1800. I assume the difference is that family members are included. I was thinking to use that number on the Sched A but when I looked at prior yrs forms done by another consultant, I note that he used the same number from the first form, 1000. I'm not sure which is correct then for Sched A.

A safe harbor 401k plan had a 6 month 401(k) eligibility provision, but incorrectly applied a 2 year eligibility period on participants from getting the safe harbor contribution. They want to go back now and deposit safe harbor contributions for everyone they missed during these affected plan years. They would include lost earnings on these contributions correct?

Can someone tell me who i should report on this line?

The instructions read "Include any individual who terminated employment during this plan year, whether or not he or she (a) incurred a break in service, (b) received an irrevocable commitment from an insurance company to pay all the benefits to which he or she is entitled under the plan, and/or © received a cash distribution or deemed cash distribution of his or her nonforfeitable accrued benefit. Multiemployer plans and multiple-employer plans that are collectively bargained do not have to complete line 7h."

Do I include anyone who terminated in 2008 and is not 100% vested? What if they were paid out also in 2008, do I include them?

Any guidance is greatly appreciated.

My firm is considering adding the Roth 401(k) feature for our clients while doing restatements. We handle both the admin work and the investments too. Investments are in individual stocks/bonds and we work under pooled accounting, allocating gains and losses across all participants in one master account. I'm trying to figure out if we can use this same method for Roth deferrals. The treasury regs refer to "separate accounting of contributions, gains, and losses".

To me, this sounds like we could continue to use pooled accounting. However, I've also found an IRS publication which states "A separate account must be estabilshed for each participant making designated Roth contributions". This makes it sound like pooled accounting would not be acceptable.

Anyone dealt with this issue and/or have any input? Thanks in advance.

Chris

Participant took a hardship withdrawal in 2008. The plan administrator forgot to stop the deferrals for 6 months.

What is the correction method for this?

I know the deferrals need to come out of the plan in 2009. How is he taxed? Is it taxed for 2009?

Does the excess deferrals get forfeited and the plan sponsor makes him whole outside of the plan?

Does he have to amend taxes for 2008 and the company amend taxes for 2008?

Is there a self correction method?

Are there penalties?

What about the match- does that get forfeited?

Does the money come out with interest? There probably was a loss on the amounts because of the economy.