Plan deposited deferrals late and wishes to correct by providing interest and filing Form 5330. A "VFCP Filing" is not desired. I understand there is also a notice that needs to be distributed to members discussing the late deferrals and related correction. Is there available any guidance on the content of that notice? Thanks.

We currently have an Employer who has paid a generous match of 150% on the dollar up to 5% for years. The Employer has definitely been affected by the economy and can no longer afford this contribution. They match each payroll and want to amend the matching contribution starting in July to a discretionary matching contribution. We drafted an amendment for the change, we drafted an SMM, as well as Supplemental Notice for Employees. We informed the employees that this would not affect the accrued benefit they've already received or were entitled to prior to July 1, just the match going forward.

This is not a safe harbor plan. Is it necessary to notice the employees, when just changing from a fixed match plan to a discretionary plan?

I have an existing roth IRA with a mutual fund company. I want to make future roth contributions to a new company. Does anyone know if this is allowed? Would I have to close the first account. FYI I have not made any contributions so far this tax year. Are their any penalties or taxes I should know about? Thanks for the help.

Do I use 2A for a Characterisitc code if the Plan is cross tested or do I only use it if HCE's are basicly the only ones getting the Cross testing allocation?

Company A merged their 401(k) into subsidiary B's 401(k) plan. Company A did not do ADP test for 2008 before merging the plans. ADP test for Co A fails, testing the companies separately. Now money needs to be returned to the HCEs of Co A. I believe that the distribution must come out of the merged 401k plan to satisfy the ADP Test. However does the interest have to come out as well, since the merged plan accepted money that was not eligible to be rolled over? Thanks.

A plan has a non-uniform NRA of 62. Therefore, the benefits must be normalized to the testing age of 65.

Does the normalization follow the AE in the plan document with respect to whether mortality is used? Does the normalization of the benefit and the most valuable benefit use the same rules. For example, if AE has pre-retirement mortality than the normalization occurs with mortality otherwise interest only.

The IRS came out and stated that normalization for the most valuable benefit must use mortality in the accumulation factor. It does not appear to make sense that the regular benefit testing would use a different methodology than the most valuable.

Thanks in advance for any all assistance.

I know that a conversion of a DB plan to a DC plan entails the termination of the DB plan, in accordance with PBGC rules. Does anybody have cites for this? THANKS!

We are considering adding a post tax premuim option to our medical plan for 2010. The purpose would be to allow employees who missed qualifing events etc to enroll or change enrollments. I would be interested in any information on this subject.

One particular question is: if an employee missed adding a new baby to the plan within 30 days, can they drop the pre-tax plan and opt into the post tax plan?

Does anyone know any good resources for informaiton on post tax premuim medical plans.

We are considering adding a post tax premuim option to our medical plan for 2010. The purpose would be to allow employees who missed qualifing events etc to enroll or change enrollments. I would be interested in any information on this subject.

One particular question is: if an employee missing adding a new baby to the plan within 30 days, can they drop the pre-tax plan and opt into the post tax plan?

Can anyone answer this question:

It is my understanding that when an alternate payee (ex-spouse) is receiving a portion of the member's benefit, the 415(B) limit is based on the full amount. Is this correct or should the 415 (B) limit be based solely on the portion that the member is receiving? The alternate payees portion of the benefit is not included in the members gross/taxable benefit on the 1099 unlike child support orders in which the taxability is the members responsibility.

If the full benefit is used, can alternate payees receive QEBA payments? If so, when does one apply the QEBA to the alternate payee and what method should be used to determine the portion that is applied? Or do I need to apply the QEBA solely to the members portion of the benefit and leave the alternate payees portion alone?

Hello

I am wondering if someone can help me with the correct way to calculate the 15 year of servioe catch up.

Here is what I am wondering. At one time there was a glitch the IRS created and all prior Roth contributions to a 403 with the employer reduced the $15,000 catch up dollar for dollar. I have heard that is no longer true and that now it it just the Roth contributions as well as the pretax contributions that exceed the 402g limits in past years that would reduce the $15,000 dollar for dollar. If this is correct can someone let me know where to locate the communication that this was corrected?

Also it appears any employer retirement plan cash deferral applies to this calculation as well. Meaning when you look at the overall contributions to see if they have averaged over $5000 a year in contributions that you look at all plans with the employer which could include SIMPLE IRAs, SARSEPs and 401k plans but not 457 plans. Again if this is the case what could I use as a reference that this is true?

Thanks for your help on this

Can anyone answer this question:

It is my understanding that when an alternate payee (ex-spouse) is receiving a portion of the member's benefit, the 415(B) limit is based on the full amount. Is this correct or should the 415 (B) limit be based solely on the portion that the member is receiving? The alternate payee’s portion of the benefit is not included in the member’s gross/taxable benefit on the 1099 unlike child support orders in which the taxability is the member’s responsibility.

If the full benefit is used, can alternate payees receive QEBA payments? If so, when does one apply the QEBA to the alternate payee and what method should be used to determine the portion that is applied? Or do I need to apply the QEBA solely to the member’s portion of the benefit and leave the alternate payee’s portion alone?

6 nonexcludables for the plan year: calendar year 2008. Two have large benefit accruals exceeding 0.50% of pay. The other employees whose accruals also would have exceeded 0.50% of pay? Well, they all quit before their 1,000 hours for calendar year 2008.

One NHCE has an accrual of 0.41% of pay. Can the plan be amended to increase an accrual for the NHCE (or all) under -11(g), or is 401(a)(26) outside the scope of a -11(g) amendment?

edit:typo

We're considering offering an early retirement program whereby employees' age + service would be bridged for purposes of qualifying them for retiree medical (currently Rule of 70). Does management's decision to attribute additional age + service to an employee technically require a plan amendment in order to be recognized under the plan or can its decision to deem early retirees an additional number of years of age + service to get them to the vesting threshold be viewed as an administrative decision?

Hi. We will be scanning and electronically storing HR related documents as well as working towards on-line new hire enrollment and on-line status changes. Can someone point me to guidance on what are the issues we need to consider as we go through this process? What documents should be maintained with original signatures? As we attempt to go paperless, how long should we hold on to old enrollment forms? Other questions/issues I haven't thought of yet?

Thanks.

Hi. We will be scanning and electronically storing HR related documents as well as working towards on-line new hire enrollment and on-line status changes. Can someone point me to guidance on what are the issues we need to consider as we go through this process? What documents should be maintained with original signatures? As we attempt to go paperless, how long should we hold on to old enrollment forms? Other questions/issues I haven't thought of yet?

Thanks.

How do you reduce the formula in a 412(e) plan? The premiums for the insurance are the same each year - it is just the annuity that changes. If you reduce the formula the death benefit also gets reduced, doesn't it. Do you have to reduce the insurance policies death benefit? Do you do a fresh start like a typical DB plan if you reduce the formula?

The company has hit hard times - and instead of terminating the plan - they just want a smaller contribution.

Thanks

How do you report balance information for the SSA - do you report it as the employee's termination date or the last day of the plan year?

Does anybody know the IRC Section, the reg., the ruling, or letter, that makes this requirement:

"Internal Revenue Service (IRS) guidelines prohibit distributions from a qualified pension plan to participants who are actively employed in either a full-time or part-time position with an employer covered by the plan. This prohibition extends to participants under the age of 59 ½ years who are re-employed after retirement without a bona fide break in service. The IRS may impose a 10% penalty on your retirement benefit if you violate the prohibition.

Consequently, you must be removed from the County payroll for at least 30 days before being reemployed by the County. Also, your decision to retire must not be conditioned upon an offer of re-employment."

This requirement is in every plan but I can't find the source which requires it. Anybody know offhand or have any suggestions? And, may employees over the age of 59 1/2 be reemployed without any break in service--any prohibition on that?

New DB Plan as of 1/1/2008. Participant count is 114. So with my understanding of the 80/120 rule they do NOT need an audit and can file a Sch. I instead of a Sch. H. However, they do have a 401(k) Plan which is subject to an audit (over 120 participants). Is there a rule that says if one employer's Plan is subject to audit then all of the Employer's plans are subject to audit as well? And if so, can you reference a code section? Thanks!