Hi all,

I'm a bit confused about the interaction between the exclusion for insubstantial non-monetary compensation and the $5000-compensation per person threshold for reporting a service provider on the new 2009 Schedule C.

Does the de minimis exclusion (and its various rules) apply for purposes of determining the $5000 reporting threshold? So if a person receives $4990 total in reportable direct and indirect compensation plus a nonmonetary gift valued at $20, then that person need not be reported at all on Schedule C?

Thanks!

Hello! Please help. Would I need to report an overpayment of less than $500 into my 401K (2008), and if yes, which form should I use? I plan to e-file in a few hours... Please help!!

Has anyone ever used the QTA to terminate an orphan plan? I am just curious if anyone has used these procedures on the DOL's website and if you could share your experience? Thanks.

There is no exception from the 2009 MRD suspension in a non-spouse rollover context, correct?

Employer has ceased doing business and received notice of withdrawal liability, which employer disputes (construction industry exception). Union has indicated a withdrawal liability monthly payment (to amortize the full liability), and has demanded payment of the monthly amount.

If the employer disputes the withdrawal liability, must it make monthly payments during the union's review? If arbitration results, must the employer make monthly payments during the arbitration?

If the answer is yes, that monthly payments must be made during either/or the review & arbitration processes, what is the consequence if the employer does NOT make those payments?

I have seen the option of offering a discounted lump sump payment for withdrawal liability in a settlement agreement. I am trying to convince a trustee that this is blessed by the DOL/PBGC but cannot find the authority which will do so. Can anyone provide assistance on this? Thanks.

If a plan sponsor handed out a Section 436 participant notice regarding benefit restrictions last year, and this year the funding status has not changed enough to change the restriction, is another participant notice required?

The notice last year did not mention anything about an annual update.

The IRS has published draft LRMs for 403(b) plans on its website. Here's the URL:

http://www.irs.gov/retirement/article/0,,id=97182,00.html

Apparently the LRMs were included in Announcement 2009-34, but I couldn't find that on the IRS site.

My very small company does not offer HSA or FSA. Is it possible for me to participate in a HSA/FSA as an individual? How would I go about it? Thanks!

Does anyone know a state's rights with respect to garnishing a participant's benefits in a church pension plan? Before people start weighing in, keep in mind that ERISA's anti-alienation provision is not applicable to this plan. I also understand that the federal government can often get at pension benefits once they become payable. The issue here is that this is a church plan (so, essentially, just a spendthrift trust subject to state law) and it is the state, not the federal government, trying to garnish pension benefits to recoup interest on student loan payments (through the state's guaranteed federal loan program) and child support. The state in question is Oklahoma, if that makes a difference.

EDIT: typo

I was always under the impression (and verified by a number of actuaries) that COLAs cannot be amended out of a plan for benefits that have already been accrued. I have a plan with a COLA that is terminating and they are purchasing annuities. The carrier said they have an attorney that said that this plan amendment would be permitted. Does anybody out there have experience with this?

Does anybody know where I can find a concise and current "checklist" for retirement plan and H&W plan SPDs? I have the regulations, but would like to work from something more user friendly.

Assume an employee is entitled to 18 months of COBRA upon retirement at age 60, and that the empolyee's spouce and child (both previously dependents in the health plan before the employee's retirement) are also entitled to Cobra. A few questions:

(1) Are the spouce & child entitled to 18 or 36 months of COBRA ... I seem to recall that it might be 36?

(2) Am I correct that the employee is only entitled to 18 months of COBRA?

(3) Now the tough question ..... Assume the employer has a roughly 50% subsidized (but frozen $ subsidy) retiree health plan which can be taken in lieu of Cobra, but that the retiring employee does NOT (per the Retiree health Plan Documents) have the option to FIRST take Cobra and THEN switch to the subsidized Retiree Health plan. Also assume that the retiree decides to go with the Retiree healh plan (because he needs health coverage to age 65 .... longer than can be provided via Cobra). Then suppose that (say) 6 months after he retires (having entered the Retiree health plan) that the employer unilaterally ENDS the RETIREE health plan (but not the health care plan for those still employed). Must the employer offer the retiree and his dependents Cobra at that time ..... keeping in mind that he has only had 6 moths of post-retirement health coverage so far, far shorter than that he could have taken under Cobra? If the ENDING of a retiree health plan does NOT trigger eligibility for Cobra (especially when the ending of the plan is shortly after retirement), it appears that this could be a way for unscrupulous employers to skirt their Cobra obligation.

If there is no legal obligation of the employer to offer Cobra in this situation, is anyone aware of litigation, regulations, etc. addressing this situation ?

Thanks.

I have a client in the construction industry with an ESOP. The client would like to participate in a union health plan, but is concerned that this participation would violate the ESOP rules. Is anyone aware of any guidance on this subject? The client currently provides its own health plan to its employees. Any help would be appreciated.

In 2008 we went from a 12/31/08 EOY plan to a 1/1/08 BOY plan. How do you reflect this on the 5500 schedule I for assets and balances (small plan)?

Do you still use the 12/31/08 ending asset value on the 5500 - even though the valuation was based on asset values as of 1/1/08?

If you use 1/1/08 balances - you wouldnt have anything for earnings on the first year of BOY - since the 2007 5500 reflecting balances as of 12/31/07, correct?

Thanks

How do you (TPAs out there) tell your client to pay their 945 withholding??

The "Same Day Fed Wire" is too complicated for any of our clients to understand and figure out;

the payroll companies are not submitting the 945 payments;

the 8109-B's are penalized (according to rumor) although I've never heard of an actual penalty;

and the EFTPS takes 2 weeks+ for the client to set up (by then they've forgotten about it)...

I am just curious how you guys out there do this. We need to give our clients an answer that is un-complicated and concise. THANKS!

A child has been making the required withdrawals from the deceased parents' IRA accounts (inherited accounts). Based on the rules for 2009 that minimum required distributions are not required - would this fall into that category? The deceased parents never had attained the age of 70.5. Any guidance is greatly appreciated.

I have a Not for profit that would like to set up a nonqualified plan for an executive who has recently terminated employment with the organization. They would like to provide him with a $3,000/month joint and 100% survivor annuity. Can this be done in the 401(9)(A) or 457(f) arena?

I have a NFP that would like to provide retirement benefits for an executive who has recently terminated (a J and 100% survivor annuity of approximately $3,000) Is this possible in a 457(f) arrangement?

A TPA is trying to use a document's 4 step excess integrated allocation formula, but is confused about why a 3% contribution is allocated twice (steps 1 and 2) instead of just once before getting to the integrated part of the formula. If the 3% non-elective safe harbor contribution satisfies top heavy, why are these participants getting 6%? I've looked at Notice 98-52. Section VIII,B says that "safe harbor non-elective contributions may not be taken into account under any plan for purposes of section 401(l) (including the umputation of permitted disparity under section 1.401(a)(4)-7)."

I think that's saying that the 3% non-elective contribution must be allocated without being integrated, which is fine. But that doesn't mean that it can't be used to satisfy the top heavy contribution requirement.

Am I interpreting that section incorrectly, or is there another section in 98-52 that I'm missing? Section VIII,C specifically says that "if a plan allocates to all eligible employees a 3-percent safe harbor nonelective contribution, the plan generally would also satisfy the top-heavy minimum contribution requirement." There's no exception mentioned for integrated plans.