An employer (Plan A) who has union employees is interested in moving its 401(k) plan into a large multiemployer 401(k) plan (Plan B). Where are the rules for a plan-to-plan (AKA trust-to-trust) transfer found? Do participants have a choice as to whether they stay with Plan A or move to Plan B? What are the mechanisms for accomplishing this? Does Plan B have to set up the accounts in the person's name ahead of time? How long can the black-out period be?

To make matters more complicated Plan A has a few members in it that participated in a prior Money Purchase Plan which offered J&S. Plan B does not offer J&S. Doesn't Plan B have to continue to offer that choice to those Plan A participants who had this benefits right and feature before?

This is from the IRS, its simply a short 'check the boxes' survey.

Parts of it actually reference the prior version of EPCRS (2006-27) rather than 2008-50 but what the heck.

basically they are trying to get an idea on how often you are self correcting things. I figure it can't hurt to fill out the survey (might have been nice if they asked what other items would you like to see)

................................................

Tax Administration

IRS Requests Feedback on Self-Correction Program

The Internal Revenue Service's Employee Plans announced March 4 that it is conducting a short, voluntary, and anonymous survey designed to gauge the relevance and usefulness of its Self-Correction Program.

Participation in the survey will assist the agency in making its programs more responsive to the needs of plan sponsors, employees, and beneficiaries of the retirement plan system, according to the announcement. The survey takes less than 5 minutes, the agency said.

The survey is being conducted by Joyce Kahn, manager of EP Voluntary Compliance. The survey will be available until March 20.

To take the survey, go to http://guest.cvent.com/SURVEYS/Welcome.asp...dc-0ac8081fde8d.

I need to process refunds by 3/15, but I haven't received the trust accounting. I know the principle, but we all know the negative earnings will reduce the amount to be refunded. What to do? Seems like I have two options:

1. Refund the principle and forget about earnings (let's assume they are negative).

2. Wait for the trust accounting and do the refunds after 3/15.

Are there any other options and what have people been doing?

Thanks.

:angry: OK, I am really tired of researching this...I know this may be a tired topic, but I need help!!

Situation: An employee with a FSA terminates mid year, plan doc says that they have 30 days following termination to submit any claims, can terminated employee submit a claim for the full election (as long as incurred during employment) after the fact?? Cobra does not apply. There is not a grace period.

I know that you cannot recover any $$ if the account is overspent, and I know that a participant can utilize the full election at any time during employment--but what happens after termination of employment? I have used several different software packages to manage these accounts and all reduces an employees election to contributions less reimbursements at time of termination. The software will not pay out anything over the contribution amount.

Is termination an allowable change of status that the employer can initiate that in effect will reduce the election if the account is not overspent?

Help!

If an employer makes an overpayment from a 401(k) plan to a participant in a lump-sum distribution, and attempts and fails to recoup the overpayment, are there any reporting requiremetns on part of the employer to the IRS? I think the answer is that the employer must file an amended 1099-R including the overpayment as a "taxable amount?"

Hi,

I was wondering about the advantages and disadvantages of 401(k) brokers who don't have Series 6 and 63 licenses. In my state, fixed annuity 401(k)s can be sold with just a Life license. Is there some tangible advantage to having a broker who has Series 6 and 63 licensing, and of variable annuity products in general?

Thanks!

a 10 participant plan has a 6 month age 21 eligibility. It miserably fails the ADP n ACP. So we utilize the statutory minimum age/service conditions and it still fails. When calculating QNEC's, do the excluded participants under the statutory conditions receive a qualified non elective contribution?

1/1/2008 Results

FT = 10,000,000

AVA = 9,500,000

FSCB = 1,000,000

Funded Ratio = 95%, so exempt from restrictions in 2008.

AFTAP = 85%

If I do not certify a 2009 AFTAP by 4/1/2009 is my presumed 2009 AFTAP at that point equal to 85% or 75%?

I've been handling benefits for a long time and I've never heard of this but understand it is becoming more commonplace practice among dental carriers. When dependent kids are having their wisdom teeth extracted, dental carriers are now mandating that the claim is first filed with the medical carrier before they will consider it for payment? They want it to be paid first under the medical plan if applicable, or get denied for no coverage. I've come across 2 carriers -- DeltaDental and Humana -- that are now requiring this.

I have generally thought of the AFTAP as a "cash basis" calculation. Current liabilities vs. current assets.

We have a sponsor that failed to make their 2007 required minimum contribution, due 9/15/2008. The plan now has an unpaid minimum required contribution (prior accumulated funding deficiency). Sponsor has no intention of making the contribution.

Does this effect the current AFTAP certification?

Any input is appreciated.

A plan participant died in 2002 at age of about 35. Unmarried, no kids, no will, no beneficiary designation, nothing - about all he had was his retirement account and a beat up old truck. Since there was essentially nothing there, the family never formally went through probate or took any legal action.

He was taken care of in the end by his brother and sister-in-law, who would like to get his money. The owner of company (plan sponsor) feels very strongly that he would like to get the participant's money to the family. As of yesterday, his total account balance was $382.54.

Can they write a check to the participant and let the family do what they want with it? How about writing the check to the "Estate of..."? Any othee suggestions?

I have generally thought of the AFTAP as a "cash basis" calculation. Current liabilities vs. current assets.

We have a sponsor that failed to make their 2007 required minimum contribution, due 9/15/2008. The plan now has an unpaid minimum required contribution (prior accumulated funding deficiency). Sponsor has no intention of making the contribution.

Does this effect the current AFTAP certification?

Any input is appreciated.

I'm doing a VCP submission for two plans sponsored by the same employer. Can I prepare one checklist and one Appendix D or do I have to prepare separate submissions?

I am looking for the effective date of PPA Section 302© with respect to Coll. Bargained Plans. The text of the statute indicates that the amendments shall apply to plan years beginning after December 31, 2007. Is this also the effective date for coll. barg. plans?

Plan sponsor wants to amend plans to change existing cashout provision from voluntary to involuntary for 1K to 4.99K.

About 85 people would be cashed out and there would be trouble locating people and trouble getting signatures.

Is this viable? All of our other clients adopted the voluntary rule so I have not been through large scale forced cashouts. This client needs to get below 500 to avoid at risk status.

Is it common for financial institutions to accept the non-signature IRAs for non-cooperative participants? How are they set up and how are fiduciary or investment decisions handled?

What have others experienced?

Has anyone began filing electronically for their clients yet? If so, not trying to reinvent the wheel. What's your process? Do you send off and they sign and file, how do you know that they filed it, or do you file for them and electronically file after they review? I'm looking for specifics as far as who does what and when?

Thanks for any direction.

I am little bit confused with actuarial increase in late retirement,

suppose normal retirement is 65 & a employee retires at 67

then as per my logic,

with no pre-retirement mortality : actuarial increase should be (1+i)^2. (since employee's actual retirement is at 67)

with pre-retirement mortality : actuarial increase should be D65/D67

am i right? please guide me.

Thanks

We were asked today what happens if a company has had a number of involuntary terminations, sends the notices correctly to those affected, and then has to shut down completely? The group plan would then be gone.

I thought that there would be no COBRA at that point. But the person who asked me told me that Ceridian said the carriers would have to continue those plans as if the employer were still in business. I haven't seen anything about that in anything I have read.

I don't think they are talking about conversion, but I welcome any comments you have. Thank you.

Best wishes to all you math fans on this "square root" day.

We won't celebrate another for over seven years.

Hypothetical situation; a business has a calendar plan year, and a last day requirement. However, in fact, the business closes during the winter (or the spring-the whims of tourists can work both way). Has the taxpayer/plan sponsor gamed the system?