Must a Form 4 be filed in connection with the award of non-vested restricted stock units (i.e., no actual issuance of shares unless and until vesting criteria are satisfied)?

I am taking over a small 401k plan from a prior recordkeeper. The prior recordkeeper is charging a $100 fee to the client for the services of collecting the plan document, final accounting, etc. and shipping to me. In addition, the prior recordkeeper has stated that they will hold all materials until the client pays this $100 fee. Maybe they need the revenue and have to shake down even small invoices. Is this legal? Is it legal to hold client materials until an invoice is paid?

If an employee is a participant in the Plan as of the Change in Control date, but did not have an account balance, are they 100% vested in the match if they start deferring after the change in control date?

My mother had me and my brother left as beneficiaries on her 401k accounts.

Me and my brother want to set up the distribution where I receive most of the money. It is divided into four accounts so we have some options.

We wanted to have it where I receive all the money and then I just write him a check or give him cash

for what we decide he is to receive. By doing it this way we get he receives what we decide and is much less complicated than if each of us receive half and then gives me money. If we do it this second way we then have to figure the tax effect of what to give me because all of the money is taxable.

We are concerned about the first choice where I get everything and he disclaimers everything. In accordance with irs section 2518 I believe the disclaimer could not have "received benifit". By me giving him money back this might constitute that unless I give him cash or I give it to someone else and they then give him the money.

We are also concerned about gift tax. Would that money received by him by me be subject to that or can that be avoided another another rule of law. As it is not a gift and maybe it can be called something else. thank you in advance for any advice you can offer.

So I've got a doosy here...any help or thoughts would be much appreciated.

We have a QDRO and preliminary determination letter that permits a benefit payment to the AP on the PPT's early retirement age (which was reached as of 2008). It is a VERY large amount, payable in a lump sum. The Order (Texas famly court) and Letter specifically state that payment will be made to the AP, 'care of' the AP's account in the Texas Child Support Office stated in both the order and letter.

The AP called up plan and requested election forms on 1/1/08. She filled them out as payable directly to her in a lump sum. Do to an administrative error, the fact that the letter/order stated that the benefit was payable to the child support office was overlooked.

Now, last week, child support office contacts plan and says "What happened to that payment? We never received it."

How would you approach this? Obviously, we can request that AP repay the plan, but over a year later, this is in my opinion highly unlikely to happen. A second option would be to take the approach that only a former spouse can be the AP, the former spouse was the AP, she should take the responsiblity for filling out the election forms properly and let the child support agency sue her. However, my thinking is that they will be much more likely to sue the company/plan rather than this person, and they do have a letter and order directing payment to be made to them. The final alternative -- which unfortunately seems to be the only viable one - is that the company request payment from AP and to the extent payment is not made, it pays child support office outside of the plan.

I will add one thought: the check is made out to her, but "care of" the agency. Does this help the second alternative suggested above?

Hi,

Could someone please help me with this. Our office uses Datair's Volume Submitter Documents. Through an oversight, we have not had our clients adopt the 2007 required amendments. Am I right in saying that for calendar year clients, we have until the due date of the employer's 2008 corporate return to adopt this 2007 amendment?

Any help would be greatly appreciated.

Thank you!

A client of ours was a participating employer on the parent comapny's 401(k) plan in 2008. I don't know the exact date they ceased deferring under the parent comapny's plan, maybe around August 2008.

They started their own plan effective 10/1/2008.

Because the participants had a prior plan to contribute to, this new plan is like a spin-off or continuation of the plan they were a part of prior to 10/1/2008. Is their 2008 415 limit prorated or will each participant still be tested on their full 2008 contributions - to the old plan and their new one?

I know that if a plan was a true start-up, and had a short plan year, that the limits would be prorated, but I thought it might be different under a spin-off plan.

Thanks in advance.

My company has a self funded health plan. There is no trust. Claims are paid out of general disbursements account of the company. There are more than 100 participants. Is an audit required? Even if so, does anyone really do this? Thanks.

I am not sure if Form 5500 is required for a HSA plan. If an employer wants to offer a HSA plan to their employees, they must have HDHP. If a HDHP is required, then the employer will need to file Form 5500, correct? However, if the HSA is subject to ERISA, then Form 5500 is not required? Most HSA plans have the Employer contributing to the HSA account, so would that indicate that the Employer is sponsoring the plan as well? So combine the aspect of sponsorship and contributions, I am under the impression that the HSA is subject to ERISA. Im confused

If Company A is merging with Company B and Company A has excess plan assets in a funded welfare plan, can those plan assets be used for the benefit of all new employees (those of both Company A and Company B). Unable to find guidance on point...any ideas?

I think I read somewhere that for plan years 2008 and later, both the refund and gains are taxed in the year distributed, even if distributed by 3/15.

Is this correct? I searched, but can't find where I read this (if indeed, I did read it).

Thanks.

Do you need to run the General Test under 401(a)(4) for an Age Weighted profit sharing plan?

Hello,

I have a discussion with a consultant who thinks that segment rates to use for funding are the ones at the beginning of the plan year, wheras, I think that they are the ones as of the valuation date. Hence, for an EOY valuation, it would be that month end/next month segment rates (e.g. for 12/31/2008 Val, it could be 01/01/2009).

What are you using for the segment rates for EOY valuations?

Thanks.

Under Rev Proc 2008-50, a plan that erroneously allowed an otherwise ineligible participant to enter may adopt a retroactive plan amendment. This amendment can alter the eligibility or entry date terms so the employee(s) who entered is made retroactively eligible.

This is an approved correction method in Appendix B, Section 2.07 for plans that already have favorable determination letters. However it is less than clear whether such amendment would need to then be submitted to IRS for a determination letter. Section 6.05(2)(b) seems to indicate that a submission is needed by the end of the next "on-cycle" year (whatever than means). The particular plan that I am working on is a Volume Submitter with a FDL.

Does anyone know for sure whether an IRS submission is required for such an amendment and, if so, what is the deadline? Thanks.

I know I should be better at searching, but I never seem to have much luck with the search engine.

After a hardship withdrawal, pre-tax contributions are suspended for 6 months. Do Roth contributions also need to be stopped? Can someone please direct me to some documentation on this issue? Thank you so much for your help.

2007 plan year, plan had 107 eligible participants. Used the transition rule for 2007. This year plan has 109 eligible participants. Can we use the 80-120 transition rule again or is the audit required? Im thinking the latter rather than the former.

The plan sponsor currently provides an enhanced Safe Harbor Match formula of 100% of the first 6% of compensation. They want to cut back to match only 5% instead of 6%. If I follow my guidelines set forth in Treas Reg § 1.401(k)-3(g) and change the match prospectively, do I have to do ADP/ACP testing? My new formula still satisfies the safe harbor rules. But the regs seem to suggest that any reduction would invoke ADP/ACP testing for the year.

Thanks!

Is anyone familiar with (or is there even anything currently available) a good resource that gives a detailed or step by step analysis of PPA actuarial valuations and the transition from prior methodology?

Hello,

I have a situation where a key employee (who is past NRA) did not work for the year, but also did not retire either. That employee is getting an actuarial increase to her DB benefit, but because of no compensation earned during the year, her HCE rate for the minimum gateway is being computed at 1,000,000% by our system. That is obviously wrong!! But, how should I treat her for the test with a comp of 0, considering she owns the company and is essentially getting a benefit accrual? Some NCEs are getting benefits in both plans.

Your help would be most appreciated!!

Thanks.

Company adopted amendment terminating DB plan effective 1/1/09 (a standard termination). Company will not request a favorable determination letter on the plan termination.

Company would like to prolong making distribution as long as possible - preferably until the 1st quarter of 2010.

My understanding is that the Plan administrator must file Form 500 with PBGC no later than 180 days after the proposed termination date and must provide a notice of plan benefits to the participants no later than the day its files the Form 500 with PBGC. The notice of plan benefits may include estimates of the plan benefits so long as it is explained that the amount is an estimate and the actual amount may be higher or lower.

The PBGC has a 60 day review period beginning on the date it receives the Form 500.

After this review period expires, Company has 180 days to complete the final distribution of plan assets.

Company would like to distribute plan assets on 2/15/2010 which fits withing the timeline outlined above.

The Plan's actuary has told us he must wait for interest rates to be published in January 2010 before he can compute the benefit amounts for participants.

This throws a monkeywrench into how to handle the elections forms for participants.

My questions:

1. In general, is it feasible to wait until 2/15/2010 to make a distribution under these circumstances (or is it overly ambitious)?

2. Mustn't election forms be sent to participants at least 30 days before the distribution commences?

3. May the election forms contain an estimate of plan benefits (assuming the actual amounts are not capable of being computed by the 30 day deadline)?