I have a plan that uses the prevailing wage contributions to offset the safe harbor match. The match is calculated and deposited quarterly (the basis in the plan document is quarterly). The prevailing wage deposits are used to offset it each quarter. We are trying to determine if the prevailing wage amounts can be carried forward from quarter to quarter. For example:

Participant A

1st quarter match $500

1st quarter PW $800

--------

Net Match Deposit $0

2nd quarter match $500

2nd quarter PW $250

------

Net Match Deposit $250

If you combine the first 2 quarters contributions, you would have:

Match $1,000

Prevailing Wage $1,050

----------

Net Match Deposit $0

The client wants to be able to carry forward the prevailing wage contributions that exceed the quarterly match. Does anyone know if this can be done? I can see where this could be troubling based on the fact that the match must be deposited by the end of the next quarter.

Tim

Here's a great Oct 14th question - maybe even better tomorrow.

Can 5500's be scanned, transmitted to client & signed & filed?

A client is considering participating in CALGOVEBA, a multi-employer trust that allows participating agencies to maintain separate asset pools to pay retiree health premiums and to reimburse medical expenses of retirees. The program provides for employer contributions and for pre-tax employee contributions that are described as "mandatory," because they are required pursuant to collective bargaining agreements (MOUs). So far, so good.

However, CALGOVEBA has advised employers that the MOUs may require a minimum pre-tax payment of all bargaining unit members and permit members to elect to make pre-tax contributions at a higher level of contribution. Their position apparently is that since pre-tax contributions in general are required by the MOU, permitting individuals to choose higher contributions does not create a problem of individual choice under section 105.

The VEBA has a favorable ruling on its tax status under section 501©(9). It does not have a ruling on the tax consequences to participants under section 105. My view is that offering individual bargaining unit members the chance to elect among various contribution levels results in inclusion of those higher contributions in taxable income.

Anyone have experience with CAGOVEBA or have any thoughts on my analysis? (I'd be happy to be wrong!)

I have reported fees on both plans Form 5500

2 plans participate in 1 master trust

On master trust Form 5500 do I need to show these fees again?

Let say as of the 2009 AFTAP for a calendar year plan (with January 1 valuation date) is certified to be 103% and that this Plan was frozen in 2007. So, no contribution is required for 2009. An HCE terminates employment on June 12, 2009 and wants a lump sum distribution. The Plan Sponsor is willing to pony up the additional amount to credit to 2008 so that the AFTAP after distribution would be 110%. That is (assets 1/1 - lump sum) / (FT 1/1 - 430 liability for participant) = 110%.

Is it necessary to recertify the AFTAP?

For that matter, forget the distribution. Suppose the same facts but the Plan Sponsor just contributes more for 2008. Is it necessary to recertify the AFTAP?

The conclusion is that since the circumstances if the AFTAP were reissued would be more favorable, then there is no purpose in recertifying the AFTAP other than to make it agree with Schedule B.

Agreements, disagreements, don't knows, don't cares?

Can a dependent, working for a different company, claim COBRA insurance premiums (dental/vision) through my FSA at my company?

Top Heavy CB and a PS Plan.

Both documents say TH contribution of 5% in PS.

Employee is only eligible in CB Plan due to definition of eligibility.

Does he get 5% in the PS plan even though he wouldn't be normally eligible or 2% accrual in the CB?

We have a new ee who negotiated immediate eligibility for health plans. However, plan states 90 day wait. Is there any way around it for this ee while still maintaining 125 status? Any options?

Thanks -

Suppose a plan is going to be subject to a benefit restriction in 2009 and has enough credit balance to avoid the restriction.

Can a plan sponsor elect to use the credit balance first to offset the minimum then see what is left over to avoid the restriction, or does the restriction take precedence?

The proposed reg under 430(f) states that the minimum offset is applied as of the valuation date, while the reg under 436 states that any mandatory burning of credit balance is applied as of the 436 measurement date. So, I'm thinking that if I finish my funding valuation first and have a sponsor election to use the credit balane to offset the minimum, I can do that first (assuming the final regs don't change this).

Any other thoughts?

What is the actual due date for a sponsor to sign the Board Resolution terminating a DB plan?

Assume the plan was previously frozen, and all participant notices where prepared and distributed on a timely basis. Can they sign it anytime before the designated date of plan termination?

Any input is appreciated.

What counts does one put on Form 5500 for a H&W plan- is it just those enrolled in medical or anyone who is eligible to enroll?

Does everyone eligible to enroll get an SPD and SAR or just those actually participating?

thanks

Lexy

Can a single rabbi trust be used when the execs of two or more companies in a control group are participating in the nqdc plan? For example, assume the plan is sponsored by a holding company, and 2 first tier subs have executives that are participating. Holding company sets up the rabbi trust, but the subsidiaries make the contributions and make the benefit payments. Assets are subject to claims of holding company's creditors, but not to claims of creditors of the subsidiaries.

1 of our 15 fund choices is Brokerage link

Recently we have put a restriction on participant's entry into thsi fund option. We only only allowing them to ut 90% of their fund option to thsi;in other words 10% must be directed to other plan funds

We are updating our new hire kits and advising current folks invested 100% in brokerage link that voluntarily they can move 10% into other plan funds

Must we send a communication to all 401k participants that we are now restricting investing into brokerage link at 90% ?

We have a self-insured sick and STD plan with 1,600 participants

Is a Form 5500 required?

if not, please provide cite.

Thanks

Lexy

Apparently there is a new member of a control group as of 2005 that is a part of the same profit sharing plan as a larger member of the control group. The new group has never made an employer contribution on behalf of its members. The larger group has not made a contribution since this new group entered the plan. However, there have been forfeitures attributed to the older group. Should those forfeitures be allocated to everyone including the new members of the plan? I could have my terminology/understanding off but my understanding is that these two groups are part of the same plan now with separate decisions about employer contributions.

If I understand the regulations correctly, a Qualified Retirement Plan may allow for transfers to other QRPs, TIRAs or Roth IRAs as a conversion, while the employee is still working for the employer and otherwise eligible to participate in the QRP. And further, the criteria for in-service transfers may be for any non-discriminatory reasons, such as length of service, age or nature of the position. For example, in-serivce transfers could be limited to those who have been with the company for at least 10 years or who have attained age 60.....correct?

Conversely, could the QRP limit transfers once the person has separated from service up until RMD's? That is, is there anything in the code that makes it mandatory that former employee's be allowed to do direct or indirect rollovers of their vested plan holdings? Pub 575 is laced with "may" or "can" for plan distributions, but the only "must" I see is for plan RMD's. So in theory could a QRP not allow plan distributions until the employee's or beneficiary's (on death) first RMD?

I ask this becuase I'm getting an increased number of employees who are finding out that the annual expenses of their employer sponsored retirement plans are considerably greater than the expense rations reported by the plan's mutual fund investment options, and they'd like to be able to move their vested account balances to their own IRA as quickly as possible.

Thanks

BruceM

(Please move to another formum if better suited)

Mention the PBGC to the next 100 people you meet on the street. Probably 10 can tell you it’s a government agency. Of those 10 there may be one – and I emphasize that "one" may be an ambitious supposition – who can describe the PBGC’s who, what, when, where, why, and how with any confidence (I can’t). Yet, a blowup of PBGC could drive the financial institution bailouts to the back page of the Wall Street Journal.

In the pre-financial-explosion days, the PBGC would publish its list of 50 pension plans that posed the greatest financial exposure to the PBGC. In September 2007, The PBGC announced that with the enforcement tools PPA provided to keep pension plans better funded, the annual list of 50 companies with the largest pension underfunding is no longer needed. These tools include PPA possible accelerated funding and more employee disclosure and annual reporting to government. With all this protection, however, the endangered species list seems to have slipped away from public domain viewing.

Who are they?

I sense the airlines are stacked up like dominoes just waiting to fall. The US auto giants may not be too far behind. What is the financial impact on the PBGC if there is a run on the bank? Will the US be forced to enter Weimar Republic mode and set the money printing presses wild to stay afloat should such PBGC financial catastrophe arise?

Comment would be appreciated by anyone who has waded through the morass of PBGC annual and actuarial reports and can lend any understanding.

Hi.

I have read in various places that contributions (but not earnings) may be withdrawn from a ROTH IRA at any time with no penalty. But it seems from what I have seen that there is a 10% penalty, if not held for 5 years and not 59 1/2.

I am in my thirities and am self-financing and building a home (not the first home I have owned). I am going to need extra funds because my well dried up, as did an additional one I drilled (meaning I need to drill a third).

Can someone point help me out, and point to the relevant IRS publications? I would like to pull out about $20K, some of it contributed more than 5 years ago, some less than that. If I do this do I need to make a statement on my income tax return and pay 10%?

Your help is appreciated.

Sincerely,

earthscaper

Goal: Find a way to help an employee(s) and or dependents stay with the company even if they loose their coverage under the cafeteria plan (such as full time to part time status) (after COBRA) (not looking for any special tax breaks)

questions: Could a part-time employee pay after tax premiums to be on the same cafeteria plan? Or have some kind of separate after tax plan for the employee/dependent, or have the company pay individual insurance premiums for them, or maybe an HSA (not really familiar with HSAs). Could medical expenses for part time employee(s) be paid from general assets of a company or should it be paid directly from a plan? Just trying to figure out a way to keep a part time employee(s) from going somewhere else if they can no longer work full time.

All of a sudden (starting out of the blue yesterday), the circle-c is appearing in posts rather than the prenthesis-c-parenthesis. Same with circle-r rather than parenthesis-r-parenthesis. It's happening with multiple computers, too. Anyone else having this problem?