I have a new client who sponsors a PS plan for himself (no other employees). The assets have always been under $100,000 so he's never had to file a 5500, but his accountant had done so anyways. The accountant missed the 2005 filing (but did one for 2006 and 2007 as well as for years prior to 2005) and an IRS letter was now sent following up on the 2005 filing.

1. Even though the plan filed 5500's for all years before and after 2005, he was not required to file for 2005 and so, a correct reply to the IRS would be that one was not required, correct?

2. The owner then mentioned "oh by the way, I also have a SEP". Do SEP plan assets count towards the $100,000 threshold?

3. The owner then mentioned that he owns other small companies (no employees). I am waiting to hear if he has any retirement plans through these other companies. If not, then we're OK. But if he does, I believe that those plans must be aggregated to determine whether the $100,000 has been exceeded, correct?

Finally, a general question. The threshold was raised to $250,000 in 2007. Does that apply to assets at the end of the year, or at anytime during the year? That is, if a plan had over $100,000 in early 2007, do they have to file a 2007 5500 even though the limit was raised to $250,000 in 2007?

Thanks

Does anyone know of an outline of what the ERPA tests will cover?

Also, are there any study materials, anywhere?

A Plan has a Safe Harbor option in it. The client is worried about falling non discrimination testing but is not completely sold on the Safe Harbor route.

Can someone explain to me the Safe Harbor "Maybe" Notice and what is required? I understand that it cannot be the Safe Harbor Match and can only be the Safe Harbor Non - Elective.

What is the timing involved and does a follow up notice have to be given if the Safe harbor Contribution is made?

Thank you in advance.

ALEX

Does anyone know if there are some sort of procedures or guidelines that the PBGC has to follow when auditing a DB plan? Is there some sort of time frame that they have to complete the audit by?

Thanks!

Assuming calendar year plan, what is the latest date that a 401(k) feature can be added to an existing profit sharing plan? The 401(k) is not intended to be safe harbor.

If the son bought the company from his Dad, and his Dad is still employed, does the Dad HAVE to receive his RMD (due to stock attribution)?

(The buyout was before he turned 70½.)

Thanks so much!

I was asked about a real small 403b plan (less than 10 people) and apparantly the non-profit wants to now do away with the plan. Are 403b plans terminated in the same manner as a 401k/DC plan? Is an amendment needed to terminate? Any sort of distribution forms used? Can/should terminations be filed with the IRS?

Thanks

I hope this post is not out of line. If it is, I apologize... please move it to the appropriate forum.

As a self employed actuary, I've taken on a bit more work than I can handle, especially in the Cash Balance arena. The growth of CB-401k combos has been phenomenal, and I'm now handling about 50 such arrangements on top of what had been a pretty full workload.

I'm looking for an actuary to take over some of this work. I'm flexible as to how we structure the takeover: outsourced. joint venture. Total takeover. This could be an excellent opportunity for an actuary who has started, or is looking to start, a private consulting practice.

Please send me a personal email if you're interested in discussing it further.

Thx,

Scott

scott2434@rcn.com

After talking with HR and doing my own research, I need more help in answering this question:

Can I cancel my health plan benefit mid-term because my wife's open enrollment and plan term is different than mine? My open enrollment date is October 1st. My wife's is November 1st.

I can find a few websites that say yes, but cannot find an IRS or Treasury publication that talks about this.

The sad part is that I missed my company's open enrollment by 3 weeks and am looking at paying double coverage for 11 months. I know it is my fault for not staying on top of it, but I did not receive any notification from HR that the window was approaching/closing. I am a remote employee and it looks like I was not included on the distribution email lists and did not receive anything in regular post mail.

I appreciate any help or hints you can provide,

Eric

On 1/1/09 Employer X (3% nonelective safe harbor plan, plan year runs 7/1 to 6/30) is merging into Employer Y [non-safe harbor 401(k) plan, calendar year plan year]. Employer X's plan will into Y's plan on 1/1/09. If I am reading 1.401(k)(3)(e)(4) correctly, this merger would be similar to a termination and Employer X's plan would maintain its safe harbor status (as long as the safe harbor contribution is made through 12/31/08). Am I on the right track here?

Any other options out there, like merge the plans 6/30/09?

Recommendations or suggestions would be appreciated.

Thanks. Maverick

We have an employee who was capped at 15500 in out plan (not age 50) who contributed 600 in prior employer plan

She would like for us to refund the excess deferral from our plan.

She had been contributing 20% well above the max deferral % we match on, namely 6%.

We match each payroll which is weekly

I assume we don't have to worry about forfeiting any match on this excess deferral?

thanks

There is a state retirement system (which covers most of the state and municipality entities).

If one retires from one part of the state government, and then is employed with another instrumentality of the state, do any suspension of benefits rules kick in?

Does it matter whether the new job is from a different hiring office?

Does it matter that the former and prospective job is under the same state retirement system?

I know ERISA § 203(a)(3)(B) and the Code § 411(a)(3)(B) are the analogs to the governmental situation. But do the rules for governmental entities track ERISA §203(a)(3)(B)(i) ("other than a multiemployer plan") or ERISA § 203(a)(3)(B)(ii) ("multiemployer plan")?

In other words, if a person retires from one instrumentality of the state on Friday, can she pick up and work for another instrumentality of the state on Monday, and still be retired from the former entity she worked for on Friday -- even though the retirement system is the same?

Does the "same trade or craft" rules apply like in the multiemployer context, or is disqualifying employment based on the retirement system itself? What way is disqualifying employment classified in the state government context?

I guess another analog would be -- if someone retired from the U.S. DOL on Friday and was eligible for retirement payments, would he still be considered retired if he picked up and worked for the IRS on Monday? They would still be part of the same system (FERS).

Any help would be appreciated, with any relevant authorities. Thank you, once again!

BL

Took over another administrators plan and discovered Safe Harbor Match had been deposited as regular Match since 2004. Two individuals were paid out in 2004 and vesting schedule was applied to their Match accounts resulting in $150.05 and $390.65 being forfeited.

The two individuals obviously should have received these amounts. There is currently $3,000 in the forfeiture account. Question is how do I determine what these participants should receive 4 years later??? They should receive some sort of gain but how would that be calculated???

We have a client who submitted a proposed restatement of its plan for a GUST determination letter in 2002. They got the letter, which was conditioned on adopting the plan within 90 days of the date of the letter. The client never adopted the plan. I know we have a plan document failure, but my question is: will filing under VCP bring that old letter back to life (i.e., does VCP mean the restatement was adopted within 90 days and thus the letter is good?) or is that letter completely dead and we need to refile everything that we submitted for the determination letter application from 2002?

a current mpp plan wants to add a 401(k) deferral only option to the plan and maintain the current pension funding. in order to do this they will have to adopt a 401(k) plan doc and define the current pension formula as a profit sharing???? is this correct??? i don't recall any 401(k) docs having pension funding features in them. Any other steps I might be missing? Besides corp resolution and participant disclosure?

How does a plan's AFTAP affect the ability to fix a coverage or nondiscrimination failure by means of a corrective amendment under -11(g)? I think:

1. For a BOY valuation AFTAP (<= 80%, but not < 60%) has no effect, since the additional benefit is accrued at EOY, causing no increase in the FT as of the beginning of the year. Agree? Disagree?

2. For an EOY valuation the FT, assuming the AFTAP can be calculated @ EOY, the increase in the AFTAP would have to be fully funded to >=80%. If AFTAP can be calc'd at EOY-1, then same answer as 1 above?

What if AFTAP is <60%? Same reasoning in each insatnce?

Is anyone familiar with the rules under PPA or 430 regarding multiple DB Plans maintained by the same employer. If one us under-funded and others are not, should the plans be aggregated for purposes of determining funding liabilities and limits on lump sum distributions?

I know this is probably something I should already know. But I just got 6 off calendar year plans. And I am just not sure what COLA limits to use. The plan year is 9/1/2007-8/31/2008. When looking ahead to the next plan year, would I tell the client that the maximums are the 2008 Max. or the 2009 Maximums.

Does anyone know if you can specify that the first 3% in an integrated allocation is to be counted as a nonelective SH (or, alternatively, that a nonelective SH can count toward the total integrated allocation)? If it can be treated as SH in administration, is it something that needs to be specified in the document?

Any help would be appreciated.

457(f) participant was fully vested when contributions were made into 457(f) plans. Contributions were included in participant's income when made and participant has incurred a separation from service and will now be paid a lump sum distribution of his entire plan benefit which, due to investment losses, will be less than the amount of contributions previously made to the plan, and included in his income.

Under 72 does the participant end up with a loss he can use to offset other ordinary income in the year of the 457(f) distribution?