Can a participant take an in-service distribution and roll that distribution back into the same plan within 60 days? This doesn't appear to be prohibited by the Code or Regs, but I'm sure it would appear to be a little fishy to the IRS. Any comments?

We administer a Title I 401(k) Plan where the plan loaned the plan sponsor (sole proprietorship) $78,000 back in 2005. We have filed Form 5330's for 2005, 2006 & 2007 and have accrued interest for those years. We have also reported the PT on the Schedule I (Form 5500) for 2005 & 2006. We haven't filed the 2007 Form 5500 yet but will do so by the 15th.

The plan sponsor has repaid about $2,000 of the loan, plus some of the accrued interest.

It could take several years for the entire loan and interest to be repaid. So do we continue to do what we've been doing (accrue interest, file 5330's, report on the 5500, etc.) or is there a point in time where we can distribute the loan? Or what are our other options (if any)?

Any input on this would be greatly appreciated!

Thanks!

Anyone use a formula valuation in determining the FMV of stock underlying SARs? Under what circumstances could a company change the assumptions used in the formula as applied to future grants?

We have an employee who is not an HCE or owner, but is a party in interest, who received a loan in excess of the 72(p) limits during the plan year. It appears that we have to disclose on Form 5500, Schedule G, Part I, and also in Schedule H, under question 4(d). My question is first whether the preceding sentence is correct, and second whether we have any additional reporting obligations on Form 5500 or any other form (i.e. Form 5330)?

QDRO states "The Plan Administrator of the Plan shall transfer to the Alternate Payee the sume of $23,500 of the Participant's vested account balance as of XX/XX/2008." It also states that "the distribution shall not be adjusted by earnings or losses allocable to the account as of XX/XX/2008." (same date as above - but using the wording "as of").

Once the time period for determining if the QDRO was valid and the 30 time period for written claims is over and the distribution is requested, the account value is under $23,500.

The PA determined the DRO was a QDRO and the participant has been making contributions to the plan since the XX/XX/2008 date.

Can the losses be allocable to the $23,500 from the date to current? I think that's the only correct way to run the calculation but since the PA determined the DRO was a QDRO with that wording, I don't know if they can actually do that.

What are yourt thoughts on the following:

Lets say an employee has a designated beneficiary for his pension plan death benefit as person A. Person A is his beneficiary for mulitple plans and benefits. At some point employee goes into HR and requests to change the beneficiary on all of his plans. HR rep gives him the change form for all plans but the pension plan. Employee changes beneficiary to Person B for all of his plans but since he never got the designation form for the pension plan that remains unchanged. Employee never realizes this nor asks for a pension form. Employee dies. Pension death benefits are paid out to Person A. Person B now says wait, I was supposed to be the beneficiary and Employee had asked for change forms for every plan.

Is there a duty of care in responding to such requests? the plan was paid out based on the designation form on file, but is there some negligence at play on the part of HR?

Thoughts?

A QDRO for a DC plan states that the alternate payee shall receive 50% of the marital share to which the participant is entitled to under the plan. The marital share shall be calculated by multiplying the monthly gross annuity, lump sum, death benefits or other payments by a fraction, the numerator of which is 9.630 and the denominator is the "total number of years" of the participant's participation in the Plan.

The plan's normal form of payment is a 50% QJSA. The participant has remarried. Assume the participant becomes eligible to take a distribution on January 31, 2009 with 19 years and 31 days of participation in the plan, and begins receiving a monthly annuity of $1200. What is the most reasonable interpretation of the award to be made to the alternate payee?

$1200 x 9.630/19 years of participation (is the most reasonable interpretation to disregardthe 31 days of participation since the QDRO states that only "total number of years" are considered?) = $608.21

$608.21 x 50% = $304.11 monthly payment to the alternate payee for the life of the participant (QDRO does not provide for survivor benefits for the alternate payee, other than stating that the "death benefits" will be multiplied by the coverture fraction above)

Is my thinking above correct?

Thanks for any help you can give here.

We have an employee who is not an HCE or owner, but is a party in interest, who received a loan in excess of the 72(p) limits during the plan year. It appears that we have to disclose on Form 5500, Schedule G, Part I, and also in Schedule H, under question 4(d). My question is first whether the preceding sentence is correct, and second whether we have any additional reporting obligations on Form 5500 or any other form (i.e. Form 5330)?

We've acquired a plan that only provides for lump sums prior to NRD - all other benefits are payable only at NRD as monthly annuities. As a consequence, there is no way to show an immediate QJSA. However, the 417 (a)(3) regs seem to be fairly clear about requiring this. The only thing that seems to make sense (which could really get me into trouble) is to show a deferred monthly annuity payable at NRD along with its PVAB calculated using 417(e) rates for comparison with the lump sum. Any thoughts?

A 7 participant profit sharing plan with a 1965 effective date appears to have not been restated for GUST nor any of its following amendments. The plan has a large financial institution acting as corporate trustee and the client has been paying them appx $6000 annually for this role. Most recent document is an unexecuted doc from aforesaid financial institution dating june 1994. Recently, (9/25/08) Plan sponsor received correspondence from the plan trustee stating that they (the trustee) need copies of restatements/amendments since 1994 in order to be tax qualified. They also bring up EPCRS and VCP and then state they want to resign as trustee and await appointment of successor trustee.

Is this trustee on the hook?

We have a nonprofit parent that sponsors a 403(b) plan and a for-profit subsidiary with a 401(k) plan. I am being told that our 401(k) fails the 410(b) coverage test because the employees in the 403(b) plan cannot participate in the 401(k). I am nearly certain that there is an exception and the employees in the 403(b) don't have to be counted in the 401(k) coverage test. Am I correct? Can someone point me to the law/regs on this?

Thanks.

If union employees cease to be union employees during a plan year is there any kind of transition rule that allows the employer to keep the union plan (and the employees) separate from its other plan for the remainder of the year purposes of coverage/discrim testing?

In a separate interest QDRO where a plan permits the Alternate Payee to designate a contingent beneficiary to receive amounts payable to the AP in the event the AP dies before receiving benefits, must a contingent beneficiary who is a child of the Participant necessarily be a dependent child or could that child be an adult child of the Participant?

I am assuming for purposes of this question that the contingent beneficiary will or must be in the relationship of an alternate payee to the Participant.

Thanks for any input.

I am a TPA. About to have my first "encounter" with 401k ASP (RIA's recommendation).

Any complements, complaints or comments - good, bad or indifferent - from current users regarding this platform provider?

Thanks!

After all my years in this business, my brother has now come to me for advice on a subject that is foreign to me. His estranged wife was a Postal employee and has money in the FERS program. I know that the Federal government doesn't follow the same rules that they require of the rest of us. Can anyone give me some tips about the key differences between a typical QDRO and one with FERS?

I have to construct a presentation on the Pension Protection Act, anyone have any suggestions as to its most salient points?

Can one (or must one) use the employees' 401(k) deferrals for the average benefit % test of Reg section 1.410(b)-5, especially when doing the 401(a)(4) nondiscrimination test?

Reg section 1.410(b)-5(d)(2) clearly states that employee contributions and employee-provided benefits must be disregarded! There is no "unless otherwise provided elsewhere..." in this subsection!

S1.410(b)-7©(1) requires mandatory disaggregation of 401(k), 401(m) ...

S1.410(b)-7(d)(2) further dictates that the plans which are disaggregated under S1.410(b)-7© may not be aggregated ....

Yet, I have seen 401(k) deferrals used for average benefit % test!? So which code/reg section permits or requires aggregation for this purpose?

Local government hired a person who will only work on the plan. The plan allows expenses to be paid from the plan. They want to pay him from plan assets. Can FICA be paid from plan assets? Can they issue a W-2? I think the answer to both is no. I thought FICA should not be paid from plan assets, and that a 1099 is appropriate when a payment is made from a plan. Am I wrong (wouldn't be the first time).

What questions should I ask?

Thank you.

We have taken over 2 plans with prevailing wage provisions recently. Both plans use a Corbel prototype. Both plans require 21 & 1 for entry to nonelective profit sharing. The prevailing wage provisions are generally covered under the nonelective profit sharing in the Corbel prortotype. Both plans in practice are allowing immediate entry for previaling wage. It seems to me that in the Corbel prototpye that the document should provide for immediate entryin the nonelective profit sharing. I've looked through the underlying prototype plan & trust & I don't see anything in there that allows the plan to have different entry requirements for the profit sharing & the prevailing wage.

If someone familiar with the Corbel prototpye could provide guidance I would appreciate it. Thanks in advance.

a husband/wife sole proprietorship who file taxes using ssn, would have to apply for an EIN in order to fill out the 5500 EZ info, yes?