Is a Plan Termination an event that would automaticially cause a participant to be in Default of his Loan? of just an trigerring event that will cause the loan to automaticailly become due and payable?

I know that even if an employee does not benefit from a plan, he can be included in the average benefits test so long as he is not excludable. But, in figuring out the employer contribution (the numerator) which normally includes, the match, employee elective deferral and pension amounts, can you add in the % that goes to social security (the permitted disparity) even if that employee will not actually receive the benefit because he is being terminated and the company has a "last day requirement"???

We have a number of plans that cover only owners and are less than 5 years old. The plans have year-end valuation dates. Our Consulting Actuary has suggested holding off on the 2008 AFTAP cerfitications for now, rather than change the valuation date to beginning of year. 2007 AFTAP certifications were done timely.

So, the only restriction for these plans would seem to be the inability to pay lump sums. Since the plans only cover owners, this would not appear to be an immediate concern. Is there anything other issue I would need to address? Thanks.

I am covered under a Defined Benefit Plan and I have a rather unusual situation. My date of separation is Sept. 1988...yep...twenty years ago tomorrow. I filed for dissolution of marriage in pro per in 1992. At some point in the process my husband filed a motion to quash because he felt he didn't have enough info re my pension plan. He was given the info he requested by the plan administrator after which he filed for a court date to make the pension an issue. I was improperly served according to the court clerk and his request for a hearing was denied until such time as he executed proper service, etc., which he never followed through with.

During this time my son had been ill for 4 years and subsequently passed on in January of 1993. I been so emotionally drained by all this that I hadn't the energy to resume the divorce issues and my estranged spouse had moved out of the state and deliberately kept his whereabouts concealed from me. I did see him at our son's funeral but naturally there was no discussion of the pending dissolution at that time. Very late in 1993 the estranged spouse contacted me and requested I send him detailed info on my pension plan.

I obtained an actuarial statement and mailed it to him. Sometime in 1994 he called again to discuss the report and to object to the amount of his community portion. I suggested he obtain his own report if he had further issues. From that conversation in 1994 until this past May, 2008 I never heard another word from him and had no idea as to his whereabouts.

During 2003 I became eligible to collect my pension and have been receiving a monthly benefit since then. This past May my plan informed me that the spouse surfaced, filed a Joinder against my benefit and they were required to reduce my benefit by 50% until such time as he was able to come to some kind of agreement with me or obtain a court order/QDRO.

There is a court hearing coming up next month...he filed an Order To Show Cause...he asking for spousal support and attorney fees (we're both in pro per) as well as a share of my pension. We are still NOT divorced.

I'm leaving lots out in an effort to shorten the story but one of the issues we're having now is he is demanding I pay for having a QDRO drawn up as well as threatening to sue my former employer, the plan and me with fraud due to the fact I was allowed to receive my benefit. I know this is an unusual situation but I'm feeling that the responsibility for securing his share of the pension was his. I didn't give too much thought to him over the years but he always knew where I worked, he'd been in touch many times with the plan administrator, etc., yet never made an effort to file a Joinder or obtain any other kind of court order in all those years until this past May.

I would so appreciate any input anyone might have or recommendations of where I can obtain citations re similar cases involving responsibility of alternate payees in these types of matters. Thank you so much.

All,

What exactly is the reach of 457(f)? Does it reach normal payroll payment practices? The 457(f) regs speak of a plan as being any arrangement under which "the payment of compensation is deferred . . . ." Deferred from what point in time? Deferred from when it would otherwise be paid or be made available? For example, what if an employee is paid monthly on the first of the month following the month in which the services are performed (December earnings are paid on January 1)? The first of the next month is the normal payroll payment date. Is that payment "deferred" under the 457(f) regs?

Thanks,

Ken Davis

Univ. of South Alabama

Can an employee still contribute both $15,500 to a 401(k) plan and $15,500 to a 457 plan in 2008 or did PPA change that? What about in 2009? Where could I find the citation?

Thanks!

Does ERISA permit a plan administrator to deal with the agent of an employee per a power of attorney in the following respects under a state's enactment of Uniform Power of Attorney Act,

Unless a power of attorney otherwise provides, language in a power of attorney granting general authority with respect to retirement plans authorizes the agent to: (a) Select the form and timing of payments under a retirement plan and withdraw benefits from a plan; (b) Make a rollover, including a direct trustee to trustee rollover, of benefits from one (1) retirement plan to another; © Establish a retirement plan in the principal's name; (d) Make contributions to a retirement plan; (e) Exercise investment powers available under a retirement plan; and (f) Borrow from, sell assets to or purchase assets from a retirement plan.

Another provision, at least as enacted in my state, provides

A person is not required to accept an acknowledged power of attorney if: * * * (b) Engaging in a transaction with the agent or the principal in the same circumstances would not be consistent with federal law;

For new plans in 2008, is a new plan considered a plan amendment for purposes of calculating the maximum deductible contribution with regard to the funding target for HCEs?

I know in 2007, this was not the case, but the 2008 ERISA Outline Book says this is uncertain for 2008 (it sounds like it leans towards a new plan not being an amendment similar to the 2007 rule).

Any thoughts?

Thanks!

Can anyone help with a Relius question? I know there is a Relius posting section but no one is ever there.

Its an easy one...

one of our offices is having lots of client complaints about Relius and how it uses an older version of Java. Apparantly when the clients go in to upload their payroll, if they have a new version of Java, they have issues uploading the payroll, and they are directed to download an older version of Java??

Relius has apparantly repeatedly just said to direct the clients to download the old Java. But the office is having clients ask why they have to do this, why download an old Java, etc...its becoming a headache for the office.

Has anyone else heard anything about this? Seems it would not take Relius any time at all to deal with this, but the office has had no luck?

401(k) document was amended to include company B as an additional adopting employer of Company A. The primary employer, A, merged with another company © and the plan assets of company A are being transferred to Company C's 401(k) Plan. Company A's plan is to terminate. There are two remaining participants in the B company. This company was not part of the deal between A & C. Can the two participants from B be terminated and paid out fully vested? Thanks in advance to making time to assist me with this!

A 5500 is required for a welfare plan with over 100 participants. How is a voluntary life (or vision) insurance option under a cafeteria plan classified?

If 100 or more employees elected the insurance through the cafetria plan (all ee pre-tax $, no employer $) would this be considered a welfare benefit that would need a 5500 filing? Or would this fall under an exemption from filing with the 125 plan?

I have been told by an isurance company that "voluntary" benefits under a 125 are exempt.

Thank you.

We have a profit sharing client that utlizes a non-uniform allocation method and is thus cross-tested. A large bundled provider is telling the client that the non-discrimination testing only has to be run every three years( at a substantial cost savings to the client). Is anyone out there only testing every three years? Any input appreciated

Is there a 10/1/08 due date for a 1 person or husb wife db plan doing 5500ez filing?

Is there ANY due date for actuarial "letter"

Is a Form 5310 required to be filed when you terminate a 401k plan and distribute all the assets?

Sole proprietor who is a real estate broker wants to buy residential property and rent it out until some alleged future day when it is worth much more, then sell it.

1. Can a plan get a mortgage to buy this investment property.

2. Is the plan exempt from ubit?

3. Could the trustee (also the sponsor and participant) sign personally for the mortgage.

A plan merges into another existing plan. Transferor terminates by transferring 100% of its assets, obligations, and participants to Transferee. Transferee is the surviving plan.

How do you prepare Schedule SSA?

1. Do both Transferee (Entry Code C) and Transferor (Entry Code D) report the previously terminated individuals entitled to future benefits? The Form 5500 instructions indicate that both plans should disclose the same information; in effect, "mirroring" each other. Yet, for some reason, both the PPC "5500 Deskbook" and Stephen W. Forbe's "5500 Filing Guide" emphatically state that only Transferee should report the individuals. What's your opinion? How have you handled this situation?

2. Is it practical, reasonable, or even possible to disclose this information? Transferor is an enormous DBP that's always reported a large number of names on each year's Schedule SSA. I don't know if it's feasible to indentify all of the previously-disclosed individuals who will now be receiving future benefits from Transferee.

Thank you.

Has anyone put together a list of year end amendments for DC plans (interim and discretionary) that they would be willing to share? Thought it might make sense to start a list and let others contribute so that no one misses any. If I don't get any replies I'll post mine when it is complete.

Does a plan that requires 1 year of service plus 1,000 hours of service violate Code Section 410(a)? Treas. Reg. 1.410(a)-3T provides an exception for plan's requiring two years of service as long as particpants are fully vested after such time. Does the additionaly 1,000 hours here with the 1 year of service constitute two years of service?

TPA processed in-service withdrawals not permitted under Plan document. Two in 2005 with small dollars; two in 2008 with small dollars, each of these in-service withdrawals of company match, which are not permitted until P reaches 59 1/2 under Plan doc (and participants too young). One prohibited in-service withdrawal in 2007 with larger dollars ($40K), which was withdrawal of rollover contributions that was prohibited before age 59 1/2 at the time (again, participant too young at the time); the Plan has since been amended to remove the age restriction on rollover contributions.

Outside auditors want an analysis of whether this is a PT, as considering whether to note as PT.

Anyone encountered before? How was it resolved?

My situation is a family member retired and the reps at the large institutional firm did an excellent job of "asset retention"... meaning they convinced him to rollover to their IRA product. But the actual goal is to consolidate all of the couple's retirement funds at a different firm, so I'm trying to make sure we don't mess up the 2nd move. And I confess to being much better at QPs than IRAs.

To start, I've read Pub 590 but want to clarify two points.

1) A rollover from a QP to an IRA does not require a subsequent 12-month waiting period, correct? The money could be rolled over to another IRA in less than 12-months?

2) In the world of IRAs, rollovers are different from transfers and the 12-month rule does not apply to transfers? So as long as it's done correctly as a transfer, the monies could be moved again in less than 12 months?

Thanks for any help in advance.