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.

I've never dealt with a plan that hadn't contributed their Required Minimum by 9/15.

Is this true (basic example):

Required Minimum = 100

Contribution made on 9/16 = 100

Funding deficiency for 2007 = 100

Tax deductible contribution for 2007 = 0

if this is true, what is the reg for this?

Andrew

Is 412 minimum funding deadline (9/15/2008) extended for Ike victims?

Rev. Proc. 2007-56, 8(24). extends 404 but does not address 412 deadline.

"A contribution to a qualified retirement plan (other than an individual retirement account) shall be deemed to have been made by the taxpayer on the last day of the preceding taxable year if the contribution is made on account of such taxable year and is made not later than the time prescribed for filing the return for such taxable year. "

I have someone on military leave for approx. 6 months who has just returned. He had benefits continuation for the 1st 30 days of military leave and then was offered COBRA which he declined.

The employee would like to elect lower health & dependent care deductions upon return, is that ok?

I have an employee who has legal guardianship (joint with her live-in married boyfriend) Apparantly he cannot get a divorce since separated spouse is in & out of jail<gr>! The one child is the boyfriend's child and the other is his stepchild. Neither children are related to the employee. Altough the employee does jointly support the 2 children. The boyfiriend claims both children on his tax return as dependents; the employee does not.

We allow the employee to cover children if there is court ordered legal guardianship documentation as this employee has.

Is there a taxation issue of the value of the medical benefits provided for the children. Or is this covered under section 152 definition?

Lexy

If one is organized as a sole proprietor or is a General Partner of a partnership that offers a SIMPLE IRA, and the business has, say 10 eligible EE's who elect to defer a % of their salary within the 60 day period prior to the start of the plan year, and due to whatever circumstance, the proprietor/partnership does not generate net income for that plan year, does this mean that matching (or non-elective) contributions must be made to employees but cannot be made to the sole proprietor or partners because there is no net income for these individuals for that year?

BruceM

PPA includes expanded disclosure rules, which require the plan to give employers and unions that request them copies of actuarial valuation reports "including any sensitivity testing" - a term which is undefined. See ERISA section 101(k)(1). Some plans may do a significant number of different scenarios to examine sensitivity. Some plans may not. Does anyone have any insight as to what would be required to be disclosed?

I have a first year cash balance plan using Unit Credit with an end of year valuation starting in 2007. They put in $100,000 in during the year (2007) and was expected to earned $400 in interest. The actual gain was only $100.

Should a gain/loss amortization base be created in the first year?

What should my assets be on my schedule be for 1(b)(1 and 2)?

I have someone with a loan whose pay schedule is going from bi-weekly to monthly. Does she have to fill out a new agreement? Or is just furnishing a new amortization schedule good enough?

An employer has asked this question. If upon a plan audit, it was determined there was not sufficient proof attached to a hardship request, who is "liable"? The employee or employer? What are the consequences of allowing a hardship without proper proof?

Also, I'm getting this question alot. Participants are requesting hardships to prevent eviction and/or foreclosure, however, no notice to evict or foreclose exists. The participant simply wants to get "caught up" on their bills otherwise they will receive such notice. Would the unpaid bills be sufficient proof?

Thank you.

Linda Michals

A client uses a TPA that maintains a daily-valuation platform. The client's plan uses a calendar year plan year. For purposes of the 2007 plan year, the client elects to make a $250,000 profit sharing contribution. The client's tax return is due, on extension, September 15, 2008. In late August, the client mailed a check to the TPA in the amount of the profit sharing contribution. The TPA should have processed the check and allocated the contribution to eligible participants according to the participant investment elections. Instead, the TPA forgot about it and just realized that it never processed the check in response to the client's question--why hasn't the check cleared yet? Is this a defect/problem in need of correction?

It seems to me that there are multiple problems including at least the following:

1. The terms of the plan say that an allocation of any contribution other than 401(k) contributions will be made for a year no later than the client's tax return due date for that year (including extensions). The client's tax return due date for 2007, including extensions, was September 15, 2008 and the contribution for 2007 was arguably not allocated by that date.

Is there an operational defect here to be corrected (I'm not sure how to correct it if there is)?

2. Can the client deduct the $250,000 contribution on its 2007 tax return since the contribution was not actually deposited by September 15, 2008?

3. Is there any fiduciary exposure to the trustees for not having guaranteed that the TPA did its job and what changes should be made going forward, if any?

Schedule C, Service Provider Information, only calls for information about PLAN payments to service providers.

The sole source of funding for a self-funded health plan in the context of a cafeteria plan (per the DoL exemption to the trust requirement) is the employer's general assets. Service providers to the plan are also paid out of that same source, the employer's general assets.

Is a Schedule C to the F5500 for the plan required to report the payments to the service providers since they were made out of the same funding source as health claims, albeit the employer's general assets?

Or may a Schedule C be omitted from the F5500 filing taking the position that the employer, not the plan per se, paid those service providers?

When filing a 5330 reporting late deposits is there a minimum amount you would typically file the form? I have a very small plan and the taxable amount ends up being $0, so I was not going to file the 5330. I have read the instrucitons and do not see if there is a minimum amount required to file.

Any thoughts? Do you typically file a 5330 with a $0 tax due?

Thanks,