If I didn't certify AFTAP for the first 5 years of the plan, the only applicable restriction is a restriction on the accelerated payments.

Am I correct that the ERISA 101(j) notice is not required, since the one person plan is not subject to ERISA, and there are no other consequences?

I understand that there may be some parallel requirement under IRC/DOL/etc., I just couldn't find anything that would require any notice.

ok - I'm sure this can be found relatively easily, but I am lazy this morning and looking for a quick answer...

I have a plan beneficiary (son) who took distribution of a portion of his mother's account when she first passed away a while ago (balance forward PS is part of the plan, so plan needed to wait until following plan year end to pay out remainder of account). In any event now he is going to take the balance. With the initiation of the non-spousal beneficiary rollovers, does this mean that non-spousal beneficiaries who elect direct payment will now be subject to mandatory Federal withholding of any sort?

Thanks in advance!!

A client of mine is looking at terminating their 401(k) plan. They hope to re-establish one later on.

Do they have to wait 12 months from the date of termination on their current plan before they can setup another one?

Thanks in advance.

Does anyone know the correct overnight mail address to use for filing extensions? Thanks.

We materially modified a split dollar plan (that was effective before the effective date of the final split dollar regulations, 9/17/03) with respect to some participants but not all participants. It is clear which participants are affected by the amendment (assume they are identified by name).

Is the entire split dollar plan considered "materially modified" for purposes of the final split dollar regulations or are only the identified participants affected by the material modification subject to the final split dollar regulations? I am leaning towards concluding the entire plan is materially modified for purposes of the final regulations but I haven't found any guidance.

Does anyone have any thoughts? Thanks in advance!

Is there a site/reg/FAQ regarding how to deal with employers who submit participant loan payments two or three months after withheld from the paycheck? Correction for this? Interest lost? Guidance on the maximum time the employer may hold until submission? Regardless of what type of plan? Thanks!! I understand the loan payments are subject to same deposit timing rules as salary deferral, based on K@retire. Thank you. What is the cure if this hasn't happened? Where is this sited so that I can provide to the plan sponsor?

Trade Offers requested. Creativity encouraged. Be like Manny.

An employer has a top heavy DB plan that covers 15 employees and has had it for 10 years.

They will continue the DB but want to adopt a 401(k) plan for next year. The 401(k) plan will only cover 5 employees (3 NHCE's and 2 HCE's). Those same 5 employees (all non-key) would be excluded from future participation in the DB plan.

Assume they will pass 401(a)(4) and 410(b).

The employer would like to provide 3% contributions to the 2 HCE's and 7.5% contributions to the 3 NHCE's in the 401(k) plan.

Since we have a top heavy group, a 5% of salary top heavy minimum contribution would normally be contributed to the 401(k) plan.

Question: The employer wants to make the 7.5% contribution to the NHCE's and would have to anyway to meet the gateway. Do they need to provide 5% of salary top heavy minimums to the 2 HCEs or could they provide 3%? Clearly, the 2 HCE's will not be participating in the DB going forward. The question is does a 5% top heavy minimum need to be provided to the HCE's because they are "beneficiaries" of the DB plan?

Dave (or anyone) -- I'm relatively new to the posting game (although I've used the site for years), & I'm not trying to reinvent the wheel, but I wondered if it might make some sense to have new forums on these topics (which seem to appear randomly throughout other forums):

• controlled groups, affiliated entities, ASGs, leased employees
  
• prohibited transactions
  
• fiduciary issues (perhaps in with a PT forum)
  
• maybe put 409A together with the deferred compensation forum
  

Anyone have any thoughts? (And, no, I don't want to moderate them!! . . .)

An employer sponsors a 401(k) plan which has some company stock. Can the company treat the distribution of company stock differently than other assets of the plan? For example, one employee who has company stock over "X amount" receives his benefit over 5 years, whereas another employee who does not have company stock, or has company stock below "x amount", can receive his benefit immediately. It would seem that the company is treating employees different just because the company wants to limit its buy back of company stock on an annual basis. This is not a publicly traded company and this is not an ESOP.

When I log into the message boards, it tells me that the last time I was on was July 9th. However, I have logged in several times since then, but for some reason the board is not updating. The only problem caused by this (of which I am aware) is that I want to use the "View New Posts" option, and it goes all the way back to July 9th rather than to the most recent time I was on. Is this a problem others are experiencing? I am using Mozilla Firefox version 2.0.0.16.

Is this problem related to the post about the "need to log in multiple times"?

432(b)(1) ENDANGERED STATUS. --A multiemployer plan is in endangered status for a plan year if, ...

432(b)(1)(B) the plan has an accumulated funding deficiency for such plan year, or is projected to have such an accumulated funding deficiency for any of the 6 succeeding plan years, taking into account any extension of amortization periods under section 431(d).

432(b)(2) CRITICAL STATUS. --A multiemployer plan is in critical status for a plan year if,...

432(b)(2)(B)(i) the plan has an accumulated funding deficiency for the current plan year, not taking into account any extension of amortization periods under section 431(d), or

Lets say I have a plan that is "green", but has a funding deficiency approaching in 9 years. I am therefore eligible for and take the automatic 5-yr extension under Section 431(d). This extension solves my credit balance problem and I am free and clear, BUT, since I can't recognize the extension to determine if my plan is in Critical Status, I would fall into critical status 6 years from now when IGNORING the 5-yr extension I have a credit balance problem in the next 3 years.

Is that the way you all understand it?

Hi,

Can someone explain me the complete end - end process of Administration of Cafeteria Plans? That is how do an administrator (process adopted):

A. Maintain an individual accounting record for each account elected by each individual.

B. Update participants’ accounts semi-monthly during the year with Deposits from employee pre-tax deductions

C. Approve reimbursement payment requests

D. Record the information from reimbursement requests forms

E. Validate participants’ reimbursement request

F. Determine the amounts available for reimbursement payments

G. Provide a flex debit card

H. Generate reimbursement checks and payment registers

I. Produce explanation of benefits statements for employees which identify the expenses which are being reimbursed, preferably as the check stub or an attachment with the reimbursement check

J. Pend unpaid or partially paid dependent care spending account requests and issue additional check(s) in future payment processing additional funds are deposited.

K. Provide reconciliation of bank statements

L. Provide monthly management reports which display participant account activity and current status information

M. Generate quarterly participant account status statements

N. Generate monthly accounting reports for proper audit control: deposit transaction reports, reimbursement request reports, unpaid/partially paid requests, and adjustment reports

O. Provide annual information which reports the amount paid into the dependent care flexible spending accounts for the calendar year

P. Report forfeitures annually after the last payment cycle of the plan year and run-out period.

Q. Report reimbursements in excess of a participants contributions

R. Provide completed annual 5500 required by Section 125

S. Perform the applicable nondiscrimination tests

T. Prepare plan documents and summary plan descriptions.

Thanks in advance

I'm not sure why Chang, Ruthenberg and Long indicate there are required changes for governmental 457(b) plan documents. These plans do not have a RAP.

http://www.seethebenefits.com/showarticle.aspx?Show=3434

Also, some of the required changes appear to be optional in my opinion. What am I missing?

Thoughts?

Thanks

Health plan (flex accounts and HRAs) is administered primarily through employer's own IT system. Not all employees agree to and give e-mail for electronic delivery of summaries, notices, etc.

TPA would charge $8.50/mo to administer the accounts of employees that do not agree to electronic delivery.

May plan specify the $8.50/mo administration charge applies to all accounts, but is waived as to those that agree to and provide e-mail for electronic delivery of summaries, notices, etc.?

Can a 403(b) plan say that if a participant fails to work at least 500 hours during any eligibility computation period, that they cease to be an active participant because they are no longer an employee normally working more than 20 hours per week without violating the universal availability rule?

A guy is in two plans, violates 402g in combination, takes the refund from plan A.

Does the refunded excess still count toward 415 limit in plan A for the year?

Thanks

We just discovered that a participant in a 401(k) PSP took a $150,000 withdrawal from his earmarked account in Dec 07 and transferred the money into an IRA. There are no plan document provisions that allowed for this withdrawal (e.g., in-service distributions). We told him to put the money back in the plan immediately.

Assuming he puts the money back in (with interest, if applicable) by the end of July, do we need to go through VCP or is self-correcting sufficient in this situation?

Any input would be greatly appreciated.

Thanks!

As the EA on a DB Plan that had assets with IndyMac, I have been requested to complete a form entitled "Declaration For Defined Benefit Plan". It appears that this is a required form for DB Plans to have a claim on their FDIC covered assets. On this form item number 6 is:

6. The present value of all participants' accrued benefits in the Plan (including rollover and other participant contributions) was at least _____ % and no greater than _____% of the total Plan assets on the closing date.

Has any of you seen this or been asked to complete this form? I have searched for instructions (which exist and are insufficient to determine) how to calculate the accrued benefit (interest assumption, mortality, etc.). Also, the fact that the form requests a range of the inverse funded percentage may indicate that this is a range of assumptions that could be used, or perhaps that they don't know what they're asking for.

Any thoughts or knowledge on the AB calc?

50% / 50% 2 owner corp seems to have to file a 5500 (no EZ).

Is plan required to be covered by a Fidelity Bond. I always thought no for owner only plan.

So it would be a 5500, Schedule I indicating no Bond coverage and it would be correct?

And there is no where on the filing to indicate that coverage is not required?

Thanks