I am hearing a lot of different things about the requirements of an EACA, and am hoping you could clarify something. We have a client that wants to use the 90 day opt out provision however they only want to apply the EACA to new participants going forward. They do not want to have to go back and get elections for existing participants and just want their document to read that the EACA is effective 1/1/09 and only applies to people who enter the plan on or after that date. My understanding is that they can not do this, that it has to apply to all existing and new participants. Someone else is telling them it can apply to only new participants.

I am very confused and hope someone can shed some light on this issue. Thank you for any information you can provide.

It is my understanding that a participant can have their daycare provider sign an affadavit of daycare the beginning of the plan year and then we can continue to pay the claim on an automatic basis (assuming service incurred and amount on the affadavit) without additional substantiation.

Did this recently change? Someone has said it is their understanding you can't do this anymore, unless the daycare is paid with a debit card, but I can't find this reg????

Thanks!

aaaaaacccck. someone sent me a 2nd set

I guess that makes 100 of the 120.

oh well, the weekend is here.

(The one I lose on is the one I will get soon to pick the 10 teams I think will finish with the best win-loss record.)

since it is against my scruples to pick a certain team south of the Michigan border I am already at a disadvantage. (I cant even type that name on the keyboard - even if I wanted to. must be a firewall protection of some type)

Any helpful tip or comprehensive list of what gets included? How do property distributions figure in?

I have a client who is so unorganized you wouldn't believe it. (He even told me that there isn't anything more I could possibly do for him when providing the year end valuation, except maybe sign the forms for him and walk them to the post office.)

He received a letter from the IRS for late/no filing of his 2005 5500 in which they are assessing a penalty of $14,825. We have proof he (the client) received the 5500 in May of 2006 (calendar year plan), so it should have been filed timely providing he signed it and sent it in. However, he doesn't remember if he did, he doesn't have a signed copy (as we request everyone keep), and he didn't return a signed copy to us (which we also request).

Since he's been notified by the IRS (Dept of Treas), the DFVC program is not an option. What other possible options/programs does he have, to get the penalty either abated or reduced?

Thanks in advance for any help you can give me.

Aquisition Sub (A) purchasing substantially all assets of SellerCo. (B). If (1) due diligence, compliance, determination letter, reps, warranties and indemnity all there re: qualification, and (2) no restrictions in plan document, then from an ERISA and legal standpoint, can A maintain B's existing 401k plan in A's name with A's EIN in the short term (A would like to do this), and hold off formal transfer of 401k until 6 mos. post-sale after B has had time to review its many options?

We had a plan on which from 1998-2006, we filled in the effective date on the 5500 as 01/01/98. It has now moved to a bundled provider and they are asking us to amend the 2006 return to reflect the correct effective date of 10/01/98.

Does anyone know if this will be a red flag at the IRS or DOL to request amended returns for all the prior years as well? I'm not sure to what extent they match up the effective date from year to year.

Med

Hello,

Is there a way to rollover or otherwise transfer Roth IRA money into a Roth 401K?

Is there a way to convert profit-sharing plan money to Roth 401K money?

My goal is to have as much flexibility in the use of my Roth money as I do with my plan money. I have complete checkbook control of my profit-sharing plan (which has a Roth 401K provision as well), but not of my Roth IRA. Currently I convert profit-sharing plan money to Roth IRA money in years when my income is low, but I dislike the loss of flexibility.

Thanks,

Tom

Typcially 401k plans allow for participants to make their own investment choices. Perhaps these are always referred to as self directed 401k plans.

Can the employer invest the assets of a 401k plan (say it only has elective deferrals and matches)? I don't think I have ever seen th is, but I iimagine it exists.

Thanks.

Company A and Company B are unrelated (not members of a controlled group or affiliated service group). Company B employs 5 people. Company B sponsors a qualified retirement plan and all 5 of its employees are participants in that plan.

On such and such a date, Company A is going to hire all of Company B's employees (not as part of any sort of corporate transaction--no asset sale or stock sale between A and B). However, Company A wants to assume sponsorship of Company B's retirement plan (and Company B is happy to transfer sponsorship of its plan to Company A). Can it do so and, if so, how does it do so? Remember, the two entites do not, either before or after Company A hires Company B's employees, constitute a controlled group or affiliated service group.

I've heard that there's a Pennsylvania law firm that owns the rights to a "unique" plan design. The plan allows employers to allocate profit sharing contributions on the basis of One Participant Per Category. I think I've seen lots of other firms doing this; using a volume submitter (not prototype) plan document. You may feel this technique is too risky or inappropriate, but my question is this: Is there anything "unique" or proprietary about a One Category Per Participant design? I thought Corbel even teaches about this kind of design in its Cross Testing seminars.

If you can direct me to any written references to usages of One Category Per Participant or OCPP by any one other than a Pennsylvania law firm, I'll really appreciate it.

Thanks

Have a plan which was frozen back in '96. The 2007 AFTAP was 86.8% and the 2008 AFTAP is 77.7%, hence we look to the restrictions under IRC 436. Have one terminated (nonHCE) participant in the Plan due a lump sum. My reading of 436(d)(4) is that since benefits were previously frozen prior 9/1/2005 is that I can in fact actually pay him out the full lump sum, regardless of (d)(3) ordinarily applying.

Have seen the model notices on the board ("dear Perplexed client" et al ), but since (d)(4) negates the restriction, would I actually need to provide notice (or just modify the samples to include "never mind, doesn't apply, we can pay out because of the old frozen plan exception?)

Anything I'm missing here?

I have a plan with 6 HCEs (and of course several NHCEs), 3 HCEs want the 3% Nonelective and 3 HCEs want nothing at all. Do I have the flexability to exclude any HCE I want from the SH?

Participant (owner) "retires" and starts pension -life annuity form - at age 65. NRA was 55. At the time the pension started, the amount was at the 415 dollar limit, which was less than the hi 3 comp limit.

Plan is grossly overfunded. Owner happens go back on the payroll for several years (he did go off the payroll when he started his pension). Children are now active in business with owner limited involvement.

Decision is made to maintain plan and increase benefits dramatically, by doing so allocating maximum excess assets to owner, taking into account 415 dollar increases since pension started plus increases in 415 on accounty of later age. Previously, the plan stated that any increases would be offset by the pv of payments made - this language is being removed. Also, subsidized 100% QJSA is being provided to owner (and any other participants).

There are no NHCEs so no discrimination issues.

Question: Is there anything wrong with increasing pension to reflect both the later (call it age 71) age-based 415 limit as well as inflationary indexing of 415?. Something doesn't smell right. I don't think we have 415 ASD aggregation since the payments were and will continue to be made in annuity form (with a lump sum there might be an issue).

Is this ok? Opinions please. Thanks.

Profit Sharing Plan part of it is being directly rolled over to ex spouse's Roth IRA due to Qualified Domestic Relations Order. Ex spouse is under age 59.5. What would be the correct distribution code on Form 1099-R box 7?

A participant dies. The benefit is then of course payable to their named beneficiary (assuming they completed a beneficiary designation while they were living naming some other living person). Can this named beneficiary then in turn name their own beneficiary for the benefit that they are entitled to? If so, can it be any beneficiary, or can it only be a spousal bene? Does this have to be provided for in the plan document?

I know I already posted this in another section, just not sure where to put it, so thought I would ask in this part.

Does ERISA preempt state unclaimed property laws regarding benefit plan expenses, such as professional fees and other miscellaneous bills, that are not benefits to participants, etc? These are non-benefit related checks. We know ERISA preempts state unclaimed property laws regarding benefit payments.

For example, if a benefit office pays the bills for the various plans and send checks to a lawyer or banker for services and those checks are never cashed, should the benefit office turn the money over to the state under the states unclaimed property laws. Does the answer change if the bill is for landscaping outside the benefit office and has absolutely no connection to benefits provided to participants?

Does ERISA preempt state unclaimed property laws regarding benefit plan expenses, such as professional fees and other miscellaneous bills, that are not benefits to participants, etc? These are non-benefit related checks. We know ERISA preempts state unclaimed property laws regarding benefit payments.

For example, if a benefit office pays the bills for the various plans and send checks to a lawyer or banker for services and those checks are never cashed, should the benefit office turn the money over to the state under the states unclaimed property laws. Does the answer change if the bill is for landscaping outside the benefit office and has absolutely no connection to benefits provided to participants?

An employer sponsors both a DB and a DC plan.

They made the minimum funding for DB plan for 2007 plan year (calendar year).

They were required to contribute a total of 50k to DC plan for 2007.

They filed their tax return timely and did not extend return.

The tax return did not deduct for the 50k to DC plan nor did plan sponsor make the contribution.

Can client contribute 50k for 2007, but deduct in 2008? Of course the 50k would reduce the remaining cash contribution that can be deducted by 50k.

50k for DC plan was required to pass non discrimination, gateway, etc.

Thanks.

A participant that is older than 59 1/2 wants to take a non hardship in service distribution of his 401(k) deferrals. Is this allowed even though the plan does not allow for in service distributions?

I always thought that the plan needed to specifically state if it allows in service at a stated age but i am getting conflicting info that you are entitled to 401(k) deferrals "automatically" at age 59 1/2.

Thanks in advance.