An employer deposited $15,000 more in ER PS contribution into a plan in 2007 than they should have. It was never allocated but is currently in a pooled account. Can they remove this, paid back to the ER, as a mistake of fact contribution and....thats it? Any penalities, fees, disclosures, etc.?

Thanks

Thought many of you would get a kick out of this--especially BG5150 . . .

http://community.livejournal.com/pearlswine/2008/06/07/

Corporation #1 wants to incentivize Employee #1 by offering him a non-qualified deferred comp (NQDC) plan which will be funded solely by the Corporation - there will be no employee deferrals.

Corporation #1 is a part of a brother-sister controlled group with Corporation #2.

Employee #1 is employed by Corporation #1 and is not an employee of Corporation #2.

Is it possible for Corporation #2 to be the sponsor of a NQDC plan for Employee #1 which Corporation #2 would also fund?

When determining HCE(s) in a plan which had a merger using the top-paid group election they would have to consider both prior subgroups in this determination? These plans were both sponsored by the same company in the past.

Thank you!

The part. died a few months ago and there are some additional monies owed to him for compensation. The CPA is asking if deferrals can be taken on this amount. My first thought is "no" since the money will be paid to the estate and the estate is not a participant.

If a plan sponsor deposited, tax deducted and filed its corporate tax return for the 2007 plan/calendar year, then TPA learns that final 401(a)(4) test fails and requires Group B to get additional contribution, i.e. 5% to Group B now must be 5.25%, can the plan sponsor deposit the additional contribution money in 2008 and deduct that additional money on its 2008 corporate tax return (assuming that in 2008 that the total contribution including the 2007 additional monies is still under the 25% threshhold)? Would appreciate comments. Thank you.

A government agency is considering entering into an agreement with one of its unions to establish a medical reimbursement plan. The plan would provide for employer and employee contributions to individual reimbursement accounts, which would carry over from year-to-year and be available for reimbursement of expenses incurred by retirees. The employees' contributions would be characterized as mandatory contributions made as a condition of employment and would be made from pre-tax income.

Obviously, the "mandatory contribution" feature is designed to avoid having the cafeteria plan rules apply to this plan, since if they did, the plan couldn't cover retirees.

Has anyone encountered this design? Does it work? It seems iffy to me.

I have an active participant who has previously had a rollover into the Plan. She doesn't want to take a loan and the plan does not allow for in-service distributions. I don't see anything specific in the document, but would she be allowed to take a distribution out of her rollover account balance?

Thanks for everyone's help.

First I have zero experience in the Multiple Employer Plan area so if this is a dumb question sorry.

We took over a multiple employer plan in May 2008 and broke the plan up into 4 individual plans. At the beginning of the year they had over 120 participants, but broken up each plan has <120 participants. Do I need to audit all 4 plans seperately for 2008?

Thanks

Are plans allowed to rollover tax-sheltered annuities

An not-for-profit employer has a Non-ERISA 403(b) and an MP plan for ER contributions. They've decided to go the 401(k) route going forward. It's a church plan, so they can avoid the nondiscrimination rules, etc. Rather than terminating the 403(b) plan, it seems to me that it makes more sense to stop contributing to the 403(b) and let it die a natural death.

Does anyone think that plan termination is the better way to go?

Other than employee elective deferrals which are treated as employer contributions to a 401(k) plan, can employee contributions that are not elective deferrals be deemed employer contributions under the 401(k) plan? For instance, if a 401(k) plan document allows taxable disability payments made to a claimant under LTD plan sponsored by the employer to be contributed to the 401(k) plan, can such employee contributions be treated as Employer contributions? Received an RFP recently that inquired as to wheher this type of plan design could be accomodated. Intuitively, this does not make sense to me. Any comments would be greattly appreciated.

We have an employee who has not met the plan's eligibility requirements, but made a rollover contribution / transfer into the plan during the year (rollovers are permitted in the plan document by anyone, whether or not they have met the plan's eligibility requirements). Since his rollover account is now a plan asset, do I count him as an active participant at year-end or do I exclude him from the 5500 counts?

Thanks!

Most of our plans are Calendar Year. When should we have the amendment signed by? We thought we had until September 2009 but we were going to have them signed by the 12/31/08. Now we are getting nervous that we should have had them signed by now? I'm interested to know how many TPA's have done them already? Is anyone out there in the same situation?

We hardly ever see diversification, but a couple of participants are inquiring about it. What if they elect to diversify? The plan doc states that the plan may satisy the requirements by offering at least 3 investment options to the participant. In addition if the participant consents, the plan may DISTRIBUTE the portion of the ESOP stock account covered by the electionto the participant within the 90 day period after the election is made. So I interpret this to mean the participant can keep their money in the plan, transfer a percentage of it out of employer stock into another investment of which they must be given 3 choices OR they can elect to have that percentage distributed to them. My other concerns center around how the assets are held (I am assuming they must be segregated to a specific individuals account, but still held by the ESOP as an asset) and how do we purchase those assets? Can the participant contact a broker, tell me to send the broker their money, and then hold it for them by the ESOP or does it work some other way?

Thanks in advance.

I have been googling trying to find a clear employer/employee contribution limits for 457 and 403 B plans. I can't find anything so I thought I would cut to the chase and throw it out here where the experts really are! If we have a school employee with both 403B and 457 plans, what are the 2008 limits for employer and employee contributions? We want to do as much as we can on the employer side first and he can take advantage of the over 50 but not the service catchup.

Thanks!

We have recently taken over a small plan, with our first valuation covering the 2008 calendar year. I have replicated the prior actuary's work for the 2007 plan year in accordance with Section 4.03 of IR Rev. Proc. 2000-40.

However, in one sense the whole concept of funding methods somewhat goes away w/ the new PPA funding rules (which I guess is really a change for everyone). I'm going to continue calculating a recommended contribution using the prior ACM (Individual Aggregate) as a guide for the client. That cost comes out between the PPA min and max numbers.

My question is does 2000-40 go away in this instance, since we're all changing to the PPA funding method for minimum funding?

What is the DOL's position, now, with a Plan provision that permits forfeiture of an account when the terminated participant cannot be located? Does FAB 2004-02 (detailing how to locate missing participants) effectively eliminate forfeiture as a proper procedure?

Is a rollover from a SEP IRA to a 401k allowable?

Is a SEP IRA considered a qualified plan?

thanks

Lexy

For the last couple of days, I have had to logon each time I visited the message boards. I haven't logged off or deleted cookies in between visits. I don't know if the issue is with my computer/network or with BenefitsLink. Has anyone else had similar issues?