Can't find this directly addressed in a prior post (maybe because it's obvious) . . .

Calendar year corp. maintains a DC plan with a calendar year plan/limitation year. Plan is terminated in mid-year. In determining the maximum permissible deduction for the year of the plan's termination, does IRC Section 404(l) require pro-rating compensation for a short plan/limitation year due to plan termination? (I would think not, since the deduction limitation is based on the compensation paid during the sponsor's taxable year, rather than the plan year or limitation year.)

Suppose we currently have a DB plan with Doc and two helpers. The entity is a C-Corp. The Plan's current NRA is 52 and Doc is 45 with 13 YoS. Helpers are age 35 with 2 YoS. Suppose we change NRA to 65 but allow for unreduced early retirement at 52/20 YoS. Now, suppose it's for real that the Doc will call it quits at 52. So, the expectations are the Doc will terminate at 52 and so goes the corporation. The helpers will not have 20 YoS at 52, so their benefit at 52 will be the accrued benefit payable at 65. That's how we expect life to play out.

Question: Can we fund the plan under the assumption that it ends when the Doc turns 52? That is, can we assume the employees will not work long enough to get a fully-subsidized early retirement benefit but the Doc will?

If a participant enrolls in Dependent Care Assistance for their child Through their employer's S125 plan. They have contributed each pay period but has not submit any claims for the child's care yet. They then find out in the middle of the year that the child is not theirs. Because they technically do not have any qualifying individuals, can they retroactively de-enroll form the dependent care assistance plan?

I'm not sure what I'm missing here, but is it possible, if acceptable to the employer, for an employee to surrender restricted stock to the employer in satisfaction of the withholdings tax in relation to an 83(b) election with regard to the restricted stock? It doesn't seem right, but I don't find a prohibition of it.

example: ER awards EE 100 shares of restricted stock. EE wants to make an 83(b) election. To do so, he must pay x, which has the same value as 30 shares of stock. So he offers to surrender 30 of the 100 shares. What's wrong with this idea?

We have a client who invests some of the plan's money in a Real Estate LLC. He gets a K-1 which we use to value the asset etc.

For purposes of ERISA Bonding, does this qualify as a "statement from a regulated financial institution"?

We're ok with the participant directed piece of the puzzle, just unceratin as to whether the K-1 reaches the standard of "a statement...."

Thanks for any input.

Participant took a loan from the plan. Repayments were by payroll withholding. Loan was paid off as scheduled in August of 2007. Now we find out that withholding continued bi-weekly for several months to the tune of $10,000, which was deposited into plan each pay period.

Aside from the obvious question of why the participant did not notice that amounts were being withheld each pay period, what should be done about it now?

Any thoughts will be appreciated.

I have a Participant who would like to roll in funds from an International Pension Plan into a US 401(k) Plan. The Plan states it allows rollover from 401(a) or 403(a) Plans, excl. aftertax; 403(b) annuity contracts, 457(b) Plans, IRA or annuity under 408(a) or 408(b) and Roth 401(k). Would a foreign pension plan fall under the 401(a) or 403(b) section plans?

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