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

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?