Big problem!!!!! My retirement plan is a defined benefit plan. I am now retired (on disability) and divorced.

My attorney drafted the dro of which my plan administrator approved. The QDRO was signed by all including the judge and attorneys. My ex, after almost 3 years of receiving his share of my retirement, is now trying to get more money from me. His portion is considerably less than he expected. The judge now agrees with my ex and wants me to pay out of my pocket the difference of what the QDRO approved for him and what I get. I was not old enough to retire with full benefits, plus the QDRO was based upon the date of separation. The date was set by my ex. I was 47 yrs. old at that time and was only 51 when I retired. As you probably already can seen the distributions for both of us is much less. Can a QDRO be modified after distributions begin? I can't find anything on the web to answer any of my questions. I am now appealing the judge's decision. I think he (the judge) is feeling sorry for my ex. Aren't his emotions suppose to remain neutral. By the way, the separation agreement did not allow for my ex to receive any, raises, supplements, survivor benefits, etc.

Help!!!!!

This may be a dumb question, but I'll ask it anyway --

How is a Roth IRA permitted to accept a Roth 401(k) rollover before 2008? Although 402A©(3) provides for this type of rollover, under 408A©(6) a Roth IRA may only accept qualified rollover contributions, which are defined in 408A(e) as contributions from another Roth IRA or from a traditional IRA. How does 408A shoehorn in these rollovers?

It is clear a non-spouse beneficiary does not require 20% mandatory federal withholding even though they may otherwise rollover.

Is a lump-sum payment to the spouse beneficiary subject to 20% mandatory withholding?

Does it matter if the spouse bene is the sole beneficiary or not?

I have a Roth IRA that I've contributed 6k to, well over 5 years ago. It's worth almost 8k now. (Bad investment decisions in the late 90's) The thing is I have no record of making those contributions, and I've transferred this account between many online brokers since then, so they don't have paperwork either. I've had a recent financial reversal and need to take a distribution.

I've read that the contributions aren't taxable because they came from after tax dollars:

1) Is that true?

2) Do they get hit with the 10% penalty?

3) Even if used for law school expenses?

4) Without any paperwork, how do I prove to the IRS that I've just taken out the 6k in contributions?

Thanks in Advance!

I recently opened my own TPA firm, and am now building relationships with the various 401(k) wholesalers, which like to tell me that they offer "incentives" for bringing them business.

With all the stink about transparency of fees, and only charging reasonable fees for services rendered. I'm wondering what your opinions are about accepting these incentives.

My services are outlined in my engagement letter along with fees associated for those services, and I agree that if I receive money from the investment company, they should be disclosed to the clients.

How do you justify receiving these fees? My thought is that these fees will allow me to provide additional "handholding" services for the client. Rather than start the billing clock every time I pick up the phone, or talk with the broker, CPA, etc., I can feel good about accepting the fees. But then, I feel like I need to track the time anyway to justify the fee just in case the client challenges it.

Would anyone be willing to share how they are handling this?

Thanks!

ok - here is my question. What is a plan document allows an employer to termate the plan in connection with a change in control, etc....but the employer does not have sufficient assets (or will not receive sufficient assets in the deal) to pay all benefits due under the plan. Under the exception in the final regs. allowing termination of a plan in connection with a change in control, all amounts under the plan must be paid with 12 months, etc. In a perfect world, this would not be a problem. But we live in an imperfect world. There is another provision of the regs. that says there is no 409A violation when an employer doesn't pay provided that the employees basically sue the employer. What if the individuals entitled to the benefits make up the board, etc. Any thoughts?

A contributing employer has been making contributions on behalf of an employee who does not perform bargaining unit work. It's believed that the employer has an agreement with the individual to contribute so that the employee will receive welfare benefits. This individual used to be a contributing employer but the company has stopped operating.

I'm wondering if anyone has any experience with this type of situation or case law to consider. The contributions will be returned to the employer and the employee is going to be notified of his ineligibility to participate. However, I'm undecided as to whether this employee should have 180 days to appeal this (as is required in the claims regs for adverse determinations) or since this individual was never a participant in the first place, he would not have ERISA rights and therefore provide him at least 30 days to appeal.

An employee elected to have their health insurance premiums for Employee+One deducted pre-tax under the Cafeteria Plan. In 2005, the employee changed from Employee + One to Employee Only. The employer changed the type of coverage with the insurance provider, but failed to make the change in payroll and has continued deducting Employee + One. The Employer has just realized this in 2007. Total amount over withheld is about $4,500. What options or obligations does the employer have? What is the proper method to correct?

I am doing 2006 Plan Year ADP Testing.

I have a participant who is over age 50 and deferred $23,282.25 in total for 2006. He is over the 402(g) limit by $3,282.25.

When I am doing the ADP test, do I use his the full deferral of $23,282.25 or only $20,000 when I calcuate this participants ADP %?

Thank you.

An Individual who elected cobra, whose coverage terminated 7/31 intends to pay premium in a week's time is scheduled for surgery before the premium will be paid. This is a self insured plan. As hospital will not do the surgery (heart surgery, non emergent), does the plan have to guarantee benefits prior to payment or can it advise the medical provider that if the premium is paid there will be coverage but if the premium is not paid, then the procedure will not be covered???

I know this is a DB board, but no one responded to this on the VEBA or helath and welfare boards.

See below

A client has a VEBA.

The plan year-end and the cient's corporate tax year-end are both 8/31/07.

When must they make their employer contribution to the trust in order for it to be deductible for the 8/31/07 fiscal year?

By 8/31/07? Within 2 1/2 months of 8/31? Due date of tax return with extensions?

I believe a 419 welfare plan must make their contribution by 8/31/07 (assuming tax year end is 8/31/07) to be deductible, unless they use accrual employer accunting and then they have unti 2 1/2 months after tax year-end to make contribution.

Thanks.

the client has a 401(k). took investment elections from the plan participants but never implemented them. the money was invested in money market and has remained there since. i would imagine that they would be required to give the participants lost earnings. do you use the dol fiduciary correction program for this?

two questions - 1) how do you make the check payable? i believe you must indicate it is an inherited IRA

2) must the plan inform the accepting custodian that the beneficiary has 5 years to receive the money? (5 year rule applies here)

The EE has been court ordered to pay 65% of all unreimbursed medical expenses for his ex wife and children. Are their expenses eligible under his FSA plan?

I have a client who has been approached to purchase a franchise, to fund the purchase they want him to open a C Corp and then open a 401(k) for it, then transfer his IRA into the 401(k) and use those funds to fund the business (via a stock sale to the 401(k)).

There are three companies that he is looking at:

www.benetrends.com

www.franchisefund.com

www.guidantfinancial.com

If you could comment on this or refer me to someone who can give me an expert opinion.

ScottyD

Received a call today about a union and governmental employer that want to limit eligibility to participate in the Cafeteria plan to only those employees who have not waived employer provided health coverage. (Why? I have no idea) I am not comfortable with Section 125 plans and am starting to do some research. The plan covers only collectively bargained employees, none of whom are highly compensated.

This doesn't "smell" right to me. Aren't there numerous welfare decisions and regulations which hold that plans must have a rational basis for differentiating among similarly situated groups of participants?

A push in the right direction would be appreciated.

Registered User

Group: Registered

Posts: 489

Joined: 23-October 98

Member No.: 521

A client has a VEBA.

The plan year-end and the cient's corporate tax year-end are both 8/31/07.

When must they make their employer contribution to the trust in order for it to be deductible for the 8/31/07 fiscal year?

By 8/31/07? Within 2 1/2 months of 8/31? Due date of tax return with extensions?

I believe a 419 welfare plan must make their contribution by 8/31/07 (assuming tax year end is 8/31/07) to be deductible, unless they use accrual employer accunting and then they have unti 2 1/2 months after tax year-end to make contribution.

Thanks.

A client has a VEBA.

The plan year-end and the cient's corporate tax year-end are both 8/31/07.

When must they make their employer contribution to the trust in order for it to be deductible for the 8/31/07 fiscal year?

By 8/31/07? Within 2 1/2 months of 8/31? Due date of tax return with extensions?

I believe a 419 welfare plan must make their contribution by 8/31/07 (assuming tax year end is 8/31/07) to be deductible, unless they use accrual employer accunting and then they have unti 2 1/2 months after tax year-end to make contribution.

Thanks.

I have been asked to create an amortization schedule for a 401k loan. Do I just follow the loan terms the the Plan description? Are there also statutory requirements, involved with the creation of this document?

Frankly; I was taken aback by this request, but I don't want to over-simplify things if the Gov't has already over-complicated them.

Thanks

Fender

Family owned business - 5 individuals all of whom are more than 5% owners. No other employees. Sub-S corp. and from what I've been told they receive W-2 income. Any issues with establishing a 401(k) for this employer? Would it be considered an employee benefit plan with no common law employees?