One employer sponsors 3 plans (DB, 401(k), ESOP) and each plan failed to distribute benefits within 5 years after the death of a participant resulting in a 401(a)(9) failure. I understand that 3 separate applications must be filed at $500 per application, but is there anyway that I can submit them together under a single cover letter so that they may be processed together? Sounds reasonable to me, but thought I would ask...

We've twice been told by banks in the last two weeks that they no longer are required to accept the Form 8109, and that all deposits must be done electronically (via ACH, most likely). The bank rep pointed us towards the Dept. of Treasury's website and irs.gov, but we don't see anything there to support their claim.

In our searching, we came upon dstortz.com, and this website of a CPA in Pennsylvania seems to agree with the banks we've spoken to. He even has a Form 9779 to get registered with EFTPS (Electronic Federal Tax Payment System) to make these payments.

So, the question is... they've got to be kidding me, right? Can they really make the little mom-and-pop stores with retirement plans with no computer access join the 21st century even against their will? Many of these plans don't even have accounts that you could ACH from!

Anyone seen anything like this? Thanks.

Our plan has a 50% QJSA, but offers an optional 100% JSA. Under the PPA, if the QJSA is less than 75%, then a 75% "qualified optional survivor annuity" (QOSA) must be offered. Some of the write ups we're seeing say at least 75%, but Code Section 417(g) seems to say it must be equal to 75%. Does the 100% JSA that we offer suffice, or do we need to add a 75% JSA starting in 2008 to comply with the PPA?

Ver 12; we had Participant A forget log-in and request email to re-set. The system sent him information to log-in to Participant B account.

Anyone seen this?

Know a fix?

Thanks

Does anyone have any suggested brokers/companies that are reputable to do health claims audits for a self insured corporation? We are located in PA but are willing to take any suggestions if you have a good one to offer. Thank you for your help!

Yes, this is somewhat related to another post

I'm looking at a prospect with a multi employer plan.

There are currently (supposedly) only 3 firms participating/sponsoring the plan.

Total number of participants is just above 120.

From what I'm hearing about actuarial certification costs for a multi employer plan, it seems like the actuarial costs for 3 separate single employer plans would be less than the cost for 1. Not to mention that if each employer split off to their own plan they'd be way below the audit limit and would save those costs.

Is this possible?

What obvious pitfall am I missing?

Thanks

Christopher

I would like to think I have half an idea as to what needs to be done with a single employer defined benefit plan. I even think I'm almost knowledgable about multiple employer plans.

Apparently I know next to nothing about Multi Employer Union Defined Benefit Plans.

We normally have an actuary sign our Bs for the work we do. They won't consider this Multi Employer plan I'm looking at as a prospect.

So, what makes these so difficult now and what does one need to look for?

If we're comfortable with single employer plans and we can find an actuary to sign the multi employer B are we begging for trouble?

Any interested actuaries out there?

Thanks

Christopher

I have a 401k account w/ around $1000. My company was recently bought out and I am wondering should I just cash it out and pay some bills or roll it over into a IRA, Roth or something else. I live in Michigan.

Thanks.

An auditor used the term "fully benefit responsive" as opposed to full market value when discussing assets of a 401k plan. Has anyone heard this term, and if so what does it refer to?? Thanks.

If a plan falls under the VCP for a particular plan year, are all subsequent plan years also covered? Would the plan still need an audit?

Thank You,

CC

I have a Roth distribution that is obviously going to be nonqualified. This one happens to have a very small amount of earnings, but am I generally required to withhold 20% on a nonqualified distribution's investment income? My presumption is that we should since it is eligible for rollover to another Roth vehicle in order to continue to defer taxability.

Our auditors for our 401(k) plan are coming tomorrow, and they just faxed me a listing of requested stuff they will want to see and this year, they are asking for I-9s for new enrollees and employee files for departed participants. They have never asked for these things before and I find them very odd and I am a bit uncomfortable with this. Is this normal practice? Why would they want those things?

A DB Plan failed to publicize a retirement option under the plan.

It seems like this is an operational failure under EPCRS. I looked through EPCRS several times but couldn't find anything that speaks to this directly.

Have you run into something similar? Any help would be much appreciated.

In the 1990 gray book, IRS indicated that there is not a prescribed order for determining amortization bases when there are plan amendments, assumption changes and a funding method change in the same year.

Has there been any update to this question since 1990?

-----------------------

1990 - QUESTION 15

General Funding

When a valuation includes plan amendments, assumption changes and a funding method change, is there a specific order in which these should be recognized?

For example, a plan is valued using the Aggregate funding method as of January 1, 1988 and the Projected Unit Credit method as of January 1, 1989. As of January 1, 1989 the plan is amended to comply with TRA and the mortality assumption is changed. One, two or three bases could be set up, depending on the order in which the changes are recognized and the minimum required contribution for 1989 would vary because the bases have different amortization periods, although the outstanding balances must add up to the same total.

RESPONSE 15

At present there is no guidance regarding this question. It should be noted that when guidance is published on this type of matter, IRS generally issues rules on a prospective basis and tends to be lenient if new rules would be in conflict with past practices that were reasonable.

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I have a client who is looking at establishing a safe harbor 401k. It seems that under the standardized plans all compensation is included, but that under a non-standardized plan he can exclude commissioned employees from participating regardless if they are w-2? Will the IRS give a determination letter accepting this type of plan as qualified status? Can anyone point me in the right direction?

Is there a web-site that anyone knows of that describes the withholding requirements for those states with mandatory withholding?

Have a Safe Harbor plan with match for a US Company with a UK subsidiary. US plan excludes Non Resident Aliens (NRA) with no US income. One of the Key employees listed by the US employer is a UK employee who is a NRA. How can this be possible with no US income?

Our compant allows an employee to contribute $5,000 to a health care FSA. If we have a married couple both as employees, can both contribute the maximum, or is it $5,000 per couple? I seem to think it is $5,000 per couple, but want to double check. The old memory is not what it used to be . Thanks.

A client has a nonqualified defined benefit plan that provides a disability payment. Presently, it is drafted with the 409A definition of disability, but also requiring a separation from service for payments to begin. They want to provide that the disability payments will not begin until such time as disability benefits (if any) provided under the employer's insurance disability plan cease. Otherwise, the nonqualified plan will pay a reduced benefit to the participant (because of payments beginning prior to normal retirement age) and the disability plan will reduce the amount paid under that plan to account for th receipt of the nonqualified plan payments.

I have concerns that this payment provision will not meet the objectively determinable time of payment requirement. Does anyone have any thoughts on this?

Can we use an indexed annuity as an investment in a defined contributon plan?

And if so, are there any restrictions that would prevent us from changing to that investment now?

Plan is calendar year.

Thanks