Do the Code or the Treasury Regs contain any qualified plan retention provisions? I know ERISA 107 and 209 address record retention, but this is not an ERISA issue.

a tpa just mailed checks for corrective distribution for calendar 06 plan. What year are they taxable?

CPA was told he didn't need to amend 06 individial return..... any cites on this?

Thanks

Plan sponsor has SIMPLE and is adopting 401K as of Setp. 1, 2007 - how does one treat the EE's SIMPLE contributions from Jan - Aug? Thanks.

A client of ours only has 30 employees all winter long and at the start of the plan year. They are in construction and hire many more during the year. How do I calculate the number of employees in order to determine if they have to file a 5500 for their welfare plan(s)? Or, where can I go to find this information. Any help is appreciated, I do not normally advise on 5500's outside of retirements plans. This came up at an investment committee meeting and I just want to help them out. Thanks in advance.

My husband's plant is closing down. They are closing out the ESOP. They are automatically putting the cash into the employees 401K plan. My husband would like the cash so we could pay off our house. Is it illegal not to give him the choice? If it goes into the 401K then we would get a 10% penalty for using the money. (On top of the taxes) Jobs in our area are scarce and our thinking is that if it gets really ugly, at least our house is paid for.

This may seem to be splitting hairs but it does have some value. Plan Doc provides for benefits payable monthly so annuity factors reflect the monthly mortality adj. approximation (the m-1 / 2m adj.). The 415 limits are payable annually, presumably on the 1st day of the year, so technically I don't believe you need to apply a monthly mortality adj.

Is it ok then to use an beginning-of-the-year annual annuity factor for the 415 limit limit present value but apply the monthly mortality approx. adj. for the plan's present value of accrued benefit ?

Years ago I did this on a plan term submission and the IRS inquired about the difference in annuity factors for these different purposes but ultimately accepted it. I realize that's the approach to go again (submission) but am curious as to what most practioners are doing out there and what you feel is reasonable.

I recently began working for a non-profit hospital group that is also a religious organization. Although I have many years of experience administering benefits, complying with ERISA, DOL, IRS, etc. at for-profit corporations, I'm completely new to this environment. On top of that, many of my co-workers are either new to benefits or have only worked for this organization. As such, it seems that we don't know what we don't know.

I have been searching for a good information source to tell me about compliance, reporting, etc. I guess what I'd like to see is a sort of basic overview of our rights and responsbilities as plan administrators. Some of the questions I have are:

• Are we required to have a benefits committee?
  

• What are our reporting responsibilities to participants if our retirement plans don't intend to qualify under ERISA (although we have an IRS determination letter -- don't we have to comply with ERISA in this event?)
  

• Do we have to file 5500s? Pay PBGC premiums on our DB plan?
  

Can anyone point me to sources?

This is for the gurus.

I have had 2 similar questions today. Both have to do with the employer providing different amounts based on length of service.

The first is for a POP plan. They want to contribute 75% of the premium for anyone there over 10 years, 65% for those with between 5 and 10 years of service, and 60% for those with less than 5 years of service.

My initial response is no, you can't do that. Do any of you think that if we make the contributio 60% for all the HCE that we can have this differential for the NHCE?

The second is for an FSA. Employer wants to seed the accounts as follows: over 1 year of service $100 per year, over 2 years of service $250 per year, over 3 years of service $350 per year. Again, my initial response is no. If we exclude the HCE or give any HCE only $100, would this plan arrangement fly?

Thank you.

I have a client in Arkansas who employs several work release prisoners. The sponsor has informed me that under Arkansas law, incarcerated employees are not permitted to make 401(k) contributions. I know that ERISA generally preempts state laws with regards to benefit plans, but am not familiar with the exceptions. If anyone is familiar with this law or knows where I can research this topic independently I would appreciate the help!

Thanks!

A calendar year plan is funded on the tradional unit credit method. Benefits are frozen at 6/30. All participants have 1000 hours, so have earned a full accrual for the year. For 412 purposes is the TUC NC still subject to proration for 6 months as per RR 79-237 due to the plan termination, even though all participants have accrued the full year's benefit?

A plan is currently top heavy. The valuation assumptions include a 4% annual salary scale. The numbers for a specific participant are as follows:

Projected NRB by formula = 2457

Projected t/h ben at NRA = 1690

Accrual service at val date = 1 year

Toal projected accrual service at NRD = 36 years

Should the PUC NC be 2457/36 = 69, or

1690/10 = 169?

Should the PUC AL be 69 or 169?

May an employee who is in the USA on a G-4 visa participate in an employer's ERISA 403(b) plan without jeopardizing his G-4 visa status or his spouse's G-4 visa status? The employee's spouse is an employee of an international organization and both are in the USA on G-4 visas?

If a 401k plan fails the ADP test, how in general is it corrected? Let's suppose there are 20 HCEs with various salaries and deferral percentages. Do the highest paid HCEs take the largest refunds or do those with the largest percentage contributions take the largest refunds? Or is it on a percentage basis or dollar amount across the board? Or something else?

Company wants to setup a HSA contribution (employer) based on # of years at the company.

For example: those with 5 years employment get $1000, 10 years $2000. Would this work inside of a 125 plan?

Hang on here, this one will take a minute to layout.

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

Background Info

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Company A maintains a 401(k) plan with a Year End provision for Employer Contributions.

Employee Z just got called up to active duty, effective 9/1/2007, for a one year tour.

Company B will purchase assets of Company A effective 12/31/2007.

All employees will terminate with Company A and be rehired by Company B.

Assume that Company B will take the role of sponsor for Company A's plan.

Assume that the Plan will be amended to allow for Predecessor Service for all purposes.

-----------

Specific Question

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What happens to the 2007 Employer Contribution?

Does Company B have any responsibility to Employee Z in light of assuming the role of Sponsor?

Whew. Thanks!

Don't you just love that the law and proposed regulations provide:

"incentives" for actuaries to determine the AFTAP (luckily they defined this as related to the current liability for the first year)

What an incentive for a client to lose 10 points off the percentage if not completed by 4/1!!

I can hear the phones ringing off the hook!

Has anyone heard of this type of COBRA beneficiary - and if so can you give me some informtion?

Thanks

Sorry - the message didn't list my topic -

It is an M&A QB - which means a Merger and Acquisitions Qualified Beneficiary for COBRA purposes.l

Is there any IRS or DOL guidance addressing what an employer is to do after a health FSA provides an ex-spouse with benefits under the employee's health FSA? The Regs. address the situation where there is a separation from employment but doesn't say much about divorce.

For example, employee has health FSA where he/she contributes $300 a month ($3600 account balance). Employee and spouse divorce and COBRA notice is required. Ex elects continuation coverage.

How does/should the ER handle this?

The DOL final regs were published in 2004 and the IRS' in 2001 (I believe). Surely this has been addressed somewhere, right?

Can a plan match dollar for dollar on first 4% and 50 cents on the next two percent for a total of 5% match and still be within the guidelines of Safe Harbor and not be subject to either the ADP or ACP test. The extra match on the 2% would not be discretionary.

Hi -

I wanted to double check what limits are used with off calendar years. So for example if you had a 6/30/07 plan year end what years limits would you use for:

Determination of HCE

Annual Comp. Limit

Annual Additions

Thanks!