I have read many of the posts on the message boards dealing with stale checks and how to handle them. Needless to say, there are a several different schools of thought out there. Assume that a TPA is informed by the custodian/trustee that a plan has a stale dated, uncashed check. Further assume that they intend to redeposit to the trust. The TPA has to put the $$ back into the participants account until the participant can be found (or until they have made reasonable efforts to find them).

The question is, how would you include this deposit back to the plan on the Form 5500? Would this be offset against current distributions? What if that creates a net negative distribution on the schedule I/H? Also, is there any agreement out there as to how to handle the original tax reporting. One previous post mentions redepositing it as "after-tax" and leave the tax reporting stand. Does anyone agree/disagree with this?

I have a client that is requesting us to calculate earnings and losses on the AP's award. I have been provided with 2 different spreadsheets for use in doing this calculation. It is based on the average account balance vs. actually following shares from the allocation date to date of division. The difference in the 2 spreadsheets is one adds back a PT distribution after the allocation date, but prior to the date of division. When I use the exact same numbers other than adding back a PT distribution, the earnings allocated to the AP's award is decreased by a small percentage, therefore giving the PT the larger percentage of the earnings. While I understand the mathematical aspect of this, is this the correct way to do the calculation. Regardless of the reason or timing of the distribution, why should the PT benefit from this?

Thanks!

I am the only suvivor of my brother.

He was divorced three times and didn't have any children.

The company he worked for he had been with for almost 25 years.

In his divorce decree with the last two wives it states very clearly that they waived any rights to his 401K.

I am the administator of his estate and I live in a different state.

After I sent his company and Fidelity copies of his death certificate and my letter of adminstration I could not find out anything on is 401K.

After a couple of months Fidelity told me they could not find any beneificary and they were sending things back to the legal department where he worked.

I got a attorney to handle this. He found out that my brother never got wife number 2 off as beneficary.

It is very clear in there divorce decree and states the name of his plan and she waived any rights to it.

My attorney where I live says that the waiver would carry more weight than him not getting the second wife removed.

My attorney said I would need an attorney in GA and he would help me find one.

This has been going on for several months and I was not being pushey with our local attorney but now I would like to get this over with.

I cannot get him to return calls and he does not respond to emails. I made an appt with him and it was cancled and change twice.

Can anyone please just let me know if he is correct about the divorce decree with wife number 2 and her waiving it versus her still being named beneifcary the stronger case.

There has not been any claim to the funds.

The loss of my brother is so painful that my life will never be the same.

I just want to get this over with or get some straight answers.

I have inquired about different attorneys and then I am told they don't do this type of work and give me another attorney's number.

Please just the answer to that one question would be helpful.

Thanks so much for listening,

Dulan

Our client, a medical practice, has decided upon a $15000 profit sharing allocation for 2006. The plan document (volume submitter new comp) designates the two Doctor/Owners in their own group. The plan has made 3% SHNEC each payroll throughout the plan year, but, of course, some errors were made and a true-up is needed. Two employees entered at mid-year and the 3% SHNEC did not cover the TH Minimum due. Thus, the $15000 contribution less the SHNEC true-up and top heavy minimum leaves approx $10,000 left for allocation. Of course the doctors want as much of the $10k split amongst themselves.

On first glance it appears that we can allocate the 2.27% ($220000*2.27%=$5000) to each of the Dr's. Their total allocation adding in the 3% SHNEC is 5.27% (highest HCE alloc %) while all other eligible participants not in the Dr/Owner group (including a couple of other HCE's) get ONLY the 3% from the SHNEC. This covers the gateway. Ran the 401(a)(4) test and it passes.

However, the question has arisen of whether this is a legitimate allocation. When considering 410(b) coverage test, are the NON-Dr/Owners considered benefitting in the profit sharing (non-elective) because they received the SHNEC? If the SHNEC is not considered, the profit sharing allocation obviously fails the ratio percentage test and the average benefits test on its own.

Thanks in advance for any input!

Company maintains Cafeteria Plan Y, which among other options provides employees with the right to elect a preferred provider organization offered by Provider M, a point of service arrangement also offered by Provider M, a preferred provider organization offered by Provider N and a point of service arrangement also offered by Provider N. The PPOs offered by Providers M and N have the same deductibles, copays, coinsurance amounts and out-of-pocket limits and have the same net employee cost. The POS options offered by Providers M and N have the same deductibles, copays, coinsurance amounts and out-of-pocket limits and have the same net employee cost. There may be some geographic areas where physicians on the network of one provider are not participating in the network of the other provider. The plan document for Plan Y has a definition of change of status does not specifically permit an employee in Provider M's PPO to elect Provider N'a PPO unless there is some other change in status event. Operationally, if, say an employee elected the POS by Provider M and learned that her/his favorite physicians no longer participate in its network, the employee may contact HR and would be permitted to switch to Provider Y. Although there is no change in the employee's net cost on a "pre-tax basis," does anyone have concerns about this not following the plan document and not being made as a result of a change in status as well as not being communicated to participants?

Facts:

401(k) Plan 1 has been in existence for many years. Key employees participated in Plan 1 however they were excluded from participation 12/31/2005 and their account balances were transferred to Plan 2 during 2006.

401(k) Plan 2 is effective 1/1/2005. The first contributions made to Plan 2 were made 9/15/2006.

CB Plan is effective 1/1/2005. The first contributions made to the CB plan were made 9/15/2006.

For 2005 and 2006 there were key employees with an account balance in Plan 1.

Plan 1 for 2006 contains HCE employees only and passes 410(b) without Plans 2 or the CB Plan. Plan 2 and the CB plan are tested together for 410(b) and 401(a)(4) purposes.

For the 2005 plan year the top heavy test is determined as of 12/31/2004. The first year rule is intended to be used only when there are no other plans in existence or required to be taken into account for purposes of top heavy.

The account balances as of 12/31/2005 for key employees are as follows:

Plan 1 market value $240K/$420K = 57%

Plan 2 market value $0/$0 = 0%; accrual $0/75K = 0$

CB Plan market value $0/$0 = 0%; accrual $403K/$446K = 90%.

Question:

For determining if the Plan is top heavy during 2006 for the Plan 2 and CB plan which are aggregated for testing purposes would you aggregate the market value of Plans 2 & the CB plan together or would you aggregate the accrual values of Plan 2 & CB plan together? Ie. $0/$0 = 0% not top heavy or $403/$521 = 77% top heavy

For determining if the Plan is top heavy during 2006 for Plan 1 which is not aggregated with any other plan of the employer for testing purposes would you use the market value of Plan 1 only? $240K/$420K = 57% not top heavy.

Thanks

Can you borrow from from a D.R.O.p. plan

I have worked for the same company for 29 years. Just recently we merged with another company and some benefits have changed. The parent company just sent me a letter wanting me to verify my dependent (spouse) listed on my health policies.. I have had her on my insurance for most of the 20 years we have lived together (not married). I live in Louisiana. Would our cohabitation at the same address for all these years qualify her as my dependent ? Their definition of "spouse" is the person of the opposite sex you"re legally married to under Federal INcome Tax law.. Does Federal Law consider us to be married due to the long term commitment we have had ? I'm sure if we decided to split up, legally, what we amassed during our time together would be considered community property etc.. sorry for the long post but getting married at this time would be financially disavantageous to both of us due in part to the credit differences we have (I always pay on time, she doesn't). Thanks

Have an odd situation where an owner has a non-profit charitable org. and a for-profit arm. Each has a DB plan. He has a handfull of people he is currently paying an annual pension to, out of his own pocket (he has lotsa money; they used to do work for him personally).

Question: Can he pay these people out of the "for-profit" pension plan, as long as he funds it? (He thought of just buying them an individual annuity, but was appalled at how expensive they seemed.) Could he, as an owner and employer, simply adopt the plan for the benefit of these former employees? What stands in the way of doing this? Please assume these are all the relevant facts for now.

Thanks!

We have adopted a new, individually designed plan. We submitted it to the IRS for a determination letter. Now some employees who had contributions have terminated and want their distributions. Should we distribute or wait until we get the IRS letter?

Plan document only permits one outstanding loan at a time. A couple of participants were allowed to take out a second loan while their first was still outstanding (within limits for subsequent loans). Can the employer retroactively amend the plan back to the period for which 2 outstanding loans were in existence? Require VCP filing? If not, the alternative?

Participant makes an election to a health FSA for $3000 to cover primarily the spouses out-of-pocket expenses. Spouse subsequently goes to jail and our generous government is picking up the tab on her expenses. Can the participant reduce the election?

I have been denied twice for intermmintent FMLA leave and I have 2 chronic medical conditions I have chronic sinusitis/ear infections and also I have a severe case of Mitral Valve Prolapse which I have been to the hospital for 5 times in the past year. When I have ear infections at there worst I have servere vertigo and having trouble even standing without falling which was all submitted by my Primary Doctor.And since I have been denied I have had to delay treatment because my employer works on a PTO basis and points are given regardless of the situation unless 24 hours notice is given and you have PTO time to take ( if your sick you get a point the 1st day and a MD note prevents you from getting points the days following). We also work a accural of time off system. I get 5.25 hour every 2 weeks, in Oct of last year I had 40 hours to carry to 2007 I have since used all of it and now since applying and being denied 2 times I have had to take time off when I have none and been wrote up for accural of points Ifeel I did my part to insure my job stability while I can get the neccesary treatment to become the employee I was before becoming sick, Before becoming sick I had one occurance point and now I'm at 7 I have had my husband drive me to work because of the vertigo I suffer from and be on the phone caring about other peoples health issues when my employer doesnt care about mine! I have became depressed and feel like I'm between a rock and a hard place because I need my my job/insurance to be treated for my conditions but if I don't care of my health I am having to wait a month to get one day off for my MD appointment which I try to do alot in 1 day but this is now not only effecting me Physically but mentally. Myself and family are suffering is this legal?

Anyone PLease give me a direction I should turn!!!!!!!!!!

Can you borrow money from a D.R.O.P. plan, and if so how should it be handled?

Where does one record mutual fund dividend payments under Part II of the Schedule H?

I am considering cashing out of a JP Morgan 401k account ($10,000) from a previous employer to pay off high-interest credit card debt. I understand that the early withdrawl will be subject to 20% federal tax withholding, a 10% early withdrawl fee and will be also taxed as income at the end of this year.

I'm wondering if there are any other fees that will be withheld at the time of distribution for state and/or local taxes. I live in Massachusetts.

Appreciate any help.

Paul

We have recently implemented some 401k/profit sharing plans for small employers (i.e. less than 25 employees).

WHile I am able to perform non discrimination testing and account balance record keeping with the assistance of excel spreadsheets, I am curious to hear any suggestions as to what software or method to use for preparing client/participant statements of account balances? This can include using excel to do this too; which would even be preferred.

Let's assume that the account balance and census data are maintained on excel spreadsheets and can be used as input data for the statements.

Thanks for any ideas.

Question:

Can someone tell me where I can find regulations on the rules behind a not-for-profit (hospital) employer offering multiple 403b vendors yet only matching to one?

I'm looking at the 409A issues regarding the sale of stock in a professional corporation. Let's assume it's a medical practice.

As part of his semi-retirement, the senior doctor in the practice agrees to sell his stock back to the corporation. The buyout price for his stock will be, for example, $300,000 and 50% of the accounts receivable collections from his work that is received within 12 months after the sale.

A. Assuming he no longer provides any services to the practice after the date of the sale, could the variable portion of the proceeds from the accounts receivable collection fall under IRC 409A? If so, this could mess up the capital gains treatment on the sale.

B. Let's also add to the example that the doctor sells his stock and works part-time as an employee for the medical practice. Would this change your response?

Any comments?

DOES ANY ONE KNOW WHERE I CAN GET OR IF SOMEONE CAN SHARE SOME FSA CLAIM DENIAL LETTERS?

THANK YOU.

SIMON