Call (800) GOOG-411 and it will look up any business number for you, purely by voice recognition, and connect you, for free.

No ads. No buttons to punch.

We'll all be working for Google eventually, it seems.

Client's current TPA claims that the 2006 ADP test failed. They returned money to the HCEs. In review of the test, it appears that some of the NHCEs over 50 had part of their contributions randomly classified as a catch up. In one case the NHCE had a $5,000 deferral with $2,000 of the 5,000 classified as a catch up. The TPA did not use the entire 5,000 in the ADP test, only 3,000 was used for testing.

If after re-doing the test the proper way the plan passes, is it the trustees duty to recover the ADP distributions plus interest? Would the interest calculation be the same as if the contributions were late? What about the taxes the HCE had to pay on the money?

Thanks

Say a 1 HCE participant plan is a 412i plan with 50% of total premium for annuity policy and 50% for life policy.

Say the participant has average compensation at the 415 limit of 180k and NRA is 62 and he will have 10 years of part at NRA.

Therefore his 415 limit benefit is 180k.

Lets say that the 415 lump sum at 62 based on benefit of 180k is $2,000,000.

Now let's say the cash values reach $2 million by age 60.

Even if the plan is frozen and no further premiums are made and the plan is converted to a traditional 412 plan, the cash values will still continue to increase by age 62, thus causing a surplus and excise taxes.

So the point and question is: Once the 415 lump sum is reached, how can you avoid a surplus situation?

Terminating the plan and distributing $2 million at age 60 would likely be in excess of the 415 lump sum limit (or at least let's assume that it is for this question).

Thanks.

Did anybody notice that our good friends at EP:EO seem so have won the day. Pub 560 for 2006 has language that is startlingly clear and completely consistent with the Kyle Brown letter, but totally inconsistent with prior years' Pub. 560's (and, of course, the law). Here is the language from 2006 (for preparing 2006 tax returns):

"For the preceding year, received compensation from you of more than $95,000 (if the preceding year is 2005, $100,000 if the preceding year is 2006 or 2007) and, if you so choose, was in the top 20% of employees when ranked by compensation."

To remind everybody, this is what the 2005 version stated (for preparing 2005 tax returns):

"For the preceding year, received compensation from you of more than $95,000 and, if you so choose, was in the top 20% of employees when ranked by compensation. This $95,000 amount increases to $100,000 in 2006."

Now isn't that just peachy?

Since I missed Mike Preston's message from March 26th concerning the wording change in the 2006 version of Publication 560 (probably due to the fact that it was buried at the bottom of eight pages of prior messages), I thought that I would reprint it in a new topic in order to make it a little more obvious. I was getting ready to post a similar message when I discovered that Mike had, of course, beat me to the punch by six weeks.

Is there such thing as a de facto plan termination? If so, how does it work?

I understand Sec. 2550.404(a)-2(a)(1) approves an automatic rollover only of a mandatory distribution described in Sec. 401(a)(31)(B) (distributions in excess of 1K but less than or equal to 5K)

What can happen in the case of a participant who terminates employment and leaves his or her account balance in the plan and then reaches the "latest commencement date" under the plan (and under ERISA Sec 206(a) and Code Sec. 401(a)(14).

If the plan sends out distribution election forms and the participant makes an election (distribution or direct rollover) then, ok.

What happens if the participant fails to make an election? My thinking is that there can be no involuntary distribution of accounts in excess of 5K even under the latest commencement date rules. The plan just maintains the account and researches the applicable state law unclaimed property statute.

Any thoughts?

Thanks.

We have a plan sponsored by a nursing home that excludes "on call" employees, classified as "PRN". The 410(b) testing passes, however there are concerns that we are not in compliance with 401(a)(4).

Opinions, please!

Plans (2 of them) had investments in some mutual fund through a brokerage house. Plans terminated in 2004, distributions made in 2005, final 5500's filed for 2005.

Now, in 2007, due to some audit or oversight /compliance thing or something like that, the mutual fund determines that these accounts are due additional earnings. Fairly substantial amounts.

Going back and rerunning distribution numbers is no real problem, other than being a pain. Locating the participants may be worse. (small plans, fortunately.)

For 5500's, I'm not sure how to handle. We could file amended 2005 forms, regular 2006 forms, and final 2007 forms. Anyone have an easier (and acceptable) method that they have used for such a situation, which the DOL approves?

SUBSCRIBING TO A PARTICULAR MESSAGE BOARD

Problem: You are especially interested to read questions and answers posted in a particular message board. You only have time to visit that message board once a day or every couple of days, or you sometimes forget to check it.

Solution: "Subscribe" to that message board so that you get an email each time a new topic is posted.

For example, say you'd like to monitor the Church Plans message board; your legal practice includes many such plans.

1. Go to the home page of the message boards ( http://benefitslink.com/boards ).

2. Click on Church Plans.

3. Look for "Forum Options" at the top right corner of the box that lists the currently posted topics. Click on it. You'll get a drop-down menu of options... one is "Subscribe to this Forum." Select it by highlighting that option.

(If you don't get a drop-down menu, you probably have Javascript disabled on your web browser. Javascript must be enabled to make this work.)

4. Now you get a screen showing various settings for your subscription. You can specify that you want an email every time a topic is posted (the "Immediate Email Notification" option). Or, you can specify that you want an email that contains a cumulative list of the new topics (called a "digest"), to be sent to you once a day or once a week.

-- Note: An alternative to immediate notifications that is useful if you come online often to view the particular message board is to select "Delayed Email Notification." In that case the message boards software will not send you immediate email notice of each new topic. Instead it will wait to see if you visit the particular message board within a certain period of time after the new topic was posted (it's smart enough to know this). If you don't, then an email notice about the new topic is sent to you (hence the use of the word "delayed"). But if you do visit that message board within a certain period of time, you won't get an email about any new topics that are listed when you visit the message board (you don't need an email because you'll have found out about those new topics by seeing them listed on the message board).

-- Another note: After you go online and read the new topic, the software is smart enough to reset itself so that it automatically emails you when someone later posts a new message (a "reply") in that topic.

See also: HOW TO UNSUBSCRIBE FROM A MESSAGE BOARD TO WHICH YOU'VE SUBSCRIBED, below.

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SUBSCRIBING TO A PARTICULAR TOPIC

Problem: You find a particularly interesting topic on one of the message boards. You want to monitor the topic to see when someone posts a reply message (e.g., an answer to the question that the topic starter asked). You don't want to have to bookmark the topic and then remember to check that bookmark.

Solution: "Subscribe" to that topic so that you get an email when a reply is posted.

1. To subscribe to a particular topic, open that topic by clicking on its title.

2. Click on the button that says "Options" (at the top right corner of the resulting screen showing the original post in the topic and any replies). You'll get a drop-down options list that says "Track This Topic." Select it by highlighting it.

-- Note: Unfortunately, the terminology is not consistent here; it ought to say "subscribe" instead of "track" -- it's the same thing.

-- Another note: You'll get a poorly-worded "error" message if you do this for a topic that's in a message board to which you've already subscribed as described earlier, because you already would be getting an email notice when a reply is posted in such a topic, as described earlier.

Now you can go away from the message boards and go about your business. If you check your email frequently during the day you'll find an email notice whenever someone posts a reply message in the topic to which you've subscribed. (This presumes you have selected the "immediate" notification option.)

If you wish, you can jump online (using the link you'll see in in the email notification) to read the new reply message. For example, someone might have just posted an answer to your question, if you started the topic with a question.

If the person who posted the reply also has subscribed to this topic, then the two of you in effect can have an online dialog during the day.

Sometimes it's remarkable how fast a question is answered, especially if several people already have subscribed to the message board in which the topic appears and have specified immediate email notices. The topic can become an accelerated three-way (or four-way, etc.) online discussion that blooms like a flower in time-lapse photography! (OK, perhaps I'm getting too enthusiastic here. )

See also: HOW TO UNSUBSCRIBE FROM A TOPIC TO WHICH YOU'VE SUBSCRIBED, below.

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HOW TO UNSUBSCRIBE FROM A MESSAGE BOARD TO WHICH YOU'VE SUBSCRIBED; HOW TO UNSUBSCRIBE FROM A TOPIC TO WHICH YOU'VE SUBSCRIBED

If you decide you've had a bellyfull of email notices about new topics in a message board or new replies in a particular topic, you're able to stop those emails by "unsubscribing."

1. Click on "My Controls," which appears towards the top right side of any page while you're visiting the message boards. It's on the same line that starts with "Logged in as [your username here]."

2. Scroll down the "Menu" at the left side of the resulting page.

3. Click on "View Topics" to see the particular topics to which you're subscribed, or click on "View Forums" to see the particular message boards to which you're subscribed.

4. Check the box next to any item to which you'd like to unsubscribe.

5. Click on the "With Selected" button you'll see at the bottom of the list of items. (It will have the word "Unsubscribe" in front of it, by default).

I relayed to my boss that you can't transfer assets from an existing 403B account to a newly set up 401K account (same company) without a distributable event. He wants me to confirm that this is true -- any takers?

Anyone know where I can get this online? Thanks

Company X maintains a 401(k) plan for its employees, under which employees are permitted to direct the investment of their account balances among several pre-selected investment funds, called core funds, and have the ability to select from a universe of several thousamd mutual funds under a self-directed brokerage window. The plan document requires a participant to transfer that portion of his/her account invested in the brokerage window back to the core funds before taking a distribution. It was recently discovered that one participant, having terminated employment, requested a rollover of his/her account invested in the brokerage window to IRAs for which a mutual fund company was the custodian. The "rollover" was actually implemented by the vendor for the brokerage window. It appears that this was an isolated incident and that no other participant has been able to effect a rollover directly from the brokerage window. Short of making sure that the ability to "rollover" out of the brokerage window does not recur, how should the plan correct this error?

Currently we have a non qualified church plan that only covers priest... NRA 75 and NRB 1000.

1) can a church plan be qualified but not covered by ERISA? (doesn't seem like it can)

All my other questions stem from the answer of this question.

Thank you,

Andrew

Company X maintains Cafeteria Plan M providing for a health care FSA among other benefits. Domestic partners and civil union spouses of participants are permitted to participate in the regular medical coverage but they are not permitted to participate in the health care FSA. During the year, it is discovered that the new vendor has been reimbursing claims incurred by domestic partners/civil union spouses from the health care FSA. The vendor has been directed to stop making reimbursements to such individuals. However, in determining the tax treatment of the participant for the amounts that were reimbursed, I have a question on the appropriate tax treatment.

I know that with medical coverage for such persons, the employer's share of the premiums must be imputed into the employee's gross income and the employee's share of the premiums must be made on an after-tax basis, while the benefits reimbursed to such individuals are considered tax free. With a health care FSA, however, the problem is that it is not possible to ascertain the amount of claims by which the domestic partner/civil union spouse must be reimbursed. Therefore, would it be appropriate to impute into the employee's gross i ncome the amounts actually reimbursed to the domestic partner/civil union spouse or should the amounts withheld from the employee's pay for contributions to the FSA be divided pro rata among the employee and all dependents with the pro rata portion attributable to the domestic partner/civil union spouse be treated as made on an after-tax basis?

Hi all. I have a client who will be a takeover plan... their current TPA is charging them $1000 Deconversion Fee!! I think I vaguely remember hearing about this sort of thing, but never paid much attention to it because we would not charge such a fee.

Is this typical? Unfortunately, this client wants ME to reduce my first year fee!! I am astounded this morning... please advise.

Thanks.

PS - I also posted this on "Operating a TPA firm" board. Wasn't sure which forum would be quickest to answer!

Hi all. I have a client who will be a takeover plan... their current TPA is charging them $1000 Deconversion Fee!! I think I vaguely remember hearing about this sort of thing, but never paid much attention to it because we would not charge such a fee.

Is this typical? Unfortunately, this client wants ME to reduce my first year fee!! I am astounded this morning... please advise.

Thanks.

Hi

I'm hoping someone might be able to help me....

I have got Windows XP and run IE6.

My IE6 keeps crashing on me saying it has to shut down, and sorry for the inconvenience etc..

This is what shows when I look to see what has caused the error:

Error Signature

AppName: iexplore.exe

ModVer: 5.1.2600.2945

AppVer: 6.0.2900.2180

Offset: 00012a5b

ModName:kernel32.dll

I had also sent an error report to microsoft (what good that does I just don't know!) and it says that the following files will be included in this error report:

C:\DOCUME~1\New\LOCALS\~1\Temp\48e0_appcompat.txt

A quick bit of history, as I've had this problem before.

Suddenly, out of nowhere, IE kept crashing. I tried to find a solution - but couldn't so in the end created a new user on XP and just transfered all my stuff over. I didn't delete the old user, as I still had some emails I need to bring over but hadn't got around to doing yet.

Anyway, yesterday, IE working no problem. I had a bit of a computer clean up - got rid of .tmp files, cleared history, files, cookies in IE, ran adaware. I also deleted the other user as I had transfered the files I needed.

Go to use IE this morning and the thing crashes! I did a restore, figuring the last thing I did was delete the user and some files, but this didn't work.

I'm at a loss as to what to do!!

It's not as simple as me just using another browser, as I tend to use a couple of different ones anyway, and last time this happened I put in IE7 to see if that would sort it, and it didn't.

Sorry for the long first post, but I wanted to give as much detail as possible!

Thanks to anyone who is able to help me - it will be very much appreciated!

I am trying to get a copy of PLR 8515088.

Tks

Just discovered that a company that sponsors a 401(k) actually has a wholly owned subsidiary company that has no employees and is just a pass through shell that does have its own tax ID# but no employees. The original plan doc lists no affiliated employers. Should it amend to incorporate this company or could it wait until it has employees assuming it ever does?

"We had a little surprise yesterday. Joseph "Tyler" Graff was born at 1 pm Sunday. He weighed in at 6 lbs, 19 inches. It was about a month before scheduled, but everyone is doing ok. Tyler is in the NICU for observation but breathing on his own.

Bg

Brian H. Graff, Esq. APM

ASPPA Executive Director/CEO"

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Sounds like one of our own is

A Super Proud PA !