I am not clear on the difference between the life expectancy table in 1.401(a)(9)-9 and 1.72-9. I am attempting to determine the life expectancy of the beneficiary of a participant who recently died. I would have thought that the 401(a)(9) minimum distribution regs would control, but I noticed the plan cites to 1.72(p) regulations (the plan permits a payout over the life expectancy of the beneficiary). I'm not sure if this is optional, or if I am missing the amendment to the plan for the 401(a)(9) regs.

Also, which table would apply if this were an IRA?

Thanks for your help!!!

Employee deductions were made from their payroll, but a check from the year 2005 which was mailed was never received by the carrier. Some of the employees have left the co. How do we resolve this?

(non-erisa plan), about 20 EE's.

A specified employee terminated in November, 2006. The plan provides that individuals will receive distributions upon termination; however, a specified employee must delay payment for six months.

Is the distribution amount reportable as income for the specified employee in 2006, when there apparently is no longer a substantial risk of forfeiture, or in 2007 when the amounts are actually/constructively received?

The IRS recently highlighted the treatment of required minimum distributions for defined benefit plans.

In particular, cash balance plans were singled out for these calculations because of the confusion they cause.

A cash balance plan is a defined benefit plan. When a participant is required to take a minimum payment, the account is converted to an equivalent monthly benefit using the plan's actuarial equivalence assumptions.

That monthly benefit is paid as an annuity form of payment for RMD purposes.

A cash balance plan is not a defined contribution plan. You do not have the ability to use DC rules on the RMD.

The only way to use the DC rules is if the CB plan is paid out into a lump sum distribution as a rollover during the year that payment is due.

The buyer is the successor employer and hired all of seller employees except two who will be working for buyer as independent contractors. Buyer is assuming COBRA obligation (buyer has a health plan, seller does not). Buyer's plan excludes independent contractors. Under 54.4980B-9 Q&A 6, an asset sale is a qualifying event with respect to covered employees unless the buyer is a successor employer (it is) and the employee is "employed by the buying group." Are the independent contractors treated as "employed by the buying group" thus there is no qualifying event or must they be offered COBRA?

Thanks for any help.

What is considered an Affiliated Service Group for retirement plan issues.

This is requesting a quick answer(I know it is late in the year), for a situation where there is:

1)W2 income with a 401k that gets contributed maximally with matching by employer

2)K1 income that is subject to SE tax from an LLC partnership due to a consulting agreement...equal partners only. No employees.

3) 1099 income outside the LLC

All for the same person...

Want to know if the 1099 and K1 incomes can be pooled to make a larger DB plan contribution. This is the first year we will be doing a DB plan

An LLC was set up with 8 medical consulting partners. Can the SEP IRA be set up now by the LLC and funded for the 2006 year by the LLC in 2007 and also for 2007 that same year? I presume that taxes will be filed April 15, 2007 for 2006.

I suppose that the contributions to the SEP will be deducted from the parners' income... by the LLC?

are elective deferrals included in calculating the abp in a straight new comparability ps? or in a cash balance plan/401(k) plan?

I'm getting mixed signals from what I read.

Participants self-direct & under PPA must receive quarterly statements. Do those quarterly statements have to contain vesting or is it sufficeint that vesting be included on an annual statement only? If I could get a cite to the correct PPA provision that would beneficial.

Thanks in advnace for any guidance.

I am looking at a plan that allows for hardship w/d, loans, and age 59-1/2 inservice w/d (this is a 401k plan). The owner would like to eliminate at least 2 of these 3 provisions. Is that allowable, or are all 3 considered protected benefits, that may only be allowed to be removed for new participants?

Thank You.

Company A has a 3 year cliff vesting schedule but no employer contributions have been made (401k only so far). Company B has a 5 year graded schedule. Company A is merging into Company B. Even though there are no ER contributions in Co A’s plan do we have to allow the participants the right to choose the 3 year cliff if they have at least 3 years of service? I know the answer is yes if there were actual $$s.

Could an employer choose to freeze or terminate a SIMPLE 401(k) and then start a regular 401(k) during the middle of a plan year? Does anyone know of a good reference book for SIMPLE 401(k) and SIMPLE IRAs?

Thanks!

Participant in a 401(k) plan died 4 years ago and his daughter has been receiving about $10,000 each year and her final payment (due to 5 year rule) of approximately $300,000 needs to be distributed in 2007. Can the daughter roll the remaining benefit to an IRA in 2007 and disburse each year $10,000 from the IRA? Would she be allowed to take only the minimum distribution based on her life expectancy from the IRA? The father died before his required beginning date. Thanks!

Which benefits are considered health plans versus welfare plans? It seems like they are interchangeable at times.

Medical I would assume is a health plan and life insurance a welfare but in reading information on line I have seem medical referenced as a welfare plan.

Is there a difference?

Moving forward participant directed account quarterly statements require a reference to the Internet webite of the DOL for sources of information on individual investing and diversification.

I looked at the consumer information section under dol.gov/ebsa and did not see a topic for individual investing and diversification. Should I be looking somewhere else?

Parent A owns 100% of Company X. A also owns 52% of Company Y with 4 adult children also owning 32%(8% each). The other 16% ownership is unrelated. I would just like confirmation that this would represent a controlled group since A owns MORE than 50%, thus requiring the adult childrens shares to be considered for a total of 84%. On the other hand, if A only owned an even 50%, and each adult child had 8.50% each totalling 34%, there would not be a controlled group situation between Company X & Y.

I have a Roth IRA that I would like to be able to transfer to my 401k plan at work. My company is now offering 401k roth that I can choose to change to if I want. But is there any way I can roll that Roth IRA over into a 401k traditional or roth?

Assume a sponsor of a defined benefit plan has underpaid certain participants due to an operational failure. The plan sponsor opts to correct the mistake under the SCP or VCP by making payments to affected participants that include the amount of underpayment plus interest. Does the interest payment come from plan assets, or from the employer?

Thanks for any ideas.

Existing DB client has some ownership in another entity that may or may not constitute an Affiliated Service Group (yes, it would have been nice to know that upfront, we did ask). The plan has been around a few years already. Will the IRS issue a PLR on just an Affiliated Service group issue by itself ? Or does it have to be part of a plan doc qualification submission ? Thanks.