What is your reading of PPA with respect to providing a diversification notice to participants -

If a plan already satisfies the diversification requirements, do you think PPA still requires that the plan provide participants the notice informing them of the new rules, i.e. essentially informing them of their rights to do what the plan already allows them to do?

A client wants to set different maximum contribution limits for employee contributions to a health FSA under section 125 based on length of service. The TPA has said that doing so would violate nondiscrimination under 105(h) based on Treas. Reg. 1.105-11©(3)(i), which says that any maximum contribution limits on employer contributions cannot be modified based on length of service, etc.

I'm fine with applying this to employer contributions, but these are employee contributions. The TPA takes the position that once the employee contributes to the section 125 plan, the money becomes an employer contribution. I disagree, but have nothing more solid to go on then my logic, which doesn't always line up with the IRS logic. The further problem is that I see this done on a semi-frequent basis and have never thought it would fail nondiscrimination. Has anyone seen anything to contradict (or support) what the TPA is saying?

I find that I am in need of the annual compensation limit and DB maximum annual benefit in effect for 1991 (how strange is that?)

As it happens I have the benefit limits from 1975 - 1989 (except 1987) and both from 1996 through today, but I was doing other things in the early 90s and didn't keep my list up to date.

Are there any other old timers around with those old numbers buried in some old file somewhere?

Let's say a DB plan terminates and the value of the plan's liabilities exceeds its assets by $200,000. Let's assume further that a majority owner is due a lump sum as a result of the plan's termination equal to $300,000. The Company doesn't want to or cannot contribute the extra $200,000 so the majority owner agrees to waive $200,000 of his benefit. The majority owner receives $100,000.

Under these circumstances, is the majority owner taxed on the entire amount of his benefit ($300,000) or just the portion of his benefit that he actually received ($100,000)? Does the plan issue a 1099-R for $300,000 or $100,000?

Is the answer different if, instead, the majority owner decided he didn't really need any of his benefit and (1) waived the $200,000 and (2) had the remaining $100,000 used to "gross-up" the distributions made to the other participants? In this case, does the plan even issue a 1099-R?

A CPA told me in passing that when an individual has a vested, legal right to income, they cannot avoid including that amount in their income simply by "turning their back on it". Of course, my response was that it really isn't income, is it, if they do "turn their back on it". The CPA's response was that I was thinking about actual, as opposed to constructive receipt.

Surely this is not a new "issue". How have others handled this sort of situation? Thanks!

This is probably something I should know.

A terminated vested participant who is married died at age 54. The plan document and Summary Plan Description only discuss death benefits for active participants who die. Is it true that a terminated vested's widow is also due a survivor benefit by law?

Does anyone have an updated Safe Harbor Notice?

Why am I so inept at searching this board for simple answers?

Can a participant make a Roth IRA contribution and also participate in a QP in the same year?

Thanks!

...are smelly.

Has anyone heard of a Change in Control Form 5500?

Am I correct in saying that a sole proprietor would need to apply for a Tax ID when establishing a 401(k)?

Dave

Are other TPA firms obtaining SAS 70 certification? What's the prevailing rationale for either foregoing the certification or obtaining it? Thanks!

Is it permissable to roll money from a simple 401(k) plan to a regular 401(k) plan

Has anyone else read this one? PPA establishes a 14 day self correction period for fixing sec 4975 PT. Does this mean if you correct late contributions within 14 days of finding the missed/late contributions you don't need to file 5330?

Any help appreciated. Reading this stuff makes my head hurt.

HI All,

Do I need any special certifications to file a VCP for a client who is a nonamender? I have the NIPA APA, is that sufficient?

THanks in advance

I represent a client whose 3rd party recordkeeper mailed a disk with census date (including SSNs) to the wrong Company. The disk was returned promplty and the client currently has the information. Does the employer have a duty to disclose this mishap to participants? If anyone has had a similar situation or any insight into the matter please let me know what you think. Thanks.

New to the 401k world...Annual Compensation Limits?

I'm seeing conflicting information on these:

are in -service non-hardship distributions allowed in a profit sharing plan?

in a 401(K) plan?

Thanks,

Steve

I am being asked by many clients if participants can rollover from either the company's profit sharing plan or the company's 401(K) to an IRA while still employed by the employer.

What are the ramifications here?

Is it permissible to do the following things to a multiemployer plan:

1) Can a a Taft Hartley multiemployer plan be frozen, so that there are no accruals, while contributions due under the plan are used to decrease the plan's underfunding; and

2) If the plan is frozen, and amounts contributed are used to fund previously accrued benefits, does that still count as "fringes" under Davis Bacon?

are there any provisions in the code or regs that speak on these issues?

thanks in advance for any help you might be able to lend me.

deleted