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If so, does the language differ significantly from that of a VEBA? Any suggestions on where to access a form 115 Trust?

I am finding conflicting information on the definition of an independent qualified plublic accountant.

Is it at all feasible that a CPA firm that provides TPA services for the plan sponsor also perform the IQPA audit? It seems logically, the answer is no. How is it possible to remain "independent" if the firm is also providing TPA services? 29 CFR 2509.75-9 addresses the guidelines for determining when a QPA is independent, however, as I am not a CPA, the terminology used in the bulletin doesnt seem very clear to me. Any input would be helpful.

Must an employee on group health coverage (subject to COBRA) currently who refuses to complete a mandatory online health risk assessment during open enrollment be offered COBRA?

The rationale for your answers is most welcome.

A plan sponsor of a self-funded group welfare plan wants to reimburse themselves for consulting fees on their plan. We are the TPA and feel this may be a prohibited transaction and are also concerned about our role in this request as a fiduciary. We bill the client by location and cut the checks for administrative expenses, stop loss, etc. They are requesting that we add an amount per member per month to the bill for their consulting on the plan and then once each location has paid, cut a check back to the company for that amount. They do contribute a good deal of time in the administrative aspect of the plan so therefore feel this is a justified expense to the plan. Has anyone ever run across this situation because we have never heard of this being done?

A particpant has died and named his two daughters beneficiaries - no spouse.

One daughter is 21, the other turns 18 this month.

There is an outstanding loan in the amount of $1,200.

How is this handled:

a. In regards to a minor as a beneficiary at the time of death

b. In regards to the outstanding loan

Thanks!

A participant in the multiemployer welfare fund has what is called a dollar bank and for each hour he works he earns an amount equal to the contribution rate for the Fund. Upon establishing the required contribution amount in his dollar bank, the participant becomes eligible for participation in the Fund. If the participant has a shortfall in his dollar bank, he is allowed to self-pay in order to maintain he coverage. If the participant has a balance in his Dollar Bank that does not meet the eligibility for coverage, and he does not choose to make self-payments to maintain coverage, the participant will be offered COBRA. If the participant does not elect COBRA and he does not provide documented proof that he is eligible and enrolled in other health coverage, any existing Dollar Bank balance will be forfeited.

Is it legal for the Fund to forfeit the participant's balance in his dollar bank keeping in mind that the contributions are part of a wage package?

Thanks

Can a Trustee of a Multiemployer Defined Contribution Plan also serve as the Plan's Plan Administrator?

This is a follow-up to a prior question - but my boss really liked the QSLOB idea so I have to ask. We sponsor a safe harbor 401(k) plan (actually, there are two plans w/ the same plan year that are tested together).

We are wondering if the status as a safe harbor plan makes it impossible to take advantage of the QSLOB rules (I believe under IRC 414®). We will likely need the QSLOB to pass coverage (410(b) testing) for future years to exclude this group of employees - so the question is whether we should bother going through the 414® analysis (which is complicated from what I understand) or is it safe to say that you cannot take advantage of the QSLOB rules if you sponsor a 401(k) safe harbor (via matching contributions - ADP and ACP) plan.

I know the ADP and ACP tests are separate from the 410(b) coverage tests - but I think the QSLOB rules also impact ADP/ACP testing.

Just wondered what your thoughts were since you all seem to know the practical ins and outs of these kinds of these plans.

I have a client that has a qualified 401 K plan and they are a non-for-profit organization. They have invested 85% into a new for profit enterprise and are going to begin new operations in that enterprise. More than 700 employees are being laid off from the first company and 50 or so are being offered employment in the new company.

Because this is a massive lay-off, they are fully vesting all participants in the current 401 k plan. However, the 50 or so employees are being told that they are fully vested in the existing plan, they are being told that they can not "roll-over" their accounts to a "roll-over" IRA or take a distribution as this is a "control-group". They are also being told that they can no longer contribute to the old plan.

This does not sound correct to me. I think that this is a distribution event and that they must be allowed to participate in the exisiting plan or that the new company must set up a new plan that mimicks the existing plan or they must set-up a Multiple EMployer Plan.

Please help. Thank you.

An employer did not apply employee deferral elections and is making a corrective contribution to the plan in the form of a QNEC. This won't affect the employee's 402(g) limit for the year will it? Seems like it will be a windfall to employees. Is there a site you can give? Thanks!

This post concerns document amendments in general, not necessarily GUST or EGTRRA, but I thought I'd post here anyway.

Is there a correct answer as to who should sign a plan amendment - trustees or plan sponsor or both? I've seen generic amendment packages from various document providers (Mckay/Hochman, Accudraft, FT William) and there doesn't appear to uniform agreement on this. Is there a different answer if its a document restatement rather than a small amendment?

Thank You

Treasury and DOL regulations require that a notice be provided within a reasonable time period before a mandatory distribution, stating that in the absence of an affirmative election to direct a rollover to an eligible retirement plan, the distribution will be rolled over to an IRA. Notice is provided on employee's date of termination explaining the auto rollover rules. Assume a year goes by and the terminated participant's account balance drops to between $1,000 and below $5,000. Is a notice required or can the account balance be automatically rolled over to an IRA based on the notice provided at date of termination?

Suppose you have a one participant DB with a NRA of 62. The plan has a benefit formula of 100% of FAC. The participant will reach age 62 this year, so this will be the final contribution.

Suppose the contribution is $100,000. Could he fund $50,000 by March 15, 2007 (initial tax filing deadline) NOT GO ON EXTENSION and file the remainder before September 15, 2007? Our understanding is that $50,000 would be deductible in 2006 but we are not sure the remaining $50,000 is deductible for 2007.

Hi, I am hoping that someone here has the expertise to provide me with some assistance.

My former employer changed 401K plans in March of 2006. Through a piece of random correspondence, I am now finding this out as well as that my investment allocations were not mapped, and everything was put into a cash management fund with a very low return.

My question is- is the company obligated under ERISA (or anything else) to a- Map my account investments appropriately (my fund allocations that appear on my 12/31/05 statement from the old vendor appear exactly as choices with the new company) or b- should they have made their best effort to notify me of the change? I have not moved and I have received other correspondence from them during this time so I know that they had my address.

Thanks for the help!

client will be 70.5 in January 2007. He has a plan himself but also works for a totally different company. We will take the RMD from his plan no later than 4/1/2008 but since he is not an owner of the company sponsoring the other plan and is still actively employed he is not required to take a RMD from that plan.... correct?

also, His plan is a MP... other plan is a 401K.

Any faults in my reasoning pointed out or observations appreciated!

Thanks

Safe Harbor Plan using the Basic Match to satisfy ADP

Currently no other contributions.

If not SH, Plan would be top heavy.

If not SH, Plan would be fail ADP.

I have a plan with the following employees

Owner 1 - 40% - Comp 220000

Owner 2 - 40% - Comp 220000

Owner 3 - 10% - Comp 200000

Owner 4 - 5% - Comp 180000

Owner 5 - 3% - Comp 160000

Owner 6 - 2% - Comp 140000

3 Other HCEs

20 NHCEs

The top owner want to change the SH to the 3% SHNEC. He wants to provide it to the following:

all NHCEs

the 3 Other HCEs

Owner 6

Owners 1 and 2.

If Owners 3-5 make their quotas, he also wants to reserve the right to provide them with a 3% NEC. (They are not required to receive any contribution b/c they are keys and the plan will exclude keys from getting T-H minimum.)

Can I draft a plan provides the 3% SHNEC as stated above? If so, do I do so by excluding Owners 3-5 out of that portion of the plan? If so, I figure I can say that any owners under 40% making more than 150,000 are excluded from participation. (This is also how a plan on writing the tiers to maximize Owners 1 and 2.)

Is there any additional info or idea anyone can suggest? Any help is greatly appreciated.

A company sets up a multiple employer retirement plan as a leasing organization. It gets a favorable determination letter for the plan. 25 adoption agreements are signed by 25 separate employers under the master plan.

How many 5500s are due? One for the master plan, including information for all 25 employers? Or should each of the 25 employers be filing its own 5500?

I have been informed that a termed employee wants to roll their money into their current employers 401(k). It appears that the prior administrator put a stop on the account, in anticipation of receiving a DRO back in 2001. The ppt. can not roll over the money because of the stop. I found no record of a QDRO and the trustee says that there has been no transfer of funds.

Does anyone have any suggestion as to I should receive from the ppt. so that I can remove the stop? Divorce decree?

Your assistance is greatly appreciated.

Employee is over 65 and entitled to Medicare. Employee was on short term disability but will shortly move to long-term disability. When this occurs, the employee will lose medical coverage. Employee does not currently intend to retire or otherwise terminate employment.

Has a COBRA qualifying event occurred because medical coverage was lost because of a reduction in hours (to 0)? Or is the employee not entitled to COBRA?

Any other considerations that I should be aware?

Thanks.