I am new to this area so I need a little assistance.

Is there a new ruling with respect to the impact of deferring a benefit? This is all of the information I was given, other than the fact that it was under PPA.

I have done some research and have not come up with anything - any assistance, with the appropriate cite, is appreciated.

Thanks.

In 1999, an individual contemplated converting a traditional IRA to a Roth IRA. However, as the individual's AGI was several hundred dollars over the threshhold amount, this was not possible. However, the custodian opened up a Roth IRA for the individual. The individual never paid taxes on the conversion as he claims he was not eligible to do the conversion.

Is there anything the individual can do at this point? Any corrective programs?

One thought is to roll over the amount in question to a new custodian and establish a traditional IRA. I'm not sure if anything else can be pursued at this late date.

Thanks in advance for your assistence. Ed

We have a frozen DB plan and the CPA is asking us if she should check Box 13 of the W-2 (Retirement Plan). Any thoughts?

Thanks!!

Please help. I am working with a new client (as of January 2007). They sponsor a 401(k) plan that is currently on an individually designed plan document. In addition, they are a Cycle A filer. The plan appears to be up-to-date through the final 401(k) regulations amendment. We understand that the document should be restated for EGTRRA and sent to the IRS for a determination letter by January 31, 2007.

However, the client is considering moving to a prototype document, but is not sure and would like additional time to make some decisions about the plan, not only prototype versus individually designed, but also design features. How should they proceed?

For instance, if they sign a Form 8905 by the end of January 31, 2007 should they adopt a new EGTRRA document by January 31, 2007 in case they want to be an individually designed plan?

If they sign a Form 8905 in January, then in March (for example) can they change their mind and remain an individually designed plan and submit for a D.L. even though it is now Cycle B? What are the consequences of off-cycle filing?

Any guidance would be greatly appreciated. Thank you!

If a self employed (unincorporated) business later forms a partnership (PLLC), does all service start over if want to establish a SEP for the PLLC or can prior service be recognized.

My company recently went through a change in ownership and eliminated the 401(k) plan. I'm in the process off rolling over the 401(k) into a traditional IRA. I also have a Roth IRA. Can I contribute the maximum of $4000 into each IRA? That is $4000 into the traditional and $4000 into the Roth IRA. Thank you to any one who has any accurate information.

My wife works for an employer who uses Merrill Lynches Prototype SIMPLE IRA documents. The adoption agreement clearly states that Merrill is not acting as a designated financial insitution. The salary deferal agreement clearly states that participants can invest their contributions at the financial institution of their choice if there is no designated financial institution, which there clearly is not. However, the financial institutions we have asked to open accounts say they cannot open an account using Merril's adoption agreement and the employer must sign an IRS model 5304 for accounts not to be held at Merrill. But this doesn't make any sense. How can an employer sign multiple adoption agreements on different dates? Can financial iinstitutions accept other financial insistutions' prototype SIMPLE IRA adoption agreements. If not, this would seem to defeat the IRS intention that participants control their SIMPLE IRA accounts including where they are set up.

A defined benefit plan has a proposed termination date of 2/28/07. The current plan document offers 50% and 100% joint and survivor annuities as optional forms of benefit. Are there new PPA rules which require this plan to offer 66 2/3% or 75% as an option? Or can we continue and offer just those two forms of benefit besides single life?

A participant over 70 1/2 in a MP plan has terminated. It is a 9/30 plan year but we have the account balance as of 12/31/06. The 9/30 contribution has not yet been deposited. I know that in general, we do not have to accrue the contribution in to the balance for the calculation, however, for a terminated participant, should it be accrued in? Otherwise, when the contribution is deposited at some point this year, that amount will be rolled over in full.

Assume a plan holds an interest in a private venture capital fund. Do the ERISA bonding requirements apply to those individuals who invest on behalf of that fund?

I have a "frozen" plan whose termination date is anticipated to be 4/1/07 - the plan year runs 7/1-6/30 - the client purchased annuities for all inactives this past December - we are just now doing the 7/1/06 actuarial valuation.

I anticipate 2 bases being created as of 7/1/06 - (1) an experience base determined using the funding assumptions in place as of 7/1/05 and (2) using the annuity values for the inactive liability as of 7/1/06 & creating an assumption change base - naturally the final charges will be pro-rated for the 9 month period up to the date of termination.

It has been suggested that I only value the active life liability as of 7/1/06 and, assuming I change assumptions to anticipate their elections and respective liability as of the termination date of 4/1/07, make the before/after assumption change liability for this group my "assumption change" base.

Question : Which is the more actuarially correct way of creating the assumption change base ? do both methods produce the same base ?

I have a "frozen" plan whose termination date is anticipated to be 4/1/07 - the plan year runs 7/1-6/30 - the client purchased annuities for all inactives this past December - we are just now doing the 7/1/06 actuarial valuation.

I anticipate 2 bases being created as of 7/1/06 - (1) an experience base determined using the funding assumptions in place as of 7/1/05 and (2) using the annuity values for the inactive liability as of 7/1/06 & creating an assumption change base - naturally the final charges will be pro-rated for the 9 month period up to the date of termination.

It has been suggested that I only value the active life liability as of 7/1/06 and, assuming I change assumptions to anticipate their elections and respective liability as of the termination date of 4/1/07, make the before/after assumption change liability for this group my "assumption change" base.

Question : Which is the more actuarially correct way of creating the assumption change base ? do both methods produce the same base ?

I'd like to know how other church plan practitioners handle the Notice to Interested Parties required in connection with an IRS determination letter filing. The material on comments by the Department of Labor is misleading unless the plan has elected ERISA coverage, but it's in the form the IRS includes in its annual determination letter Rev. Proc. I put the DOL comment section in with a boldfaced sentence that reads "Note: This plan is not subject to the jurisdiction of the Department of Labor under Title I or IV of ERISA."

I would appreciate insight into what others do.

Thanks.

Can a church establish a 401(k) plan?

Can a plan document require that a participant's election be terminated on the occurrence of a certain event? For example, if an employee is on a leave of absence....can the plan document state that a participant's election to defer into the dependent care assistance account will be terminated when a participant goes on a leave of absence? I know a participant can make this election as long as there is a change in status.

Our new CEO is interested in offering executive physicals as a perk. He is apparently interested in a program similar to that at the Mayo Clinic. I have obtained some benchmark data on prevalence and am now seeking more specifics - tests and screenings included, costs - anything that may be of value. Thanks.

A participant of a multiemployer pension plan recently passed away. The participant's benefits were 100% vested. The participant, however, stopped working for a contributing contractor in 1979. Should the plan refer to the plan document that was in effect when the participant last worked (i.e., 1979) or the current document in determining whether the participant qualifies for a death benefit to be paid to his beneficiary?

Thanks!

A participant of a multiemployer pension plan recently passed away. The participant's benefits were 100% vested. The participant, however, stopped working for a contributing contractor in 1979. Should the plan refer to the plan document that was in effect when the participant last worked (i.e., 1979) or the current document in determining whether the participant qualifies for a death benefit to be paid to his beneficiary?

Thanks!

I have a plan that excludes Collective Bargaining Employees. On May 1, 2006 a participant in this category became a salaried employee. His original date of hire was in 1996 and he has always worked 1000 hours.

My question, the plan has eligibility requirements of 21 and 1 year of service with entry dates of 1/1 and 7/1. There in no provision in the plan for previous service.

When does this person enter the plan? Immediately? 7/1/06? 1/1/07? 7/1/07?

Can employers of domestic employees (including nannies, babysitters) sponsor SIMPLE IRAs for them?

If so, are the contributions deductible, even though the employment is not occurring in the context of a "trade or business" (thus qualifying for a section 162 deduction)?