I am assisting an employer of a multiemployer plan that has been assessed mass withdrawal liability. The fund has proposed a four year payment schedule. The employer is seeking ideas on how to reduce their mass withdrawal liability and is willing to take an aggressive stance. Has anyone been able to reduce mass withdrawal liability other than by negotiating a reduction in the liability with the fund, obtaining an actuary to rerun the numbers, or extending the term of the repayment obligation?

I appreciate any and all suggestions.

Assume a plan participant had named her 18 year old daughter as her designated beneficiary under a 401(k) plan. The plan participant dies in late 2006, Under Section 829 of the Pension Protection Act of 2006, the daughter can elect to roll over the 401(k) account balance into an inherited IRA. Is the daughter required to begin receiving distributions during 2007 over her life expectancy? If this was the situation under the 401(a)(9) regulation effective in 2002, is the importance of this change only that the daughter can name a beneficiary of her inherited IRA? Thanks. Ed

You know and I now that you can't have a SIMPLE and a 401k plan at the same time. The IRS' web site even has a nifty little FAQ that helps make that clear to non-pension professionals.

The client has a controlled group. Yes, we've asked them every year about family members owning other businesses. Yes, every year they've told us "no." Turns out they've got a controlled group.

The company I knew about is my client. They sponsor a 401k plan. The company I didn't know about has a SIMPLE.

Only 1 NHCE contributed to the SIMPLE this calendar year. Do you just disallow the deduction to the SIMPLE and go forward?

I've looked, but I can't seem to find anything that gives me a hint as to how to fix this thing.

Thanks

Christopher

Does anyone know when these will be published? I know it has been in the month of October in the past, but I am attempting to complete some modeling for 2007 and I do not have the limits - specifically 401(k) and catch-up. Any help would be appreciated.

Does anyone know if you can create a report based on an account activity detail that will show activity by participant by month for the whole year? Sort of like the following?

----------------------- Beg Bal -----Contributions -------- Distributions ----- Gains/Losses -----End Balance

Participant Name

January

February

March

April

May

June

etc

Total

Thanks for any help in advance!

What are the penalties for a plan not being covered by a fidelity bond, if any?

We have a bunch of clients (some with a few $MM) and no bond.

If a state maintains a Section 401(a) defined benefit plan which permits employee voluntary after-tax contributions and the state also has a Section 457 plan to which employee may contribute through a salary reduction agreement on a pre-tax basis, are the employee pre-tax contributions to the Section 457 plan aggregated with any after-tax contributions to the 401(a) plan in determining a participant's annual additions for a limitation year?

I think I have this right, but I was hoping someone would verify:

401k plan started in 1997. Had a document at the time but never amended. 40 participants. Therefore, they need GUST, EGTRRA, RMD, Inv dist. We will have all the documents drafted, signed and dated (current dates) and follow the VCP submission process. Compliance fee is $1,000.

So far so good???

Also, is it required they they also request a document determination letter (we are using a prototype) and, other than the compliance fee, is there any additional up front or post review government fees/penalties for using VCP?

Thanks

We are a cost containment company specializing in medical bill review for group health and workers' compensation. We've been in operation for over ten years.

I'm looking for brokers that will market our services to their clients. We have a competitive broker agreement and will offer their clients free test bills to show the strength of our product.

I appreciate anyone's help for recommendations.

I know that elective deferrals are not really "elective deferrals" if they are paid into the plan before the compensation is earned. I'm trying to find the site for this. Can anyone help me?

Currently a GHP that offers a self-funded dual choice HDHP (HSA eligible) and a PPO. Currently- spouses w/ access to coverage by another employer are not eligible to participate. Are there any problems with changing eligiblity on the HDHP only to allow spouses w/ coverage elsewhere to enroll on the HDHP but NOT on the PPO. In particular are there HIPAA nondiscrination issues, cafeteria plan or self funded medical plan discimination issues?

Thanks for you help!

Participant took a hardship distribution for the purchase of a primary residence. At the time of closing something came up and the participant did not end up buying the house.

What happens at this point? Can it be put back into the plan?

I will sleep better knowing that the IRS has addressed this very important topic:

http://www.irs.gov/newsroom/article/0,,id=161151,00.html

HI,

As people often say on this board, I am out of my element. I received a question as follows: Employer makes contributions to HSA. The employer makes the contributions to the individual bank accounts of each employee. Two employees were naughty and the bank closed their accounts. Now the employer has no where to put the money. Based on what little I've read so far, the employer cannot simply not make the contributions for these employees just because they don't have a bank account. What are the employer's options? What if the employees don't set up new bank accounts or no bank will have them? I don't know how employer contributions are normally invested for HSA's. Is this normal for individual bank accounts?

Thanks!

Company has a cafeteria plan and the following benefits provided are on a pre-tax basis: health, dental, cancer policy and vision. Each benefit has more than 100 participants. The company is self-insured and has set up a "Trust" for the plan assets. I understand this requires filing and an independent audit.

The company also provides two benefits that are not under the cafeteria plan, so premiums are not pre-taxed for short term disability and group term life insurance. Participants in these benefits exceed 100 as well.

I know we no longer file for the "cafeteria plan", but must file for the welfare benefits under the cafeteria plan.

What about the two benefits not under the cafeteria plan? Must they be reported and if so, is a Schedule A for each benefit just attached to Form 5500 (even though the name on the 5500 reflects the cafeteria plan name?

I would appreciate it if someone could clarify for me.

I am assisting an employer of a multiemployer plan that has been assessed mass withdrawal liability. The fund has proposed a four year payment schedule of an amount in excess of $3 million. The employer is seeking ideas on how to reduce their mass withdrawal liability and is willing to take an aggressive stance. Has anyone been able to reduce mass withdrawal liability other than by negotiating a reduction in the liability with the fund, obtaining an actuary to rerun the numbers, or extending the term of the repayment obligation?

I appreciate any and all suggestions.

Help please! I have a physician client who is the trustee of his practice's 401(k) profit sharing plan. His brother works at the practice as a technician. The brother's wife is working for a new local bank, and he wants to buy $60,000 of stock in the new bank. (Not publicly traded) The participant's do have self-directed accounts. I have tried to talk them out of this because it seems troublesome and expensive but have been unable to find on paper any reason that it is not allowable. Thank you for any guidance.

I have an ESOP and they are 2 years behind in giving me some benefits. I am afraid I will not get my lump sum when I turn age 62. Are their attorneys who specialize in this type of law and how would I find one. Thanks.

1. From what I have seen, the new funding rules in Title I of PPA 06 apply to cash balance plans as well as others. Is this correct?

2. Notwithstanding anything in PPA 06 about interest credits being within a market rate of return:

Has anyone ever heard of a cash balance design that allows for individually invested accounts equal to the hypothetical accounts, where the rate of return is then somehow justified in the document?

I don't know all the specifics, but apparently, for example, if a participant gets a 20% return on their account for the plan year, then somehow there is a mechanism in the document that gives them 20% on their hypothetical account.

Seems very far out there, as well as contrary to the definitely determinable rules, to me. But a contact mentioned it.

What is the difference between a Commingled Trust Fund and a Collective Investment Fund?