Plan effective 4/1/04, with 9/30/04 PYE, so 2004 form is filed for the first plan year because it began in 2004.

Now for the 9/30/05 Plan Year, I need to file another 2004 form because that plan year began in 2004.

Will the DOL get confused (i.e., will the software program spit it out)? I'm wondering if my intitial form should be filed on a 2003 form to avoid confusion (obviously, I would indicate the appropriate plan year in the space provided).

Do foreign taxes get reported under expenses or earnings when filing the Schedule I?

Does compensation used to calculate matching contributions in a safe harbor plan have to match the compensation eligible for deferral?

Can an unmarried employee change his distribution election after he's already started receiving pension benefits?

I am desperate for some help regarding the following scenario:

We have a DB plan that is converting into a DC plan. However, there are some EE working under a CBA and some EE who are over 65 years-old who are going to stay in the "old" DB plan without being moved over into the new DC TSA plan. So, in effect, a 64 year-old EE will be moved over while his/her 65 year-old colleague WILL not.

In addition, under the new TSA plan, the participants will receive 18% more in contributions than under the old DB plan. So, in effect, the 65 year-old EE will not receive as much as their younger counterparts under the TSA because of their age.

Now, here are my questions:

1) Does this differential in contributions for 64 year-old EE and 65 year-old+ EE violate the ADEA since the 65+ EE technically are receiving exactly what they are entitled to under the old plan even though they do not have the same level of benefits under the new plan? They are going to be in the new TSA DC plan, but they are not going to be grandfathered in at the same 18% rate. However, they are going to receive everything they were promised under the old DB plan--there is no cutback or discrimination under the old plan. They will continue to accrue service credits under both the old and new plans but the level of benefits isn't going to change from what they were promised under the old DB plan.

2) Has anyone read any articles about converting DB plans to DC plans in any notable magazines like the ASPA or Journal Of Pension Compliance that might be helpful in this matter? Anything that deals w/ converting a DB plan to a DC plan would be helpful at this point.

Thank you in advance to anyone who can help me w/ this issue.

I am desperate for some help regarding the following scenario:

We have a DB plan that is converting into a DC plan. However, there are some EE working under a CBA and some EE who are over 65 years-old who are going to stay in the "old" DB plan without being moved over into the new DC TSA plan. So, in effect, a 64 year-old EE will be moved over while his/her 65 year-old colleague WILL not.

In addition, under the new TSA plan, the participants will receive 18% more in contributions than under the old DB plan. So, in effect, the 65 year-old EE will not receive as much as their younger counterparts under the TSA because of their age.

Now, here are my questions:

1) Does this differential in contributions for 64 year-old EE and 65 year-old+ EE violate the ADEA since the 65+ EE technically are receiving exactly what they are entitled to under the old plan even though they do not have the same level of benefits under the new plan? They are going to be in the new TSA DC plan, but they are not going to be grandfathered in at the same 18% rate. However, they are going to receive everything they were promised under the old DB plan--there is no cutback or discrimination under the old plan. They will continue to accrue service credits under both the old and new plans but the level of benefits isn't going to change from what they were promised under the old DB plan.

2) Has anyone read any articles about converting DB plans to DC plans in any notable magazines like the ASPA or Journal Of Pension Compliance that might be helpful in this matter? Anything that deals w/ converting a DB plan to a DC plan would be helpful at this point.

Thank you in advance to anyone who can help me w/ this issue.

I need to have a sample, prototype agreement for outsourcing Cobra administration to a third party vendor. My legal area wants sample language that should be standard in contracts like this. If anyone has an agreement to share, can you please email it to me at ann@sageviewconsulting.com. Thank you.

Retirement plan client called and asked about filing a 5500 for their cafeteria plan. I wasn't sure so figured I'd solicit help from the experts.

Plan has three components: Medical Premium payment, Dependent Care Reimbursement FSA, and Unreimbursed Medical Care FSA. Up until this last year all were funded with employee dollars.

The last 5500 was filed in 2001. It was filed along with only a Schedule F. Plan has (and always has had) under 100 participants.

The medical premium is paid every pay period. But, obviously, the FSA's have assets that need to be tracked.

I don't believe a filing is required, but should they have been filing? If so, what Forms should have been included?

This year the plan also has a matching feature where the company will match 25% of all employee dollars contributed to the medical FSA up to a max match of $455. Does that change the answer? No HCE's participate so discrimination testing issues.

Any help provided will be much appreciated.

I am curious if there are different opinions on this question. If a change in pre-retirement interest from the previous valuation is made, do you think that interest rate is in effect for the entire plan year or starting with the valuation date? I understand it's a moot question for a BOY valuation date.

But for an EOY valuation it does have an effect, so I am curious if everyone has the same opinion. I will withhold my opinion for now.

I am preparing a final 5500ez.

Question :

All my plan assets from a profit sharing plan went directly into my IRA account. Is it proper ot list it on line 10d. ?They were rollovers as well as direct transfers.

Thank-you

Please help alleviate some confusion in regards to "church plans" I am having difficulty getting my arms around the definition of a church plan. More to the point - is a church that establishes any type of plan (e.g. 403((b), 401(k), etc.) considered a church plan? Or is a church plan based on rules found under 414(e)?

Also, I am aware a Church which establishes a 403(b) can invest in retirement income accounts (403b9). Are all employees of the church eligible to investment in retirmeent accounts or only ministers for tax purposes.

Any additoinal information on this topic is appreciated.

Thank you

According to Sal Tripodi's ERISA Outline Book, when you have a short plan year, for eligibility and vesting you look at hours for the 12 months beginning with the first day of the short plan year per DOL 2530.203-2©. I believe that somewhere in the past I have read that you could also use the 12 months prior to the end of the short plan year, i.e., if the short plan year is from 01/01/2006 through 6/30/2006, you could use hours from 7/1/2005 through 6/30/2006. Has anyone else seen that? Also, what about just putting in the short plan year amendment that anyone with one hour of service in the short plan year is granted a year of service? Anyone seen a PLR, IRS Q&A or anything that would allow either of these? I really don't want to wait 6 months after the end of the SPY to calculate vesting! Thanks.....

Employee terminated 6/30/06. Completed request for distribution upon termination. Re-hired 7/5/06. Can distribution still be made?

daughter of an owner is classified as an HCE. her husband, who makes less than 90K and has no ownership, is he classified as an HCE for adp test purposes? imo he is not.

Any idea how to handle the allocation of forfeitures in frozen MPPP where the formula was amended to 0% of compensation? The TPA firm may or may not have read the allocation provision of the plan document which allowed for forfeitures to be used to pay plan admin. expenses. In any event the TPA firm allocated forfeitures on the basis of compensation or they might have used current acct. balances over total acct. balances to make the allocation. Have tried to convince client to terminate the MPPP to get it out of the way, but to no avail. Any suggestions appreciated.

Calculating quartlerly contribution penalty for 2006 calendar year plan. Contribution of $50,000 made on 4/1/06 for the 2005 funding standard account. For the 4/15/06 quarterly requirement, it is my understanding that the contribution made on 4/1/06 receives interest from 4/1/06 and not 12/31/05 even though it is part of the 12/31/05 credit balance and made before the 4/15/06 quarterly due date. Am i thinking correctly or not?? Thanks.

Client is closing a plan because he is joining a larger medical practice. He doesnt like the investment choices he will have in the new plan and has asked where can he put his $ and still protect it. If he opens a plan and is the only participant he is not protected under ERISA... what are his options. IRAs are subject to litigation... what to do

Thanks!

Can a participant have a negative cash balance and a positive stock balance?

Plan has immediate entry for 401(k) but 1 year of service for the safe harbor match. 3 HCEs become eligible after the beginning of the year for the safe harbor match.

Question:

Is adp/acp testing performed with these hces included or because they became eligible for the safe harbor match during the plan year, are they deemed to satisfy the adp/acp safe harbor requirements?

Howdy Folks-- I had this posted on "Correcting Plan Defects"...quite a few people read it, but never got a single response. Maybe I will here.

A client with a 401(k) plan began providing a matching contribution Jan 1 this year, with the maximum match equaling 3% of compensation. At the same time he reduced contributions in his Section 125 plan by 3%. When the employees complained, he decided to provide an additional 3% in the 125 plan for employees who make no 401(k) contributions (and thus get no match). His thinking was that this way everybody will get 3%, either in the 125 plan or in the form of a matching contribution in the 401(k) plan (or a combination of the two, for those who receive a match that's less than the maximum).

Since this makes an employee's benefit in the Section 125 plan contingent on the amount he contributes to the 401(k), it's a clear violation of the contingent benefit rule in section 401(k)(4)(a). But what would be the least painful yet appropriate correction for what has already happened the first half of this year?