Looking for a report that will run on Relius version 11 that will list the following information for each participant on one line showing multiple participants on one page.

Name, Beginning Balance, Contribution/Forfeitures, Gain/Losses, Distributions, Ending Balance, and Vested Balance.

Has anyone created such a report. I have a few plans that require an audit and this is being requested by the auditor.

What steps must be taken to terminate a SIMPLE IRA Plan? Does anyone have a sample notice to employees to notify of the SIMPLE IRA termination?

Does anyone have have something I can "site" for an angry terminated particiant who is being charged a yearly maintenance fee? I believe this is okay but can't find anything in the regs to sustantiate the fee.

The new safe harbor that was created by PPA for autoenrollment plans requires the automatic deferral increase provision (among all the other requirements). That I understand.

But. there is some disagreement in our office about whther or not an existing SH 401k plan would be required to implement the auto increase if they add the automatic enrollment feature to their existing plan to maintain their safe harbor status.

I have not seen anything on this so your thoughts are appreciated.

We are a local governmental entity and started having mandatory employee contributions into our VEBA plan that was previously only funded by employer contributions. The employer continues to still make its contibutions. Currently, the employee contribution is being made with post tax dollars. Is there a way to have the employee contribution come from pre tax dollars? Please Help!!

Our open enrollment period for the flexible spending account program runs during a specified month of the year. All materials are quite clear as to the date the open enrollment closes. The forms also clearly state any elections submitted after the close of open enrollment will not be processed.

This year a form was submitted electing NOT to participate in the flex spending. Five days after open enrollment closed, the person changed their mind and called to ask that their election be changed so that they could particpate in the flex spending program. They were initially told this could not be done as open enrollment had closed. This was a person with high rank, and suffice it to say, 17 days later an email was sent out to most of our 3800 employees (about 1000 do not have email access) advising that the open enrollment period had been extended by one month.

There was no plan amendment for this, simply an email going out to some, not all, employees. My feeling is that we are not in compliance with the Plan, or IRS regulations, and may have jeopardized the entire plan. I seem to be the only person worried about this. Am I correct in worrying?

Do the new vesting rules under PPA allow you to apply a 3-year cliff vesting schedule to matching contributions and a 6-year graded schedule to employer non-elective contributions? All of the various PPA explanations I've seen seem to imply that all employer contributions must be subject to the same vesting schedule. Under Code Sec. 411(a)(2)(B), is it possible to define the term "plan" to apply separately to the different contribution sources (similar to what the minimum coverage rules allow)?

Do all employees in a controlled group have to be eligible for a 401(k) plan in order for the 401(k) plan to meet the safe harbor matching contribution rules? Assume, for example, that you have Corp. X and Corp. Y in a controlled group. Assume Corp. X sponsors a 401(k) plan. Assume further that the plan satisfies Code Section 410(b) even if no employees of Corp. Y participate in the plan.

Now, assume X wants the plan to be a safe harbor matching contribution plan. Is that possible without letting Y employees make elective deferrals? Note that Treas. Reg. Section 1.401(k)-3©(6) says the plan cannot restrict "elective contributions by NHCEs" and does not say the plan cannot restrict "elective contributions by eligible NHCEs". The terms "eligible NHCEs" and "NHCEs" are two different terms.

Yet I thought not all employees in the controlled group had to participate, as long as the plan met 410(b).

A landscaping company hires Mexican laborers under a program called H2B. As the owner explained it to me, each state is allotted a certain number of these workers. Attempts must be made to hire American workers first. If this cannot be done, an application is made for H2B workers. They tend to be seasonal, but return year after year. He wants to eliminate these workers as a class from his 401(k) plan.

1) Does anyone know anything about this program?

2) If any does, can workers in it be eliminated as a class from plan eligibility?

Just when one thinks he has seen it all! Thanks

Two items:

1. Are the slides for past sessions available to those who missed them?

2. Joan's session today (9/27) showed several areas where additional guidance is requested. Can we find volunteers to draft suggested answers to those areas needing guidance?

Examples: What do we want to see in PBGC regs on missing participants?

Can we enumerate a list of "market rates of return" acceptable for cash balance plans?

Can we have ADEA exemption if the older HCE has a lower contribution than the younger HCE?

Is there a way to avoid the "moral hazards" of timing the actuarial certification of AFTAP? How can we protect the industry from criticism/litigation over the timing of benefit freezes caused by underfunding.

Can a valuation performed at the end of the year serve to determine the AFTAP for the next plan year?

How do we help a client elect use of the COB or waiver of COB?

What is the best way to satisfy 204(h) advance notice with the AFTAP suspension of benefit accruals?

What will be the allowable benefit payment on the restricted benefits at 60-80% funding levels? Plan rate, new 417(e) rate, PBGC premium rate, PBGC plan termination rate?

What will happen to 415 limits that would be limited under 401(a)(17)?

How do you determine or document that a contribution is to pay for a benefit increase rather than the normal funding? What will the schedule B need to disclose?

How will the threshold rates for 2007 be applied to determine if 2008 restrictions are in place? Highest allowable interest rate, or rate used by actuary for CL? or 412(l) value?

What effect will result from purchases of annuity contracts that are subject to dividends or excess interest credits? Will the purchase price be used?

If we fund benefits on an end-of-year valuation date, do we lose the ability to spread gain/loss on the salary increase portion of the accrued benefit?

I'm sure each of us has unresolved items in applying PPA. What are your ideas?

Is there a limit on after-tax contributions that can be put into a defined contribution plan, other than the 415 limit? Rev Ruling 80-350 had a 10% limit on compensation aggregated over all years of participation, but I see that Rev Ruling 93-87 made Rev Rul 80-350 obsolete.

I'm trying to locate a copy of Revenue Ruling 80-350. Can anyone help with this?

Suppose you have a small company (just two 50% partners in LLC) that starts business June 1, 2006. They already have income of $600K each. The tax year is December 31, 2006. Their plan salary already exceeds $220k each.

They could adopt a DB plan with a plan year 6/1/06 to 5/31/07. Question: Given they will have maximum plan salary before 12/31/06, could the DB plan be run on a beginning of year basis? If so, could the full contribution for the 6/1/06-5/31/07 plan year be deducted on the 12/31/06 tax return? It would be contributed by 12/31/06.

Thanks.

Has anyone considered whether providing for auto enrollment for salaried employees and not for other employees would need to be tested as an other right or feature under 1.401(a)(4)-4? Would it instead fall within the exception that it "cannot reasonably be expected to be of meaningful value to an employee"? Any thoughts are appreciated.

A defined benefit plan has mandatory employee contributions. A plan participant terminates with 0% vested employer contributions. The plan makes a lump-sum distribution of the employee's own contributions, plus earnings.

Is this distribution reported on Schedule R, Line 3? Clearly, a lump-sum distribution has been made, but was a "benefit" distributed to a "participant"? For the purposes of Schedule R, a "participant" is someone who, at any time during the plan year, had an accrued benefit in the plan. Accrued benefits include both forfeitable and nonforfeitable amounts.

Would you report the lump-sum distribution? The Schedule R instructions specifically say not to report lump-sum distributions of elective deferrals, but there's no mention of mandatory, after-tax employee contributions.

I have just discovered that a plan I'm taking over has filed his Form 5500s for at least the past 3 years with an incorrect employer id number. Can I just file the 2005 version with the "old" employer id number and use question 4 of the Form 5500 to change it to the correct employer id number? Opinions?

Thanks.

Person way past the required beginning date dies in 2005 leaving a 403(b) account to a daughter.

She is told that she has to take the money within 5 years and takes out some money in 2005.

Can she now roll to an IRA in her name fbo the deceased and annuitize it over her life expectancy or did that first distribution eliminate that option for her?

If so and depending upon the amount, could she back into an amount from which that first payment would represent an annuitized payment and rollover that amount to an IRA and continue that stream? And then take the other portion within 5 years...

Thanks

If a small company was looking for some software to create 5500 and 5300 forms, is Relius from Sungard the most popular choice?

Can anyone give me the names of some other software packages that will produce 5500 and 5300 forms?

Is there anyone who uses something other than Relius?

put this in wrong area and can't figure out how to delete. sorry.... posted in distributions

I am trying to confirm that there has been additional relief granted for Katrina affected areas for filing 12/31/05 Form 5500. Does anyone know for sure? If you can post a reference, that would be great. Thanks for any information, anyone can provide.