I have come across my first non-QDRO request. A couple was divorced in 1994 and in the divorce decree it stated that the wife was due 1/2 the current value (6/1994) of her husband's pension and 401(k) at the point he reached retired or terminated service. No QDRO is on record. The ex is now looking for her money as the husband is leaving the job at age 45.

What must happen to do this? How about the 401(k) money that is still in the husband's account?

Can a Plan Administrator be required by the Court/District Attorney to make a distriution to an ex-spouse for past due child suppot payments from the vested account balance of a plan participant? Is the answer the same if the plan participant is an active employee or terminated employee? If yes, to all, can future distributions be requested (frequency?) if defaults continue?

Thanks for any insight on this issue!

We have a volime submitter plan whose adopting employers failed to adopt EGTRRA good-faith amendments by 9/30/03. In addition, the plan sponsor didn't submit the speciman document for an advisory opinion by 1/31/06.

I'm confused as to the relief available for "Group Submissions" under Rev. Proc. 2006-27. I understand that VCP is available for the vS sponsor. But does a compliance statement provide relief for the adopting employers as well so that an adopting employer isn't required to take independent action?

If not, what actions (under the Rev. Proc. or otherwise) are available for the adopting employers?

Thank you.

I recently left an employer and need to either rollover my funds (which are a relatively small amount) to my Roth IRA, new employers IRA, or cash it out.

I would like to put it in my Roth. With that said, do I need to cash it out first (to pay the taxes) then put it in the Roth? Or, could I "roll it over" to the Roth while still paying the taxes on it, but without any extra "cash out" penalty fees?

Any help would be greatly appreciated.....thanks in advance!

Say a self-employed individual files a Schedule C on his 1040 and sponsors a DBPP.

We know that the salaries and pension expense for his employees (not counting the owner/employee) are deductions on the Schedule C and the remaining net earned income flows to the 1040 and then any pension deduction for the owner/employee is taken from the earned income that flowed through to the 1040 and shows as a qualified plan deduction on his 1040 on behalf of himself.

The questions is, can his spouse in this case be considered a Schedule C employee where her salary and pension contribution is a deduction on the Schedule C or does she have to have her pension deduction from the earned income that flowed through to the owner(and spouse)/employee's 1040?

Thanks.

Employer with a 401(k) plan began providing a mathcing contribution Jan 1 this year, maximum match equals 3% of compensation. At the same time he reduced the contributions in his Section 125 plan by 3%. Predictably, the employees complained.

His "solution" was to provide the reduced 125 benefit to everybody, with an extra 3% going to those who don't defer into the 401(k) and thus receive no match; lesser extra amounts to those who receive a match that's less than the maximum. Essentially, the more an employee defers to the 401(k) plan, the less of the extra 3% he receives in the Section 125 plan. This seems to be a clear violation of the contingent benefit rule in section 401(k)(4)(a). But what would be the least painful yet appropriate correction?

this file is a excel file containing 8 movies to identify based on the 'invisible' people. earlier today I tried this attachment and it failed. if I have managed to do things correctly, you type in the name of the movie in the yellow box and find out if you are correct or not. I think I have locked things up enough that you cant cheat.

this is a test to see if Dave has fixed the problem of attaching .rpt files for me.

this is the genereal nondiscrimination overall report (landscape)

can not be used from custom, so this would have to over-write the relius version.

this modification will tell you how many NHCEs are needed if a rate group fails.

It also indicates the NHCE concentration %, and the midpoint needed

Sponsor has four DB plans: 3 frozen union plans and one active non union plan with no HCEs (hourly only).

Sponsor wishes to consider merging them as a cost cutting move. The plans have the same major provisions (NRA, normal form, optional form, death benefit). Three are funded about 75-80% on CL basis (pre-2006 rates), one is funded at 92%. All are well over 100 participants.

None of the plans are funded on "termination basis" using lump sum methodology or on an annuity basis using any realistic discount rate, which seems to require mainenance of termination priority classification data, whatever that might entail.

Are there any major pitfalls to merging plans in this situation?

Is the termination priority data maintenance problematic?

I can see possible shifts in 412(l) levels being a possible issue. Others?

ok, Identify the Movie/TV show and the character. you TV land and Nick at Nighters should be able to do this one.

well, I was going to do another invisible movie character puzzle, and I have it pasted into an excel sheet so you can type in the movie name and see if you are correct. however, for whatever reason you can't attach excel files at the moment. but the Bakerman is working on it!

besides, looks like there are still a few answers left to go on the other quizez.

1. Big screen: Raul Julia Small screen: John Astin

2. Big screen: Dan Aykroyd Small screen: Jack Webb

3. Big screen: Ben Stiller Small screen: Paul Michael Glaser

4. Big screen: Goldie Hawn Small screen: Lorna Patterson

5. Big screen: Christopher Lloyd Small screen: Ray Walston

6. Big screen: Jim Varney Small screen: Buddy Ebsen

7. Big screen: Claire Danes Small screen: Peggy Lipton

8. Big screen: Walter Matthau Small screen: Joseph Kearns

9. Big screen: Will Smith Small screen: Robert Conrad

10. Big screen: Jennifer Lopez Small screen: Carla Gugino

11. Big screen: Christopher Walken Small screen: Anthony Michael Hall

12. Big screen: Kristy Swanson Small screen: Sarah Michelle Gellar

13. Big screen: Eddie Murphy Small screen: Bill Cosby

14. Big screen: Shelley Long Small screen: Florence Henderson

15. Big screen: Jennifer Grey Small screen: Jennifer Aniston

16. Big screen: Colin Farrell Small screen: Robert Urich

17. Big screen: Elliott Gould Small screen: Wayne Rogers

18. Big screen: Nicole Kidman Small screen: Elizabeth Montgomery

19. Big screen: Janine Turner Small screen: Barbara Billingsley

20. Big screen: Harrison Ford Small screen: David Janssen

21. Big screen: Bill Murray Small screen: David Doyle

22. Big screen: Alicia Silverstone Small screen: Rachel Blanchard

23. Big screen: Walter Matthau Small screen: Jack Klugman

24. Big screen: Heather Graham Small screen: Marta Kristen

I am hearing that an alternate payee under a QDRO may only name the alternate payee's children (and possibly the estate) as the beneficiaries of QDRO payments.

Is there a restriction?

Thanks!

If a participant has his bene a trust, do you still use the same RMD factor?

Company X offers a 125 plan that includes health care and dependent care flexible spending accounts. Employee A's son, L, has reached the maximum age of 23 and loses coverage under the medical plan and the health care FSA (which we will assume is subject to COBRA). Assume that X has decided to provide COBRA to the end of the year with respect to all qualifying events occurring during the calendar year. Can L elect COBRA for the health care FSA portion for the remainder of the calendar year? I see no reason why L cannot since he is a qualified beneficiary and has lost dependent coverage under the FSA because he ceased to be a dependent under the plan. Any thoughts on this?

Has anyone heard of a triple safe harbor match where you have an enhanced safe harbor match, a discretionary match and a fixed match?

A CPA wants me to take over a 401(k) Plan where each person has an individual brokerage account. The only contributions are Deferral and SHNEC. Since there is no vesting and no Hardship withdrawals allowed, CPA was thinking we don’t need to do annual statements showing the value of each type of money.

I keep thinking there is some regulation that requires that gains must be allocated by source at least annually?

This is a Corbel Prototype and I have not been able to find it in there.

Does anyone know of any requirement like this?

If not, would you consider it prudent in case of future law change?

When you have a SH match, does it have to go along with the typical "100% of the first 3%... etc" ? I have a new client that wants (has) the following:

2 401K plans..... 100% vested at all times

Plan 1 has a 4% max deferral limit in which they match 200%

Plan 2 there is no limit to what they can defer of course as long as they do not go over the 402g limit.

Would plan 1 be considered a SH plan?

Thanks

If someone other than the custodian/trustee prepares the form 990T, who should be signing the form? There is a space on the form that ask's for the signature of an officer and there is also a space on the form for the paid preparer's signature.

I know this has been discussed, but I don't see any clear cut answers to this question:

If an employer utilized the 3 yr testing cycle for coverage testing in 2004, how do they report coverage testing compliance on the 2005 Schedule R (assuming they also must file one and do not meet any of the other exemptions listed in the Instructions)?

Is there any problem with an employer paying broker fees outside of the plan for the participants buying and selling company stock?

A client has a PSP/401k plan. 30 employees: 5 are partners, 5 are non equity partners, 20 staff. Currently the plan excludes the 5 non equity partners (who are NOT HCEs) from the 401k and PSP contributions. They want to change the plan to allow the 5 non equity partners to do the Salary Deferral but still exclude them from the PSP.

The Plan is Top Heavy. Assuming all other testing is ok, will the 5 non equity (NHCEs) have to receive a top heavy minimum contribution?