A client forgot to contribute a participant catch-up contribution in December of 2003. The auditor found the problem and it was reported on the 2003 5500. It was deposited into the plan, along with lost interest, in October of 2004. A 5330 was never submitted. Now I have a DOL letter recommending applying under the VFCP program to receive a no action letter. I have tried to contact them but have not received a reponse.

My questions:

Could I just file a 5330 now? Would that solve the problem? If so, what year should I file? 2003? 2004?

Is it necessary to go through the VFCP program. It seems there are many risks with the program. Any suggestions on how the application should be organized?

Thank you -

participant died 3/30/06 would have been 79 on 4/24/06. last year her 2005 rmd was based on age 78 with a divisor of 20.3. calendar year plan. would i use the divisor for age 79(19.5) for her 2006 rmd and switch to husbands divisor next year. husband is beneficiary who is also 79 this year.

Have a public but bulletin board traded company client who wants to permit its 401(k) contributions to be invested in company stock. Are there limits on this? Any new legislation in this area? Thanks

Howdy pardners. go to the front of the brandin' iron class if you can unscramble all of these.

Unscramble these words and phrases to find the names of ten renowned Western movies.

1. ETHYL HAD GOOD BUG TEETH

2. LOVE RAIDS

3. ENTRANCING MIME YELL'D

4. A HIP FRIEND'S LIGHT

5. BOOM TENTS

6. WE JUST HATE SEA WOOLLY

7. TIGER RUT

8. VENT IF GAME SCENE THIN

9. DRAIN GOER

10. A THIN GRIEVIN'

In order to make a hardship withdrawal our plan states that it is allowed "when such Participant lacks other available resources". What must the participant do to show this?

We have a client that sponsors a large welfare plan. They have never filed Form 5500. It has been in existance since before 1988. We are going to file through the DFVC program. Has anyone else had any experience with filing returns that go back that far? Yuck!

Hi,

I am new at processing QDRO's. We received a signed order which our actuary determined is "qualified" however, the order permits the alternate payee to designate a beneficiary before commencement of benefits which we cannot do.

My question is do I write a letter saying it is qualified but we cannot accept said language, or do I write that it is not qualified because of said language.

Thank you,

A company has retained a large investment firm to provide plan services. Part of the package includes investment advice. However, some participants would rather use the services of local firms. Therefore, the employer has requested proposals from some local investment firms to provide investment advise only. Employees would not be able to invest plan assets with these firms. They will probably end up hiring 2 local firms for employees to chose from (other than the big firm where the assets are currently held). Employees have the option of paying for the service out of pocket or with their plan assets.

Does anyone see a problem with this type of arrangement? What if a participant gets bad advise from one of the local advisors? Since the employer hired the local firm, does that increase the company's liability if a participant's investments take a nose dive?

Would it be better if the company does not participate in hiring any local firms, but tells participants who want the advice of a local firm that it's up to them to go out on their own and pay for their services out of pocket?

I have been retired for about 4 years and would like to start drawing out of my 457 Qualified Deffered Comp. Funded plan on a monthly basis. In completing the form, there is a "spousal consent" section. Unfortunately, my spouse and I disagree as to whether or not to take the funds. Since I earned it, should I not be able to withdraw some of it without spousal consent? It hardly seems fair to have the fund that I comtributed to be held hostage by someone who had nothing to do with its existance. Can I still get the funds without the signature if the plan administrator has signed the application? Is this really LAW or just a way for the fund manager to keep the funds in their account. Can someone advise with sources to back up answers?

Thank you,

Why would a person get a letter from social security letting them know they might be entitled to a pension? And if the company that they mentioned is no longer in business would you know of how they could find out if they are entitled to a pension?

When setting up a New Comparability PS plan using DBRAs to replace a DB plan, and rather than meet the Broadly AVaible GAteway, we will meet the 5% or 1/3 gateway. Can one group receive an allocation of "the greater of the DBRA or 5% of comp" or would each participant receiving the DBRA need to be their own group?? I'm not sure if my question makes sense, but any help would be appreciated. Thanks.

There should be a simple way to find out the answer to my question, but I haven't found it yet, so am turning to this board for help.

I'm just trying to figure out the estimated cost of filing a Form 5500. I understand that the filing fee may vary, depending on which schedules are required.

But I'm trying to help a client understand the cost ramifications of filing separate Forms 5500 or of doing a wrap plan.

If anyone can point me in the right direction, or provide a ballpark estimate of the filing cost of a Form 5500, I'd be most grateful!!!

Thank you.

Can anyone provide me a valid reason for an attorney nearing retirement age (4 years left or so) with two young attorneys and 3 admin staff members who are all participating in the plan would want to terminate a SARSEP? Said attorney has said he's fairly comfortable where he's at in the retirement plan picture and isn't looking to maximize his contributions and isn't even fully funding the SEP portion.

My first thought was coverage but it's a small firm and turnover is non-existant. Two of last three hires have been the attorneys and they likely won't be hiring any more soon. I'm thinking that short term this plan is pretty darn good.

What about after retirement...When two attorney's are expected to take over the firm. Plan only continues if it's a stock purchase and not an asset purchase, correct?

thoughts?

Can top heavy contributions have a vesting schedule?

I am confused about Discrimination Testing. At my last job we had the employer fill out the Highly Comped and Key Employees Forms that's all - then we ran the test.

At my new job they want us to fill out a ton on of forms. Also if the employer is taking their insurance premiums out pretax and we do not tack them- they are saying that we still need to find out he amounts for that and run tests on those. In addition, they are saying that we have to run the tests at the beginning of the year, middle of the year and at the end of the year.

Can someone please help me!!??

Can anyone clairify an employer's responsibility in communicating the cancellation of a health plan to their employees? I believe there is a specific document or letter to outline the loss of coverage, but can not locate it on the DOL site.

Thanks...

An employer sponsors both a 401(k) plan and an ESOP. A retiree would like to roll the value of his ESOP into his 401(k) account. The 401(k) plan allows for rollovers from 401(a) plans by employees who have met eligibility. Is there anything that prevents this employee from rolling the value of their ESOP account into the 401(k) plan (he won't be actually rolling the stock into the plan, but the cash value of the stock).

How many Roth IRA's can you have?

A participant with a plan loan outstanding terminated employment.

His account balance will be reduced by the amount of the oustanding loan.

Assuming he will not rollover, is the 20% withholding based on the actual account balance plus the amount of the outstanding loan?

Thanks,

Steve

Hello,

I am 67 and haven't drawn any of my IRA. Can I still do a Roth conversion? Can I still do a Roth conversion after age 70-1/2. If so, can it include the required minimum distribution, or only amounts in excess of the required minimum distribution?

I have been looking for a substantial set of IRA and Roth rules on the WWW. Please point me to something that goes beyond the basics.

Thanks for your help.

lhh61