What fiduciary is responsible for completing this SEC form?

Here is a question a client has posed to me:

i know buying the property in my 401(k) requires an annual appraisal be done, is that also true if land is purchased in an ira?

I deal with 401(k)s, profit sharing plans and money purchase plans, but not IRAs. While I have one myself, it is made up of stocks and mutual funds. Does anyone know the answer to this question? Many thanks!

I am preparing a 6/30/05 FASB reconciliation for a defined benefit plan where the fiscal year is 7/1/04 - 6/30/05. The plan was amended to freeze benefit accruals as of 6/30/05, thus I have a curtailment under FAS 88.

As of 6/30/05, prior to the curtailment, the plan had the following:

unrecognized net (gain)/loss = ($45,000)

unrecognized prior service cost = $0

unrecognized transition obligation/(asset) = ($20,000)

The curtailment reduces the PBO by $1,000,000.

Given the following, what is the effect of curtailment recognized on the (accrued)/prepaid pension expense (as follows)?:

(Accrued)/Prepaid Pension Expense at 7/1/2004 = ($100,000)

Net Periodic Pension Profit/(Cost) for 7/1/04 - 6/30/05 = ($75,000) {edited - inadvertently reversed signs in original post}

Contributions deposited 7/1/04 - 6/30/05 = $75,000 {edited - inadvertently reversed signs in original post}

Effect of Curtailment = ????

(Accrued)/Prepaid Pension Expense at 6/30/2005 = ????

Do I fully recognize the Transition (Asset)?

Do I fully recognize the Unrecognized (Gain)?

Any help would be greatly appreciated!

We have a Paid Annual Leave (PAL) Sell plan that allows employees to sell accumulated PAL. Employees are allowed to sell PAL as long as they have a balance of 80 hours.

Does this type of benefit run afoul of the Section 409a code?

I would appreciate any thoughts on this subject.

A governmental defined benefit plan is a unit benefit plan with a 5% mandatory contribution feature. The Plan permits active participants who have at least 10 years of in-state participation to purchase up to 3 years of service credit for active status (not active service) in the state's national guard. "Active status" requres serving in the national guard unit one weekend per month and 2 weeks in the summer.

The amount of service credit which is purchaseable is based on the ratio of 5 years of active status to one year of available service credit. Therefore, an active member would need 15 years of active status in the national guard to purchase three years of service credit. Service purchases under this provision are not recognized for purposes of satisfying minimum service requirements for retirement or other benefits. The purchased service credit is recognized solely for determining the amount of benefit payable under the Plan's unit benefit formula: 2% of average final compensation times years of credited service.

For the example below, I would appreciate opinions as to the meaning of Internal Revenue Code Section 415(n)(3)(A)(ii) which provides that permissive service credit means service credit "which such participant has not received under such governmental plan".

Consider a full-time employee who is accruing service under a governmental plan based on his employment as a governmental employee. Simultaneously, he is in active status with the state's national guard. If between 1990 and 2004, the employee accrued 15 years of service under the plan as a state employee and during the same period, had 15 years of active status in the national guard, could he purchase 3 years of service credit for his active status in the guard, using the above described 5 years to 1 ratio?

One line of thinking would be that since he already accrued 15 years of service under the governmental plan between 1990-2004 as a state employee, he could not use his national guard service which occurred in the same period, even on the 5 to 1 ratio, to purchase 3 years of service credit without violating Internal Revenue Code Section 415(n)(3)(A)(ii).

Another line of thinking would be that the phrase service credit "which such participant has not received under such governmental plan" refers not to the specific time period 1990-2004 but rather to the type of service; specifically, the participant had not already received service credit under the plan for service related to active status as a member of the national guard. Further, he would receive credit for national guard time only by making an additional voluntary contribution. The period of 1990-2004 is only a yardstick to determine if the participant had 15 years of national guard service. If he individual is allowed to purchse three years of service, those 3 years are not credited to a specific calendar year(s). The additional 3 years are used merely to increase the participant's ultimate benefit.

If you agree with the first line of thinking, what would be your position on the purchase of 3 years of "air time" if for an individual's entire work history he accrued service credit under a governmental plan resulting from his position as a full-time state employee?

Thoughts, please?

The Background...

I have a 401(k) plan that uses a standard 6year vesting schedule for the employer contributions. Service is credited based on "elapsed time" rather than actual hours worked using the employment anniversary for the measurement period. The plan was established effective 1/1/2000. The plan excludes service prior to the plan establishment.

The problem/question...

A participant was hired in September of 1997 and terminated in July of 2005. I want to be certain that the vesting is correct before we process a distribution and the elapsed time thing is confusing me. My thoughts are that this participant's service begins to count as of 1/1/2000 so her vesting computation year is essentially the plan year and we need to ignore the employment anniversary. She is credited with a year of service for 2000, 2001, 2002, 2003, and 2004 but not for 2005 and is, therefore, 80% vested.

1. Am I correct that her vesting measurement period is the plan year?

2. Am I correct that she does not get credit for 2005 since she did not work the full 12 months?

3. Am I correc that she should be 80% vested?

Thanks in advance!

I have a question regarding changes in my contribution level that I never requested. I just discovered that my employer, inadvertently it seems, significantly reduced my 401(k) contribution level for the last four months of 2005. I know that I should have noticed this earlier myself, but regardless, do I have any recourse?

My employer has indicated that since we end on a calendar year, there is really nothing that can be done as they are prevented from "correcting" their error. I have reinstated my correct contribution level for 2006 but am trying to find out if anything can be done about 2005.

Any help would be appreciated.

Hello. I found this forum looking for tution assistance. I am a married father of three and disabled. I have decided to return to school to further my own education. In hopes of ataining some sort of desk job to enhance my family's quality of life. I have enrolled and will begin taking classes online comencing Feb. 8, 2006 and estimated time of completion July of 2007. I have enrolled in hopes of achieving a Bachelor of Science Degree in Criminal Justice.

Since my fanancial aid package didn't cover total tution I have agreed to have the University finance the balance. I know my fualt. My monthly payments will be approximately $271.00 per month. Balance of $10,000.00 est. will need to be paid in full prior to graduation Simple math shows that is mathmatically impossible. Higher payment would have resulted in the termination of enrollment acceptance on my behalf due to income and lack of ability to meet finacial obligation.

None the less I am serious about doing this and I am seeking help in achieving my goals. Six months after graduation my student loans take over for repayment. I am looking at approximatley $25,000.00 total.

What I am seeking is either a person or persons whom may know of any groups, firms, partnerships or individualls that may alllow me to apply for any amount of scholarship reward or assistance available. Any one that may choose to help in any amounts, I mean any, I would prefer that the contributions be made directly to the school and not to me. That way they will know that the funds are being used accordingly.

I do not know any tax laws or anything that might cause this to be considered a charitable contribution, but I can't think of any reason it wouldn't be either. I need help. Anything at all. I have all the normal supplies to buy now, for not only my kids but me also.

I know that this will be looked at as beging by another bum. I am not a bum. I am disabled Certified Automotive Techician with over 25 years profesional experience and at least 10 of those were in positions of management.

If anyone can or would be willing to help I would be more than thankful. In return I might be able to provide assistance of some sort. I will even send homeade cookies, the whole batch of anywhere form 3-5 dozen for at least contributions in the of $50.00 if they want.

Thus if you have read this and may find a way to help me thank you. The posistion I am stuck in is if I try to get a job I loose my Security disablity. I am willing to do that after I graduate. If I got a job to make payments then loosing that would cause me to put my family in finacial jeapordy. I honestly have no family members to turn to and do not know anyone that might help me.

I am just a middle aged, almost not quite, Married father trying to make a difference in my familys quality of life. I have applied and been acepted at Colorado Technical University. Anything at all would be apprecaited. Please email me if you would be interested or know of anyone that might be willing to see thier way to help in any way.

Thank you and may God bless.

Hello. I found this forum looking for tution assistance. I am a married father of three and disabled. I have decided to return to school to further my own education. In hopes of ataining some sort of desk job to enhance my family's quality of life. I have enrolled and will begin taking classes online comencing Feb. 8, 2006 and estimated time of completion July of 2007. I have enrolled in hopes of achieving a Bachelor of Science Degree in Criminal Justice.

Since my fanancial aid package didn't cover total tution I have agreed to have the University finance the balance. I know my fualt. My monthly payments will be approximately $271.00 per month. Balance of $10,000.00 est. will need to be paid in full prior to graduation Simple math shows that is mathmatically impossible. Higher payment would have resulted in the termination of enrollment acceptance on my behalf due to income and lack of ability to meet finacial obligation.

None the less I am serious about doing this and I am seeking help in achieving my goals. Six months after graduation my student loans take over for repayment. I am looking at approximatley $25,000.00 total.

What I am seeking is either a person or persons whom may know of any groups, firms, partnerships or individualls that may alllow me to apply for any amount of scholarship reward or assistance available. Any one that may choose to help in any amounts, I mean any, I would prefer that the contributions be made directly to the school and not to me. That way they will know that the funds are being used accordingly.

I do not know any tax laws or anything that might cause this to be considered a charitable contribution, but I can't think of any reason it wouldn't be either. I need help. Anything at all. I have all the normal supplies to buy now, for not only my kids but me also.

I know that this will be looked at as beging by another bum. I am not a bum. I am disabled Certified Automotive Techician with over 25 years profesional experience and at least 10 of those were in positions of management.

If anyone can or would be willing to help I would be more than thankful. In return I might be able to provide assistance of some sort. I will even send homeade cookies, the whole batch of anywhere form 3-5 dozen for at least contributions in the of $50.00 if they want.

Thus if you have read this and may find a way to help me thank you. The posistion I am stuck in is if I try to get a job I loose my Security disablity. I am willing to do that after I graduate. If I got a job to make payments then loosing that would cause me to put my family in finacial jeapordy. I honestly have no family members to turn to and do not know anyone that might help me.

I am just a middle aged, almost not quite, Married father trying to make a difference in my familys quality of life. I have applied and been acepted at Colorado Technical University. Anything at all would be apprecaited. Please email me if you would be interested or know of anyone that might be willing to see thier way to help in any way.

Thank you and may God bless.

Thank you and may god bless.

Client XYZ, Inc. will do business under an assumed name of ABC. Client wants to name plan doc. as well as reflect on all participant communications ABC Retirement Plan. The Form 5500 will include client's name as per the Articles of Incorporation. Any reason why client cannot use the assumed name as referenced above? Thanks.

[size=7]I am facing more tax debt than anticipated for 2005 and it was suggested I check into opening an IRA or a Roth IRA before April 17th. How would this help me as far as the amount of $$$ I owe the IRS and State?[/size]

With the temporary window afforded by the lapsing of PFEA, one of my clients is questioning whether it would be smart to amend his plan to provide for a fully subsidized Early Retirment Benefit at his current age of 54. His accrued benefit is equal to 100% of high 3-year average compensation but is significantly less than the IRC 415 dollar limit at age 54.

If we make this change, am I correct that his maximum lump sum would be based on the APR using 30-year treasury rates and 94GAR at age 54?

What can an employer do, if anything, if it knows that the maximum OASDI has been paid on behalf of an employee. For example, say Employee works for Company A from 1/1 to 6/30 and then is transferred to Company B, which is a subsidiary of Company A. Employee's is paid well, so Company A paid the maximum amount of OASDI during the first couple of months of the year. Company B knows how much Company A has paid in OASDI. Is Company B still required to pay OASDI on Employee's salary even though it knows that the full amount required to be paid for that individual has already been met? The same thing can occur if Employee works for Company A and Company B at the same time.

It seems odd that the employee can get the tax credit for his/her overpayment, but an employer cannot get a tax credit or take other action for its overpayment.

Is there a statutory maximum for claims submitted after the end of the plan year. The claim was incurred and paid for by the end of the year (and no 2 1/2 grace period). The plan says 180 days but the claim was denied. Thanks.

I'm sure someone knows the answer to this question. Is imputed income for a grandfathered split-dollar arrangement for a former employee reported on a W-2 or a 1099R? Thanks.

Are distributions from a medical benefits account established in a qualified retiremnt plan pursuant to IRC Sections 401(h) and 420 treated the same as distributions from other health plans, such as a flexible spending arrangement or a health savings account?

I have just had a discussion with an accountant. He is claiming a single life qualified 401(K) Plan can be set up in 2006 for 2005. It is a January 1 to December 31 plan year. I need to find a site where I can cut and paste to show him that it must be set up in the plan year it is for. Unless....

Thanks

We recently acquired a company in a stock (not cash) transaction. Our company has a 401(K) plan. The acquired company 401(k) plan was terminated prior to the deal. We received an FDL on the acquired company plan termination and began distributions. We can not locate 50 or so participants from the terminated plan even after sending certified letters, IRS locator service, etc. (everything required in FAB 2004-02).

Question: Can we distribute these "lost participant" balances to IRA's (as described by the Bulletin) even tho we have another on-going defined contribution plan to which these balances could be transferred ? None of the guidance seems to contemplate having two DC plans and one being terminated.

Thoughts ? Thanks.

when shifting adp percentages to pass an acp test.... doesn't the adp test have to pass prior to shifting to acp and also pass after shifting to acp?

i have a dilema with a provider......... adp and acp originally failed. provider took hce adp percentage that the test would need to be at to pass and shifted from that.

example: original adp test results: HCE ADP= 7.02%

NHCE ADP= 3.33%

HCE would have to be at 5.33% to pass test

original acp test results: HCE ACP= .21%

NHCE ACP= .08%

HCE would have to be at 0.16% to pass test

provider shifted adp to acp by utilizing the 5.33% number and shifting from that. can this be done?

thanks,

Kim