Here is the situation:

Participant (5% owner) dies this year. His named beneficiary was his wife, who predeceased him. He never completed a new beneficiary form.

The plan document states that in the absence of a living beneficiary, the beneficiary is the kids, then parents, then estate if there are no kids or parents.

The (10) kids want the money to go to the estate.

Now, I would guess that at the very least, the kids need to get an equal share of the RMD? Then the rest can go to the estate? Or do they need to also get an equal share of the remainder? Also, to further muddy things up, there were 11 kids, but one of them died. Do we need to include his beneficiaries in the mix?

Not even sure how to begin this one. I have been advised to have their ERISA counsel give us direction, but since he wants us to also distribute enough RMD money to cover their IRA RMDs (they each inherited an IRA), I'm a little leery. Is there a cite somewhere that would specifically state you can't take an IRA RMD from a qualifed plan?

Thanks

Would anything invalidate a properly prepared IRA beneficiary designation that was completed a week prior to the IRA owner's death? Company policy? Something in the code? Thanks.

Sorry, I have to ask the question and verify. Can an employer set different flexible spending account (healthcare) limits based on years of service or position? This is discriminatory and would disqualify the plan, correct?

Is the 5 year rule for Roth 401(k)s separate from Roth IRAs? In other words if an individual were to roll over an eligible distribution of his Roth 401(k) account, does that Roth IRA have another 5 year period on the assets assuming the rollover opened the Roth IRA account?

401(k) Plan allows for in-service distributions after Age 59 1/2. Participants is 62 and would like an in-service distribution, the plan allows for it. Is he allowed to take his entire vested account balance when he requests the In-Service?

Are there any general rules/restrictions for In-Service Distributions? The plan does not mention anything besides having be 59 1/2, and they are allowed to take distribution from all fully vested sources.

Thanks

May an employer who has failed coverage testing retroactively amend the plan to exclude highly compensated employees from receiving a contribution?

Can you roll a existing Roth IRA to a Qualified Plan (QP) ? Although I'm not talking about new contributions to a "deemed IRA" within the QP, if that language is also relevant to it being able to accept Roth IRA rollovers, we'd of course put it in. However, I want to be clear that in this case the money is truly non-deductible contributions made to a Roth IRA (not in a QP) that they now want to roll into a QP for broader investment purposes (yes, I know there are self-directed IRAs available too). Thx.

Q/A18c of Notice 2005-1 allows a grandfathered plan to be terminated in 2005 provided all deferrals are paid out. Does this mean all vested and non-vested deferrals? If non-vested deferrals are vested and paid out does a material modification occur?

has anyone come across any fiduciary issues associated with allowing participants to select their own investments?

particularly, to what extent can the plan sponsor be held liable for losses resulting from participants having access to stocks and bonds outside of a traditional mutual fund investment menu? am i correct in assuming that this sort of arrangement would eliminate 404© protection?

Can a representative under a Form 2848 Power of Attorney sign a Form 5500, Sch P and/or SSA on behalf of the administrator and/or fiduciary and/or employer?

An employee's spouse has a medical doctor prescription for a special mattress and the employee wants to know if he can purchase it next year and add the amount of the mattress to his next year's FSA. Any thoughts?

We have a P/S plan that is unallocated and we prepare the annual part statements and the 1099R's for any distributions.

We made a mistake (in 2005) whereby an employee took physical possession of his money during distribution. We had the financial instituion send the 80% to the EE and 20% to the employer to deposit at a bank for the tax credit for that employee.

Bottom line: Too much taxes were withheld and needs to go back into the plan.

How can I get a CREDIT posted to the ee's account? and somehow get the money back????????? or am I going about this wrong.

I'm currently writing an article and need updated information demonstrating (1) the trend from DB to DC plans and (2) the increases in 401(k) plans and participation in the plans. I can't find any recent information. Does anyone have any suggestions?

I'd like to get a feel for how people are dealing with this. We are a TPA, and we have a few clients who we know have not been remitting 401(k) contributions timely. They have ignored our advice to change their practice.

Now, 5500 time. The administrators want to indicate on the Schedule I that not all participant contributions were remitted timely. However, the owner of our company wants us to indicate that they were, and simultaneously give the client another verbal and written spanking.

Do you think we have liability if we knowingly answer a question like that incorrectly?

anyone know where I can find whether state wage law would allow automatic (negative) enrollment? specifically looking for NC

thanks!

Profit sharing plan has in-service distributions. An error was made and a continuing participant was paid out more than the account balance. Employee is not a "disqualified person" but is a party-in-interest under ERISA. Mgmt. is planning on recovering overpayment from future plan contributions allocable to this participant.

Seems to me this a a PT for purposes of disclosure on the 5500. Am I correct? .

Can someone point me to a cite where exactly it says that you must file a 5330 for the interest on a late deferral? I know you have to do it, just can't put my hands on it from the dol/irs.

Thanks.

So where is all that happy Yankee / Red Sox banter now?

$331,811,942 and what did it get? Maybe if they would have put a few more million in they could have won something.

Personally - I love it. The only problem is now I don't have anyone to route against. Red Sox, Yankees, Braves all lost. hmmm, LETS GO PENS!

As you know dividends get paid after the fact. In this case all the funds have left the plan via participant distribuitons on account of plan termination. The plan has terminated and now there is no participant to which we can allocate the dividends. How do we get the dividends out of the plan when there are no fees left to pay and no participants?

Can we just issue a check to the employer?

Thank you for any guidance!

We are a law firm who sponsors a prototype plan. prior to the revamping of the M&P program, when a client adopter fired us we were required to send a sponsorship termination notice. Is this still required under the new procedure? I have read Rev. Proc. 2005-16. Section 8.05 is close, but not on point. I just can't see how an employer sponsor would be required to go through EPCRS when in most cases they leave because they are restating their plan anyway. Any experience with this? Thanks.