Just wanted to get a few opinions on this. I have searched a lot of old posts that discuss settlor expenses. Many talk about the cost of doing a search for a new vendor. There were varying opinions on that one.

I am wondering if the fees for conversion to a new TPA would be considered settlor expenses. The EO Book (2004) Chapter 3 Appendix B has a discussion regarding the hypothetical situations that the DOL has addressed. It seems to me that their response to situation # 6 regarding a decision to outsource administration is very similar. The opinion was that they were not settlor expenses and could be plan deducted.

Does anyone have a differing opinion?

1) A retirement distribution has been calculated using the fixed amortization method which provides for an equal payment amount each year. Can the timing of the distribution be changed to where one year they receive a lump sum of the entire amount and then the next year, they receive 12 monthly payments and the next year they receive 1/2 of the distribution in a lump sum and the beginning of the year and the remaining monthly - as long as the amount distributed during the year does not change?

2) Is the year used for calculating the required distribution always the calendar year or is it changed to the actual retirement date month?

What is the standard procedure for a terminated 401k participant to take their life insurance policy out of their former employer's 401k plan. Can this be done by merely changing the policy's owner from the plan sponsor back to the insured?

It was my understanding the general way to do this is to have the insured "buy" it out of the plan w/ money out of his pocket.

I'm transfering a plan to a new vendor that will not accept life insurance w/o an outside TPA and the owner isn't willing to do that.

Any guidance would be appreciated.

Hi,

Does anyone know if there is a resource to find out all the current state mandated health care benefits?

Thanks.

How long after separation from service does COBRA mandate availability of entended health coverage (at the employee's expense, of course). Thank you

Is a financial advisor automatically a fiduciary for a plan? I looked up the definition of fiduciary and read that "...a person who renders investment advice for a fee or other compensation, direct or indirect, with respect to any assets of the plan, or has the authority to render such advice (even if not actually rendered), is a fiduciary".

In my specific situation, the financial advisor will receive commissions on the assets, but I take this to mean something different than receiving a fee or compensation. Also, all assets are self-directed.

Thanks for your help.

Does anyone know of a good article that expalins the myth of double taxation of loans takent from a retirement plan?

Is vesting credit required for 2 years of service where there is an overlap of the first year of employment with the vesting computation period (plan year)? If yes, do you have a cite?

Does the plan document have to state the match contributions can be applied towards the top heavy contributions?

in filing for a multiple employer plan, does one only need to file one form 5500 and multiple schedule T's for each of the adopting employers ? what will be the participant count to be reported on the form 5500 in relation to the adopting employers ?

in filing for a company that maintains qslob's, what are the rules in completing the Schedule T (or T's) ?

Please give reference to the codes on these multiple employer and qslobs issues.

As mentioned in my earlier post, I have a client that could not make the minimum funding requirement for the 2004 plan year (ending 12/31/04) thus creating a funding deficiency.

I just want to verify that a PBGC Form 10 is required regardless of the size of the plan and that the participants must be notified of the failure to meet minimum funding, again, regardless of the size of the plan?

Other than the 5330, Form 10, and participant notice, am I missing anything with respect to the failure to meet minimum funding for the plan year?

Any help with is appreciated. Thanks.

I have a few clients that are considering the ROTH 401(k). I know that extra admin is required. I was wondering what other people were going to be charging. I was thinking of a per participant charge instead of a flat fee. I was just curious as to what others are doing.

In addition an attorney told me that his clients would not pay for the cost. He wanted the participants to pay the extra cost. Does anyone know if the DOL would allow this to be charged to the employee?

Is there any definition of when an extended “leave of absence” would be considered a termination of employment for purposes of RMD?

Clearly, it seems reasonable to require that there be a real expectation by both the employee and the employer that the employee will resume working. However, is that sufficient?

I note that there are several discussion of the opposite problem of “sham terminations” relating to the problem of in-service distributions, but I did not find any discussion of the problem of “sham continuations” with respect to required minimum distributions.

Joe Smith rolls his money from an IRA into the ABC Retirement Plan. ABC Retirement Plan only allows for hardship distributions prior to separation of service. Is Joe's rollover monies subject to this or can he take it at any time?

The company has a location in Denver and has opened another company in Dallas with the same ownership. The plan wants to offer a higher match formula to Denver and a lower match formula to Dallas. It is my understanding this is a benefits, right and features issue. Would we have to do rate group testing for each office? Average benefits on the whole? Any advice would be appreciated.

Thanks!

Can a grandfathered governmental 401(k) plan merge into a 457 plan?

Due to attribution I'm sure we have controlled group issues. He has employees and a 401(k) plan. She has no employees and a SEP.

Because of attribution of ownership wouldn't husband's employees also need to be covered under wife's plan?

She'd like to up her contributions so we're thinking of having her sign on as a participating employer in husband's plan. Any issues there?

Does anyone remember when the participant loan regs were issued that required principal and interest repayments at least as frequently as quarterly? 86? Anyone recall the specific tax act?

What taxes are imposed for 125 deductions?

We're having a bit of discussion on this subject, and there are two opposing viewpoints (at least). Assuming you have a 2005 plan year, and you are determining the benefit accrual, and that accrual is based in part on pre-2002 compensation:

1. You can use 200,000 for all years prior to 2002, and the limit as adjusted for COLA's for years after 2002, but you cannot apply the current increased limit to years prior to 2002. (This happens to be the side I fall into)

2. You can take the current limit as adjusted, and apply it to all years, including years prior to 2002.

Opinions? Thanks in advance.