Anyone know what date a plan would have had to be terminated by in order to avoid needing the mandatory IRA rollover amendment ?

1. It's always been my understanding that assets held for investment (Line 1c) should agree to the investment assets reported on the audited financial statements. If you agree, what do you do with interest-bearing cash accounts that AREN'T classified as investment assets? For example, a plan's general operating accounts might be interest-bearing, but they're not investments. I've been putting these amounts in the catch-all bucket on Line 1e. Does anyone use a different approach?

2. When participant loans are secured by individual account balances, loans in default don't get reported on Schedule G or Schedule H. How do you handle the book/return difference for the defaulted loans? Where do you plug the amount on Line 2?

3. Is anyone else in October 17th hell? At this point, I'm probably over-thinking Form 5500 and not seeing things clearly.

I need help regarding the distribution code for an individual who incurs a deem distribution and is over age 59 1/2. In consulting with two people in my office, one of our experts says use Code 7 and the other one says use Code L. Any advice or arguments someone can lend on this subject would be appreciated.

Thank you !!!

Employer offers STD and funds through general assets and there are over 100 employees covered. Is a Form 5500 required for this. Due to the self funding I am not sure this qualifies as a welfare plan.

Thank you.

What kind of plan is this?

I have a plan that should have filed a Form 5310-A a few years ago, to be considered a QSLOB. They just realized they did not file it though. If they file it now, will it cause a red flag or penalties?

KETRA allows for loans up to the lesser of 100% of the account or $100,000. For loans over 50% of the vested account the plan must receive valuable collateral prior to granting the loan for the loan to avoid being a prohibited transaction and a deemed distribution. Since previously all the plans that I worked with were limited to 50% of the balance, how do you advise clients who want to know what collateral to get and what to do with it once they have it? Also, if the loan is defaulted upon, what is the plan suppose to do with the collateral? It's not like they would convert it to cash and give it back to the account of the participant that defaulted on the loan. Realistically, what are others telling their clients?

DB Plan counts hours. Amending to change vesting and benefit accrual computation periods from employment date and anniversaries thereof to calendar year. Hours worked during "overlap" will be credited in both periods.

Any special pitfalls I should be aware of ? I am aware of the regs for elapsed time to hours, or vica versa, amendment but found nothing like them on computation period amendment.

Thanks.

Terminated welfare plan has paid off all participant claim obligations and the balance remaining in the trust reverts to the sponsor. There were no employee contributions to the plan.

Question: where does the amout returned to the sponsor get reported on 5500 Sch I, Part 1? It does not meet the definition of a transfer for Line 2k because it is not to another plan. Do I just include it in line 2h Other Expenses in order to get the begining and ending net plan assets to reconcile?

What's the EPCRS correction for a plan that violates its automatic cashout rules (plan recently dropped down to lump sum distributions for amounts of $1,000 or less)?

I have often submitted amendments as proposed, i.e. unsigned but will be signed after IRS approval, with no problems. However, I attempted to submit the initial qualification of a plan as proposed, again meaning the plan would be adopted after IRS approval. It was unfortunately rejected by the agent. Anyone ever try this with success or know of a cite that spells out why this is not possible?

The whole idea is for the client not to sign (and be locked into) something the IRS will not approve of, which could then cause some nastyness to spew onto me.

No Andy, it is not a 412(i) plan.

Does 409A or its guidance set a limit for de minimus distributions?

May a participant OVER 59 1/2 rollover the SIMPLE IRA balance to a qualified plan with out having to wait 2 years from participation in the SIMPLE IRA?

My interpretation is that you do not have a wait if you are over 59 1/2 because you are not subject to the increased penalty, but want to make sure I am understanding this correctly.

Thanks!

We use AccueDraft for our clients' volume submitter plans and submit all of them for determination letters. If we have a new plan or an old plan that has been amended since the last determination letter, do we have until the end of the EGTRRA remedial amendment period to submit the plan (at least until 1/31/11 depending on the EIN)? I have read Reve Proc 2005-66. However, I am still not absolutely certain.

What is a "pension trust"? I've come across information on a "pension trust" that provides an entity with a funding arrangement by borrowing from a pension trust. Apparently, money is sent to a borrower's bank, and the bank will purchase gov't instruments to be held in trust. Money is sent to the borrower's account and the borrower pays interest to the bank on the loan.

Does this sound kosher?

I have a traditional IRA from rolling over retirement funds from a company I left. Can I now also open a Roth IRA and contribute to it? (leaving the money and traditional IRA intact.) Also could I contribute to both?

Thanks

Just putting together the 5500 to send out to the client when I noticed that the address and EIN don't match the 5558. I'm not entirely sure what the problem is (probably in someone's vision!), but the 5500 has the correct info. The plan name is the same on both, but I know that the EIN matters more.

The 5558 instructions don't have a mechanism for amending the form. Any suggestions as to what to do? How about an attachment to the filing explaining the difference (computer glitch, most likely)? I figure it couldn't hurt...

On the daring side, I could wait and see if it generates a letter from EBSA, except that the client actually did file 2003 late (in December 2004), and I'd like to avoid any possible flashbacks.

A school district established a 457(f) plan for an executive in August 2004. None of the deferred amounts are scheduled to vest until 2006. A consultant has come in and advised the district and executive that the executive would be better off if this were a 401(a) plan, so the proposal is to terminate the 457(f) plan and establish a new 401(a) plan.

I'm trying to figure out whether doing this would cause any 409A problems and if so, what? Since no amounts had vested under the plan as of 12/31/04, the plan is not grandfathered, so it's subject to 409A.

Q&A-20 provides that a plan can be amended to allow a participant to terminate participation with respect to amounts subject to 409A, without causing the plan to violate 409A, if the plan is amended before 12/31/05 and the amounts subject to the termination are includible in income in the year in which the amounts are earned and vested.

Under the proposal, the 457(f) plan will go away and be replaced with a plan that is exempt from 409A, and the participant will never receive any benefit under the 457(f) plan, so the amounts will never become "earned and vested" under that plan. But I'm wondering if Q&A-20 could somehow be interpreted to say that it doesn't matter that the plan is going away--whenever the amounts were scheduled to become earned and vested (in this case 2006), they still must be taken into income.

Any thoughts?

I have a university client asking how other universities treat adjunct professors for eligibility purposes. They used to have 2 classes per week, but now many are up to 3 or 4. How many hours are being counted (towards the 1000 for eligibility) for class time and prep time?

PS plan has the majority of their assets invested real estate, with the outstanding mortgages as liabilities. They also report to us, as a liability, a 7% sales commission if the property is sold. Would appear to be a bit aggressive. Anyone have an opinion?