Relius users: How many past plan years do you maintain on your system for your "active" plans? I know that if I backup and remove, for example, 2003 and 2004 plan years for a current client and then upgrade to version 10.0, I won't be able to import them back in. I know I can upgrade first, and then export the plan years, but then what happens when I'm ready to upgrade again? I know that if I want access to any past years, I should reimport them prior to the upgrade, but I can't imagine everyone does that for all clients...or do they? Any input is appreciated.

When a person takes a loan from their 401k does any of the interest they pay go to the plan provider or will that interest always be the participant's?

As an administrator of a newly acquired pension plan, we were asked by the Trustees to continue to make monthly pension payments on behalf of the participants, even though we had not received all the retiree files regarding payment records from the prior administrator.

Our concern was that we might be issuing payments to retirees that were in excess of what they were obligated to receive. For example, continued montly payments to a surviving spouse whose five year monthly payment option has expired.

Subsequently, to our misfortune, when records from the prior administrator arrived, this exact scenario played out and we realized that certain individuals had been overpaid. Also, to our misfortune the initial group of Trustees encountered some legal issues that forced their ouster and the new group of Trustees indicated that the overpayments would have to be paid out of our coffers.

We have requested overpayment refunds from participants and some of them have complied. Others have indicated that they will not repay anything.

Does anyone have some thoughts or strategies on how to pursue individuals who have received overpayments, yet refuse to make reimbursement?

Under the new proposed Sec. 409A regs. issued on September 29th, can you accelerate vesting of NQSO without changing (accelerating) the date of exercisabilty of such options ? The options were originally issued at FMV but now are in- the- money options. If such change is deemed to be a "modification" or "material modification" such options would be subject to Sec. 409A.

has anyone ever seen a plan that had a policy to pay the plan's participants in the event of the demise of the trustee/owner? could a key man policy be purchased to effectively do the same thing. plan has appx. $750,000 and 211 shares. i have personally never heard of any such policy.

document says use high 5 consecutive years in last 10.

ee accrued a benefit, quit, and now returns after 9 years. since they have a vested benefit, all service is restored.

going forward what is average comp? just the current year if that is greater than the previous hi 5??

KETRA provides relief to those, who among other things, had a principal abode in the Hurricane Katrina disaster area. Section 2 of the Act defines Hurricane Katrina disaster area as ... "(2) which is determined by the President before such date to warrant individual assistance or individual and public assistance, from the Federal Government under such Act." The phrase "individual assistance or individual and public assistance" appears elsewhere in the Act. The Appendix to IRS Notice 2005-73 lists the counties and parishes that are eligible for Public Assistance and those that are eligible for Individual Assistance. I can find no counties or parishes are eligible for both. It appears that "individual and public assistance" is meaningless. Am I missing something? If so, please advise where that clarification appears. If not, please advise your thoughts on this, e.g., do you think there will be technical corrections changing the phrase to "individual assistance or public assistance"?

Has anyone heard of or used Fort William online document services? They offer prototype and volume submitter documents at what seem to be impossibly low prices. Their website doesn't indicate who is responsible for their product. Buyer Beware of course, but has anyone worked with them before?

These should be simple for the pros out there but a couple of questions on 5500-EZ for 2004 for a one-person sole proprietor 401k PSP...

LINE 10b: The instructions say to enter the contributions owed to the plan at the end of the plan year - if the plan year ended 12/31/04 and a contribution of $10,000 was put in let's say March 1, 2005, is it correct that the $10,000 is considered "owed" to the plan and should be included on this line 10b?

LINE 11b: This line is supposed to show "Total Plan Assets at the End of the Year". Assuming that the plan year ended 12/31/04 but just like above a contribution of $10,000 will happen 3/01/05, should Line 11b include the 12/31/04 investment account balance plus the $10,000 March '05 contribution?

The plan doesn't have loans and doesn't have distibutions at this time. Any other suggestions for the 5500-EZ would be very welcome. Thank you.

ER has a Cross Tested plan with about 10 EEs. Sells the clinic with the EEs and becomes a Public Speaker. After a time his old Admin Assist. comes to work with him again.

So:

2004 AA is rehired 10/15/04 and works only 245 hrs. Plan has 1,000 hrs for accrual. Plan is TH so she gets the TH min. X-tested so she gets to Gateway, 5%.

But she is older than him. Is she in the 401(a)(4) testing? (I think so.) So to get the guy a 20% allocation she has to get a 20% allocation. But the Gateway amendment only allow bumping up the TH to the Gateway.

Am I missing something? I think she has to get a regular accrual but under what authority? Do I need a corrective amendment?

Thanks

We have a prospect who sponsors a safe harbor 401(K) with an enhanced match.

The plan is on a fiscal year ending 10/31/05. Effective 11/1/05, the plan will be amended to a SHNE 3% because the plan is now top heavy; in addition, the client wants the flexibility of a profit sharing contribution, should he decide to make one.

The client was told by his insurance company representatives(who said they thoroughly checked with their Agent Support Team in their Home Office) that he could add a profit sharing component and have the vesting for the new profit sharing component start from the effecitve date of this amendment.

Then the fellow from the Home Office told the Rep that TPAs generally do not like to do this because it requires more work in that the contribution will have to be tracked separately, so TPAs tell their clients that this can not be done becaue they don't want to do the extra work.

I'm about to tell the prospect I have a problem with it because I do not beleive it is legal to do this, not because I do not want to.

Has anyone heard of this approach before?

Steve

Say a person has an income amount for a certaiin year that is under the limit at which you start owing income taxes. I think it is presently $7,000 per year for a single person. Assume you did not have any tax withheld, then you would not be required to file a tax return. (If I am mistaken about this, please advise.)

So assume that someone in that situation made under that amount, and put some of it in a Roth IRA because it was still earned money. Is he going to run into any problems with the IRS for not filing the tax return? Does the IRS require filing a tax return or any other kind of documentation to verify that he actually did make the amount of money he put into the Roth IRA account?

Thanks for any info.

I'm not sure if this is the right forum to be posting, but I figured I try anyway...I'm taking the 2nd SOA exam, exam FM in November. I'm really behind and I need some help in finding out where to get good study books/guides.

Have a C Corp on a fiscal year that will elect S Corp status and become calendar year filer. I'd like to match Plan Year to Corporate year (calendar).

Plan in place is a 3% SHNEC. Do I lose safe harbor status because of a short plan year? Don't think it will be an issue because of good participation, but you can never take anything for granted in this biz.

Participant wants to transfer a limited partnership interest to his personal account to satisfy the age 70 1/2 required minimum distribution.

I fear this is a PT, and that the asset will be valued without a true market value.

How do I advise this participant?

Participant "A" and "B" have the same last name. "A" wanted to raise his deferral percentage from 2% to 5% 7/1/04 to take full advantage of the $1 for $1 on first 5% match. Apparently he never noticed that his deduction changed on his paycheck. The change was inadvertantly applied to "B" whose deferral % was lowered from 6% to 5%. He also never mentioned the error to HR.

I haven't found any examples of this type of situation or suggested corrections. Has anyone run into this situation and how to fix it? It doesn't appear to be a qualification problem from what we see.

A local 125 administrator is allowing members who choose unreimbursed medical to not include a certain dollar amount. Rather, the select to participate in the URM FSA and submit claims as they are incurred. This eliminates the at risk componenet.

Client wants to set up a new 401(k) SH Plan. Do I have to wait to make it effective until 1/1/06 since its October 2005 already?? Doesn't it have to be atleast 3 mths to be considered a "short plan year". Also taking into consideration it being a SH Plan, there wouldn't be enough notice given to the employees for 2005 to be the effective plan year.....right??

Are there another limitation for the first year?

I have a client who has a pye of 9/30 and they just gave me their census. The have a new comp plan and all looks good EXCEPT all of the employees who are younger than their son have terminated.

First question is: is it too late to change the groupings so that I can provide the son with a zero.

Second question is dependant upon the first answer being yes, it's too late: Since the son hasn't started working for today...it's possible to actually terminate him. I'm sure the IRS frowns on that, but what precludes us from doing it?

I hate playing games with this stuff, but I suppose you have to get creative when a younger child is involved. better to have multiple groupings to begin with, but that wasn't the case and wasn't necessary for last 4 years.

Can anyone point me to a sample of a Governmental Excess Benefit Plan? I can't find one anywhere and don't know where to start if I'm forced to draft one from scratch. My usual source, RIA Checkpoint, doesn't have one. Any help would be appreciated. Thanks.