Client is non-gov, not for profit entity with a 457(b) Eligible Deferred Comp Plan.

Current plan document contains a "Involuntary Distributions" section that states: "The Administrator may establish a policy, in accordance with Code Section 457(e)(9)(A), for distribution of a Participant's account without the Participant's consent if the value of the account does not exceed $5,000."

Is this plan subject to the new automatic rollover requirements?

In simple language, could someone explain to me the difference between a mass-submitter plan and a non-mass submitter plan?

An example would be very helpful.

Thank you in advance.

A client wants to invest their future match and ps contributions solely in non-publicly traded er securities. It is an "eligible individual account plan" and the prototype document expressly states that there is no limit. Just out of curiosity - what is the difference between this arrangement and a non-leveraged ESOP (which are normally placed on more "high maintenance" individually designed documents)?

Also, we've tried to warn them of the complexity and the need for good securities attorney to keep them out of trouble. Any other pieces of advice to dissuade (ah hem, I mean "inform") them regarding this decision?

I talked to a prospect the other day, a non-for-profit entity.

In telling me all their problems, it came up that they have not filed 5500's in a few years on their 401(a) plan.

My question is under the DFVC, is the entity liable for seperate penalties with

the IRS and the DOL?

Thanks!

Willow

Here's a neat Firefox trick-- if you would like more than one "home" page to show up when you click the home icon-- each page will appear in its own tab-- just type the URL of each page into the usual home page field (Tools -> Options -> General) separated by the "pipe" character (it appears on my keyboard as the shift-backslash key, and looks like this: | ).

For example, to open the BenefitsLink search page and the BenefitsLink buzz page as your two home pages (each on a separate tab), you'd type this into the home page field (ignore the word CODE):

http://benefitslink.com/search|http://benefitslink.com/buzz/short.html

Would this constitue a distributable even for this employee? I'm guessing NO but I just wanted to make sure.

I'll probably get laughed off the boards here, but is there any ability to provide the safe-harbor 401k non-elective contribution under the DB plan in a DB-DC combo arrangement (permissive aggregation). I need some staff in the DB plan to pass 401(a)(26), but don't want them in the DC plan too in order to avoid a common participant triggering the 404(a)(7) 25% combined deduction limit. I'd like to still provide the 401k deferrals to the owners under the 401k plan, as I believe this has been clarified as NOT triggering the 25% deduction limit if they get no other employer contributions under the 401k plan. ADP testing is unlikely to provided desired results. I guess I was hoping maybe if the present value of the DB accrual for the portion of staff in the DB plan was valued on standard interest/mortality rates and was at least 3% of pay, and fully vested, it may qualify as a safe-habor for 401k deferral purposes ? The staff in the DC plan are easily getting the 3% and fully vested (if we design it that way). This is probably just a unrealistic hope, but isn't trying to have it all the American way ?

THis is a takeover plan that was administered by a CPA who apparently did not know that the maximum loan allowd was $50,000.

It is my understanding that this is a prohibitive transaction and a Form 5330 should be filed. I would also imagine we need to instruct the Dr to immediately pay the loan off to get the outstanding value under $50,000.

Are there any reporting requirements on the 5500?

Any advice or links with more detail would be appreciated.

Thanks!

the enclosed is the rp-2000 Male table

ok, at least it worked at this end importing into the system under tables, mortality

We have an employee who had been initially on what was supposed to be worker's comp leave. However, that was denied as it was an old injury and not related to her current job.

During that time when she was being eval'd for the W/C situation, she became eligible for FMLA. We sent her the paperwork which she never returned. Unless there was documented evidence of a need for leave, she was supposed to return to work by yesterday which she did not.

She also did not pay her portion of benefit costs which she was warned would end her coverage for non-payment in 30 days (which would bring us to 10/8)

Soo....

Her QE for COBRA was 9/27; her last payment for ANY coverage was 9/3; her "30 day grace period" ends 10/8.

Is she COBRA eligible? What would her first payment consist of, considering she would still owe from 9/3 - 9/27?

An employer offers a health insurance plan and pays 50% of the cost of coverage. He wants to make it a condition of employment that his employees participate (employees pay the other 50%, of course). I can't believe that he can do that, but I thought I would get some opinions from those with more expertise in the health insurance field than I have.

Can someone please advise as to where to find the requirements as to when a publicly traded bank's ESOP would need to file an 11-K? I am a little confused as whether the ESOP files the 11-K, or whether the disclosure is made on the bank's regular 11-K filing.

Thank you.

Deferral for one NHCE participant during 2003 was not deposited. Form 5330 was filed in 2004 the penalty was paid to the IRS. The interest lost was paid to the individual account, but the contribution was not deposited until today 9/27/05. What should be done at this point to correct?

Thank you for any input.

A safe harbor 401(k) plan can be installed now, effective January 1, 2005, because there are at least 3 months (October, November and December) for participation. Is there a similar (or maybe the same) rule for SIMPLE-401(k) plans? I am having difficulty finding rules governing the minimum amount of participation time in the start-up year in a SIMPLE-401(k) plan. Thanks.

Currently the terminated employee is on COBRA covering her spouse and dependent child. The dependent child will become ineligible for the plan according to the definition of a dependent on October 1, 2005. I believe that this is considered a second qualifying event and therefore the dependent child is eligible for 18 more months of COBRA (to the max of 36). My question is do the mother and father also receive an extra 18 months of coverage? I don't believe they do but I cannot find it in the regs.

Thanks

Non-profit org's document for the first plan year ending 6/30/05 provides for 1000 hours of service and employed on the last day of the plan year condition to receive profit sharing allocations. The client did not intend to impose these conditions and has been submitting profit sharing contributions with each payroll from the start. There are no HCE's during the first plan year if this matters.

Any suggestions?

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It is clear that a one-participant plan sponsor can be exempt from filing the 5500EZ if plan assets are and always have been under 100k.

However, such a sponsor always has the option to file.

The question is:

If say a plan sponsor files a 5500EZ in its first year, does that sponsor have to file the 5500EZ in the 2nd year if plan assets have always been < 100k?

That is, could the sponsor elect to not file the return in the 2nd year?

I do not see any explicit reason that would preclude a plan sponsor from choosing to NOT file, but wanted to get other thoughts and experiences.

Thanks.

We currently handle pension distributions in house. We have encouraged participants to permit us to do direct deposit of their monthly pension checks, so that we don't have to mail them. We have now engaged a vendor that will handle the pension distributions. The vendor will need employee data to continue the distributions. This would include the direct deposit and other info (bank, bank acct number, name, address, social security number, etc.).

I am hesitant to just transfer this data. Is it enough to notify participants this data will be transferred to the vendor? Or do we need to have the participants complete new direct deposit forms sent by the vendor/administrator?

Please help!