Is it the responsibility of the TPA to change the 1099R for the IRS Code and taxable distribution amounts if the participant elects to rollover the funds at a future date? Example, If a participant receives 8,000 of a 10,000 distribution, and elects to rollover the 8k within the 60 days, does the TPA provide 2 1099Rs, one to show the rollover of 8k and one to show 2k as taxable and include 2k taxes withheld? Or does the participant need only work it out with the IRS on their own?

What if the participant rolls over after the end of the year and within the 60 days?

Are church plans that are partially self funded regulated differently than employers in the private "commercial" sector?

Would it make a difference if there was more than one church in the same denomination as to how it might be regulated by the states?

Don Levit

This has not come up at our firm before. I think I know the answer, but would like to hear from others.

Someone with a low salary deferred about 96% of salary. After allocation of match and profit sharing, the total annual addition will exceed 100% of compensation. Can the excess above 100% be reclassified as catch-up. The excess is a total of about $75.

Thanks.

A calendar yr plan's entry dates are 1/1 & 7/1.

A participant who was eligible to enter on 07/01/04 terminated on that date with 1,040 hours of credited service. Hours required for benefit accrual are 1,000.

Assuming, he worked on 07/01/04, does the participant accrue a benefit under the plan?

I think he does.

Father and son are 50% owners in an incorporated business (Company A). Father and son are the only employees.

Son has self employed income from a flower and gift shop (Company B) that is run by him and his wife. Son is the 100% owner of the gift shop. The Son and his wife are employees and they have 2 other employees.

These have not been part of a group under common control.

Company A sponsors a profit sharing plan.

December 1993, the father dies leaving the son as 100% owner of Company A. They are now a group under common control.

Does the grace period for participation due to a change in the controlled group? When does the grace period end?

The answers seem to be yes and December 31, 2004. Any corrections? If this is accurate, can I file the IRS Form 5500-EZ for 2004?

Can a pre-service claim be denied for failure to obtain precertification if it is required or is the remedy for this failure imposing a penalty?

Is it possible to also get contributions to an employee after he/she stops working?

I.e. as an early retirement incentive, ABC College gets employee to accept

early retirement and stop working Sept. 1, 2005.

The college tops up so the entire $42,000 limit for 2005 is used.

In addition another $42,000 is placed in January 2, 2006 and finally

another smaller amount [to make the total addition payments equal to the lesser of $100,000 or one year's salary] is made on January 2, 2007.

Did I see this on this board?

Has there been either administrative action or legislative action since 1/1/2001?

Question about this use case:

401(k) plan

Mary makes $100,000

Plan limits are:

Pre-tax 40%

After-tax 40%

Total 40%

No employer contributions

Plan administers 50+ catch-up as a single rate arrangement whereby employee’s pre-tax contribution rate is intended to express both pre-tax and 50+ catch-up

If Mary wants to contribute 18% pre-tax for 2005 ($14,000 pre-tax $ limit + $4,000 catch-up $ limit), what’s the maximum after-tax Mary can contribute - $22,000? Or is it $26,000 because you don’t count the catch-up $ for purposes of the plan limit.

If $22,000 then Mary was able to increase the total pre-tax contributions she could otherwise make (from 14000 to 18000) without the 50+catch-up feature but her total permitted contributions remained unchanged at $40000.

Ta da!

http://www.careerjournal.com/salaryhiring/...614-intro1.html

We're finding many instances of employees leaving during the year with a debit balance in their FSA. They may have elected $1200 in their FSA, which means a $100/mo payroll deduction, filed claims earlier in the year, and were reimbursed the full $1200. In this scenario, they might have been reimbursed $100 x months not active more than they contributed.

A 1999 article in Benefitslink indicates that an employee may be asked to repay the amount, but, not forced. Is this still the case?

One paragraph of a QDRO for a DC plan states that the ex spouse is entitled to 50% of the Participant's benefit. The AP's benefit is 50% of the Participant's benefit which had accrued as of a certain date (which in this case is 2 weeks after contributions had stopped for this participant).

The next paragraph, however, states that if the participant elects to receive a return of his accumulated contributions and interest prior to his retirement or death, the AP's benefit shall equal 0% of the Participant's benefit which had accrued on the date mentioned in the prior paragraph.

The participant has now elected to receive a lump sum payment (which he is entitled to do as he has terminated employement with a contributing employer). Does this mean that the ex-spouse gets nothing?

If the Fund distributes 100% to the participant, it can be subject to future litigation.

If the Fund distributes 50% to both the participant and the AP, the fund can be subject to future litigation by the participant?

Both the participant and the AP are under the impression that they each are entitled to 50%.

Help

Does anyone have a recommendation for a translation company that can translate our communication/policy materials into Spanish? On the same note, does anyone have experience in this arena and care to offer advice for managing a translating process?

After calculating 50% of the value of a Joint & 2/3 Survivor benefit currently in pay status, there is a question as to how the value of the former spouse's benefit should be converted to an annuity (as a reduction to the participant's benefit), as a life annuity or a J & 2/3 S annuity. The argument has been made that since the survivor benefit was accounted for in the 50% calc that the conversion should be done using a life only factor. the argument also has been made that since the benefit is a J&S benefit, it should be converted using the J&S factor. Does anyone have a definitive answer?? Please let me know if more details are necessary. Thanks.

We have a client that is considering offering a defined contribution to employees who do not elect the medical insurance through the group. Has anyone ran across this in the past?

Could the company require proof of coverage?

How does this affect the group plan as far as adverse selection and what would be the ramifications if someone develops a condition and loses the individual coverage?

Any help is appreciated.

I'm preparing my top heavy determination for the 2005 plan year (calendar year plan) and I need to determine who the key employees are. Has the compensation amount in either of the following tests changed?

1) Officers of an employer who have annual compensation greater than $130,000

2) An owner of more than 1% of the employer with annual compensation of more than $150,000

What's the demand when participant gets a distribution that ignores the last valuation date and reflects a distribution that's reduced by interim fund and admin charges? I mean to ask, does the participant demand a full accounting by the plan adminstrator under ERISA 104(b)(4) and a review and explanation of the benefits determination? An answer is the plan document controls.., but what if the Plan is fairly silent on procedures for disputed calculations? Anyone done / seen this?

Can a 403(b) that is not subject to ERISA in operation - meaning it meets all of the requirements - limited employer involvment, no employer contributions, etc. but which has a document that subjects it to ERISA claim NOT to be an ERISA plan?

Several members of our firm recently attended a SunGard Corbel 5500 Workshop. We all have notes on one case study with regard to a 401(k) plan that provides ancillary life insurance. In this case, we were told to check Box 8b on the 5500 and put in code 4B.

Many of the plans we prepare 5500s for are invested in Group Annuity Contracts through a major insurance company. The plans do not allow for life insurance as an investment option. We have always included "Insurance" as a funding arrangement and have completed Schedule A. But, we have not checked Box 8b to call the plan a welfare benefit plan.

Our manager has now directed us to check Box 8b - indicating a welfare benefit plan and Code 4B for Life Insurance.

Is this correct?

Also, we cannot locate our email contact information for sending this question to Corbel. If anyone has that, we would sure appreciate having it.

Thanks.

I have a client who is setting up a SERP and wants to require the signature of both trustees in order to process a distribution. Schwab is saying they can not require both signatures. Any suggestions of a provider that would hold the assets and require dual signatures?

Thanks!