I'm attempting to complete the 2004 Schedule B for one of our clients, and I'm not sure what (if anything) I should show in the Accumulated Reconciliation Account (ARA).

The 2003 Schedule B reported the following:

line 9e = 100,000 (add'l interest charge on late quarterlies for the 2003 plan year)

line 9q(1) = 8,000,000 (ARA due to add'l funding charges)

line 9q(2) = 50,000 (ARA due to add'l interest charges)

line 9q(4) = $8,050,000 (total ARA)

The plan had an ERISA full funding credit of $4,000,000 for the 2004 plan year.

I think the balance in the ARA (line 9q(4) of 2003 Schedule B) gets eliminated because of the full fuding credit. Is that correct?

What do I do with line 9e from the 2003 Schedule B? Does this get reported on line 9q(2) of the 2004 Schedule B?

What should I report on lines 9q(1) and 9q(2) on the 2004 Schedule B?

PLEASE HELP!

How do you handle a terminated participant's forfeiture from the annuity? Usually there is a surrender charge, if the annuity is surrendered in the first "so-many" years, specified by the insurance company.

I have a 401(k) plan that provides for hardship distributions. They have a participant who wants a distribution which does not meet the safe harbor events test (i.e. it is not for payment of medical, educational expenses, payment of residence or to prevent foreclosure).

If they make the distribution and it is discovered that it does not meet the facts and circumstances test (for example, if the plan was audited) , what are the consequences?

A safe harbor plan is amended to include an early retirement window; wrt (a)(4) testing , is there anything that prohibits you from defining 2 component plans : (1)one that is safe harbor, includes participants not eligible for the window, and by design wouldn't require general testing and (2) another that includes only those eligible for the window and assuming the window is not safe harbor would require a general test ????

Also, the plan as amended for the window would have to pass coverage or 410(b) I assume ?? a component plan breakout wouldn't be available for coverage testing would it ??

I know this has been discussed before, but here goes.

Client thinks he's got an opportunity to buy some real estate on the cheap. Wants to buy it with plan money. Dad is Trustee and Son a participant. Wants to know if Plan can buy half and Son can buy half. Purchase would be from an unrelated third party.

Next comes the fun stuff. Dad has close to $2mm. If all goes well, he flips the property in a few years. Down the road, he's turned what could be a capital gain if bought outside the Plan, to ordinary income when RMDs begin. RMDs should put him in a pretty high bracket.

Son, buying outside the Plan, would be taxed at capital gains rate.

I've input Q's for males and females into a spreadsheet that calculates annuity purchase rates. My problem is that the males don't match up with the only printout of a table (6%) I have from an independent source.

Anyone willing to post a few monthly APRs from other sources? Something like:

Male, 5%, age 55

Female, 6.5%, age 60

In case you missed the header, I'm looking for 94 GAR sex distinct APRs.

Just a few will tell me if I'm on track or off base.

If I can verify my spreadsheet works, I'll make it available online.

Hello,

I understand that any Real Estate that my Roth IRA purchases can not be in my name or any family members.

But what if I sell a property to a 3rd party and then instruct my Roth IRA to purchase it from that third party, is this OK?

Are there any regulations that say how much you have to pay for the property? I mean, if the property is worth $500K and my Roth buys it for say $50K is that OK?

Does the property need to be out of my name for a specific period of time or just until is recorded in an other persons name?

How long does your Roth have to own the property? Can you instruct your Roth to sell the property one week after the transaction is complete? Can the prpperty be fliped in escrow?

Thank you,

FOR SOMEONE WHO HAS NO KNOWLEDGE OF HOW TO GO ABOUT BUYING A ROTH IRA, I'M TRYING TO FIND OUT WHERE AND HOW TO GO ABOUT DOING IT. I HAVE NO IDEA WHERE TO START EXCEPT BY JUST ASKING QUESTIONS. I AM LOOKING FOR ANSWERS THAT DON'T COME OFF CONFUSING YOU MORE THAN GIVING YOU AN ANSWER. ALL HELP AND INPUT WILL BE GREATLY APPRECIATED

Under ERISA 407, it states that a plan cannot acquire employer securities if immediately after the acquisition, the value of the shares exceeds 10% of plan assets. My question is:

if no further shares are purchased, yet the value of the shares in future years goes up beyond 10% of total plan assets, does the plan have to sell off shares to get back down to 10%? I don't believe it has to but others say yes.

When I searched the message board archives I found a discussion on this topic that dated back to 2003 and 2002. There was some talk about a comment made by the IRS at an ASPA conference (2002 conference) that indicated the contr. receivable should NOT be removed from participant account balances when determining top heavy status. This position, however, appeared to be contrary to the Regulations at 416.

I was wondering if there is any more recent discussion on the matter. Are most administrators removing the receivable from the end of year balance when determining if a plan is top heavy or are you leaving it in the balance?

I know that this issue only pertains to plans not subject to minimum funding (412) or to first year of a plan.

DB plan has received a domestic relations order assigning a portion of pension benefits to the ex-wife that was enter by the court in 1978. It clearly identifies the plan and does a pretty good job of specifying the amount assigned to the ex-wife. Insufficient for us to determine how and when to pay.

Myunderstanding (which I hope you will confirm or correct) is that a plan may treat a pre-REA order as a QDRO and pay benefits to the ex-wife (alternate payee). In this is correct, we plan to go back to the parties and tell them that the 1978 order doesn't provide the plan enough information to pay benefit, and then ask them to get an order that would constitute a QDRO.

This seems deceptively straightforward. Am I missing something?

Thanks.

I am making a case to present to upper management requesting to switch our recordkeeping software from TSM to Relius. Any testimonials that can be shared for those who have experience with TSM would be appreciated.

Thanks.

Has anyone considered or determined the method of passing drug rebates from pharmancy benefit managers to plan participants? I would appreciate any help you could provide on this topic.

This is a profit sharing plan with self directed investments. A participant, who is highly compensated, invests part of his plan account balance in a real estate limited partnership. He owns 29% of the real estate limited partnership.

I think it is a prohibited transaction. Any other thoughts?

We are about to pay out on a levy (legal gave it the blessing) - but my question is if we have to send a participant a letter telling him that we are paying on the levy and/or "cc" the participant on the letter to the IRS? T

he participant is aware of the situation, the levy, etc. (he was served with the levy, has discussed it with the IRS, is past his time to appeal, etc.).

I know it is just a practical question, but any thoughts would REALLY be appreciated!

I know that a lot of 401(k) shops have call centers so I am posting this here:

I am in the process of reviewing/developing an incentive plan for our customer service representatives. My question is - does anyone know where I can get information on what companies are doing for incentive/bonus programs at other companies (primarily interested in the mutual fund/transfer agency industry).

Thanks

I am in the process of reviewing/developing an incentive plan for our customer service representatives. My question is - does anyone know where I can get information on what companies are doing for incentive/bonus programs at other companies (primarily interested in the mutual fund/transfer agency industry).

thanks a million.

A company inadvertently instructed its DB plan trustee to pay an invoice that related to its DC plan. Upon realizing the mistake, the company repaid the amount to the DB plan (it has not yet calculated or repaid any interest factor). This seems like a prohibited extension of credit from the DB plan to the company. Can (or should) this be submitted under the VFCP as a "loan at below-market interest rate to a party in interest"?

I have someone who is "arguing" with me about whether or not he needs a bond on his plan. The plan is a profit sharing plan and he has not made contributions for at least two years. The plan has two eligibles in it - the doctor (who is the sole prop.) and another employee. Only the owner has money in the plan. He feels he doesn't need a bond to cover himself.

I was under the impression that he would need a bond - we file a regular 5500 and not an EZ, as the other employee is not his spouse, etc. Am I wrong? Should he forgo the bond until he decides to make a contribuiton to the plan? He currently does not have one, and I have told him to get one.

Thoughts, anyone? Thanks!

I have a sponsor client who maintains a 403b/401a combined plan. The 401a component houses the employer match and annual fixed profit sharing and the 403b employee deferrals. The plan is currently record kept as one plan with segregated money type to carve out the 401a/403b portions of the plan. The 401a portion is in place I believe since participants active in one of my clients sponsored Defind Benefit Plans may not receive employer allocations and 403b plans require universal availability. The plan has assets totaling 12 million and 1050 participants.

I have some questions for the forum relating to this "hybrid" setup?

1. How common is 403b/401a combined plan arrangement?

2. Names of providers out there that would operate a plan like this as a 403b/401a combined plan (plan located in Midwest)?

3. Any other information you might wish to share regarding your experience with similar plans.

Thanks for your input.

David