Is there any exception to having the independent qualified public accountant audit for a plan that has over 100 participants at the beginning of the plan year?

In particular, what if the plan was terminating during 2005, but had over 100 participants as of January 1, 2005, do they still have to have the audit?

Thank you for any insight!

If a plan provides for both pre tax and post tax contributions, with a combined limit, can a person exceed the "plan limit" on deferrals and be eligible to make age 50 catch up contributions?

For example, a plan offers pre tax contribs up to 15%, and post tax contribs up to 15%, but the combined contribution total cannot exceed 15%. In the extreme, say an age 50 person contributes 15% on a post tax basis. Since they are then technically limited to 0% pre tax, can they then put in an additional amount of pre tax dollars up to the age 50 catch up limit for the year?

Thanks for any thoughts.

A client filed last year's return late (his wife found it laying about and put it in a drawer - sounds familiar to me!). He got a late letter from the IRS (that's when he called me) so we did a quick DFVC filing.

The IRS wrote back and said they wanted a copy of the cancelled check or letter of acceptance from DOL.

Since checks aren't returned anymore, and I want to save him the trouble of asking for it, does the DOL routinely send a letter of acceptance? I've don't remember seeing one although it's quite possible clients received them and didn't forward.

thanks for anything.

How does the deduction rules of 404(a)(6) apply to a not-for-profit employer who sponsors a profit sharing plan? My client, decided to make a contribution to it's profit sharing plan for the PYE 6/30/04. Normally, if this were a for-profit employer the contribution would have to be made by 4/15/05 in order to be deductible for that year. However, there is a possibility the funds will not be available to the employer to fund the contribution by this deadline. Given the fact that the employer is not paying taxes because of their non-profit status (and not deducting this contribution), how does the deduction rules of 404(a)(6) effect this situation?

I have searched the ERISA Outline book and other materials but can't find much guidance. Your help would be appreciated.

I have an alternate payee who provided an executed QDRO with instruction to pay out approximately $2,000. The Order was executed and dated for April, 2004, but delivered to our office during April, 2005. This was the first notification of a potential QDRO we received.

However, during January, 2005, the participant requested a hardship distribution representing virtually his entire balance (only earnings remain).

The end result is a QDRO requesting distribution of an amount greater then the participant's account balance.

Pursuant to the terms of the Plan QDRO Procedure, this disqulaifies the Order from being Qualified.

Does the alternate payee have any recourse in this instance? And to what extent can the employer be held repsonsible for approving a hardship even though they were never informed of the potential Order?

Is a mutual fund considered a single security for purposes of Schedule I reporting? Thank you.

After a horrible start by Mr Wells... Redsox Nation is pretty silent. But then we are only 1 game back. Hope they do better today! Pedro was fabulous for the Mets... we should have forked up the $$!!! my opinion

I am wondering from any practicing ERISA Attorneys if an LLM is necessary to get into the job market?

I am graduating soon and have over 7 years of HR experience with 5 years of Employee Benefits experience and I am wondering if an LLM is necessary or would give me any advantage in getting into the ERISA practice area. I have other graduate degrees and certificates in HR. I don't want to go to school forever, but I am wondering if the LLM is really something I should seriously consider.

I'm running some numbers on a sole-proprietor age-weighted profit-sharing contribution. The document is a prototype with a grafted-on amendment to the allocation formula (essentially individually-designed). (Have some dashes!)

Owner is 70. When calculating "points", what does your software do? Use current age (no discount), premium (age 65 - current age, an increase)?

I shouldn't have to ask, except that I wrote the software and spreadsheet. I can't double-check against myself.

Document says discount from NRA to current age. Silent on what happens after NRA is attained.

A corporation has 2 employees.

One of the employees is also on the board of directors.

Say the employee receives $100,000 as an employee and $30,000 as a director.

Based on the 414(s) statutory definitions of compensation would the director fees be part of pension compensation?

It seems since the employer is compensating the employee for services on behalf of the employer it would be part of compensation.

I presume the plan can actually include it or exclude it (based on the plan provisions) as long as there is no discrimination based on applying the statutory definition for testing purposes.

Logically, if the director fees were NOT part of the statutory definition of compensation then if the director is a HCE it only serves to help the NHCEs, since we would be using a lower comp for the HCE for testing purposes and thus result in potentially a higher ABP for the HCE.

Thanks.

I understand the employee is responsible to give the employer notice after the qualifying event. But, how much and what kind of notice is necessary? If the employer knows that a divorce occurred and starting providing benefits to the ex-spouse, is that enough notice? Or does the employee or his attorney have to write the employer and specifying tell them that a qualifying event occurred? Or is a telephone conversation enough? Does it matter if the conversation happened before or after the divorce?

How do you determine who should be a participant for a retiree medical plan?

§2510.3-3(d) states that it is the earlier of (A) the date designated by the plan as the date on which the indiv begins participation; (B) the date on which the indiv become eligible under the plan for a benefit subject only to occurence of the contingency for which the benefit is provided; or (CO) the date on which the indiv makes a contribution to the plan, whether voluntary or mandatory.

With respect to (B) - is the not working long enough the "contingency" so should every employee that meets the requirements as long as he/she stays in employment counted as a participant in the retiree med plan?

Thanks.

Various newsletter have suggested that Company's that match employee contributions with stock will have no income statement impact, they will only have a dilution impact. Is there any truth to this? My understanding is that there will be expense.

Any thoughts on how to treat after-tax contribuitons in a participant's account for the new automatic rollover rules? Are after-tax contributions part of the "account" when determining if it's under $5,000 (or $1,000)? If an account balance is subject to mandatory distribution and automatic rollover, and it includes after-tax amounts, are those required to be rolled over with the rest of the account, or distributed? The IRS notice isn't really clear on this.

Thanks all.

Doctor participates in SIMPLE plan and is currently deferring the maximum. Has unrelated self-emplpyment income and wants to set up a Solo 401k for this. What is the maximum that he can contribute to the Solo 401k? Are the deferrals here reduced by the SIMPLE contributions?

Minor child (age 8) beneficiary for her fathers Money Purchase Plan. He only had $27 in the Plan before he died. How do you pay this out to a minor? Or does it go to her guardian (the child's mother, but not a spouse) ? Thanks

On January 1st, one of our employee's dependents were dropped from insurance due to loss of dependent status. The employee did not notify the HR deparment until the end of March of this change. As it is now April, do we still send the COBRA information to the dependents and if so, what effective date should be used if they elect the coverage?

Particpant requests distribution prior to age 59 1/2. Plan pays out money....but for some reason participant isn't in receipt of money for 4 1/2 months at which time (surprise suprise) the participant has reached age 59 1/2.

Does the "year in which the even occurred" rule work for this scenario as it would in the separation from service at age 55?

Trust issued check using code "1" but told participant they are ok and no penalty applies...however, did not reissue a corrected 1099-R. I would think that if they were truly backing that interpretation they would reissue.

My guess is that the exception does apply for tax purposes as she did turn age 59 1/2 in year in which the distribution took place and the IRS is only concerned about where everything stands at 12/31. However, the plan processed an early distribution as they issued an in-service withdrawal of the participants account balance prior to the participant reaching age 59 1/2. Not seen any plan documents that say "in year...." so I would think a hard line approach is in order and 59 1/2 is 59 1/2 and not 59.475....

Can I get another opinion on this...am I being a bit stuffy in this interpretation?

IRC 129 provides for a exclusion of up to 5k for amounts paid or incured by an employer to a DCP program that meets the requirements of IRC 129(d). The definition of employer includes unincorporated businesses but has no aggregation requirement. Part III of Form 2441 provides for a deduction of up to 5k to a DCP program.

Q- Is 5k the maximum amount that can excluded by a married couple who file a joint return or can each spouse file a 2441 form and claim 5k? The instructions do provide any information on whether each spouse can file a separate 2441 since the IRC limit is a per employer basis.

The court apparently just ruled on this that IRA's can't be seized by creditors in bankruptcy proceedings. Also apparently not unlimited protection, the law shields them only to the extent "reasonably necessary for the support of the debtor and any dependent."

Don't know if anyone has access to documentation on this - if so, do you know where I can look at it on line? I tried the Supreme Court website, but I could only find the oral arguments. Thanks!