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Are 5500's required for qualified plans sponsored by Indian Tribes or sub agencies of the Tribe?

Is there guidance or any requirements out there that specify what form employers can accept participant address changes, banking information changes, name changes, etc?????

I am looking at how we accept these changes and if simple verification over the phone is adequate especially in light of all the identity theft that is out there.

Thanks,

Fred

I'm searching for some authority that requires a plan sponsor to stay within the 4 corners of the plan document and precludes him from looking outside the document. I seem to recall the IRS/DOL (??) issuing something to that effect but cannot put my finger on it. Any thoughts???

I have a new startup plan. The plan sponsor is a wholly owned subsidary of a Japanese parent company (no other U.S. owned businesses). The U.S. company has employees that transfer over from Japan on work visas and stay a maximum of five years. The U.S. company wants to exclude these employees from the plan and I can not seem to find an acceptable excludable classification based on the following facts. Does anyone have an idea of how to exclude?

Facts:

-the employees have U.S. source income

- they live and reside in U.S. for max of 5 years

-They each have different job titles

-they are not here for a specific project (was thinking of special assignment employee exlusion)

- They are not hourly

Any suggestions would be appreciated....

Are qualified plans permitted to invest in offshore investments?

Some information on multiemployer plans from the Enrolled Actuaries meeting:

Guidance for the Central Laborers' vs. Heinz case on suspension of benefits is expected to come out in two parts. The first part was issued after the meeting as Revenue Procedure 2005-23, with a press release and examples provided on the Treasury and IRS web sites.

The IRS discussed their anticipated approach to amortization base extensions. The letters are expected to contain a condition to address the difference in interest between the valuation interest rate and the special rate for extensions. The difference would be amortized over a period of years following each year. The period would be between one and fifteen years. The condition is the accumulated amount of these amortization amounts would be a minimum credit balance.

The IRS has issued a private letter ruling saying a particular plan cannot use contributions for service after the end of the plan year to satisfy the minimum funding requirements. This letter had not been published as of the meeting. The IRS says this letter applies only to the plan it was issued for, and has not decided whether to issue general guidance. See the American Academy of Actuaries web site for their response.

For the multiemployer funding notice that will be required under PFEA, speakers speculated that participants will be most concerned with the disclosure of the low PBGC multiemployer benefit guarantee levels.

Hello,

Seeking your comments/suggestions on the following:

My current employment (since 7/04) as a full time staff nurse is being terminated. I have been out sick since 4/6/05, have exhausted my sick time and have requested STD. I expect to RTW within a month.

I was informed by my employer today that they view STD as a LOA. Since I have not been with the organization for at least 1 year, I am not eligible for a LOA and they are terminating my position effective with the exhaustion of my sick time. I will be paid unused vacation time and they will send me COBRA info. When I am able to RTW, I can reapply for another position (if one is open).

**Due I have any recourse?

**When I am able to RTW and if they do not have a similar position, can I apply for unemployment?

Many thanks..........Barbara

I was wondering if an employee is still allowed to make after tax contributions to a non-ERISA 403(b)?

If you have new startup plan and you select the force-out threshold to be $1000, will this automatically eliminate any need for automatic rollover amendment? Or does there need to be some sort of formal election?

Opinions please! We have a small business that currently offers no health insurance benefits due to the high cost of a group plan in our state (FL). All of our employees are retired military and don't need coverage or have it through their working spouses.

We do have an HRA that provides a small benefit for medical and dental costs not covered by a health insurance plan. We also have a section 125 plan for those who wish to set aside their own funds tax free for medical reimbursement purposes.

We'd like to be able to reimburse employees for their privately obtained health insurance expenses. In other words have them get their own individual plans and submitt a claim that we will reimburse. How is the best way for us to do this? Should we pay their premium bill directly? Have them submitt the claim after paying it themselves? If we offer this to one do we have to offer it to all? Is it better to establish it officially as part of a plan (HRA or 125) ?

How can we do this legally and fairly?

This is a start up plan recognizing service with another entity. Most of the employees were participants in the plan of the other entity and there are a substantial number of loans involved in these rollovers.

The promissory note is an obligation between the other qualified plan and the participant. Must we document these loans as an obligation between the recipient plan and the participant?

What other documentation is necessary?

Say a client has a 1-participant DB plan and at year-end plan assets are $50,000 and the client says he does not want to file the 5500EZ with the DOL since assets are less than $100,000.

In this situation do some of you prepare the Schedule B and Form 5500EZ to deliver to the client for their records or do you just prepare such forms for your internal records or do you take another approach?

One of the dilemmas is that we may prepare the forms and deliver them to the client and the client will say they do not want the forms nor do they want to pay for them, since they do not intend to file them with the DOL.

Thus we are looking for ways of handling this administrative situation.

Of course I realize that our communications on this situation need be addressed at the onset of our services. At least in the future.

Thanks.

A SEP adoption agreement was signed in 2003. The adoption agreement was a "check the box" type. It was completed by the plan's broker and given by broker to sponsor (employer) to sign.

The employer did not read the adoption agreement, he simply signed it.

The agreement's service eligibility box was marked "0 years", but the employer was told by broker that an employee would have to work there 3 years before he/she could become eligible.

The sponsor's accountant has recently read the 2003 adoption agreement, and informed the sponsor that all past and current employees met the eligibility requirement ( 0 years) of the agreement .... and should have entered the plan in 2003 and 2004.

The employer says, he did not read the adoption agreement he signed. He relied on the broker when broker said 3 years service for eligibility.

According to past tax returns, the employer (as employee) entered the plan in 2003. he has been an employee since 1998.

My question:

Can the "0 years" stated on the adoption agreement now be deemed a PLAN DOCUMENT FAILURE and corrected (changed to 3 years) rectroactively under the the Employee Plans Compliance System ?

Does anyone know if the Florida Documentary Stamp Tax applies to ERISA qualified plans? I have read Florida's statute on the subject and don't see that it was meant to include participant loans form 401(k) plans. However, our recordkeeper says it is mandatory per Florida's statute 201.08.

I don't see it that way.

Thanks.

I have a 401(k) plan from my previous employer. Although I cannot make contributions I am allowed to have the account with them because I meet minimum eligibility requirements. My question is how much will I be taxed if I take a disbursement and use the money for the purchase of a home? Is it 20% + 10% penalty fee? Any way around it.

I have a similar question for my 2 rollover IRA accounts.

We have a client that we are helping withdraw a nondeductible contribution from her DB Plan. Under Rev Proc 90-49, it says that we must attach to the Schedule B an actuarial certification, copy of the plan language or corporate resolutions condintioning the contribution on deductibility, and a certification from the employer that the contributions were not deducted on their tax return.

Does anyone know if there is a standard format for the last item? Is it just a generic statement saying something to the effect that "I hereby certify that this amount has not been deducted on my taxes"?? Or are they looking for something specific?

Thanks!

Dennis

Amending a plan to eliminate a division will affect employees already participanting. I know the right to continue to participate is not a protected benefit, but the accrued benefits are protected. The plan sponsor wants these participants to take distributions. Is there a distributable event? As long as these participants are employed they will continue to vest in their accrued benefits even though their participation is suspended.

Does the fact that the plan sponsor has changed affect their status?

As I read the regs on automatic approval for a change in funding method, it is OK to use Level Dollar Individual Aggregate method for a plan with a salary related benefit.

Does anyone know of any guidance from the IRS on whether it is OK to use a salary scale when using the Level Dollar Individual Aggregate funding method?

Has anyone had occasion to consider the impact of the new Circular 230 provisions on their "regular" benefits practice? In other words, if you are not engaged in rendering opinions on tax shelters, how will the new rules affect you?