When a plan and its sponsor have the same year-end, and the sponsor extends its income tax return, the plan's Form 5500 automatically gets the same extension.

What about our tax-exempt clients? In your opinion, does the same rule hold true for a Form 990 extension?

The rules clearly refer to an income tax return. Over the years, I've used Form 990 extensions to take care of late Form 5500 filings, and I've never suffered any bad consequences. But, I'd love to get a reliable answer; the fact that I've never been caught hardly counts as substantial authority.

Situation: DB plan for large employer. Plan subject to QPSA and QJSA rules. How should the employer handle an employee's representation of marital status?

May the employer rely upon the representation of the employee?

Is there anything in print on this subject other than common sense? I expected to find something in 1.401(a)(20) but there is nothing on point.

Clearly many plans require evidence of marriage, but what about the reverse?

Question is coming from the sponsor. Any help would be appreciated.

I would appreciate any thoughts or authority on whether an employer-funded plan and trust for retiree health benefits is a deferred compensation plan for purposes of IRC Section 457(e)(11) and (f) or the rules in Section 885 of the American Jobs Creation Act of 2004 for nonqualified deferred compensation. Assume that under the plan document the employer contributes a percentage of each participating employee's compensation for the plan year, to be allocated to an account for the employee to be used for health benefits after retirement.

What are the restrictions to setting up a db plan for a nonprofit?

Client is in her late 50's and has no retirement plan. She has high employee turnover so most of the contributionwould go to her. Anything I have to set up different then a normal db plan?

Thanks,

Andrew

I've seen many defined contribution plan documents that describe the steps in allocating employer contribution when the plan is integrated. All the documents I've seen used " 2.7% " in one of the steps. It seems that " 2.7% " is standardly used.

But lately I've seen a couple of plan documents that use "2.4%". Integration in one of those plans was tied to 80% of the FICA base. So I assumed that the 2.4% came from 80% x 3% = 2.4%. But another plan document used 2.4% and made no metion of 80%.

My Question: Apparently 2.7% is not the standard that must be used all the time. So how is the 2.4% derived? When can 2.4% be used? Are any %'s allowed other than 2.7 and 2.4 ?

I have a client that was the sole owner of an S-corporation. The S-corporation shutdown midyear and became an LLC. The plan continued. The client paid himself $168,000 from the S-corp and had a loss from the LLC. Would his year end compensation be $168,000 or 168,000 less the loss?

Can a participant take a loan from her 401(k) plan knowing she'll be going on maternity leave in a month. She plans to be out on maternity leave for 3 - 4 months and then she plans to return to that employer. Are there special provisions regarding participants on maternity leave so that the loan will not be defaulted upon?

Suppose an employer that maintains a 401(k) plan in 2004 adopts a resolution to terminte the plan effective 12/31/04. There will be no deferrals, match or forfeiture allocations in 2005. Earnings will be allocated. Assets will be distributed during 2005.

Can the same employer establish a SIMPLE IRA in 2005? If so, what is the earliest day that it can be established? (i.e. 60 days after notice is given to employees?)

The way I am reading the regs, it appears that as long as there are no allocations of contributions or forfeitures (in 2005), we can go ahead and set up the SIMPLE. I would like confirmation of this, though.

Thank you.

How would you handle the schedule P for a self-trusteed plan when the trustee is deceased?

Can anyone comment on the following scenario?

Participant terminated employment 12/03 with an outstanding loan. For some reason, the loan was never offset. Can the plan now accept a total repayment of this loan?

I understand the loan was in default when one payment was missed, and that the loan should have been offset following a "reasonable period of time" as stated in the loan policy. But, this was not done.

Since a loan offset is an eligible rollover distribution, why couldn't you accept total repayment and keep the funds in a pre-tax status? Any cites would be greatly appreciated.

Thanks

If a plan converts from one recordkeeper to another and the required notice is given to all participants concerning the blackout. If the notice states the conversion will end at the end of October, but the new recordkeeper is ready to go live on the 15th, must a new notice with the new date be provided to all participants?

If so, what if something comes up at the last minute, will another new notice be required? What’s the incentive to get folks up and running sooner than the notice?

If a new 401(k) plan is being established where there was previously a SIMPLE plan, can vesting service prior to the effective date of the 401(k) plan be excluded or must service under the SIMPLE plan be counted?? Thanks.

Once the 25% penalty period on SIMPLE distributions has expired, do the exceptions to the 10% early withdrawal penalty apply as they would to any IRA? Participant is asking if they can take money out of their SIMPLE for qualified college costs.

Does anyone know if there has been recent regulation changes to COBRA requirements for MEWAs? If the MEWA is made up of employers over 20 employees and employers under 20 employees, are the small employers still exempt from offering COBRA? Do the small employers have to file special exemptions with the government to not be subject to COBRA?

Thanks.

Employer contributes the same amount to the HSA account of all eligible employees. In addition, Employer pays the premium for the underlying HDHP for officers of the corporation only. Any discrimination problem under 105 or 223/4980E?

Our company is an S corp and we are considering using a leveraged ESOP to maximize debt in connection with some planned acquisitions. I'm a generalist income tax type and I ordered the NCEO S corp ESOP book. Are there any articles about this? Doesn't IRC Section 404(a)(9)© prevent any benefit over a normal bank loan (i.e., without an ESOP)? Any other considerations/issues/etc.? Any suggestions on finding a good advisor? Thanks very much.

First, let me state that I don't deal with any other multiemployer plans!

I have a multiemployer plan with 2 QSLOB, so 2 Schedule Ts. Except that one of the QSLOB went out of business in April 2003 (employees were fired and then some were re-hired by the 2nd QSLOB).

One or 2 Schedule Ts?

Employer has a Profit Sharing Plan and a Money Purchase Pension Plan. The owner is the only employee and participant. The owner wants to have only one plan what should he do?????

1. Terminate Money Purchase Pension Plan and rollover over to PSP.

2. Merge/Transfer the Money Purchase Pension Plan assets into the PSP.

If #2 is done will the employer have to complete a 5310-A Form before the merger/transfer of plan assets.

These plans have been in existence for some time now but with the changes made to the 415 Limits the employer wants to only have one plan.

What is the best way to accomplish his goal....

Thanks...

I am a TPA preparing an IRS submission for a Determination Upon Plan Termination. Upon preparing Form 8717 (Rev. 9-2004), I noticed the form still contains the Certification for fee exemption under EGTRRA Sec. 620. I thought this exemption was repealed under Rev. Proc. 2004-8?

I have a client that would like to submit for a PTE to buy some land out of the plan. If the DOL approves the PTE, does anyone know how long an exemption is good for?