This is one that I have never heard of. A broker for one of the major brokerage firms wants to set up a psp. I told him that we would use a volume submitter. He said that in order to set up the account at the brokerage firm, he has to complete the brokerage firm's prototype and that the prototype mirrors the volume submitter. I asked why I cant give them a fully executed plan document to set up the account. He said that's the way that they do it. I explained the problems that two plan documents could cause and probably didn't even scratch the surface. Any heard of this???

I have an off calendar year plan with a plan year ending 3/31/04. The owner turns 50 in August 2004. Can the owner go over the 415 limit by $3,000 since she is 50 during 2004, or since she turns 50 after the plan year ends, is the 415 limit still $41,000?

I have a situation where the participant died in 2002 after obtaining age 70 1/2 while in pay status. He had no designated beneficiary. The plan document states that the beneficiary would be his spouse. His spouse died in 2003 and she did not have a designated beneficiary. She was over age 70 1/2 at the time of her death. The plan document states that her estate would become the beneficiary. For RMD purposes, she would be considered as having no beneficiary.

1. How do I calculate the 2004 RMD for her? Is it based on her age in the year of her death using the single life table and subtracting one from the applicable factor each year?

2. Is there a time frame in which the entire benefit has to be paid to her estate?

Thank you for any insight!

A husband and wife are each 50% owners and the only "employees" of an LLC that sponsors a calendar year DB plan. The CPA sent me copies of the Form 1065 and K-1s to determine the compensation to use for benefits. The main problem (among others) is that there are "Salaries and Wages (other than to partners)" of over $200,000 that turns out was paid to the partners as W-2 compensation. There is nothing listed as "Guaranteed payments to partners". The K-1s show losses of less than $40,000 each. From what i understand, partners of an LLC should not receive W-2 compensation. What compensation should be used to calculate benefits?? Any advice would be appreciated. Thanks.

I have a client who is a controlled group and has a union plan with a graded vesting schedule and a nonuion plan with a 100% immediate vesting schedule.

If a union participant transfers to the nonunion plan, do they retain the vesting schedule on the old money being transfred from the union plan to the nonunion plan?

Is a 1099R required? To me this seems like a plan to plan transfer and no 1099R should be issued.

If this is treated like a plan to plan transfer is a 5310A required to be filed?

Does anyone know what "MMO" refers to and can explain what it is? I believe it has something to do with a municipal obligation, but am not sure.

A company has a self-insured health plan and currently allows employees to sign up at open enrollment each October. The company wants to eliminate the open enrollment period that would otherwise occur next month (and in all future years). Employees would have to sign up when they first become eligible or wait for a HIPAA special enrollment period.

Although open enrollment is not required for welfare plans, I imagine that care must be excercised when a company that allows open enrollment later eliminates it. The employer plans to inform the employees asap that there will be no further open enrollment periods.

The employer did not inform the employees that the 2003 open enrollment period would be the last open enrollment. Could there be an ERISA or other violation if some employees are shut out as a result? Employees could allege that they did not sign up last year but planned to sign up this year, perhaps arguing detrimental reliance or breach of fiduciary duty.

Thanks in advance for any thoughts.

My question is: Does this constitute a distributable event? Can the employees of this company take a distribution rather than rollover to acquiring company?

Any insight would be appreciated

Thanks

Looks like I'll be working with 403(b)s and I have very little experience with them. Can anyone point me to some good resources to star educating myself--preferably free/internet.

After reaching retirement age, select employees and directors (some of whom were outside directors) are going to receive monthly distributions from a general company account (not a qualified plan). We would like to know if these individuals are to receive W-2s or 1099s to reflect the amounts?

Could someone provide some guidance on when a W-2 is appropriate, and when a 1099 is appropriate.

Also, where can we find the official word on the correct document to issue?

Thank you.

Brokerage firm notified in writing on 12/23/2003 to transfer IRA account to a new ROTH rollover account. However actual rollover conversion transfer did not actually happen until 1/4/2004 due to fault of brokerage firm which they have admitted. In which year should the rollover conversion be reported??

A person took a loan for 5 years for a primary residence. Can he refinance it for an add'l 15 yrs? (Plan allows for 20 yr mortgage loans)

Does a small employer (less than 40 employees) need to modify their fully insured HMO summary of benefits to put in HIPAA privacy language. How about ancillary benefits such as LTD, STD, life etc.

Are there any issues with amending the plan to change the definition of compensation that states whether to consider comp for the non-elective portion from date of entry or entire year? I have a client who has had his plan for 2 years and wants to change from entire year to from date of entry. Thank you.

Linda Michals

PSP currently provides for forfetures to occur after 5 one-year breaks in service. Plan is to be amended such that forfeitures occur upon the distribution of a terminated participant's vested benefit. Was considering making said amendment effective as of first day of current plan year, i.e., Jan. 1, 2004. Anyone see any issues here re the effective date? It's clearly easier from the plan administration perspective than having to track the amounts for 5 years.... From a practical standpoint, the amendment would cause participants to receive a greater amount of $$ quicker, i.e., allocation of a larger number at year end. I could see a difference if the amendment were going the other way...from immediate forfeiture to 5 one-year breaks.... The only possible issue might be discrimination in favor of HCE's, however, there are far more NHCE's in the plan who would benefit from the amendment.

I've been trying to find information on how broadly FSA forfeiture funds can be used by the administrator to offset admin costs - the consideration is both pre and post "wrap plan" implementation and if and how funds be used beyond the scope of specific FSA admin costs (funding othe radministration costs of a program with a govenrmental entity [e.g., personnel costs])?

Were there any IRS or tax court decisions on this subject, or other federal court decisions, or simply other guidance publications that might be available either through IRS or other sources on this topic? I'll take any information I can get for review...

I've been trying to find information on how broadly FSA forfeiture funds can be used by the administrator to offset admin costs - the consideration is both pre and post "wrap plan" implementation and if and how funds be used beyond the scope of specific FSA admin costs (funding othe radministration costs of a program with a govenrmental entity [e.g., personnel costs])?

Were there any IRS or tax court decisions on this subject, or other federal court decisions, or simply other guidance publications that might be available either through IRS or other sources on this topic? I'll take any information I can get for review...

I deal with qualified retirement plans, so my question here is purely as a consumer. The 11th circuit U.S. Court of Appeals barred a participant's state malpractice claims, and instead said that it falls under ERISA.

The physician recommended treatment was denied by a CIGNA HMO "approval nurse," who allowed the use of the recommended antibiotic, but denied hospital admission and said that it must be treated on an out-patient basis. Bad things then ensued.

For regular people - what are the implications of this? If justified, who could you sue, and for what? Is this decision sort of anti-consumer, or is it relatively neutral, and just requires a suit in a different venue? Does it really limit your recourse, or just sort of change it?

Just curious - not planning on any lawsuits! Thanks.

A client made late desposits and intended to file form 5530. However, the form was not filed on 7/31 and no extension was filed. Is there a correction program?

An extension was not filed for form 5330. Is there a correction program