Client maintains a 403(b) annuity. He turned 70 1/2 in March, 1998. He began taking withdrawals, but not enough to meet the minimum required distributions.

My questions are: In order to determine what should have been distributed prior to 2001, do I need to go back to the 1987 Proposed Regs for the life expectancy tables? Also....do I use the 12/31 balances (per his annual statements) to determine what the minimum amounts should have been. Do I need to "back off" the amount that should have been distributed?

I think I've just confused myself.

Should a 1099 be issued when making payment of a U.S. citizen's plan benefit to his Canadian beneficiary? Since the beneficiary is Canadian, he doesn't have a social security number? Any other issues I need to know about? Thanks in advance!

I have a 401(k) plan which is going through a partial plan termination.

Do the terminations have to be processed all at once, or can they be done as they come in?

Just want to be sure I follow all the guidelines.

Thanks!

I am a student at the University of South Carolina and I am doing research on the best practices for Beneftis and any future trends that are looking popular in the world of benefits.

I would appreciate any information on where to find this information or any advice any of you have about the things going on right now in the world of benefits that are up and coming, and any information about how the future of Benefits is going to go.

Any insight would be great!

The distribution code explanations changed for "2". In 2003, it highlighted Section 72(t), (q), and (v). In 2004, it is silent in regards to those sections.

Does this mean that if you are set-up under 72(t) - that now we are required to report your distribution code as a "1" - if you are under 59.5?

My company is thinking of providing domestic partner benefits. Since I do not have a clue where to begin, can anyone tell me of a good website or where I can gather information that will provide me all the information I need to getting this rolled out. Any information would be most helpful.

Thank you,

CCruise

This may be a stupid question but I have a client that owns land under his participant directed account in a ps plan. He insures this land and has just received a bill for premiums due. Does he pay the bill out of plan assets, his own pocket, or out of business?

thanks for any help...

Client gave me w-2s for 2003. One of the HCEs had 2 w-2s. When I added them together the 401(k) contribution was $15 over the limit. I told them to refund the $15 to the HCE.

Then I found out that they had withheld money from the employees paychecks, that was never sent to the mutual fund. The $15 over contribution was part of the money that was withheld but never contributed. I told them to go to the VFCP or self correct using the method set forth by the VFCP.

They found another TPA do do the work. He/she gave them a different answer. Don't know what that answer was. Was I wrong in my advice? If I was please let me know so I don't make the same miztake twice.

When securities are Rolled Over from a Qualified Plan to an IRA, the market value of the securities at the time of the rollover become the cost value of the security in the IRA. I am looking for documentation of this rule somehwere. Does anyone know where I will be able to find this in the Regulations?

Thank you for your help.

More on this saga . . .

So the guy's contribution was due May 15, 2003. It was not made.

It was not made by May 15, 2004 either.

In paying the excise tax on this a prohibited transaction, one which has now crossed two corporate tax return due dates, have we now moved into a "tier two" tax situation, where the company not only owes 15% of the delinquent contribution, but now 100% as well? Or can we just do the 15%?

Also, regarding the 2002 tax return, if it's amended because the employer did not make the contribution when it was due, then it also means the 5500 needs to be amended, and then they flunk coverage because the guy didn't get what he was due . . . and we spiral into a nightmare over $650.

Is there a way to do appropriate corrections without this turning into a frenzy of papers and penalties?

I am somewhat confused as to the calculation of the maximum allowable lump sum under IRC 415 for NRAs prior to age 62. Assuming that the plan's actuarial equivalence post-NRA is 5%, 94 GAR. Is 1 or 2 below the correct method?

1. Convert age 62 415 maximum dollar limit ($165,000) to a lump sum using 5.5% apr, discount back to NRA using 5.5%.

2. Convert age 62 IRC 415 maximum dollar limit to a lump sum using 5.5% apr, discount back to NRA using 5%.

When a db plan freezes accruals there is obviously a curtailment under FAS 88. My question is how to handle the unrecognized transistion asset and the unrecognized gain/loss. Are they both set to zero since there is no expected future service? Also is the Prepaid Pension Cost set to zero?

We are taking over a 401(K) plan that has appx 500 lower paid participants. There are no highlys or keys participating in the plan. Presently, the doc has a discretionary match. The employer contributes contributes 8% of pay per pay period as a match if the participant defers the minimum. (The minimum is $5.) Needless to say, a lot of participants are deferring $5 per pay.

The employer would now like to change the match formula and contribute by groupings.

Question #1

In general, assuming you can pass coverage and acp/adp testing etc., can a match be allocated by group similar to a new comp ps plan?

Question #2

This employer would like to give group A - 12% of comp and group - B 6% of comp. The only deciding factor on which group you are in is whether or not the employer pays for your spouse's health insurance. If you have single premium ins. you would get 12% if you have spousal coverage you would get 6% (we're not up to addressing children yet).

Question #3

If it can't fly as a match, how about as a new comp contribution? It would pass the gateway and other tests.

Appreciate any help here.

Are there any schedules required to be file for a 403(b) match plan? Someone in our organization made the argument that we should file Sched. P for statute of limitations purposes, but this does not appear to be required per the instructions.

1)a bank employee who will soon turn 65 is considering substantial equal payments into an ira(6 payments). is that allowed?

2)what if she retires and the following day takes a distribution of the stock in her account, would she only be taxed on the basis that the plan paid for the stock and not the unrealized gain/loss until she sells it?

i believe its yes to number one and she would be taxed on all capital gains on number 2 even post distribution?

a client has called me asking if they can contribute employee bonuses that they are going to be giving 100% to the plan. I was thinking that this is not allowed. Am I correct?

The adoption agreement has a question that says : May partiicpants make a special salary deferral election with respect to bonuses? No.

The plan only allows for deferrals up to 25%, so if this employer wants put the bonuses in the plan, he can only do so according to the percentage that the employee has elected. If participant/employee A has elected to defer 10%, than only 10% of his bonus should go in there. The plan has match, so i assume that the bonus should be matched as well (up to the limit).

Am I on the right track with this line of thinking? Thanks fo ryour help!

Where can I locate information on the implications of failure to deposit a profit sharing contribution? I have tried every search keyword possible!

Not 401(k) contributions (of which there is plenty, easy to access information . . .).

The employer failed to make a final deposit of the profit sharing contribution for the plan year ending February 28, 2003. The deposit should have gone in no later than May 15, 2003 (no extension). We are just now discovering that the deposit was not made.

Clearly the money must go to the plan, the employer included it with their tax deduction for 2002, but should there also be a penalty and a filing of some sort with the IRS?

Can someone point me in the right direction?

Thanks.

I found historical monthly average rates for Moody's AAA and Baa bonds here:

http://www.federalreserve.gov/releases/h15/data.htm (near the end of the table)

I found historical rates for the last business day of the month for Moody’s AA bonds here:

http://www.soa.org/ccm/cms-service/stream/...&g11n.enc=UTF-8

(click on “moody_agreement.html”)

Anyone have a link to AA monthly averages?

I'm fairly new to the whole conversion process - fairly new to the pension industry in general. I work for a small TPA in the midwest, and I was wondering what other TPAs do as far as "conversion work" is it normal for the TPA to be involved in the transfer of assets? By that I mean is it normal for the TPA to tell the new service provider how to break out the assets to be allocated to participants' accounts? Does that have any bearing on fiduciary issues?

I've seen a couple conversions where the asset providers do all the work, including breaking out the assets to be allocated to participants' accounts, and then I've been involved in a conversion where I've had to break out the assets and show the new asset provider how to allocate the funds. Is there a standard way to do a conversion properly?

Is feature 3H used for individually designed plans? thanks...