Age-Weighted PS Plan uses an allocation formula which would satisfy the "gradual age or service schedule" requirement for cross-testing except for one twist -

the three participating employers each determine the amount of their PS contribution independently. The PS contribution for each employer is then allocated solely to the employees of that employer. So you end up having employees who work for different companies, but have the same age and service, who are getting a different allocation %. The participating employers are a controlled group, so they are all tested together as a single employer.

Does this design satisfy the gradual age or service requirement, or do they need to make a gateway minimum contribution?

Is it acceptable practice to deliver SAR's with paychecks, or do they have to be sent via US Mail?

Please advise asap. Thank you so much!!

For the life of me, I cannot find official language outlining the RAP for a 403(b) plan. Checked all over this site, too, after coming up empty searching the Rev. Procedures. Can anyone provide some assistance? We rarely have a 403(b) issue to address.

Thanks a million!

I am reviewing a Form 5500 for a multiemployer holiday fund that terminated. At the termination, excess assets were reverted back to the participating employers. On the Schedule H, where should the reversion amount go?

I work for a TPA and would like to be able to sign the form 5558's for my clients. We always seem to have a few problems with employers who fail to file the signature ready 5558's we mail them.

On the signature instructions for the 5558 it indicates that "a person enrolled to practice before the IRS" may sign the form.

What does "a person enrolled to practice before the IRS" mean? Do you have to be a CPA or attorney? - I am neither. How do you go about becoming a person enrolled to practice before the IRS?

Back in 92 I was assigned a permanent representitive number by the IRS which I was to use whenever I filed a Power of Attorney form - does this qualify me as an "enrolled person?" Does it only count when I use the power of attorney?

I am getting myself confused here. Company A sells part of its stock to Company B. Prior to the sale the companies are not related. As a result of the sale they are not part of a controlled group.

A and B each have their own 401k/PS plans. Co. A wants to merge its plan into Company B's plan.

Co. A needs to prepare an amendment to merge but do they actually have to do a separate termination amendment? Is Co. A's plan actually "terminated" as a result of the merger?

If the merger occurs in the middle of a Plan Year, I'm thinking that Co. A will prepare a plan valuation based on compensation etc. as if the Plan Year were 1/1- date of merger. Is this correct? Does this mean that the 5500 would have to be filed as if this were a short year?

Thank you.

I am reviewing a Form 5500 for a multiemployer holiday fund that terminated. At the termination, excess assets were reverted back to the participating employers. On the Schedule H, where should the reversion amount go?

We have a profit sharing plan that terminated 12/31/01. Same employer adopted a new DB plan effective 1/1/01. Can the PS money be transferred to DB plan as a plan to plan transfer without distribution election forms?? Thanks.

A client employs several Amish carpenters. These carpenters irrevocably waive out of the plan due to their cultural/religous beliefs. For thos not familiar with the Amish, they also do not participate in the Social Security program.

When it comes to testing compliance in the plan can these people be totally ignored under the religious organization rules or must they be included as zeros in the calculations?

I've just run across a plan which has filed schedule i for the past 3 years, with beginning of year participant counts of 106, 109 and 114 respectively. There has not been an audit performed using the 120 participant count and schedule i "exemption". Any thoughts on audit implications?

We have 2 related DB plans. One plan's trust has had good invesment performance, and the other plan's trust has not. Benefits from one plan have been paid out of the wrong trust, the trust with poor investment performance. How should we correct the trusts' balances?

For example, if $100,000 in benefits is incorrectly paid out of the trust which had negative invesment performance (it should have been paid out of the trust with positive investment performance), do we simply take $100,000 from the trust the benefits should have been paid from and deposit it in the trust in which the benefits were incorrectly paid from? How do we factor in the fact that the trusts had very different investment results?

Any suggestions are greatly appreciated!

cstrong

Can anyone refer me to guidelines on interest owed health care providers if thier claims are paid "late"? I have heard of calls from doctors demanding such.

Is this ERISA, HIPAA, some other reg?

I have a non 5% owner who attained age 70 1/2 in 2002. He terminated in August 2003 and rolled all of his money to an IRA. Should he have received a minimum distribution from the 401(k) plan even though his RBD is 4/1/04? What is the remedy?

An ESOP is established with the intent to be a leverage esop, but the loan is never obtained. It is now the Plan Sponsor's intent to purchase shares of stock from a terminated employee. Two years has passed and no stock has been purchased for this plan. How long can this plan be in existence without stock in the plan?

(Posted by Dave Baker for Thomas Mulloy, who's having trouble with the message board.)

I went back 3 years on the sep/sarsep/simple board with no luck, so I'll ask

the experts. Situation:

Partnership operates a SARSEP. HCE and NHCE deferred during 2003.

Partnership changes to Sub S Corporation 10/1/03. Business name will change

as will the employer ID number.

Client wants to start safe harbor 401k 10/1/03.

Two questions:

1) Can the s.h. harbor 401k be established 10/1/03 (for a 3 month short plan

year)?

2) They don't want an open enrollment (i.e., anyone employed 10/1/03 enters

the 401k plan). Any problem counting prior service with the partnership and

using it satisfy a 1 year service (and 750 hours worked) eligibility

requirement?

Thanks.

We have a situation whereby an ERISA plan will become a church plan (due to various restructuring matters). There is a bit of a disagreement on whether the church plan must protect the benefits accrued under the ERISA plan.

In the PLRs that I have read (e.g. 200036051, 200048050, 9717039, etc), the plan sponsors have represented that the resulting church plan will be amended to provide that no present or future plan amendment will reduce any benefits accrued while the plan was subject to ERISA.

The argument against this is that the IRS did not require the amendment, but that the plan sponsor offered the amendment.

Any insights? Suggestions? Opinions? Thanks

Does anyone know the length of time that an administrator must retain the records of an individual after the plan has terminated? If so, please provide the cite, also. Thanks in advance for your help.

What is partnership income for purposes of determining compensation for making an employer SIMPLE IRA contribution? Is if the amount reported on the k-1 or must the k-1 amount be reduced by expenses deducted on the partner’s tax return in order to determine compensation.

Does anyone have a cite or source where i can find info regarding which GASB reports need to be prepared for a govt. DB plan? Thanks.

Has anyone had experience with getting an IRA back from a state's Office of Unclaimed or Abandoned Property?

If so, did the state take taxes out before giving you the money?

What was your experience generally?

Thanks