What is protocol for calculating the excise tax amount when a portion of a persons ADP refund is being reclassified as a catch up contribution?? Do you take into consideration the original amount or the amount after earnings/losses.

Right before we took over this plan, a restricted employee took $600k+ lump sum distribution. The prior actuary did not advise the plan administrator that a secured repayment agreement was required before the RE could be paid. They now have another terminated RE wanting a lump sum, and we are telling them he has to secure a bond/escrow/letter of credit. When asked why they have to have it with the one and not the other, we informed them that they should also have had one in place when the last RE took a lump sum. They now want to know if they have any recourse with the prior actuary. Has anyone else encountered a problem like this? What did you do, if anything?

We have found an error in a benefit certification. Is is our mistake. The participant (non-highly compensated) is receiving too much. What is your experience with correcting something like this?

Are prepaid dental plans covered under COBRA?

The plan has no charge for preventive and cavities and set dollar fees that the member pays to the participating dentist for other nonpreventive procedures

Could someone provide me with the address to file a late 5500 under the dfvc program? I know it is in Atlanta but I dont have the full address.

I am completing the 5500 for a MPP Plan which is in the process of being merged with the PSP. The merger was effective December 27, 2002, but the assets themselves weren't reclassified/transferred until 2003.

For reporting purposes, do I consider the MPP a "frozen" plan for 2002? We did not go through a plan termination, we passed a merger resolution, so I assume we do not report that a resolution to terminate the plan was passed . . . ?

I'm just feeling like we need to make note somewhere in the 5500 that something's happening, because, of course, we are reporting no contribution on the Schedule R.

Thanks.

Medicare paid out as primary for union member and his wife in 1995 when the Health Fund was supposed to pay as primary. The overpayment "debt" was supposedly referred to a collection agency by HHS in 1997, however, the Health Fund has no documentation showing notice until 2003.

Regardless of the notice issue, what, if any, is the Statute of Limitations for Medicare/HHS to commence a lawsuit/seek a judgment against the Health Fund? If the statue of limitations has expired, what exposure does the Fund face?

Any help is appreciated.

FACTS: Employer presumably failed to timely amend for 401(a)(17) and 401(a)(31). (This was before we were involved.) The plan was amended retroactively for these purposes when it was also restated for GUST in late 1998. The Service has discovered this alleged failure in the determination letter process and is proposing Audit Cap with a sizable sanction as the only alternative to disqualification.

ARGUMENT: We have initially argued that while the plan may have been subject to disqualification for the years following the failure to amend, it was corrected pursuant to the GUST amendment citing as authority Internal Revenue Manual 4.72.12.2.1 and Rev. Rul. 73-79 (a qualified trust may lose its qualified status and then regain it by amendment) and that the years in which the plan was not qualified are now closed. IMPORTANT NOTE: The plan operationally complied with (a)(17) and (31) throughout this time so there was no operational correction needed. IRS says plan is disqualified immediately upon lapse of remedial amendment period and remains so unless requalified under its correction program (i.e., later amendment is meaningless.

QUERY: Is our argument worth pursuing?

Just got off the phone with EBSA over a bounced return. We filed a 2000 Form 5500 for a defined benefit pension plan on a timely basis back in 2001. We then had to amend the Schedule I to reflect corrected asset information received by the client. This only affected Schedule I, so we filed an amended Form 5500 (only change was to check the box that this was an amended return) and the amended Schedule I with corrected items circled in red.

Client just received a letter from EBSA stating that the Schedule B was not filed. After discussion with EBSA representative, the following was concluded:

Form was bounced because the amended Form 5500 did not have a Schedule B attached, based on responses to item 10 (which indicates which schedules are enclosed with return).

He did verify that Schedule B was received and in the system.

What you should do on an amended Form 5500 is blank out your prior responses to item 10 and then only complete the amended schedules that are attached (which seems a little counterintuitive to me since one could argue that you are then "amending" item 10 to show that these unaffected schedules are not part of the filing).

Just a word for the wise (not sure why the EBSA software didn't also issue a letter that schedules P, R, and T weren't included - but who knows).

I have a client who started a new plan effective 10-15-02, within several weeks the company took over a competitor. At this time the plan was amended to allow immediate rollovers. Several weeks later another take over and another amendment now allowing 2 loans, rather than 1. Within a week there was another amendment to the plan, and yet another. To summarize the plan has had 4 amendments and the provider has not yet distributed the SPD.

I know the ruling is the SPD is due 120 days from the plan effective date, but, are there any provisions allowing the SPD to be delayed?

If an IRA owner names their Trust as beneficiary of the IRA, can the custodian require a copy of the trust be provided? Can an IRA owner provide the pertinent details of the trust instead without having to provide a full copy of the trust? If just the pertinent details can be provided, which details are considered pertinent for IRA use?

What, if anything, is the duty of the administrators of a Money Purchase Pension Fund with respect to locating any outstanding child support orders prior to paying out a member's pension funds?

Does the Fund have to look beyond a spousal election form (ie: a divorce decree) in order to determine an ex-spouse's rights to the member's pension?

If there is no QDRO served on the Fund, is the Fund required to look for/into other divorce/child support related documents?

We have a client that shut its doors in October of last year. We are in the process of filing a Form 5310. For Line 7a purposes is hte proposed date of plan termination the date the doors shut? Or can we set a date as the plan termination date? Additionally, for the IRS submission, we need a copy of all actions taken to terminate the plan. Do we need to draft resolutions to formally terminate the plan as of the date we set? I am just not certain how to handle this. Any directions would be appreciated.

I plan on taking the C-2(DB) in November. Out of the required readings I am hoping I can get by with only the Study Guide. I've got the ERISA Outline Book and I'll probably look at old exams. Is this sufficient for the average candidate?

Thanks for any guidance.

Hi. I am a novice when it comes to multiple employer plans. A question came up on the use of forfeitures. I did some research and came to a conclusion that there is no black and white guidance here. Specifcally, within a mulitiple employer plan there are a number of employers that offer similar benefits but maintain different vesting schedules. The issue is whether or not forfeitures derived from non-vested balances of one employer within the plan are used to reduce contributions required by that employer or have the forfeiture used by all employers within the plan. I think the ambiguity here is around the concept that plan assets (which are held by all employers in the plan) are used to pay for the benefits of any of the participants. I was looking at Reg. 1.414(l)-1(b)(1) and it doesn't seem to require that forfeitures be allocated among all participants of the plan, but only that all assets of the plan may be used to pay the benefits due any participant. Does anyone feel that the definition of benefits is extended to the use of forfeitures, or only for the use of paying benefits?

Thanks for your assistance.

Have a MPPP which was frozen back in 2001. Given the upswing in the market, the trustees are considering terminating the plan as of June 30, 2003. The plan document (vol. submitter) was recently updated for GUST. Due to language changes the document will need to be submitted to the IRS for review. Anyway to combine the GUST review with the termination, ie, wouldn't it be possible to submit the 5310 and include the new document and receive a det. ltr. on both the termination and the new document? Alternatively, any issues with terminating the plan as of June 30, 2003, paying out participants as soon thereafter as possible and then submit the document for review, ie, forego the 5310, but terminate as soon as possible?

Have a MPPP which was frozen back in 2001. Given the upswing in the market, the trustees are considering terminating the plan as of June 30, 2003. The plan document (vol. submitter) was recently updated for GUST. Due to language changes the document will need to be submitted to the IRS for review. Anyway to combine the GUST review with the termination, ie, wouldn't it be possible to submit the 5310 and include the new document and receive a det. ltr. on both the termination and the new document? Alternatively, any issues with terminating the plan as of June 30, 2003, paying out participants as soon thereafter as possible and then submit the document for review, ie, forego the 5310, but terminate as soon as possible?

Not sure if this is the right folder for this question, but here goes:

Company with 5 employees (4 family HCE's, 1 non-HCE's) with a 6/30 fiscal year. The adopt a SEP with an initial PYE of 6/30/02. They are considering adopting a PS plan, effective either for PYE 6/30/03 or 6/30/04, and doing away with the SEP.

If they adopt the PS plan, is the $500 (max) tax credit available to them for either 6/30/03 or 6/30/04 plan year, possibly both? Does the SEP interfere with them taking advantage of this credit? If they wait until 7/1/03 to adopt the PS plan (630/04 PYE), can they take advantage of any of this tax credit for SEP admin costs (if there are any) for 6/30/03 Plan year?

Thanks for any help.

A married person is a member of PERS dies and names his girlfriend as beneficiary. He is not divorced! is the wife treated as a surviving spouse, is entitled to widows benefits? Is girlfriend still treated as beneficiary? Any case history?

Recently one of our clients were bought out by another company. The 401(k) PS plan for the original client is still in existence with about 40 participants with balances even though the company is not. There are no contributions going into the plan nor were there for 2002.

Therefore, there was not testing run on the plan for 2002.

How do I continue to complete Schedule T. Can I mark one of the exception boxes. If so, which?

Thanks