I am trying to complete a Schedule R for a client whose plan had distributions during the year. However, I am not sure exactly how to fill out the form. The client does not have a trust ID for this plan so when 1099's were completed, the employer's EIN was used. In reviewing the instructions for this Schedule, it states to "Enter the EIN(s) of any payor(s) (other than the plan sponsor or plan administrator on line 2b or 3b of the Form 5500) who paid benefits reportable on Form 1099-R on behalf of the plan to participants or beneficiaries during the plan year. This is is the EIN that appears on the Forms 1099-R that are issued to report the payments."

There weren't any other EIN's used to distribute account balances besides the employer's EIN.

Do I just list this EIN or leave it blank?

Thanks,

Rachel

Does anybody think that submitting a DFVC filing and paying the appropriate fee would somehow earmark that plan for a future audit, even if there wouldn't be an obvious reason for an audit?

Also, has anyone heard of the IRS and/or DOL assess any additional penalties (civil or otherwise) after a plan has filed with the DFVC program.

Thanks for any info - I'm curious to hear about people's experiences with the above.

Are S-Corp distributions ever allowed to be included as plan comp? If so, what definition of comp is needed? It would seem that it would be 415©(3).

To change the EIN on a welfare plan, is it necessary to terminate one plan and start a new one, or can that be adopted through a plan amendment?

My question is on TIPS. Tips are included as gross compensation in my definition of compensation. For this employer, tips are paid out in cash at the end of each day. Many employees earn 80% or 90% of their pay in tips. With FICA, medical, etc, being withheld on the remaining 10-20% there is often a zero net paycheck. Many of these employees want to participate in the 401(k) plan, especially since there is a generous match. Is there any way to do this 401(k) withholding on the tip income since there is not enough of cash running through payroll to withhold on?

Can any other TPAs out there provide guidance to us to find the regulations that address the banking issues associated with COBRA and FSA Administration? For instance, is it necessary to maintain a separate checking account for each client for whom we accept and reconcile premium payments (or FSA deductions)? If not, can we have one interest bearing checking account? Thanks for your help.

I thought, where there was only 401k contributions EGTRA removed the TH requirement. I also thought that maybe the match wouldn't trigger the TH minimum anymore.

I can not find anything to support this in the ERISA outline book.

Will 401k contributions trigger the top heavy minimum?

I have a 12/31/02 401(k) plan and just did the testing and found the plan failed the ACP testing. The HCE need to have funds distributed. I will be sending checks to two HCE less losses and reporting the amounts as income for 2003. One of the three HCE is not vested. Questions:

For deduction purposes, for the 2002 year, can the employer write off the entire match contribution even though part will be refunded in 2003?

Second, they have to make a top heavy contribution, can I forfeit the non-vested highly's excess match and use it to help fund the top heavy? In other words, reallocate it just to the NHCE needing a top heavy contribution (some of the NHCE do not need a top heavy contribution due to the match amount they received.) I didn't see anything in the doc except that it is to be forfeited. My guess is it would have to be reallocated to all eligible participants.

Thanks for any input.

Pat

Can the maximum deductible contribution to a defined benefit plan for a sole proprietor exceeed the net schedule c or even create an NOL?

If not, is there a future year carryforward?

Can someone give me a link to see the Q&A 10 on 1.72(p)? Everywhere I look on Google gives me stuff that cites it, but I can't find the actual text of the Q&A

Any help would be MUCH appreciated.

I'm probably missing something here, but I thought the effect of "converting" a DB plan into a 401(k) plan results in a plan termination of the DB plan. Is this not right?

I have a new takeover situation, and plan sponsor maintains a DB plan, but wants to swtich to a safe-harbor 401(k) plan. They've been told that all that is necessary to do is to amend and restate the DB plan into the 401(k) plan using the same plan number, and then just obtain a determination letter on the "new" plan.

I think it's necessary to first cease benefit accruals and then terminate the DB plan, with vested accrued benefits being subject to normal distribution options.

What's the correct way to handle this?

I have a question about common ownership: I think I know the answer, but would like confirmation:

Corporation "B" is owned by: 50% Corporation A and 50% "Individual

Guy"

Corporation "B" owns 100% of Corporation "C" and Corporation "D"

Corporation "D" owns 50% of Corporation "E".

I believe all of the above are grouped together and have one retirement plan.

Corporation "C" is selling off part of their business new a new LLC which will be owned 50% by "Individual Guy" and 50% by three other unrelated people.

Question is: Can the new LLC set up their own 401(k) Plan, even though "Individual Guy" owns part of Corporation "B" I would think that the ownership is not common with Corporation "B".

I hate this stuff! Any input is greatly appreciated. Thanks.

Is there any rule preventing an ERISA governed EB plan from holding a portfolio exclusively made up of options and futures positions??

In January '02 converted about $12,000 of my IRA to a Roth; due to market decline (well, my stock picks!), value in Roth fell to roughly $5700 so in October '02, converted all back to IRA. Received 2 1099-r's from brokerage firm...one for initial IRA conversion of the $12,000 with Box 7 code 2 (early distribution); the second 1099-r for $5700, Box 7, code N (recharacterized IRA and de-characterized also in '02). On my prepared taxes, the accountant shows the difference of $6300 as taxable - why is that? I thought there would be no taxable event since, in essence, I did nothing taxable as all done within same year. Does anyone have a clue? Thanks in advance for your help!

If a company has self-funded medical, dental, vision and flexible spending plans (that have their own plan documents), is it possible to issue one Notice of Privacy Practices and have the other relevant privacy requirements apply to them as a unit? I know the topic of treating the plans as an OHCA has been discussed and would seem to apply. But, based on the regs, it appears that nothing formal is required to declare the plans as an OHCA, either in the plan document or in the Notice of Privacy Practices. Are there any specific requirements that must be performed to be an OHCA?

Does anyone have any thoughts? Thanks.

Chain Letter Removed by Moderator

I am curious if there is any new information on the NC Bar ruling regarding benefits practice that anyone is aware of.

If a company shares individual employee health plan selection and cost data with their managers for budgeting purposes. Would this be viewed as sharing PHI as an "employer function" and not require HIPAA privacy training for all managers that have budgeting responsibilities.

We administer an 80 participant 401(k) Profit Sharing Plan. All assets are pooled except participant loans. The plan has a June 30 year end. In October 2001, the trustee decided to pool all loans. An amendment and corporate resolution changing loans to pooled investments were prepared and sent to be executed. A few days later the trustee (a company employee) was fired. Action was taken but the amendment was not executed.

The company hired a new CFO who subsequently became the new trustee. Even though earmarked loan accounts had already been liquidated and moved to the pooled account, we prepared a new resolution and amendment for him and corporate officers to sign. He acknowledged receipt of the new amendment and assured us it had been executed.

Just prior to completing the June 30, 2002 valuation, we again asked him for a copy of the amendment. He mentioned he would send a copy but never did.

The pooled account had -13% earnings and 9 participants who had loans of course wished they still had earmarked loan accounts. In February 2003 the trustee was fired. Apparently, the trustee misplaced the amendment and resolution which were never executed.

Question: Can a plan be amended by virtue of action taken on an earlier date?

The best solution for this employer (if possible) would be to amend the plan now with a retroactive effective date. The corporate resolution would contain language indicating agreement that the plan was amended by vitue of action taken on an earlier date.

Anyone have any comments on this?

Thanks!

Can a C-Corp with two 50% owners and no other employees file a Form 5500-EZ?? Pursuant to instructions of line 7b, I'm having doubts. Thanks.