Non-Standardized MPPP terminates effective 2/15. None of the employees have actually terminated. Is a contribution required for the period 1/1 through date of termination?

I am looking for some basic and intermediate training on nonqualifed deferred compensation plans. Open to self-study, seminars, videos, etc. Any suggestions?

Anyone want to consult?

We have a client that is a subdivision of a medium size city government. The City and the subdivision sponsor the Virginia Retirement System DB pension plan, with employer pick-up of employee contributions. They also sponsor a 457 plan funded by employee deferrals only. They now want to sponsor some type of plan that would provide matching contributions by the City. We have discussed that the City is not eligible for 401(k) or SIMPLE IRA, they don't like the opportunities afforded by the 457 plan, and a 403(B) plan would apparently only be an alternative to (not in addition to) the 457 plan since the contribution limits are coordinated.

Bottom line, the client is convinced there is a solution and is not entirely confident in our ability to advise in this area. Does anyone have any ideas or want to contact me to set up a conference call, etc. Client is willing and able to pay for "better" advice! 304-325-8157

We've had a client whose DB plan termination 5310 filing (submitted 2/15/2000) was reviewed by an IRS agent and finally recommended for approval last week. This week, the filing was "randomly selected for further review" so we still don't have a determination letter after over 13 months! We're wondering how long the "further review" might take. Have any of you had experience with this?

If an employee is married and carries single Medical coverage, can they add their spouse at the time of a birth? I know that past regulations have allowed this, but I am thinking that the new consistency clarifications say no because adding a spouse is not consistent with the birth of a baby. Am I correct?

An employer maintains an IRS Model SIMPLE IRA with a designated financial institution. One of the participants dies. There is a nonspouse beneficiary. The non-spouse bene does want to take distributions over his life expectancy. Is the employer OBLIGATED to keep the participant's account in the plan and permit the beneficiary to take distributions over his life? If so, what is the employer's responsibility with respect to that bene? Keep the account in the deceased's name? Must he track the bene's whereabouts? Give the bene annual statements? If the employer goes out of business or terminates the plan, doesn't that specific plan account need to be terminated along with the others?

We are in the process of amending our 401 (k) to make the employer match discretionary (from a dollar for dollar match up to 6%, matched bi-weekly), with an effective date of April 2, 2001. Is there a notice period with respect to when employees must be notified of the change? Our third party administrator has indicated that they would be more comfortable with a 15 day notice, which would delay our implementation as our Board is meeting March 23. The third party administrator is taking a conservative approach using defined benefit plan rules. We are under severe financial strain and need to implement right away. Do we need to give 15 days notice to employees?

Late last year, we terminated one of the sponsor's two defined benefit plans. The plan had excess assets that were allocated to participants. All the distributions occurred before 12/31 and everyone was pretty much thinking that 2000 would be the last 5500.

Now the insurance company who provided the annuities has come forward and stated that they made an $11,000 error on the annuity purchase. They charged $11,000 too much and want to send a check back to the plan. Can anyone think of any way to deal with this without having to do another 5500? Unfortunately there are no plan expenses to deal with, these were all paid by the plan before terminating it.

There is probably not a good answer here but I feel obliged to ask. Thanks in advance for any responses.

Late last year, we terminated one of the sponsor's two defined benefit plans. The plan had excess assets that were allocated to participants. All the distributions occurred before 12/31 and everyone was pretty much thinking that 2000 would be the last 5500.

Now the insurance company who provided the annuities has come forward and stated that they made an $11,000 error on the annuity purchase. They charged $11,000 too much and want to send a check back to the plan. Can anyone think of any way to deal with this without having to do another 5500? Unfortunately there are no plan expenses to deal with, these were all paid by the plan before terminating it.

There is probably not a good answer here but I feel obliged to ask. Thanks in advance for any responses.

Plan sponsor has changed entity type from PC to S-Corp. The EIN has also changed. These changes are effective in the middle of the plan year. How do I handle this? Is this a simple amendment of EIN? What about a short plan year?

How do I file F5500? Old EIN, New EIN or both?

We have an employer with a 401(k) PSP who wants to allow employees to make a one-time election of chosing between 1 yr eligibility w/vesting schedule for match and profit-sharing or 2 yr eligibility w/immediate vesting. This smells bad to me, but I can't pinpoint why. Has anyone heard of allowing the employee to elect eligibilty/participation/vesting provisions? I'd love some comments. Please tell me it can't be done (and why . . . ).

Has anyone ever experienced an IRS audit where the auditor requested and/or reviewed APRSC (or SCP) documentation? If so, anything helpful to share about doing the documentation?

Who is ultimately responsible for COBRA administration in a multiple employer plan, such as an Association plan, the Employers or the Association?

Can someone help me with a simple, sample calculation of an general test NAR for a 10C&C normal form and MVAR for a lump sum provision.

Let's say testing age is 65, and a participant is 64. The testing period is the current year, so testing service is one year. The person's test comp is $12,000 and he accrues $120/month (1%). The normal form is 10C&C. The plan pays lump sums using UP84 @ 6% with no pre-retirement mortality, so the lump sum value of the accrued benefit at age 64 is $13,926.79.

Let's assume we test using UP84 % 8.50%.

Can somebody walk me through the normalization of the accrued benefit of 1% on a 10C&C basis to a NAR, and then the normalization of the lump sum to a MVAR?

Thanks for any help.

Employer currently has a PSP. Employer has provided employees with a Safe Harbor Notice regarding the 401(k) which is to be effective April 1, 2001. Safe harbor notice basically says that 401(k) will be effective April 1, 2001, and that Employer will satisfy the safe harbor by making the 3% nonelective contribution. Employer now has run into administrative problems as far as finding an investment manager to handle the investment of the deferrals and the 3% safe harbor contribution. Current investment manager says it can be in place by June 1, 2001. Can employer now tell employees that the 401(k) (and the safe harbor contribution) will not begin until June 1, 2001 and send out a new safe harbor notice before May 1, 2001?

I do not know terribly much about medical reimbursement plans, but have a client that wants to know a bit more. They want to set up a medical reimbursement program and wish to know how it works.

I assume employee contributions, like 401(K) are withheld from pay. Where do these contributions go? When a physician asks for payment up front, how does the participant get reimbursed.

Where can I get the "basics".

Thanks.

With regard to "wrap around" plans (ie. non-qualified plan working with a 401(k) arrangment), there are a couple of PLR's out there that state that a participant must make his deferral election by December 31 of the prior plan year in order to "satisfy the 401(k) cash availability rules."

what would happen if a person decided to enter the non qualified plan in the middle of the plan year without making the prior year election?

I have an association health plan, with several individual employers participating. My question is, Who should offer COBRA, the Employer or the Association?

Can a Plan that has immediate eligibility for deferrals apply a eligibility requirement for Employer Contributions (i.e. Safe Harbor Non-Elective or Safe Harbor Match) of "The first day of the Plan Year following completion of 1 year or service" be considered a Safe Harbor Plan?

Can a plan elect to use prior year ADP testing but current year ACP testing? Seems to me the answer should be no, but I can't find authority.