Ihave a client who failed to distribute assets timely,so the PBGC nullified the termination. The request for reconsideration was denied so the nullification stands. What does this mean,especially with respect to IRS? Is the termination resolution invalidated? Is the plan considered ongoing from the original term date? If so,then it seems to me that I have to re-do the valuations,resurrect the Funding Standard Account,accrue benfits,let in new entrants,etc.?In short,treat the plan as if the termination never happened?

A company sponsors a Health FSA and in addition pays 100% of the single person health insurance premium. Are these separate plans and tested accordingly, or can they be tested together? Thank you.

I am currently reviewing a calendar year plan that states the following under Eligibility: each employee becomes a participant in the plan on the plan entry date immediately following the later of the completion of one year of service or the date he attains age 21, "plan entry date" means every June 30 and December 31.

My questions are these: does this plan satisfy the requirements of 1.410(a)-4(B)(1), that an employee must commence participation no later than the earlier of (1) the first day of the plan year beginning after the date the employee met the eligibility requirements, or (2) the date six months after these requirements are met? Is the plan document required to have a "first day of the plan year" entry date? When would a full-time employee, age 21 or older, hired on January 1 enter the plan?

I'm reviewing a prototype doc where plan year and employer's fiscal year is Nov 1 - Oct 31. The adoption agreement provides for a fractional year of service of 10/12 with respect to eligibility/participation. I haven't run across the use of a fractional year before. Can anyone give me some background on when/why a fractional might be used? Thanks.

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Are there any other states that charge a similar surcharge to that charged by New York under the New York Health Care Reform Act of 1996?

Is there any guidance about how soon after receiving a favorable determination letter on a plan termination that a defined contribution plan must make distributions? (It appears to me that it is currently 120 days for a DB plan in a standard termination, but I have not seen DC plan guidance).

I am currently reviewing a calendar year profit sharing plan that states the following under Eligibility: each employee becomes a participant in the plan on the plan entry date immediately following the later of the completion of one year of service or the date he attains age 21, "plan entry date" means every June 30 and December 31.

My questions are these: does this plan satisfy the requirements of 1.410(a)-4(B)(1), that an employee must commence participation no later than the earlier of (1) the first day of the plan year beginning after the date the employee met the eligibility requirements, or (2) the date six months after these requirements are met? Is the plan document required to have a "first day of the plan year" entry date? When would a full-time employee, age 21 or older, hired on January 1 enter the plan?

I am new to the laws, regulations, and pratices of these programs. My goal is to find educational information on Defined Contribution Programs (401 (k)Thrift & 457 DCP) verses Defined Benefit Programs (pensions). I need this material in easy, "plain english" to both understand and to educate State employees in CA. Please, help!

What are the issues for the Form 5500 in the year of an asset sale?

Has anyone built a successful consulting practice in self-audit services? How are your fees structured? Do you follow the IRS audit guidlines when reviewing the plan? Typically how long does a review take? Do you do a management letter? What percentage of the plans require a self-correction procedure and how many clients opt to do this? How do you market your services? What term do you use when referring to this service - (audit vs compliance review)? What kind of engagement letter do you use?

Also has anyone found a demand for clients that want a simplified training program to train their staff responsible for the plan on their plan and procedures to follow?

If the only reason you are doing a 5500 is because the plan is a Section 125 Plan (required by code section 6039D) then do you have to have a Summary Annual Report? We have never done one of these. Assume that if there is a requirement to file for the underlying welfare plan, that it is done on a different 5500 with a different plan number.

I have a client that is moving from one vendor to another vendor. This move involves moving from traditional balance forward accounting to a daily val environment. Does Rev. Rul. 90-24 (or some other guidance) allow a "black-out" periond, similar to that for 401k plans? Can account balances be moved to a non-interest bearing account for a short time while the valuation is being completed? Does the answer differ if the account balances are annuities or custodial mutual funds (403b7)? The plan document (this is an ERISA plan) is silent as to this. Any help is appreciated.

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I've talked with some other TPAs and there seems to be some disagreement over what would be a violation of the "substantially level" loan requirement. Would any of the following be a violation:

1) A person making loan payments of $200 per month decides to start making loan payments of $400 per month to pay the loan off faster.

2) A person making loan payments of $200 per month makes a one-time additional payment of $2000 and then resumes making payments of $200 per month until the loan is paid off.

3) The promissory note and amortization schedule are written to provide that payments will be $200 per month for 3 years and $500 per month for the final year.

Are there court cases or other guidance that show instances where there has been a violation?

What are the consequences if there is a violation?

My mother converted her IRA to a Roth IRA in 1998. She passed away in March 2000. My brother and I are the only beneficiaries. We want to equally divide her Roth IRA into separate ROTH IRAs. Her attorney said we would have to get a special ruling from the IRS to assure that a disqualification did not occurr. Surely this situation has already occurred. I have two questions. (1) does anyone know of such a ruling having already taken place, and (2) my mother's attorney said we would have to pay the IRS a "user fee" for ruling on this at a cost of $3,500. Why does a taxpayer have to pay the IRS to do their job? Is this correct?

I am looking for information on, sources familiar with, or organizations who have instituted a benefits program that provides cash in lieu of benefits. Employees then use the cash account to pay for their medical, dental, etc. Although I have heard about this possibility, I am seeking details on what the program is called, how it is designed and implemented, and any regulations pertaining to such a plan.

Any plan document I have seen provides for separate accounting of elective deferrals. This doesn't mean on a year by year basis, but throughout the life of the plan.

What would this employer do if they wanted to implement hardship withdrawals? How would they track elective deferrals? Also, how would you know if the special 401(k) distribution rules were met if there was no separate tracking. Vesting is not the only issue in tracking the sources separate.

If this was an asset sale then Company B still exists, unless it has also been disolved. Company B even as a shell company is still the plan sponsor. Company B is still the plan sponsor for all periods of time that the plan of Company B is in existence.

Have they looked at the "same desk rule" implications relating to employees that work for Company A in their same capacity as under Company B?

One of the alternative methods of satisfying the actual deferral percentage (ADP) test is to “recharacterize” elective deferrals made by highly compensated employees as nonelective, after-tax, contributions. This has the effect of lowering the ADP for the highly compensated group.

Has anyone ever used this method? Why was this method used (what made it preferable to other correction methods such as distribution of the excess contributions)?

Please help! A plan must rid itself of life insurance contracts, which are owned by 9 plan participants. One option is to allow the 9 to purchase the contracts from the plan, by complying with the DOL rules to avoid prohibited transaction problems. In order to do that, the 9 must pay the cash surrender value of the policies to the plan. If they do that, is the distribution of the policies to them taxable income? Any cites would be appreciated.

Also, the plan can borrow against the policy to reduce the cash surrender value of the policies, thereby making it easier for them to be purchased by the plan. I assume the loan proceeds are deposited into the participant's account? What happens to the loan when the policy is then distributed to participants?

I have already put in 40 hrs into this pay period and I need to take time off this week. Can my employeer make me take my vacation time even though I have put in my 40 hours for this work week?