We have an employer with a 457(b) plan that currently has a distribution option of "life certain."  They want to get rid of this option and instead offer 10 year certain and 20 year certain.  Is this allowed?

They also want to freeze their 457(b) plan and allow participants to roll over ALL their money to a new 457(b) plan (there is no option to move just some but not all money).  Is this allowed?

Thank you in advance!

If this is not allowed, feel free to remove it.

I have had a 457 plan with ICMA for the last 22 years through the city I work at. I have contributed $90,000 into that plan over the last 22 years. I currently have $133,000 in it. ICMA is a non profit but is charging 3-15 times the national average in maintenance fees. We were told if we followed their plan, we would have hundreds of thousands of dollars in our plans by this point in time. Do I have any options? 

My client is a 501(c)(3) organization that maintains an ERISA 403(b) plan.  It has never filed Forms 5500 and has never purchased a fidelity bond, as required by ERISA Section 412.  I will be filing the client's 5500s under the Delinqauent Filer Voluntary Correction program.  However, I am reluctant to go further until it corrects for the failiure to have an ERISA bond.  I asked the client to obtain a quolte for an ERISA bond retroactive to January 1, 2009, but they were   told that the bond could only made effective on a prospective basis.  What do I do about 2009 - 2016, when no bond was in place?

Has anyone seen auditors making any disclosures about this in their financial statements?

http://www.great-westclassaction.com/

I worked over the course of 19 years with this company and although the information pertaining tomy benefits say I have 15 vesting credits and a total of 7.82 benefit credits....only the final 2 years have been awarded benefits. May 1986 through July 1993 and then April 1999 through November 2000. Only 1999 and 2000 have any benefits awarded AAAAHHHHGGGG!!!!

I recently read about a defined benefit pension plan in which the employer makes the contributions but the employee gets the credit. The acronym started with H. I am tryng to find this again but Mr. Google is not giving it up.

Help!  I need to obtain the text of the IRS' Q&A 36 from the 2000 ASPPA Conference held in Washington DC.  If you have it, please send me a message and let me know how I can get in touch with you!  Thank you.   

We have a client who wants to rollover some SEP IRA annuities into their DB plan and are asking if these accounts can receive new or existing DB monies.

Technically, I see no problem; however are there any rights or features to either type of money they would be giving up by co-mingling in one investment?

Company A sponsors a Simple IRA. Company B sponsors a safe harbor 401(k) Plan. Company A acquires 100% of Company B through a stock acquisition in July of 2017. Both companies want to maintain their plans as is: Company A employees participate in the Simple IRA and Company B employees participate in the 401k.

I'm aware of the transition rules for coverage testing but can the separate plans continue as is past the transition period as long as they meet coverage?

A small employer 401(k) plan that allows for employer securities as an investment option has been filing a Form 5500-SF instead of a Form 5500 with a Schedule I.  Should they amend the prior year filings? If so, should they go through the voluntary compliance program?

Client has had self employment consulting income for each year for last 20 years.

Started a business with EEs selling widgets which ran for 2005 - 2010.  Owned 100% of both businesses.

Looking at DB Plan for 2017.

can I use the SE income in 2005 - 2010 years when controlled group existed or does the presence of employees in that period mean I have to ignore it?

Thank you for any thoughts or information.

Hi everyone,

As the topic states, are there any definitions or cases that exemplify "maintaining" a plan?  The Advocate SC ruling that recently came down points to "funding and administering" as components, but I'm looking for something more concrete.

Based off of a plain reading, maintenance could easily fall on plan trustees (especially with a plan that's ceased funding), and I'm curious what you all think.

Thanks!

Running a CB proposal for a LLC taxed as a partnership. 3 partners, each with 1/3rd ownership. Each partner's spouse is listed as having guaranteed payments of $200,000 in 2016. Assuming that this is not really W-2, is there any legitimate reason a spouse could have guaranteed payments?  

Plan is cross tested. Since 2013, THMs were not allocated, and the cross tested allocation was done incorrectly by the recordkeeper. Bottom line,  the coverage testing was not satisfied each year, and participants did not get the gateway.

Can we self correct?  2013 is outside the 2 year correction period, so will this year need to be submitted under VCP?  The recordkeeper is no help and said it is the client's decision to file or not.

Client is going to make the accounts whole, including lost income.

A plan subject to audit makes a discretionary match on an annual basis; however, they do not make the payment until the end of the year, so it is deducted on a cash basis on the company financial statements. The auditor, for the 2016 audit, is asking to see a calculation of the annual discretionary match, but the sponsor says that it will not be determined until sometime in November, and thus the 2016 match will be deducted on the 2017 corporate return. The auditor does not want to release the financials without a determination of the match for 2016. If the determination is in November, the October 16 deadline for filing the Form 5500 will be missed.

What are the ramifications here? Thanks for any replies.......

Congratulations to Mike Preston for willing the ASPPA/ACOPA Distinguished Achievement Award.  And many thanks for your years of contributions to these boards.

-----------------------------------------------------------------------------------------------------

August 23, 2017 -- The ASPPA College of Pension Actuaries (ACOPA) honored Michael B. Preston, FSPA, EA, MAAA with the 2017 Edward E. Burrows Distinguished Achievement Award at the ACOPA Actuarial Symposium held in Chicago Aug. 18-19.

The Edward E. Burrows Distinguished Achievement Award is presented annually to a pension actuary who has gone above and beyond in forwarding ethics, education, beneficial legislation or regulations that enhance the private pension system or the professionalism of enrolled actuaries within the private pension system.

“Mike Preston’s history of service to the actuarial profession made him an obvious choice to receive the Ed Burrows Award.” said Joe Nichols, former president of ACOPA and chair of the Ed Burrows Award Committee.

Mike is currently President and Chief Actuary of Preston Actuarial Services, Inc. Mike has been an Enrolled Actuary for over three decades, and an ASPPA member since 1988. During this time, Mike has served in many volunteer capacities, including as a member of the ASPPA Board of Directors, editor of the Pension Actuary, and member of the Actuarial Standards Board Pension Committee. Mike served as President of the College of Pension Actuaries at the time the combination with ASPPA occurred, and became the first President of ACOPA. Mike is a frequent speaker at ASPPA, ACOPA and other actuarial conferences, and is the founder of ACOPA’s member-only listserve — an invaluable resource for hundreds of enrolled actuaries.

I am the participant (age 62) in a one-participant money purchase pension plan that was started about 20 years ago and I would like to discontinue contributions to the MPPP.   The assets of this plan include various mutual funds as well as an annuity contract with a guaranteed lifetime payout even if the underlying securities decline in value.  I also have a SEP that was created earlier in my career which has been inactive since the creation of the MPPP.  The SEP assets consists of various mutual funds. I believe my plan documents are up to date and all 5500's for the MPPP have been timely filed.  I would like to combine the assets of the two plans and from my online research of the issue I've learned "just enough to be dangerous".  

Specific questions are as follows:

1.) Should I "terminate" the MPPP or "freeze" it?  How long can a MPPP be frozen?

2.) If I terminate the MPPP, what happens to the annuity contract and the lifetime payout it provides?

3.) Can the mutual funds in the SEP and those in the MPPP be combined into a single account?

Of course, I don't want to create a taxable event from any action I take.

Any advice will be much appreciated.  Thanks very much.

I have a client who did a ROBS (rollover business start up). His entire retirement savings is now invested in a company that is on the brink of bankruptcy. 

If the company files for bankruptcy, what happens?

Facts:  Company X and Y form a controlled group.  X has a 401(k) plan,  Y does not. 

To pass coverage for the Co. X 401(k) plan, the RPT passes by disaggregating otherwise excludible employees of both companies while treating employees of Co. Y as not benefitting. 

Question:  When performing ADP test for Co X 401(k) plan am I required to carve out the otherwise excludible employees or can I run an aggregated test including all eligible employees of Co. X?

Thanks!

If a participant works as a physician in a medical office and he/she is not a partner, can the firm require that the ER safe harbor match and profit sharing reduces the W-2 compensation of the participant? Would the answer change if it is a safe harbor non-elective? The firm is not related to any government entity. To be clear, this provision is written in the employment contract, not in the plan document. 

This seems like a blatant attempt to either: 1. circumvent 402(g) limits, or 2. find a way to make employees pay for ER contributions. Participants would be less likely to make deferrals if they knew the related match would come directly from their paycheck.