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.

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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. 

Corp A. and Corp B are a controlled group. They have separate plans. Corp A's plan passes all coverage/nondiscrimination testing. Corp B's plan does not.

Is Corp A's plan subject to disqualification, or only Corp. B's?  Seems like the latter, but I'm not certain.

Happy birthday to Dave Baker -- 29 (again) today!

Congratulations, Mike Preston, for receiving the Edward E. Burrows Distinguished Achievement Award from the ASPPA College of Pension Actuaries (ACOPA)!

From the ASPPA web site: "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."

Here's more: http://www.asppa.org/News/Article/ArticleID/8969

Mike is an active and long-time user of the BenefitsLink message boards since 2001, having posted over 4,800 messages! His participation here on BenefitsLink has helped so many people in our industry. On behalf of them, THANKS, Mike!

Plan counts prevailing wage in the ADP test up to the applicable limits.

Immediate entry for prevailing wage, but one year wait for employee deferrals. 

Can plan include the those employees who received a prevailing wage contribution, but who are not eligible to make deferrals in the ADP test?  I don't think so, but I could be wrong. 

Thanks in advance for any guidance.

We have a terminating plan with one deceased participant. There is a valid beneficiary designation naming the spouse. The account balance is in the 5 figure range. The spouse is not responding to requests for distribution instructions. The plan requires full distribution within 5 years of the death. I'm checking to see if the 2006 termination date in our files is the date of death, or if he actually terminated and passed at a later date.

The record keeper claims that IRS regulations prohibit forcing out the account of a death beneficiary and the plan must stay open until she eventually decides to withdraw the balance. I've never heard of such a rule. Is that correct?

Is an H2A agricultural employee an excludable employee for qualified plan purposes?

So far, all I know is that these employees work 9 months per year in the US. 

Are there other questions that need to be asked and answered in order to determine if they need to be included for coverage testing?

Thanks.