My basic question is: Is this type of transaction permissible?

From what I've read, if pension plan assets are transferred to a non-pension plan, the distribution restrictions must continue to apply. I do not see how that can be possible given the fact that qualified plan money is transferred to an IRA in which the participant has access to the funds. Is it possible for a SEP to be written to retain the character of the transferor plan?

A one part plan owns a farm. The plan, which used to be 2 participants, now is just one and the plan files a shortened 5500SF. I'm trying to find up the code pertaining to annual valuations. Are they required in a 1 part plan?

My plan has AUL group annuity and they furnished the Schedule A and D information. I cannot remember whether I have to file those schedules with the SF form - I know that on the SF form Part V- 10e asks about commissions. If I fill that in, is the Schedule A unnecessary? D? Thanks.

Company A is purchasing the assets of Company B. Company B's employees will be employed by Company A and be eligible to participate in Company A's 401(k) Plan.

Company B's plan currently permits loans.

I understand that loans can be rolled from one plan to another.

However Company A's plan currently does not permit loans.

Can Company A amend their plan to allow participant loans only for those employees coming over as part of the acquision? They do not want to permit new loans to anyone.

Thanks.

Actuary is saying they don't, and while I make it a point not to argue with EA's 'cause I don't know much about DB plans, I just wondered if y'all agree?

Hello,

Am in the process of filing this form based on information from Fidelity forms.

Fidelity provides 5 pieces of information:

(1) Jan 1, 2014 balance - Goes on Line 7(a) column (a)

(2) Dec 31, 2014 balance - Goes on Line 7(a) column (b)

(3) Investment Earnings - Where do I enter this? Line 8(b)? Which column (a) or (b)?

(4) Fees Deducted - Again where do I enter this?

(5) Cash Contributions - seems that this will go on line 8(a)(1) and 8(a)(2) but WHICH column (a) OR (b) should I enter this.

Thank you for your assistance.

Owner of a company with a large 401k plan was just convicted of many counts, including paying phony compensation to brother/sister/parents/uncle/daughter/cousins etc., many of whom never worked, or apparently never worked legitimate hours.

I'm not even sure where to begin to tackle this, but initially my question is, what does this mean for contributions tied to such phony compensation and how far back would we have to track this and take action. Also, what if owner appeals would this all be on hold?

It appears plan administrators are looking out for best interest of the plan.

A terminated plan participant must receive an RMD from the 401k plan by April 1, 2016. Each year the plan has mailed the terminated plan participant distribution paperwork. Because we were aware that the terminated participant must receive a minimum required distribution, we mailed the RMD notice to the participant Certified/Return Receipt with Address Correction Requested. We received notice from the post office that the participant had moved to another state and our RMD notice package has been returned to us because the participant would not sign for the package after two delivery attempts. We are concerned about our liability if we just go ahead and issue the RMD payment from the plan to the participant and someone other than the participant cashes it. Are there any other precautions that we can take before we issue the check to her at her new address? We have researched her name online and all the online people search services still show her old address. Any recommendations?

If a company adopts a 401(k) plan midyear retroactively to the beginning of the year and an employee met the eligibility requirements at the beginning of the year, but terminates employment prior to the adoption date, must he be included in the 401(a)(4) testing? Must he receive the 3% non-elective safe harbor contribution?

I have a plan that had missed deferral opportunity corrections done for the 2014 plan year (they made the 50% correction and lost earnings). The participants deferral was not set up timely on payroll. Should the amounts be reported on the 5500? Or no because its not as if they were withheld and not submitted. What's the best way to do this?

Let's say a participant has $1,000 Roth basis in the plan. The assets subsequently appreciate to $2,000, so there is $1,000 gain that's taxable (the distribution is not qualified). Let's say the TPA firm charges $50 to process the distribution. How would that $50 affect the gain? I see 2 possible scenarios:

1) The distribution fee of $50 reduces gain by $50 and the total gain is $950, which is also the taxable amount.

2) The distribution fee applies proportionately to the basis and to the gain. One half ($25) of the fee applies to Roth basis and the other half (also $25) applies to the gain. The gain is thereby reduced to $975.

Which of these approaches seem right to you? Is there any guidance from IRS as to which approach should be used?

We are a TPA firm who has subscribed to RIA's Pension & Benefits Week for many years. Several years ago we compared it to CCH's offering and felt that RIA was a little better as far as weekly newsletters go. Are there any similar publications that anyone can recommend?

Trying to send off our Extensions Form 5558 via UPS for proof of delivery today and the IRS address on the form is simply

Department of the Treasury
IRS
Ogden, UT 84201-0045

No street address.

Can we use the 5500-EZ filing address for private delivery service?

In determining if a profit sharing plan for an association is top-heavy, is an officer of the association who earned over $165,000 last year a key employee? Obviously, there are no key employees due to stock ownership but is an officer/participant in an association a key employee? I have found references on line that state that the top-heavy rules do not apply to a plan of an association but that statement seems to contradict the Treas. Reg. § 1.416–1, T–15.

T–15 Q. For purposes of section 416, do organizations other than corporations have officers? A. Yes. For purposes of the top-heavy rules, sole proprietorships, partnerships, associations, trusts, and labor organizations may have officers. This rule is effective for purposes of determining whether a plan is top-heavy for plan years which begin after February 28, 1985.

I've done some research on this matter, but received conflicting information.

Let's say that the plan's effective date of termination is 6/30/2014. However, the last distribution from the plan actually takes place on 12/31/2014.

For 415 limit ($52,000 plus catch up), as I understand it, the limit is pro-rated and is only $26,000, because the plan terminated half way through the year.

1) Is that a correct assumption?

2) As I understand it, the catch up limit is not pro-rated. Is that correct?

Is the 401(a)17 limit ($260,000 for 2014) pro-rated? I've read that there are 2 ways to interpret this limit. It could be affected by the effective termination date (in which case, it will be decreased to $130,000) or the actual date of the final distribution (in which case it's unaffected). Let's say the plan document offers no guidance on this, can the plan use either way to test the plan?

Finally, let's say the termination date and actual date of final distribution were 6/15/2014 and 12/15/2014 respectively. Would that have any effect on the way the limits are pro-rated. Would you simply take number of days divided by 365 or not?

We are taking over a client that is currently funding a 5% non-elective safe harbor. Can they reduce this to 3% mid-year without having to do ADP/ACP testing?

I've read a few articles and there is one obvious question that I have not seen answered - will the sponsors be required to restate their documents periodically? I sure hope so as I have dealt with plans written in the 90's with 35 amendments attached (and yes I am exaggerating).

If a "Critical and Declining" plan elects to lower accrued benefits, how does that impact a contributing employer's withdrawal liability? Is that run through the calculation like any other "gain"?

In other words, are there any special rules that exempt the impact of the reduction from the withdrawal calculation?

Does anyone have any guidance on what to tell these compliance departments at the wire houses for which boxes to check regarding type of account?

We use a Rabbi Trusts. Of course there is no option for Rabbi Trust on the forms, not even a grantor trust. Should it be just a corporate account? Butt hat would seem to negate the purpose of the Rabbi Trust because then the corporation would control the accounts and not the Trustee...

Wondered if anyone had any direct experience with a VCP submission on a 403(b) plan, where the submission proposed no correction for minimal benefits that do not exceed a certain threshold. For example - a 403(b) plan incorrectly excluded certain part time employees. Many of these people worked there only a few days or weeks, and terminated employment. A corrective contribution might be only a few dollars, and the cost of locating, providing, and processing would be prohibitive.

In such a situation, have you proposed no correction for benefits not to exceed, say, $25.00 or some other cutoff point, and if so, with what results?

Also, I presume if you must make such payments, the check would be made out directly to the former employee, (similar to what is allowed for "orphan" contracts) as an annuity provider wouldn't even accept such payments for a non-active employee.