Are executor fees counted as earned income treatable as compensation for pension/profit sharing contribution purposes?

New plan for me and the father of one of the owners was born in 1940. Since the son's ownership is attributed to father, I am assuming he needs an RMD for 2014 (calendar year plan). I just got back from Hawaii, so my brain isn't firing on work mode yet...

We are a TPA and have been asked by one of our Plans to gather information/ideas on the possibility of the Plan charging a "terminated participant fee". Basically this would just be a fee to a participant's account for being terminated in the plan with an account balance.

Does anyone out there have this? If so how did you determine the number? Any other comments would be helpful.

Anybody know the limitation imposed on after-tax (Non Roth) contributions to a defined contributions plan other than the ACP test and 415 limits. I know there used to be a 6% limit, but I can't find that anywhere.

Just saw this and wondering if anyone else has anything more on it:

http://www.irs.gov/pub/irs-dft/f5500sup--dft.pdf

The corbel VS 401k document includes an option to subject individuals who have made affirmative elections to auto increases. Let's say a participant affirmatively elects 0% of pay, or checks a box saying they choose not to participate (effectively the same thing). Does anyone have a problem with subjecting that participant to the auto increases applicable to employees who have made an affirmative election?

Because both of the Plans are audited I wanted to make sure that even though I am merging as of 1/1/2015 the client will not need to engage the CPA for a 2015 audit for the one day. I do not want to merge as of 12/31/2014 because one is SH and the other is not and that just seems to complicated. Note that we are currently within a 410b6c grace period.

I know I have heard that there has been informal guidance on this supporting using 2014 as the final 5500 for the non-surviving plan despite the 1/1/15 effective date. Can anyone point me in the right direction?

Client has ERA of 50 at which you become 100% vested. Why I do not know. Now the client wants to remove the Early Retirement Provision. Can this be done or is it a cutback?

We currently have a client that is inquiring whether her prior TPA should have filed form 5500 for their disability welfare benefit plan if more than 100 participants were enrolled.

The disability plan premiums were paid 100% by the employer.

The disability plan was not under a cafeteria plan arrangement.

This could go back as far as 2003 to about 2011.

Would a filing have been required if the employee did not pay for any part of that premium?

I would appreciate your guidance with this.

Thank You,

Are Executor(trix) fees considered earned income which can be considered compensation for qualified plan purposes?

Looking for info regarding "typical" internal costs to administer employee benefits programs, perhaps expressed as a percentage of total premium expense or on a PEPM basis. After years of severe cuts, I'm hoping to justify additional staff or consulting resources, but the first question from above is always "How do our costs compare with others?"

Of course there are way too many variables to take into account for a detailed analysis or response, but even a general idea would be helpful. Say you had 5,000 employees with +/- $100 million in annual premiums for medical, dental, life, disability, eap, voluntary programs, etc... What would you expect your internal costs for benefits admin - staff, communication, consultants, etc... - to run?

Has there been any coverage of admin costs in any of the big national surveys that you could point me to?

Any thoughts would be appreciated.

- 401k distribution to terminated participant's IRA.

- IRA owner decides to convert the rollover to ROTH.

Question: Do the converted ROTH assets continue to receive unlimited asset protection?

Company A is being acquired by Company B.

Both of them have an existing 401(k) Plan.

Company A wants to terminate their plan.

Do they need to do this before the official acquisition date in order to not violate the Successor Plan Rules?

If the Plan termination is done after the official acquisition date, what are the consequences?

Does it matter if its a Stock sale or Asset only sale?

Any guidance is greatly appreciated

Alex

A 401(k) plan allows in-service distribution of deferrals, match, and PS accounts at age 59 1/2. Several participants have money that was transferred from the employer's terminated pension plan. The transferred assets are not eligible for in-service distributions. The PPA amendment specified that in-service distributions of transferred pension assets would not be allowed at age 62.

The employer wants to amend to allow in-service distributions of the former pension accounts at age 62, leaving the other accounts as-is, eligible to be distributed at 59 1/2.

Document is Sungard Corbel. How do I change the PPA amendment? Do I call it a revised amendment?

Looking at the document checklist and language manual, even if I had originally coded for distributions at age 62, it doesn't look like this would have been mentioned anywhere except the PPA amendment. Do I need to amend any other section of the document, such as adding it to the "In-Service Distribution of Employer Contributions" section?

Which PVAB do we use in calculating the RMD:

• PVAB calculated on valuation basis, or
• PVAB calculated on termination basis

Also, our actuary uses the first day of the plan year for valuation, so presumably the PVAB shown on last valuation would be as of 01/01/13. Can we use this for the 2014 RMD, or do we need a re-calculation as of 12/31/13?

A non-owner 401k participant retires at age 79 in Sept 2014, so her RBD is 4/1/2015.

She dies Oct 2014 and her spouse is her designated beneficiary.

Since she died prior to her RBD, does the plan still need to distribute the first RMD amount prior to distributing her account balance to her spouse?

Can an employer (fully insured) offer a greater cash opt out benefit based on years of service?

For example:

1st year = employee can take health insurance, or receive $50 per month

2nd year = employee can take health insurance, or receive $100 per month

3rd year = employee can take health insurance or receive $200 per month.

A former partner of a company is retiring December 31, 2014. However, this partner will be receiving deferred compensation in 2015 and 2016. They have asked whether or not they can make elective deferrals off of this compensation during 2015 and 2016. They will not be working in either of the two years.

It is my belief, in reading the plan document of the company, that this deferred compensation cannot be used for deferral purposes, as the partner is performing no services for the company in 2015 (or 2016). Just want to make sure that my interpretation is correct.

Thanks for any replies.

I have a potencial client that would like to start a plan for 2014.

If the two owners they maximize their profit sharing (52,000), do I need to factor that in when calculatin Top-Heavy status or 2015 since it won't be deposited until next year.

I know we add back 401k receivables. I know the plan will be TH in 2015 for 2016 but I wasn't sure if it will be TH in 2014 for 2015.

thanks