Have some owners/officers that bought company stock in their IRAs years ago and now they want to sell it. Problem is the company is the only willing buyer which would be a PT. Anyone aware of any court cases or anything that might give these guys a way out? I am thinking that they would not be granted an PTE for this.

Or something very much like it...

http://www.plansponsor.com/Court_Tosses_Multiemployer_Plan_Withdrawal_Liability_Challenge.aspx

Have a 5 person professional DB plan where age 50ish principal stands to get a lump sum of about $1.5 million -- the 415 maximum. The principal does not want to spend the money to obtain an IRS Determination Letter.

When we've requested a D-Letter on plan termination for such plans, we attach to the 6088 the benefit calculations.

The D-Letter, thus, not only serves as an insurance policy for the client but also to some extent for the actuary.

If you've been involved in such situations, have you requested the client to execute a hold-harmless agreement since they are acting against your recommendations in not requesting a D-Letter?

all 3 plan participants walked off the job. they will be due a contribution for CY 2014.

the plan provides for immediate payment.

can the sponsor wait until the 2014 contribution is deposited before making full payment at one time?

thank you!

Have a 5 person professional DB plan where age 50ish principal stands to get a lump sum of about $1.5 million -- the 415 maximum. The principal does not want to spend the money to obtain an IRS Determination Letter.

When we've requested a D-Letter on plan termination for such plans, we attach to the 6088 the benefit calculations.

The D-Letter, thus, not only serves as an insurance policy for the client but also to some extent for the actuary.

If you've been involved in such situations, have you requested the client to execute a hold-harmless agreement since they are acting against your recommendations in not requesting a D-Letter?

http://asppa-net.org/News/Browse-Topics/Sales-Marketing/Article/ArticleID/3090

I know, I should have posted in 5500's section but I thought this was "big news" and this forum gets the most traffic.

Hi - Historically, we have delivered documents to our clients in hard copy binders. We want to switch to a digital vault.

1 Has anyone been working with vaults? What is your experiences?

2 Do you know of any service providers whose product is well suited to retirement plan administration?

3 Are using a secure system to send emails? Does that tie in to the vault? If not, can you recommend vendor?

Thank you very much.

Dave

Employer X and Employer Y are a controlled group. Employer Y is 100% owned by Employer X.

Plan A and Plan B are sponsored by Employer X. Plan A covers one division of employees and Plan B covers another division of employees.

Plan C is sponsored by Employer Y.

All three plans are currently able to pass coverage on their own and as such are tested separately.

Currently, Employer X wants to merge Plan B with Plan C. Plan year end is September 30, 2014.

What are the pros/cons of merging Plan B into Plan C on 9/30 versus 10/1?

Much remarked on in our news is that the idea of an employer paying for its employee's individual health insurance is over.

But what if there is no group health insurance available for the employer to buy?

Under the New Jersey Small Employer Health Benefits Program, an employer cannot get a group contract unless it has at least one "real" employee. For that purpose, an employee "excludes a sole proprietor, a partner in a partnership[,] and a 2 percent S corporation shareholder[,] as well as immediate family members of such individuals."

If all of a corporation's employees are its shareholders and their children, must the business forego the tax advantages of employer-paid health insurance?

Or is there a way for the corporation to pay the premiums for each worker's individual health insurance, without tripping on the several prohibitions and penalties we've been reading about?

A participant recently noticed that no 401k deductions had been taken out of his paycheck since June 2013. He had elected to have 3% taken out. After checking with the payroll company, it was discovered that the payroll rep had accidently stopped his deductions.

Accordingly, calculations are being done to correct the missed deferrals for 2013. The question that was raised was does the employer have to make up the deferrals that weren't done during 2014 even though the participant could still contribute enough to make up his 3% pay for 2014.

The plan has a safe harbor match. Any replies wll be much appreciated. I am just getting back into administration after being out of work for over a year!

John owns 1% of company A  and 99% is owned by Family Holding Company.  Same ownership for company B. The Holding company is a Revocable Trust owned by John.

As a Grantor trust isn't John deemed to own 100% of both A and B and a controlled group exists?

Thanks

We handle three separate plans of three dentists who share a dental office, as well as a few employees. For purposes of eligibility and contribution, we are using RR 73-447 and RR 67-101 which basically says that although the employee works PT for each employer, she must participate and receive a contribution in each employer's plan if she is employed by that employer whether FT or PT

We have one employee who works for two dentists. She "terminated" employment with one of the dentists and now works FT and exclusively for one of the other dentists.

She wishes to rollover her vested account balance to the other plan. She already has an account in the other dentist's plan.

The plans are all safe harbor 401Ks with a discretionary PS contribution. She is not yet 100% vested in the profit sharing portion of either employer's plan.

Question #1 - is she entitled to a distribution, i.e. did she "terminate from service"

Question #2 - would she now become 100% vested in the profit sharing account balance in the first employer's plan?

Final regulations allow the common law large employer to take credit for health coverage provided by a staffing company or PEO but only if the staffing company charges a higher fee for workers for whom it's providing coverage.

Does the higher fee have to be charged with respect to all workers OFFERED ACA compliant coverage or only those who actually ENROLL in the coverage?

It would seem logical that the fee should attach to any worker offered coverage since that dovetails with the common law employer's obligation but the reg language seems to say the fee applies with respect to the workers "actually provided" coverage.

Can an employee cover their working spouse, at the same employer, as a dependent in their health plan? Both are eligible for benefits. I thought it might be some kind of irs pretax problem. I just saw this when someone tried to elect family coverage but their spouse (open enrollment) is being added to their coverage and spouse is dropping their individual coverage.

In one of our plans, we have a distribution pending for a U.S. citizen who's currently living abroad, but is planning to return to U.S. at some point in time. She requested a direct distribution. Should the federal withholding be 20% or 30%. I know's it's 30% for non-resident aliens, but since she's technically a U.S. citizen, should it be just 20%?

Can anyone point me to a regulation regarding the beginning and ending of a coverage period for a health plan that does not coincide with a calendar year?

A local school district has a coverage period beginning 9/1 and ending 8/31. How normal/common is it to use a coverage period that does not coincide with a calendar year? This is the first time for me to come across this.

If I have a QACA plan using a 2 year cliff vesting schedule, can I apply forfeitures to reduce the QACA matching contribution? I know the IRS position on not using forfeitures to fund vested contributions because the forfeitures are from non-vested amounts when a participant terminates employment. Thus for QNEC's and traditional safe harbor plans that require 100% vesting, you should not use forfeitures to fund the safe harbor (based on the terms of the document -ie some EGTRRA pre approved plans allowed this are are ok until the PPA document is used.

Thanks for any insight!

Have a plan w/ no HCE's so coverage is not an issue. Can I exclude from the Plan anyone who was hired after 10/1/2014? Or could that be considered a violation of 410(a)? I know DB plans do it all the time so I assume it is ok, but just thought I should double check with y'all.

Thank you.

Client should have made minimum quarterly contributions by 4/15/2014 and 7/15/2014 based upon 1/1/2013 and 1/1/2014 valuations that were performed pre-HATFA. Of course, client was instructed to but failed to make contributions so should have notified participants and possibly PBGC (at some later date). We just found out about this.

And then? And then? And then? Eh, eh. Along came HATFA with the result that the 2014 MRC=0, so in fact, no quarterlies were required in 2014. Perhaps, this question is no different than if we were just preparing 1/1/2014 valuation now (and there was no HATFA) and we discovered 2014 MRC=0 even though 2013 suggested the safe-harbor quarterly.

Not sure how the rest of you would treat this but I'm going nighty night.