Hi all,

I have a plan that is in the process of moving its assets to another platform.

The new account is set up with a different plan name since the Plan Sponsor changed the name of the company.

A new EIN was also issued in the process.

Now, the vendor is refusing to transfer the asset unless a distribution form is filled out.

Their reasoning is that the new plan has a new EIN, so they cannot transfer the assets.

I have provided them with documents stating the change of the plan name and EIN.

They are still refusing to do the transfer.

Has anyone been through this before?

Employer is a non-profit ("NP") with several units under the non-profit umbrella. Two of the units (Unit A and Unit B) participate in a multiemployer pension plan. One of the units has to close down as the NP is no longer providing the service that Unit A provides. This is a partial withdrawal. NP is selling Unit A to a non-related party and wants to use 4204. However, since Unit A provides in-patient health care the buyer must apply to the state to get approval to continue to provide in-patient care. The approval process could take from 12 to 18 months. NP will shut down Unit A in November regardless. If the sale doesn't close for 12-18 months does NP have withdrawal liability until buyer takes over? Buyer won't take on the withdrawal liability until buyer knows that the sale will be approved by the state. Does anyone know if NP is liable for the withdrawal until the sale closes? Can 4204 still be used when there is this time delay between shutting down Unit A and the closing of the sale? Any authority that is on point or close to this fact pattern. Sorry this is so long.

Not sure how this one happened, but have a new plan established in 2013. Have already filed the 2013 initial 5500-SF filing, see no errors in filing (checked as initial filing, effective date 1/1/2013, assets beginning of year all $0). Plan sponsor received letter from IRS asking for information on the 2012 filing for plan #002 (number assigned to new plan). Did check to see on DOL EFAST search to see if plan sponsor had some prior plan 002, don't see any prior 002 filings (our firm has had plan 001 forever, 001 2012 filing in place).

Wrote response to IRS to check their records as erroneous notice. Given past experience with IRS sending out wrong notices on plan filings, just wanted to put this one out there in case anyone else starts seeing bogus notices on missing filings for years prior to the establishment of the plan.

Do I need to use APR when calculating EBAR in my ABT as long as I am using 8.5 interest rate?

http://www.employeebenefitslawreport.com/2014/08/dol-updates-missing-participant-guidance/

Does anyone know which "free websites" in particular the DOL has in mind?

client received a notice from the IRS the 12/31/2012 return was filed late and accessed a penalty of $6,175.00

The return was filed late - not sure why.

Question, even though the penalty has been accessed, can the plan sponsor still file under the Delinquent Filer Program, or does the letter prevent the use of the program. The Delinquent Filer program is not addressed in the IRS penalty letter.

thanks

I have some news plans coming in with insurance and though we do not sell products ourselves we're try to accommodate the client and make sure the insured death benefit is within the incidental benefit limits and constitute definitely determinable benefits. I did a google search on IRS LRMs for DB plans and found their language. If I'm interpreting it correctly a plan using the 2/3rd ILP method for the maximum insurance would provide the following maximum benefit (please confirm or correct):

QPSA + Incidental Reserve (if Incidental Reserve is a positive value).

Incidental Reserve: Proceeds from Life Insurance plus Theoretical ILP reserve minus (CSV of policy + QPSA).

Does this sound correct ? I'm not promoting life insurance just trying to deal with it correctly. Thanks for any help.

Single employee Plan. Owner is age 49, NRD is age 62, end-of-year val.....so Target Normal cost is about $125,000. 78% of his pay however is $159,900. So $159,900 is the IRC 430 amount. Does IRC 430 required contribution amount trump TNCost calculation and would it be deductible??

Does the 401(a)(17) compensation limit apply when determining the top paid group of employees (for HCE definition)? Thanks.

US company sponsors a plan in New England.

The new president of the company is a Swiss Citizen here on a 2 year visa.

After reading Treas Reg 301.7701-7 - I get the impression he can not be the sole Trustee of the Plan. Furthermore even if there were two other Trustees ( total of 3) he still could not be Trustee since the us Trustees would not control all of the substantial decisions by the Trustees.

Is this correct?

Does this rule prevent him from being an authorized signer on the plan?

Or as long as there is one other Trustee ( US Citizen) he can be named Trustee and authorized signer.

thanks

so confused!!

We have a non-ERISA 403(b) plan that wants to add a match. We would like to add a 4% enhanced safe harbor match, thereby making it subject to ERISA. The question is, can this be done mid-year?

I have a participant that is on leave and the document allows the loan payments to be on hold for up to 12 months.

Occasionally the participant has a paycheck due to working for a job for one day - thus generating a paycheck. Since the paycheck is small it takes out his percentage of 401k contribution, but does not take out the loan payment? Is there an issue with this? Should the deferral not come out either? Thoughts.

Local church sponsors a 401(k) plan. The church is a member of a large national denomination. Trying to determine who is the proper employer of the minister, the local church or the national assocation? Minsterial responsibilities are performed for primarily for the local church. For some reaosn there has been a determination that the national associatIon is the proper sponsor, I'm just not seeing it immediately. Is it commonf for the assocation rather than the local church to be treated as the employer?

Thanks in advance for any guidance.

Does anyone have general experience with general coverage / underwriting requirements for group health insurance policies subject to Illinois insurance regulations? We are doing some due diligence on a target company that has 200+ full time employees--about 10 salaried employees and nearly 200 hourly paid employees. They appear to have a small employer group health policy with Aetna that covers only a handful of employees--all among the salaried employees. Their broker has indicated that the policy limits coverage just to salaried employees--i.e., that the term "full-time employee" for group health plan purposes only includes "salaried employees" so no need to offer or extend coverage to the 200 hourly-paid employees. Everything I've seen, however, suggests that Aetna policies in Illinois generally require group coverage to be offered to all employees (meaning anybody that is a common law employee) that works 25 or more hours per week. (Although the Aetna underwriting summary suggests that the 25 hour standard may be increased or raised, I've seen no indication that Illinois law or the Aetna underwriting rules would permit an employer to exclude all full-time employees paid on an hourly basis and have never other rules designed that way.) Even if that were somehow true, I cannot see how they could qualify for small employer coverage as the Illinois small employer rules seem to make clear that the 50 or less threshold is based on broad full-time employee count without regard to salaried vs. hourly. Thanks for any assistance anyone is able to provide.

It's rumored that DOL has ramped up audits (I guess they call them "investigations") of health plans for ACA compliance, if anyone has encountered one can you post a copy of the notice letter and laundry list of documents they want to see (with client info redacted)?

Thanks

I've read the recent (and previous) guidance from the DOL regarding how a terminating DC plan should deal with missing participants. However, I've never been able to find guidance about how a strong, active (i.e. non-terminating) plan should deal with missing participants without violating any fiduciary duties. For example, we have a DC plan whose administrator would like to know how to deal with missing participants with small account balances. Obviously the admin can and should use the same search methods used for terminating plans, but what happens to the account balances? Roll them over to an IRA? Escheat to the state? Do nothing?

Thanks in advance for any help.

Does prompt payment apply to self-insured health plans?

Can an employer contribute to an HRA on behalf of active employees and prohibit benefits from being used until the participant reaches retirement age? Would this fall under the retiree-only exemption?

We don't have it (it was 3 providers ago and they purge data after 7 years, and this has been 10!!). What do you think they will do? Anyone been in this situation before?

calling Tom Poje - just want to confirm my knowledge of the facts on SH and TH:

If a plan has a more liberal eligibility for 401(k) deferrals (i.e. 6 mos of service) but makes the participants wait 1 year of service for the 3% non elective safe harbor contribution, then the plan in effect loses the top heavy "free ride"....is this accurate?