Plan A is merging in to Plan B. Plan A allows for the direct rollover of loan notes to qualified plans that agree to accept them. Plan B does not. Would this right to directly roll over a loan note be a 411(d)(6) protected benefit? The regulations provide that a plan may be amended to eliminate or change a provision for loans, but does that exception extend to this type of provision that might also be characterized as an in-kind distribution provision? Has anyone dealt with this before? Any thoughts would be appreciated.

I have a 401k plan that excludes union. there is a participant who entered the plan (and accrued a balance) but recently joined the union. As a result he is no longer allowed to contribute 401k. Can the participant still take a loan? I don't see anything in the loan program that indicates union or any excluded participant cannot. My thought was that since he is still considered a participant, he would be allowed.

Does the IRS still publish statistics on the number of plans they disqualify every year?

In the modern era of SCP, VCP and Audit Cap I would have to guess that the number is very low (and probably in only the most egregious and publicity worthy situations) but I need to persuade a bankrupcty judge that it's not an every day occurrence.

Thanks

A plan had a missed deferral opportunity - which they corrected with the 50%,etc. There is a lost earnings amount of approx. $50. Is it ok if they plan takes is from the forfeiture account? I think not but I am seeing conflicting info. Their document states forfeitures can be used to offset plan expenses and reduce employer contributions. Thoughts?

Defined contribution plan subject to spousal consent. When the Plan sends out the required QJSA notice, is the Plan required to give specifics on the benefit amount for optional forms of benefit?

For example, the Plan offers a Qualified Joint and 50% Survivor Annuity, a Qualified Life and 75% Survivor Annuity, and a Life Annuity. They are all actuarially equivalent.

Pursuant to 26 CFR 1.417(a)(3)-1, it seems that the Plan is required, in its notice to a participant, the specific benefit amounts available under each benefit option.

Is that your reading, too? Thank you.

I am new and not a benefits professional. I'm just kind of stuck and need some guidance.

I am retiring and I have 2 distinctly seperate pension plans however they are under the same union. One is in California one is in Ohio. CA pension people have distributed my pension without a QDRO (they mailed my exwife for her to establish a claim against my pension). OH wants a QDRO. I am having a service prepare one.

I am not in contact with my ex wife. The divorce was granted in 06/1990 and the mop up was a few months later. The last entries on the court registry are concerning joinders for pension.

I am not in contact with my exwife and have not been for many years. The QDRO preparation people want me to supply her address and Social Security number. Am I required to do this?

It would seem to me that the pension people would have her SS# simply because she was a part of all my union trust funds for a period of time.

Thanks in advance

Can a participant name a debtor as a beneficiary (assume spousal consent is not a problem)? Or is that effectively using the plan as collateral?

Employer (Schedule C) made timely PS contributions by 4/15/14 for

3 active employees. Employer did not make PS contribution for

employee that separated from employment in December 2013.

Upon further review, Employer determined a contribution should have

been made for separated employee and made 2013 contribution in

July 2014. Employer filed 2013 1040 by April 15, 2014 without

extension being filed.

What are the ramifications regarding the deductibility of late contribution?

Can anyone please clarify this for me. For a 457(b) plan - non governmental - are distributions reported an a w-2 or 1099.

I always thought it was a w-2. The record keeper is saying a 1099.

Thanks!

We have encountered an issue with loans for a sole proprietor who has other employees. Per adoption agreement, loans must be repaid through payroll deduction. However, the owner doesn't get W-2 or regular payroll and so can only make payments directly. But on the surface, this appears to be discriminatory because the other participants don't have the option of paying say quarterly by check.

Would the IRS likely look at this as discriminatory? How have others addressed this issue?

Dr. A and Dr. B are married and jointly own practice, and both are trustees of Dr.A & B 401(k) Plan. Dr. B advises that he no longer works in practice and will not be returning even though he is still a partner in practice. CPA for the practice advised that Dr. B had not received pay in a couple of months. Dr. B requests a partial distribution from his account balance, which I submitted to Insurance Company on his behalf.

Confirmation of distribution is mailed to practice. Dr. A's attorney files an emergency motion of contempt due to pending divorce. Based on this, I know that no other distributions can be made to Dr. B. Insurance Company has also been notified.

Attorney has requested that I provide (under threat of subpoena) evidence that Dr. B was terminated from employment and therefore able to take a distribution. What proof do I need other than the good doctor's word? What else should I be aware of?

I need a list of states that allow their local governments to opt into the state's plan. Is this list available?

CHild will turn 26 in October 2014 and therefore, (I think) will no longer be covered under parent's plan. When does the parent's employer have to notify the child about COBRA, i.e. how much notice is given? Is it possible for a plan to extend parent's coverage past the age of 26?

What is the correction method when an employee elects ROTH contributions and the employer deducts the deferals as pre+tax?

Apparently, this has gone on for several years. The employee now wants his account corrected.

Has this happened to anyone else???

Thanks!

If anyone is interested, someone who is not our client, is looking to hire an actuary to help her and her husband understand their CalPers plan. He was on workmen's compensation and is not working. I think he is over age 60. He wants to be able to purchase some credits.

If you interested in taking this on and helping, call me at 415-725-1100 and I'll give you her name and phone #.

Craig Schiller

We had a Safe Harbor 401(k) plan in 2013. During that year we adopted a Cash Balance plan. It had started with an eligibility window that brought in Employee "A". ("A" is not eligible for the 401(k) Plan in 2013 as of the date of this post.) Turns out, the plans cannot satisfy the Special Gateway requirement because "A" did not get a benefit in the 401(k) plan. The perfect solution would be to adopt a corrective amendment within 9.5 months admitting "A" into the 401(k) plan and giving him the same 7% as all others.

Question: Would a corrective amendment that admits a new participant constitute an impermissible (mid-year) amendment of a Safe Harbor plan? I think it is permissible because it does not conflict with anything in the 2013 Safe Harbor Notice. It is also the kind of amendment that IRS says it would be inclined to permit (but to my knowledge, they have not yet expressly permitted). What do you think?

Thank you very much.

Employer with current PSP (no 401(k) provisions) wants to add safe harbor 401(k) as of Oct 1. Eligibility will be age 21 and 1 YOS. Employer wants all current participants of PSP to be able to participate in 401(k) upon its adoption, i.e., as of Oct 1. So that all such participants can enter the 401(k) portion of the Plan any problems with having quarterly entry dates for 401(k) (which means Oct 1 will be an entry date and all current participants of PSP will enter as of Oct 1) upon its adoption and then amending plan anytime prior to Dec 31 to provide for dual entry dates? Thanks in advance for your replies.

I'm trying to figure out if these types of plans require a Form 5500, assuming more than 100 employees are eligible. I notice the 5500 shows "prepaid legal" plans as an option in the codes? Is that the same thing as group legal services?

The legal services in question are part of an employee assistance plan where the employees get a short amount of time for legal advice with an attorney for free, and then a discount on legal fees if they go beyond the free advice period.

I'm drawing a blank here, sorry. The employer has a PS/401k plan and CB plan. The plans are aggregated for nondiscrimination and 404 deduciton, but totally separate 415 limits. Is that correct?

I keep wanting to say 415 has to be combined, but I think I'm bringing in the old rules...really old rules.

So the sponsor's EIN is listed on the 5500. The Plan's EIN is listed on the premium filings.

On the premium filing, there's a question that says, (not verbatim): If the EIN or PN on last year's 5500 is different from what's listed here, report the EIN and PN that was on the 5500 and explain.

I've always left that blank, because my pea-brain always interpreted it as "if the plan's EIN is different on the 5500...". So now the client and I get an email from the PBGC because the 5500 indicated the plan was covered but they couldn't find the (sponsor's) EIN in their system and they want amended premium filings going back 3 years...

Am I the only one that made this mistake? Is this even a mistake (yeah, i know it is, but it just seems sooooo stupid) Is the PBGC sending out thousands of these notices?