i am 44 and is currently planning to buy a long term care insurance. since this is insurance companies we are talking about, they'll pitch every excuse just to excuse on the insurance you've paid half your life. my question is, what are the diseases that encompasses ltc insurance? i know about the mobility disorders like

http://www.simmons.edu/offices/disability/faculty/specifics/mobility.php

http://www.resourcesonbalance.com/clinical_info/prevalence/index.aspx

http://www.disabled-world.com/disability/types/mobility/

http://www.healthcentral.com/channel/408/1276.html

any more? i want to be sure before even buying one

Hi,

I'm new to this forum, but would much appreciate any advice you might have regarding my situation. I recently received a letter from my employer and their 401k administrator stating that they found a mistake calculating my eligilibity for a company match contribution back in 2008. They have reviewed their records and determined that I should have been eligible for a company match back in 2008 but due to a mistake with calculating my Program Eligibility Date, I was not eligible for a match until 2009. So I missed out on the entire company match for 2008, which is on the order of $6K. According to the letter, they have consulted with the IRS and have deposited the $6K into my 401K using the investment elections I had on file back in 2008 and "all corrective contributions received applicable investment experience which was calculated and added to your account in accordance with the direction by the IRS." Does this "investment experience" refer to investment gains since 2008? I'm not sure what "investment experience" means in this context...but from what I can tell, the $6K does not include any investment gains since it's consistent with my yearly % match based off my salary.

Back in 2008, I distinctly remember asking my manager if I would be eligilble for the 401k match and him saying he would investigate (probably asking HR) and finding out that I was "not eligible". While I am glad that this mistake was found (better late than never), I'm concerned about the lost investment gains that I would have accrued had this match been deposited back in 2008. My investments have probably gone up by at least 50% since that time due to the stock market increases since the 2008 market bottom, thus $6K in 2008 would be at least $9K now.

My question for the experts on this forum is how to best handle this situation. According to my 401k adimistrator there is an appeals process that I can follow which involves my writing a letter to request the appeals dept to review my case. I need to explain my situation and suggest a desired outcome. I know next to nothing about the laws and rules that govern 401k's or how they handle late match contributions like my case. Assuming I write this appeal letter, what outcome should I request? Can I ask for the lost earnings that would have accrued if my match had been deposited on time? How does one even calculate such earnings since it would require a detailed knowledge of my investments back in 2008 and look at stock/fund closing prices for each pay period in 2008. One final point is that I doubt I am the only employee who is affected by this mistake, so while other employees might not write an appeals letter, any revised decision on my case might force equal treatment for the other similar cases.

Thanks for any advice on how to best handle this!

When a co-employer terminates its relationship with a professional employer organization and discontinues participation in a multiple employer plan maintained by the PEO, does a severance from employment occur, thus triggering a distributable event under 401(k) for the individuals that are still employed by the now former co-employer? My thoughts are that this is a severance from employment because the employees of the former co-employer cease to be employees of the PEO that continues to maintain the plan.

Any other thoughts? Is anyone aware of any IRS guidance relating to this scenario?

Thanks.

A nhce/non owner participant terminated Feb 2013 at age 74. In March she subsequently rolled over her account to an IRA. Later in the plan year she received a deposit into her former employer's 401k equaling the 2012 employer receivable. She still has a small balance in her 401(k).

Is the plan responsible for issuing her a 2013 RMD or the IRA?

Is a last day requirement for a discretionary New Comp allocation negated when the plan also has 3% safe harbor contribution when the required gateway contribution is above 3%?

If a new comp allocation fails coverage (due to last day requirement) and the plan document contains "Fail-Safe" language does the plan sponsor have to make an additional contribution to those participants that are brought in to pass the Ratio test or can they just re-work the initial allocation to include the additional participants (as long as it still passes testing)?

If a Plan had a QDRO processed during say 2012, and the spouse (who received the funds) left the $ in the Plan, should that spouse and balance be counted in the Top Heavy test?

Has anyone else gotten a slew of IRS late notices this past week? I have had numerous clients receive late notices already. They all seem to be in error as 5558s were timely filed, and the 5500s were as well. Some of the notices are dated before the 15th, during the middle of the government shut down. I know much of the notice process is automated, I guess I didn't realize that they would be going out even during the shut down.

Regardless, they don't appear to be correct, and are a pain.

Thoughts?

Has anyone heard when the 2014 COLA limits are going to be released? If so, when?

Related to the delayed 2014 COLA limits, we are discussing how we are going to craft our Safe Harbor notices if the 2014 COLA limits have not been released, but we do not have a concensus. (At this point, we are going to wait as long as possible and hope that the 2014 limits are released.) Has anyone else had any discussions related to this topic? If so, what ideas have been discussed?

Looking for thoughts on an issue of first impression for me. Company A is the parent of Company B. Employees of Company B participate in a nonqualified deferred compensation plan maintained by Company A. Company A spins off Company B and, for business reasons, does not terminate the NQDC plan as to the employees of Company B (as would be permitted under Section 409A's termination rules in connection with a change in control). Employees of Company B have not undergone a separation from service because of the spin off because they still work for Company B.

Company A retains the pre-spin liabilities relating to the NQDC plan and arranges for Company B to notify Company A when an employee separates from service with Company B (and all the post-spin entities in Company B's new controlled group) so Company A can commence payment under the NQDC plan. Following the spin-off, for business reasons, Company A and Company B want to allow employees of Company B to continue to participate in the NQDC plan maintained by Company A for a period of years.

Can employees of Company B participate in the NQDC plan maintained by Company A once Company B is no longer in Company A's controlled group of corporations? If Company B wants to provide the same benefit post closing, does Company B need to set up its own NQDC plan that "mirrors" Company A's? What about funding - If Company B sets up its own NQDC plan, can Company B send the contributions to Company A to administer and not result in income inclusion under a constructive receipt/economic benefit theory because the contributions are no longer subject to the claims of the creditors of Company B?

It seems to me that Company B can leave behind with Company A the pre-spin liabilities relating to the NQDC plan without issue. Keeping any assets related to those liabilities with Company A makes sense because Company A is responsible for payment. Post-spin participation of Company B employees in Company A's NQDC plan seems problematic but can't nail down exactly why. It also seems that if Company B sets up its own mirror plan, any funding must be left with Company B or be put in a rabbi trust that is subject to the claims of Company B's creditors. Sending contributions for post-spin obligations to Company A, or putting in the rabbi trust for the NQDC plan maintained by Company A (which is subject to claims by Company A's creditors) seems problematic because the amounts are no longer reachable by Company B's creditors.

We are a TPA for qualified plans but sometimes get requests for nonqualified plans.

Thanks.

Has anyone had the situation where they went down the PBGC standard termination path and got about 90% done with all distributions and then the client discovered unanticipated losses on the final assets that will require some extensive time in order to come up with the money. Plan has already been on 2 extensions of time for different reasons and now the surprise losses will cause some extensive and unknown delays. What are the mechanics here ? Does the PBGC have you revoke the plan termination ? Any special rules or unique situations that arise when the plan term is revoked after 90% of the people have been paid out ?

LLC taxed as a sole proprieterdhip showed a net loss for 2012. The owner made 401(k) contributions & receieved a match during the year which need to come out of the plan. Is this treated as an ineligible contribution and forfeited or distributed back to the participant as an excess annual addition or excess deferral?

Thanks in advance for any guidance.

We have a plan that failed the ADP test for 2011. Corrective distributions were made by 12/31/2012. However, we discovered today that there was a miscalculation in the earnings portion of the corrections. Therefore one HCE needs to receive an additional $109. The other HCE actually received $3 too much. We are going to distribute the $109 immediately, but now the question is, did we fail to make the corrections within the first 12 month period. It seems very punitive to have to make a one-to-one contribution for this minor error (which would result in less than $2/participant) and it also seems a little over board to go to VCP for $109. To make matters worse, the client is moving to another TPA and this was discovered as we were reviewing the takeover files being sent. Any suggestions?

Given: 401(k) Safe Harbor Profit Sharing Plan

Given: Owner has no 401(k) deferral and no personal PSP contribution

Question #1: Does the owner still have to pay the 3% safe harbor to NHCE?

Question #2: If yes, how can suspend the safe harbor contribution (since you will pass the ADP test anyway)?

Thanks for all responses.

Plan terminated and we have found that one participant is currently in prison serving a 34 year term for a sexual assault. Is the plan required to send distribution paperwork to the participant in prison?

Plan has no age or service requirement with monthly entry dates.

Employee A has been employed since 2011. He has never worked 1000 hours to earn a year of service.

On the 2011 ADP Test, he is listed as an 'otherwise excludable'. For the 2012 ADP Test, he is listed as an 'otherwise excludable'. Is this correct? Can you be otherwise excludable forever?

Client has upcoming audit; last item on auditor's notification was loans; plan allows multiple loans.

Profit Sharing with all funds pooled; 3 participants had multiple loans and sponsor continued deducting on loans past payoff date. We didn't know this until the following year when doing the trust accounting.

In 2 cases, the excess on paid off loan was credited to subsequent loan(s), and in the third case, it was refunded to participant.

Any ideas on how the IRS auditor might look at this? Any suggestions on how to present the facts in the best possible light?

Does a governmental entity (with more than 100 participants) that sponsors a welfare benefit plan have to file a 5500 for it?

We are the TPA on a 401(k) plan at Mass Mutual. In 2012 a participant who is still employed by the plan sponsor received a "termination" distribution due to erroneous information provided to Mass Mutual. The employee has repaid the distribution in 2013.

Mass Mutual is saying that the employer must make up the difference between the amount the participant repaid (exactly what she received) and the current value of the shares that were sold to make the distribution originally. They also plan to issue an amended 2012 1099-R to make it appear that the distribution never happened.

Any suggestions how to persuade Mass Mutual that their approach is wrong?