I'd appreciate input on the following two issues:

1. In determining whether the payment of deferred compensation on account of a service provider's death is late, which of the following taxable years is the correct point of reference: (a) the service provider's taxable year; (b) the estate's taxable year, which begins on the date of death; or © the designated beneficiary's taxable year?

2. If the payment is late, and assuming that the service provider was an insider up until death and that the designated beneficiary was a non-insider, for purposes of correction under Notice 2008-113, are you still subject to correction under the "insider" rules or, because the service provider was no longer able to influence the payment date can you correct under the "non-insider" rules?

Thanks.

Plan has discretionary match. Formula being used is dollar-for-dollar up to a max $40/week, based on hours worked but capped for deferrals made. Examples:

Joe works 36 hours and contributes $50 in deferrals. He receives a match of $36.

Bob works 15 hours and contributes $10 in deferrals. He received a match of $10.

Don works 45 hours and contributes $100 in deferrals. He received a match of $40.

Performing a BRF test on this match on a weekly basis - some weeks pass, some weeks do not. Document is silent as to how to correct this - would it be as simple as providing additional match to those who did not receive as much as the HCE in the same group? Or could we look at this differently and do it on an average basis instead of looking at each week individually? (HCE A averages 32 hours/week for the year - they compare that to the weekly average for the NHCEs)

Opinions, please!

Earlier this year, I saw that the proposed federal budget included that $3 million cap on retirement plan benefits for wealthy individuals. While I would assume it to be unlikely that the final budget would include this provision exactly as currently proposed (or if at all), I was wondering if anyone knows when the budget must be finalized - I was thinking about when this could come into play.

Thank you

HOw is the requirement in 2550.404c-5(d) satisfied for a plan sponsor managed model portfolio? For example, in the case of a balanced fund, is the requirement to describe the investment objectives, risk and return characteristics met by simply identifying the componenet funds and their proportionate investment?

A Plan allows two participants into the Plan early. Both participants (HCEs) contribute employee deferrals. The employer refuses to correct the error. Is this a prohibited transaction? Would they need to check Yes on the Form 5500 that the plan had a PT during the year?

How common is it for a plan document preparer to not submit for a Determination Letter? Individually Designed Plan had a prior DL which expired and though IDP was restated timely, no DL was requested. What if the plan needed to file a VCP?

Do the Loan Policy need to be updated and signed with each restatement of the Plan.

Client came to us with a new GUST document and provided a signed Loan Policy effective 1/1/2007. Document was restated timely for EGTRRA but client did not receive a new loan policy. Is this okay?

A company wants to start a 401(k) plan now, for the usual reasons.

They just started deferring in May so the 3 Participants don't have much money yet. I know that if they take the employee money out of the disqualified plan this year, the taxes are a wash.

But they each have between $100 and $200 in employer match? How is the match money handled?

A company wants to start a 401(k) plan now, for the usual reasons.

They just started deferring in May so the 3 Participants don't have much money yet. I know that if they take the employee money out of the disqualified plan this year, the taxes are a wash.

But they each have between $100 and $200 in employer match? How is the match money handled?

This is a new one for me.

Companies A & B and companies A & C are controlled groups (B&C and A&B&C are not controlled). Company A is the General Partner of company D only 1 % ownership but looks to be clearly a management group for company D. D has no employees. Company D owns 100% of company E and 55% of company F.

Currently they have a multiple employer plan. A,B,C operate a single plan. D and E are adopters of that plan. They share the 5500 but test seperately.

What they want...is to have all the companies under a single plan. I don't know of any rule that lets you tie togeather companies with a combination of controlled and affiliated groups. As I see it D and E are adopters of the ABC plan and should have seperate 5500's and seperate testing. With AB&C do they have to do two sets of tests as well? One for A&B and one for B&C?

I'd appreciate any input.

Plan year end is June 30. Profit Sharing Plan only.

Client writes to us, the TPA, to begin termination paperwork for the plan.

Client wanted termination date to be June 30, 2013. We received the letter July 17, 2013.

Can we terminate effective 6/30/13 and have an adoption date later or does the effective date of the termination need to occur after the adoption date?

Please advise

First question: If more than one unrelated employer, each with its own 401(k) plan and trust, pool their trust assets for investment purposes in a single account at a financial institution, is this okay? This doesn't appear to fall under the requirements for MTIAs because the plans are not maintained by related employers.

Second question: If one employer with more than one 401(k) plan and trust pools the assets of all of its trusts for investment purposes in a single account at a financial institution, MUST this be treated as an MTIA (assuming all other MTIA requirements are met)? Or are trusts sponsored by a single employer that are pooled in for investment purposes in an account that is not an MTIA permissible?

Soon to be divorced small plan participant (HCE) had a QDRO drawn up where he was to issue a check to his soon to be ex for $43K. Now her attorney is not agreeing to the terms as the atty is reasoning that the ex will have to pay tax on the QDRO and the atty wants their fee to be paid as well from the distribution.

The participant is now considering taking a loan from the plan to pay off his ex and repay the loan over 5 years. I explained he would be essentially taxed twice in doing so. His account is in money market right now, so he is essentially earning very little to none, so missing earnings on the loan amount would not be an issue, however he would not be able to defer the max like he has been doing.

Would a loan even be an option in this instance? The plan would be amended to allow for loans.

Is it permissible to hold an annuity in a defined benefit plan, if the annuity has an income rider ?

One of my X-test groups is "Owners."

Situation 1:

Jim owns 100% of the company. Is Mrs. Jim in the "Owners" group, too?

Situation 2:

Jim owns 4% of company. Rest is owned by passive investors. Is Mrs. Jim in the "Owners" group, too?

Company A will be acquired by Company B over the next couple of months. In lieu of termination Company A's 401(k) the plan will be merged into Company B's 401(k) Plan.

The Trustess of Company B want to know if after the merger, do the Trustees of Company B have complete liablity for Company A's Plan. For example, if there it was discoverd, there was an operational error in a prior plan year, are the Trustees of Company B held accountalbe, or does this fall back to the prior Trustees.

Are they any other issues the Trustees need to address prior to merging the plans??

Is there any situation where someone could "lose" their prior break in service vesting after being gone for so long? For example (3 year cliff vesting and 5 year BIS):

DOH: 06/01/1998

DOT: 07/01/2003

Rehired: 03/01/2013

This person would be 100% vested when termed, is gone for almost 10 years. Would this person be 100% vested at rehire since they were 100% vested at term or does the clock start over since they were gone for longer than 5 years?

How can I be alerted to IRS rulings, notices, rev procs, etc. when they come out? Does the IRS newswire have these?

Facts:

- Father A owns 25% in company A

- A Trust in the name of Father A owns 25% in Company B

- Three other partners each own 25% in company A and each has a Trust in their name which also own 25% each in company B.

- Company A and B are part of a controlled group and in the same plan.

Question is in regards to Father A's adult Son (Son A) who would like to contribute in the plan. The son will work for and be paid from Company B.

I believe, for controlled group purposes (section 1563?) anyways, Father A is attributed ownership of Company B since he is the beneficiary of the Trust. The adult son would not be attributed any ownership because: A) He is over 21 and B) his father does not own more than 50% of either company.

However for HCE purposes (section 318) would the same rules apply? Or would the Son be attributed ownership from the father who was attributed ownership from the trust.

My initial feeling was the he would be an HCE/Key for ADP,Coverage,Top Heavy, etc. Almost sounded like double attribution and after going back and forth between the two rules I wanted to make sure I wasn't mixing them up.

A prospect wants us to terminate their Plan in 2014. They are on a pre-approved Plan for the 6 year cycle. They are up-to-date on all required amendments. Would they need to restate in the upcoming 2014 cycle? I have heard they do not have to restate, but the conservative approach is to do it.