Client changes the match calucation by removing the true-up option for calculating match.

Nowhere in the SPD is true-up mentioned. Is an SMM required?

A plan has several loans that have been long since defaulted. Some participants have never made a payment. Needless to say the plan has been a bit lax in their administration of these with no direction for deem distributions. Would there be an issue if they deemed these loans now? What tax year should they use? Any other reg issues that come to mind?

Hi. What type of participant disclosure or account statement is required at termination of employment? We provide annual individual account statements to our plan participants. We distribute these statements at the beginning of July. My question is this: if a participant terminates employment, say in September, do we need to provide an updated account statement to the participant? Or can we rely on the annual account statement that we provided to the employee a few months prior? Does the answer change if the plan is a DB plan versus a DC plan?

Thanks for any guidance on this.

participant incorrectly deferred too much. payroll was processed in accordance with the participant's instructions. can you refund the money once it is in the plan?

Plan makes matching contributions each payroll and then does a true up at the end of the plan year. The 2011 true up deposit was not made. They are going to make the deposit now, but is there a penalty due for this missed deposit? Do I file form 5330? I guess i'm asking is what all needs to be done to properly correct this? I'm guessing it's not as easy as just making the deposit now.

Can someone provide me with the Regulations/Cite that allows plan sponsors to cashout terminated participants balances that are less than $1,000?

Also, is there a requirement by either the IRS or DOL relating to the under $1,000 cash out process? Please provide the regulation or Code. Thanks.

Beginning with 2013, our employees must be at least .75 FTE to be eligible to participate in our self-funded health plan. At the same time, we have a health flexible spending arrangement that requires only a .5 FTE for eligibility. The health FSA is entirely funded through the employees' salary reduction elections. So, we have a group of employees who are eligible to participate in the FSA, but who are not eligible to participate in the health plan.

I read the section 4376 tax regulations to say that a heath FSA that is an "excepted benefit" is not an applicable self-insured plan, which would mean that for an "excepted benefit" FSA, the FSA-eligible employees (including the .5 - .74 FTE employees) would not be counted for the PCORI tax. The section 9831 tax regulations state that an FSA is an "excepted benefit" if a "class" of participants meets both of two requirements. One of the requirements is that other group health plan coverage must be offered to the "class." My question is this. Is the group of employees with FTEs from .5 - .74 a "class," if we don't identify or define them in any other way as a class for HR and employment purposes? If that group is a "class" then our FSA would be an applicable self-insured health plan and the group's lack of eligibility to participate in our self-funded health plan would require the PCORI covered lives count to include each employee in that group. Correct?

Thanks,

Ken Davis

DB Plan has a cola formula for participants in pay status baked into the plan. Where can I find the IRS' position on (a) whether the the cola needs to be included in determining actuarial equivalent lump sum, and (b) how (the heck) you assign a value to the prospective cola. I know there has been private party litigation concerning (a), but where in regulations or other guidance can one find the IRS' position?

Company had over 100 employees from day 1 in 1996. we managed to obtain schedule A info back to 1998 for all carriers [whew], but only 1 carrier for 1996 and 1997 [darn]. That carrier shows under 100 employees. Company does not have records of employee counts in those 1st 2 yrs. Question:

Do we just file dfvc back to 1998?

Do we file back to 1996 with incomplete info for 1996-1997 showing < 100 employees?

Earlier this month, I prepared an SB for 2012 using the same plan provisions that were used for the past few years. Two of those provisions are:1) NRA of 62 and 5 years of service and 2) eligibility based upon 1000 hours. Subsequently, I realized that the GUST and EGTRRA adoption agreements actually had NRA as 61 and 5 and that the EGTRRA adoption agreement (but not the GUST adoption agreement had eligibility based upon elapsed time. The person in our office who prepared the EGTRRA adoption agreements erroneously made this "elapsed time" change for many plans and I'm confident that the plan sponsor did not intend to amend the eligibility to elapsed time. Moreover, I am fairly certain that NRA in both adoption agreements is a mistake. Can these two corrections be made now and enable me to file the SB with the provisions always used? Any help would be appreciated!

But not yet approved by the IRS, although it is more or less "guaranteed" it will be approved. Can they start a 403b before the application is approved? [They receive state grants to provide services to the mentally disabled.]

Any citations appreciated. I have it on good authority that this is doable, but that individual (an ERISA attorney) couldn't recall where he had obtained this response.

Was having a discusison today about commercial locator service versus the SSA letter forwarding program. What types of information do private locator services have access to that the general public doesn't? How are they linking the SSN with the correct Joe Smith?

Thanks for any guidance.

I'm sure that this topic has come up before and I am just not finidng it.

Plan has been in existence for 20 years and never filed a form 5500. Plan sponsor probably has sufficient data to file for the last 10 years, but no chance they have data 20 years back. I'd like to help them, but I'm not sure how to proceed. Has anyone had this circumstance? I'm wondering if plan sponsor can file as far back as records permit and then hope for mercy if the DOL asks for earlier filings?

Any guidance is appreciated.

If a plan sponsor initiates (either with PBGC or with both IRS and PBGC) the termination of a DB plan, can it purchase annuities or pay lump sums (at least to non-active participants) at any time? Or must it wait until the 60 day window has closed (in the case of PBGC only)or it receives a determination letter? Thanks.

New client has 2001 GUST IDP with DL but nothing after that.

Can we use our VS document for their EGTRRA restatement and late amender VCP filing?

If so, can we consider the post-EGTRRA interim amendments that we've done as VS plan sponsor as already "attached" to our VS Adoption Agreement or does the client have to separately execute the interims?

Thanks

I think I am probably overthinking this but it never hurts to get a second (and third and fourth) opinion.

I am designing a NQDC which has fairly simple terms.

All contributions are by employer (i.e., no employee deferrals).

There is a 10 year vesting schedule wiht immediate vesting for death and disability.

Payment events will be separation from service, death and disability.

In addition, all amounts will be forfeited if a participant is terminated for cause (as defined in the participant's employment agreement).

Does anyone see any inconsistency between separation from service (which includes termination for cause) as a payment event and termination for cause as a forfeiture event?

2012 Takeover problem. Plan A amended their Adoption Agreement to have Plan B merge into Plan A in 2009. The Adoption Agreement is executed. However, the Employer also signed as the Plan Trustee - the actual Trustee was Fidelity. Nothing else was done to effecutate the merger. Plan A's 2009 and 2010 5500, Schedule H does not recognize the merger of assets, nor does the 2009 or 2010 Audited Financial Statements. Plan B has not filed a 5500 since 2008.

I think this is an invalid merger - as if it did not occur.

Any thoughts or comments would be appreciated.

after a qualified plan distributed annuity is paid out to the participant if the participant wants to surrender the annuity and roll over the proceeds to a personal IRA can he do so without regard to GATT and 415? i would say yes but i need verification.

Plan invested part of plan assets in what turned out to be a ponzi scheme. Plan Trustees recently recovered money from bankruptcy Trustee. What should plan trustee do vis a vis informing participants of recovered amount? what about particicipants who are no longer employees?

Our 401(k) Plan is covered by a Fidelity Bond purchased by the Plan's Trustee, State Street Bank & Trust. Does this bond also cover the Plan's assets in event of dishonest acts by our company's employees -- or does it only cover the Plan in the event of dishonest acts by the Trustee's employees?