katieinny

Haven't seen the plan yet. That seems like a weird circumstance for the plan to address, though.

A participant signed a distribution form requesting a large lump from his DB plan, then dies the next day. His spouse predeceased him. At this point, I don't know if the distribution form is still on somebody's desk, or if the check is in process. I'm hoping his children can at least get the benefit of inherited IRAs. Any thoughts?

We want to be accurate about this because of the Medicaid rules. They will not treat the IRA as an exempt asset if he isn't on a life expectancy distribution schedule. We'd like to make sure that he doesn't take more than he has to, so using a joint table will help. I was surprised when I saw that the uniform life table doesn't go lower than 70.

An IRA holder is age 66. His siblings are his beneficiaries (he is not married). He wants to start taking life expectancy distributions, but I noticed that the Uniform Life Table starts at age 70. Must he use the single life table to determine life expectancy distributions?

leevena: My best guess is the current plan offers a couple of benefits and the sales person picked up on the fact that more could be offered. He/she probably said something like "you only are getting A and B. I can offer X, Y and Z!"

A state government offers a Section 125 cafeteria plan to state employees. However, I have the same question even if it's a private employer. A sales person from another company is approaching the state/employer, saying that his company can offer a second plan that will supplement or compliment the first plan. I'm very leery of promises that seem to be too good to be true from sales people. Can the state/employer tack on another plan without running into trouble? Even the logistics of trying to operate 2 plans seems confusing, but just because it's beyond my scope of understanding doesn't mean it can't be done, I suppose.

The company filed a Form 5300 for a determination letter a few years ago and qualified for the user fee exemption. Now they are terminating the plan and filing a Form 5310. Does the user fee exemption still apply? There have been no changes, e.g., the company is still the same size.

A non-US citizen lived and worked in the US and participated in her company's 401(k) Plan. She has since moved back to her home country, but left a small 401(k) balance behind. I would think that she can avoid paying US tax (and early withdrawal penalty) by rolling the funds into an IRA and keeping the money there, at least until she turns 59 1/2. I'm looking for some IRS guidance, but didn't see anything about non-citizens after skimming through Pub 590. Can someone point me in the right direction?

The information you've provided is exactly what I was looking for. Thank you all for your help.

One of the owners in a business (not yet 59 1/2) has already gotten all the plan assets he can via hardship distributions. Now he wants access to more, but was told that he can't due to the terms of the plan. So, now he's decided to "terminate employment." The plan is that he will eventually be rehired. Of course, there's no way we can sanction this attempt to circumvent the plan provisions. Where do I look for guidance on this?

Thank you both for your comments. I'll start making some calls.

A non-publicly traded company that is owned 30% by the ESOP and 70% by the founder is being sold. According to the Plan, Participants are entitled to direct the Trustee to vote their share of company stock in the case of a sale of substantially all assets of the business, so it would seem that the sale must be disclosed sooner rather than later. What does that disclosure consist of? At this stage, we are reluctant to provide more detail than we need to.

Thank you all. I did print a 5310 and instructions, thinking that I would try to do a run-through since it's been a while since I last filed one. Hopefully, that will help me pick up any red flags.

We have a client that has a one-man plan that just got through a VCP filing due to loans that did not meet the dollar amount and repayment requirements. Now, we're going to terminate the plan. My feeling is that a 5310 should be filed to protect the rollover of what's left, but that $2,300 filing fee is certainly a deterrent. The plan documents seem to be up to date, but I suppose there could be other problems. Thought I would ask what others are doing.

I'm getting ready to do the DOL filing for the Top Hat Exemption and noticed that the DOL has a means for electronic filing. But I can't tell if e-filing is now required or is still optional. I have a mailing address that I used a few years back, but not sure if that's still the right address if we can still do a paper filing.