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I have a takeover DB plan in which the accrued benefits were frozen back in 2008. When the benefits were frozen in 2008, the plan had non-owner participants (PBGC covered) and was underfunded. Since that time, all the non-owner participants approximately 5 left employment and were paid a lump sum distribution. Also, the employer has hired several more employees since that time. Does anyone have experience in testing a frozen DB plan for 401(a)(26) compliance? My understanding is that the 401(a)(26) would look something like this: Prior Benefit Structure: Participants with AB / Total Non-Excludible Employees >=40% Participants with AB = Number of participants with an accrued benefit under the Plan = 1 This category does not include former participants that have recevied a lump sum distribution. Total Non-Excludible Employees = Total number of employees who met the eligibility requirements of the Plan, including terminated employees and former participants that received lump sums = 8 Participants with AB / Total Non-Excludible Employees = 1/8 = 12.5% Plan fails test. Has anyone had to deal with a situation like this?

We have a take over plan where the employer deposited the accrued match contribution twice into the participant accounts. The result is that the employer contribution into each participants account exceeds his required match contribution. What is the remedy for this situation?

A business owner who sponsors a 401(k) Plan dies. He designated his two children as the beneficiaries. The two children work for the business and are participants in the Plan. Can they rollover the distribution from their father's account into the Plan? The plan allows rollover contributions.

Does anyone know when the IRS will publish the new 430 segment rates calculated under MAP-21? Or does anyone know where these rate have been calculated? Thanks.

What notices are required upon termination of employment for a participant in a defined benefit plan for a vested participant and a non-vested participant? What section of the code/regs/ERISA require such notice?

If a defined benefit plan year ends 1/15/11, what is the extended due date for the form 5500?

If the plan year ends 1/14/2011, what is the due date for the 5500? What is the extended due date?

The plan sponsor is an LLC taxed as a sole prop. If I include the contribution on the 5500-EZ, then the contributions listed on the Sched SB will not match the 5500-EZ and the market value of assets will be different on next year's Sched SB.

The extended tax filing deadline for the plan sponsor for the 2010 tax year is 10/15/2011. It is my understanding that any contribution deposited prior to the extended tax-filing deadline may be deducted for the prior year. From a minimum funding standpoint, we can not recognize the contribution for the 2010 plan year since it was deposted after September 15th. I am not aware of any preclusion that would prohibit the plan sponsor from deducting the contribution for 2010.

We prepare the Form 5500 for a DB plan that deposits their contribution on October 14th each year. The minimum required contribution for the plan year is $0 so we do not have an issue for the contribution being deposited after September 15th. My question is should this contribution be included on the Form 5500-EZ? We do not list the contribution on the Schedule SB until the following year. The Plan Sponsor will make a deposit on October 14, 2011 of $100k and deduct the contribution for 2010. Should we include the contribution on the 2010 Form 5500-EZ?

OK, it appears to me that the 2010 applicable mortality table should be used since the stability period (8/1/10 - 7/31/11) in which the distribution will occur commenced during the 2010 calendar year.

Plan year is 8/1 - 7/31. Paying a lump sum on 7/31/2011 during the plan year beginning 8/1/10 - 7/31/11. Under 417e, do we use the 2010 applicable mortality table or the 2011 applicable mortality table?

For a defined benefit plan, the definition of actuarial equivalence is: Pre-retirement interest: 6% Pre-retirement mortality: None Post-retirement interest: 6% Post-retirement mortality: 94 GAR, proj to 2002. In calculating a lump sum distribution under IRC 417(e), do you use pre-retirement mortality or post-retirement only? Has any guidance on this issue been published?

An employer with a June 30 plan year end is mailing the Annual Funding Notice. Will the notice be on time if we mail the notice within 120 days of the last day of the plan year or does the Notice have to be mailed in time to reach the participant within 120 days.

You shouldn't ask!

If a plan year is defined as 12/17 - 12/16, what date is the minimum required contribution due (8 1/2 months after the plan year end)? Is there any guidance on the issue?

We are filing a determination letter request for a terminating DB Plan. The plan sponsor is an LLC taxed as a partnership. The LLC has two equal partners, which are covered by the DB Plan, and no other employees. Does the plan sponsor have to provide a Notice to Interested Parties concerning the filing?

Does the Annual Funding Notice replace the Summary Annual Report? If yes, for a small plan, do we need to add the language required to waive the annual audit requirement (line 4k of the Schedule I)?

In preparing a valuation are we allowed to assume the compensation limit will increase?

I am working on a benefit calculation for a plan that is frozen. A participant is retiring at age 68 (normal retirement age is 65). The plan's definition of actuarial equivalence is pre-ret mortality- none, post-ret mortality - 84 UP, pre- and post-ret interest is 6%. Which method should be used to calculate the actuarial adjusment for late retirement? 1. (a65/a68)*(1.06)^3 2. N65/N68 I guess it comes down to how to interpet the definition of post-retirement actuarial equivalence. Does the post-retirement assumptions apply to post normal retirement age or the period following actual retirement from employment?

The client's auditor is questioning the assumed rate of return on plan assets for the calculation of the net periodic benefit cost. Does anyone have suggestions on how to justify the use of the rate the client has selected?

We have a prospect that wants to consider getting out of his current 412(i) arrangement. Has anyone "converted" a 412(i) Plan to a plan funded through a trust?

Thanks, its there now. I thought the rate was published on the first Tuesday.

Does anyone have the 30-year treasury lump sum rate for July 2006?

Blinkey, I agree with you. I want to follow the Proposed Regs. How would you convert the lump sum to an equivalent SLA (assumptions)?