Lori H

a 403(b) that is terminating and shutting down the company later this year, suspended its match mid plan year 2009. they are now wanting to go back and match those accounts as well as match for 2010 plan year. when the plan was amended the match became discretionary. they have not filed their 2009 tax return or 5500. how much trouble could they get in for giving money to their participants?

How do you submit old Schedules (P, R, SSA,etc) electronically, if they are not on Relius website on a DFVC filing?????

Question then....after they rescinded could they have used Prior Year method in 2009 using 2008 ADP to limit HCE ADP in 2009?

amendment was adopted Jan 21 and effective Feb 22. they realized that business was down and they would not be able to fund it early on. in 2008 they used Prior Year method. in 2009 they ADP using Current Year and they want to go back to using Prior Year method.

correct prior to 2009 it was Prior Year. however, when Safe Harbor was discontinued in 2009, an election was not made as to Prior Year/Current Year testing method. Company wants to use Prior Year for 2010 based on 2009 ADP.

a plan rescinded their Safe Harbor in 2009 after amending to incorporate safe harbor effective 1.1.09. prior to 2009, they utilized "Prior Year" testing method. It is my understanding upon rescinding that they default to "Current Year" testing method. They can not go back to "Prior Year" can they for lets say 2010 plan year?

403(b) about 25 participants, some have loan balances, same company has a 401(K) that has a loan and rollover provision. Can they rollover the loan balances to the 401(k)? My guess is YES. Another question, what if the participant who wanted to rollover the 403(b) loan balance had an outstanding loan in the 401(k)? The 403(b) loan rollover would not be treated as a new loan would it?

403(b) about 25 participants, some have loan balances, same company has a 401(K) that has a loan and rollover provision. Can they rollover the loan balances to the 401(k)? My guess is YES. Another question, what if the participant who wanted to rollover the 403(b) loan balance had an outstanding loan in the 401(k)? The 403(b) loan rollover would not be treated as a new loan would it?

So that is even a bigger case for ROTH deferrals then. you get a larger employer contribution.

how would a plan benefit from excluding or including deferrals in their def of comp?

When obtaining employer census data, do you obtain 2 sets of w-2 comp if it excludes Salary Deferrals from the definition? Generally in a AA you can select to INCLUDE salary deferrals, which i believe would be Box 3 on a w-2, this comp would be used to determine top heavy, hce, 415, etc, but if the plan has no adjustments to comp, then box 1 of w-2 would be used, yet you would still need box 3 for other plan purposes. This has become an issue of debate in our office.

2004 5500 was due 7/31/05 EBSA reports it received 4/19/07 2005 5500 was due 7/31/06 EBSA reports it received 4/19/07 plan admin has now been assessed 15000, plus 2169.52 interest for 2004 and $6325 plus 914.82 int for 2005 py. Since they have been assessed, it is too late for any of the correction programs? The plan sponsor received their 5500's at least one month prior to the filing deadline. Looks like they just mailed 2 in at the same time. both late. any suggestions?

a plan did not file for 2006, in the past you mail in the 5500 to the dfvc along with the fee, is this still the case or do you mail in the fee and submit the late 5500 electronically now?

Ok, so any plan year they fund a PS or reallocate forfeitures, you have to check for TH basically and allocate accordingly?

Calendar year 2009 was a plans first year. I understand the Safe Harbor match satisfies the Top Heavy requirement, but what about the plans first year of existence and a integrated profit sharing contribution....generally if a plan is Top Heavy, you have a Top Heavy p.s formula. How is TH determined in the plans initial year or does it not apply since it is safe harbor and you just use the Non-TH profit sharing integrated formula. Thanks

What would the penalties or procedure be if the plan never filed with the DOL? Would the 5500 just be an info only return? the plan was effective 7/1/03 using a 2002 Corbel Proto then restated in 2005 with a 2005 corbel for EGTRRA using the same effective date(7/1/03). Should they have restated again since EGTRRA? I SHOULD be done with my questions now.

it could be rolled over to another company's 457(b) assuming their plan had that provision.

If the plan is considered unfunded, then a 5500 would not be required, correct?

Thank you Austin

a non profit is going out of business and they maintain a 457(b) for one of their key employees. What hoops do they need to jump through to distribute the funds? If I am not mistaken, the participant could only rollover the 457(b) to another 457(b) plan. Are there forms that need to be distributed to the participant? A resolution to terminate the plan? The original plan was effective July 2003 and the plan was restated in 2005 to incorporate regs Rev. Proc. 2004-56 amendments to the SBJPA and Automatic Rollover Amendment. Should a benefit payment election form and notice of tax treatments be provided to the sole participant? thanks

And, to me, once it's in the trust it should stay in the trust; I'm not a big fan of the "mistake of fact" rationale to get money out. yeah, but then why can't it be that way when its due to a failed ACP test? Just for the sake of argument, it doesn't make much sense that the participant gets employer contributions sent to them when its a Non Discrimination violation.

No, the doc defines it using the basic safe harbor match. this plan is in its first year and the payroll person had a difficult time determining the match on deferrals over 3% of pay. One other question: would the excess SH match be forfeited, returned to the company or taxable income to the participants? For example, the HCE with the $22,000 match received $12,200 too much. Where does it go? This is a calendar year plan.

how about a job with an employer who gives a dollar for dollar SAFE HARBOR match up to $22,000 deferred?

is there any instance where a participant who makes in excess of 245,000 can receive a safe harbor (non enhanced) match over $9800?

Well this company is going out of business effective June 2010 and I suspect there will not be anyone around to be available for administrative purposes after that. Our government in action :angry: