Lori H

The plan document states that "if a married participant dies prior to his annuity starting date, the administrator will direct the vendor to distribute a portion of the participants vested account balance to the surviving spouse in the form of a Qualified preretirement survivor annuity (QPSA), unless the participant has a valid waiver election in effect OR unless the participant and his spouse were not married throughout the one year period ending on the date of the participants death" So if they were not married for one year, would the niece be the beneficiary?

a participant in a 403(b) recently passed away. The Designation of Beneficiary form on file from 1997 states the deceased participants niece will be his beneficiary. Last year the participant married. He never filled out a new DOB form. However, the death benefit will go to his new spouse, correct?

good point Sherpa

an advisor for a small MPP plan is considering adding new annuity investment options to the plan. The document currently allows for annuities and there is an old one being used as an investment. Assets are currently trustee directed and advisor wants to provide more flexibility and options to some participants who are getting older by introducing newer annuity products. Is there anything that would preclude a frozen plan from doing so? The plan may need to be amended to self direct?

Company wants to establish a 401(k) as they feel it would be cheaper and offer better investments. If the plan relinquishes control over existing annuity contracts, are the account balances of the contracts as of that date, perhaps the date of resolution to terminate, used for distribution reporting on the 5500? This is a small plan where all the contracts are easily identifiable.

a small PSP has eligibility requirements of age 20.5 and 6 months of service. They would like to amend to exclude employees who do not work full time. I do not think this is an option. They could bump up to year of service age 21, perhaps even 2 years of service since the plan vesting is already 100%, but if employees work appx 20 hours a week, they will be eligible to be in the plan, correct?

Interesting. Sungard Relius states something different. The auditor will not sign off on the audit until he has a few missing TIAA benefit payment election forms.

are you still able to file electronically after the extension deadline, let the IRS/DOL assess a penalty or do you file through DFVC?

Good question

Can it still be done? I know prior to electronic filing it was permissible. The plan sponsor is having difficulty getting distribution paperwork from TIAA-CREF

I guess it would be less cost for the client on administrative expenses.

Are the requirements identical to say a 401(k)?

Can a plan with a 2 year eligibility/age 21 on the match amend to have a Safe Harbor enhanced match of let's say 100% up to the first 6% deferred? Thanks

403 with 165 employees subject to test. Only 2 exceed the comp limit for HCE's. Plan doc uses TPG election. Both would be considered HCE's for ACP testing purposes, yes?

Let me piggy back on this topic....what if total contributions, straight cash, were $9500, $9000 was withdrawn in 2012, balance as of today after withdrawals was $5000. Account holder is under 59.5 and wants to with draw the additional $500 in contributions plus the gain to put towards the cost of a new house. It seems as if there is an exception for a house purchase however that is for first home. This is the holders 2nd, but PUB590 states "that you are generally a first time buyer if you had no present interest in a main home during the 2 year period ending on the date of acquisition of the home which the distribution is being used to build" sounds to me like you can be a previous home owner as long as it was over 2 years. Do I interpret this correctly? ROTH was started in 2002.

i interpret this as saying if I terminate after age 55, I am exempt from the penalty. If I terminate at age 58, then that is "after the calendar year" in which I attained age 55. Thanks for all your responses.

A participant in a money purchase plan attained age 70 1/2 in September 2012. He is not an owner but is the Executive Director. He retired 1/31/2013. Before a total distribution of his account can be processed shouldn't he receive an RMD? Thanks.

If i turn age 55 in 2013, quit my job, take a distribution in 2013, I do not pay the penalty. If I turn age 55 this year and terminate next year, receive a distribution in 2014, I do not pay the penalty. This is how I am interpreting the exception. If I turned 57 or 58, I would still be subject to the penalty, yes? Why age 55? Thanks

I'd be curious to know an answer to this myself.

yes. PYE 5/31/12

If a 403(b) that maintains annuity contracts with TIAA and MassMutual has less than 121 participants it can continue to file a 5500-SF and no audit requirements, yes? Here are the facts: 2009 PY: Participants at beginning 94 Participants at end 102 2010 PY: Participants at beginnging 102, Participants at end 114 2011 PY: beg 165. at end 198. They need to have an audit for 2011, correct

403 has immediate eligibility for deferral purposes, but a 2 year waiting period for match. Let's say 125 are eligibile to defer but only 100 are eligible to receive a match at plan year end. Would an audit be required? My thinking is if the plan only had employee deferrals it would not be subject to ERISA, therefore no audit requirements. Thanks.

Members take draws out during the course of the year, can they defer on those draws or wait until after the close of the plan year to defer pending preparation of their k-1's or both?

Could there be any implications as to erroneously reporting what type of entity the plan is on the adoption agreement? There are no HCE's in the plan.

Small 401 offers a 5% non-elective 100% vested to all eligible participants. Can it still satisfy Safe Harbor requirements?