WDIK

Complete line 4 on Form 5500.

...or a bad one, depending on your point of view.

Her choice should be based on many factors unknown to those posting on these message boards. It is generally advisable to carefully review the notices she will receive regarding taxation and rollover options. Her health and age will also be a factor in the decision. Depending on the amount of money involved, consulting with a tax professional may range from prudent to vital.

Doesn't a resolution to freeze benefit accruals accomplish the same thing as amending the formula to 0%?

Please feel free to disregard my prior myopic post.

I am not so sure that the outlook is that rosy. I seem to recall that the plan is not allowed to default to the ADP test if the appropriate contribution is not made. Failure to make the required contribution could become a qualification issue. With respect to the bankruptcy, the following thread may provide additional food for thought. http://benefitslink.com/boards/index.php?showtopic=35766

What about the following wording in the answer to which you refer? For purposes of the preceding sentence, the latest permissible term of the replaced loan is the latest date permitted under section 72(p)(2)© (i.e., five years from the original date of the replaced loan...

It is my understaning that Roth deferrals are treated the same as pre-tax 401(k) deferrals for all compliance and testing purposes.

I do not see why that would be necessary.

Certainly. (Unless I am really misunderstanding the question.)

According to the SSA instructions, Code D is used for a previously reported participant "who is no longer entitled to those deferred vested benefits." In my opinion, such participants as you describe are still entitled to these benefits, should they subsequently request benefits and should not be reported with Code D.

Are you equating the terms Plan Administrator and TPA?

I agree with Belgarath. The Plan Administrator carries the responsibility for disseminating the notice, but could certainly authorize other entites to do so.

Is "somebody" perhaps confused about the exemption from the 10% penalty tax for early distributions? It is probably also worth noting that some courts have ruled that disability benefits are tax-free. (The IRS and most courts disagree.)

You can find some good advice (though not a definite solution) at the link below. You will need scroll down. http://www.form5500help.com/ItsOfficialArticle.html

Even assuming I was comfortable "accruing" the distributions (which I am not), the plan would still have assets, albeit with an offsetting liability. Follow the advice of Bill Presson.

How can it be determined that this specific $3,000 paid the expense?

If both the employer and the employee are in agreement then the expectations would seem to be reasonable. If you are asking what is reasonable from the employer perspective because the employee doesn't want to work as long as expected, the question probably does come down to a matter of compensation and how key this person really is.

Not to bash all brokers, but our office recently was berated and verbally abused by a broker over the issue of a one-year break-in-service requirement prior to distribution. He wanted the rollover done immediately (for obvious reasons), had been in the pension business for over 15 years and had never heard of such a ludicrous and obviously illegal provision.

http://benefitslink.com/boards/index.php?showtopic=36271 http://benefitslink.com/boards/index.php?showtopic=38384

http://benefitsattorney.com/modules.php?na...d=12&page=4 http://benefitsattorney.com/modules.php?na...d=12&page=9 http://www.mhco.com/Commentary/2005/403b_P...ives_040805.htm

Can you give an approximate value of the settlement and approximate value of total investments?

Also, the plan must allow for in-kind distributions.

403(b)(9) deals with with retirement income accounts for churches. 403(b)(7) relates to custodial accounts made up of mutual funds. Try http://www.403bwise.com/

I may have missed it, but I don't think that the section in question appears in that document. (Though it refers to it several times.)