Beemer

Is 402(h)(2) still in effect for integrated SEPs?

Thanks!

I am working on a SARSEP (established years ago) and the adoption agreement states that the employer contribution is integrated. Is it permitted for a SARSEP to have both elective deferrals and integrated contributions if this is written in the adoption agreement?

I see that it will be the basis. Thanks for replying.

A participant took a partial distribution from a Roth 401(k) account in 2015 and it was a qualified distribution. The 1099r instructions state that box 5 can exceed box 1. If box 5 included all contributions (less any basis previously distributed) and the participant took another distribution in 2016, what would be in box 5 for the 2016 Form 1099r?

OK, thanks.

I have a client that wants to drop their 2015 grace period, which would carry into 2016 and add a rollover provision. How far in advance do they need to notify participants? Is November 30th too late in the year? Is distributing an SMM sufficient? Thanks for any replies

Thanks!

When using the Fire system, at what point in transmitting a Form 8955-SSA has the deadline been met? When the status is "Good, not released", is that considered a filing that met the due date? Or is it ten days later, when the file is released?

If you are familiar with Relius, using their web-based system is very similar. If you haven't entered any 2014 information yet, just go directly to where you transmit the 5500's www.sgc02.com and enter the data. You can transmit from the same website after the client signs the returns.

In our case, the election form stated a monthly $ amount, but the client withheld that amount per pay period, which doubled the contribution. The correction method I mentioned before was mentioned in an ERISA attorney's seminar. I found the seminar slides when searching this topic, but I would be more comfortable with an actual citation.

We have a similar situation. It is a large plan and the auditor wants to know how to address this. I found something that said the deferrals should be returned to the participant and the match should be forfeited. I don't know how the deferrals would be reported on a 1099r (what code to use).

If a participant's account in a 401(k) plan was in a variable annuity, and they elected upon termination to keep their account with the same insurance company but rollover to a Roth IRA, and that is code "G", does the amount of the distribution go in box 8? Then do you leave 2a blank, and how does the participant determine how much is taxable?

That doesn't seem logical, but then these are IRS instructions.

The instructions for the 1099r say that the taxable amount should be entered in box 2a, but to enter code "G" in box 7. Is that correct to do so rather than using code "1" or "7"?

A participant on the TIAA-CREF Participant Detail Summary has a terminated status. The ending balance is 100% vested. The entire balance is in TIAA Traditional. Are you saying that the balance should be included on the Schedule H, but that individual should not be included in the participant counts?

According to the AO "The Department has rejected expanding the definition to include insurance products whose premiums are not immediately applied to purchase annuities but that purport to generally "guarantee benefits," or that "guarantee a fixed rate of return," or where group annuity contracts held by defined contribution plans credit or allocate each participant's interest in the contract to the participant's individual account in the plan, but the value of each participant's interest in the contract is adjusted for market value fluctuation. 65 Fed. Reg. 5030. It is the Department's view that the Traditional Annuity is not a fully allocated contract within the meaning of 20 C.F. R. 2520.104-44(b)(2). Upon recept of each contribution or "premium" TIAA does not unconditionally quarantee to provide a retirement benefit of a certain amount or a "specific dollar benefit" without adjustment for fluctuations in the market value of TIAA's underlying assets."

TIAA-CREF stated that these were guaranteed contracts and therefore excludible. However, AO 2010-01A is stating that these are not "guaranteed" contracts.

The DOL disagrees with TIAA-CREF's position in EBSA Advisiory Opinion 2010-01A (March 4, 2010). They are letting plan sponsors follow the TIAA-CREF guidance for 2008 years and prior, but not for 2009 and after.

We also have been following the guidance issued in the FAB but have recently been shown TIAA-CREF's position of excluding all terminated participants. Besides the TIAA-CREF audit guide, I find no support for this. How are 5500 preparers handing the participant count issue for TIAA-CREF plans? Thanks for any input.

What did you do with what was contributed into the account?

A client let an employee into the 401(k) plan in 2011, before their 1/1/2012 entry date. They don't want to change the plan provisions. They want the employee to take a distribution to correct the error. How would this appear on a Form 1099r? Thanks for any input

We have been including code "D"s in the participant counts. Although we are preparing paper filings, I have been told that if the counts don't match the number of names listed, if you file electronically, that will generate an error.

That was how we originally interpreted the deadline, but it seems that there is a difference of opinion out there. I think we are going to assume the deadline for 2009 is 1/17/12 for all plans, just to be safe.

thanks