Beemer

This summer it sometimes took weeks to get a support call back from Relius, and then the person I spoke to was just filling in and didn't know very much about the system. How long did it take to get Ft. William (or others) to respond to support calls?

We are currently using Relius and I don't know if we should be frustrated with them for the problems, or frustrated with the DOL. Does anyone use another software vendor that has had an easy time with filing this year?

That's what I thought but I wanted a second opinion! Thanks

We have a client with two plans, a 403(b) plan for elective deferrals, and a second plan for match contributions. Would both plans be subject to Title I and the Form 5500 requirement, even though no match contributions are deposited into the 403(b) plan? Thanks

A client has adopted an amendment to their plan in 2008 changing the contribution for 2007. The contribution is deductible in 2008. In the aggregate for all participants, contributions are less than 25% of compensation. However, when preparing a partner's 1040, the contribution on the 2008 return will exceed the 25% limit (adjusted for self-employment). Can the 2008 individual partner return include contributions for the 2007 & 2008 plan years, even if it exceeds that limit, or does it need to be carried forward to future years? Thanks

Thanks!

Are SEP plans subject to the PPA 06 quarterly benefit statement requirements?

If a plan is a safe harbor plan with all accounts 100% vested, would a generic quarterly statement stating that all accounts for all participants are 100% vested fulfill the new vested account balance requirement?

OK, Thanks

ok, thanks for your input

Yes, but only for the HCE's. This does not take anything away from the NHCE's and only limits the compensation for the HCE's. The HCE's decide what their pay should be before the end of the year, to avoid a discriminitory definition of compensation.

The deferrals are based on regular compensation, but it appears that the compensation is adjusted at the end of the year.

How much the HCE's get in regular pay, bonuses, and commissions is determined at the end of the year.

That's why they are only using as much of HCE's compensation that will have same compensation ratio for the NHCE's.

A 401(k) plan limits elective deferrals to 15% of compensation. Compensation does not include commissions. After the end of the year, due to the fact that the non-highly compensated employees were payed large commissions, the amount of compensation for the HCE's that can be considered to get a passing eligible compensation ratio is lowered, which increases the deferral percentage. The NHCE's are deferring at a good rate so there is no real inpact on the ADP test. However, the percentage for the HCE's is now over 15%. Can this be corrected with a distribution?

To clarify treatment of corrective distributions under PPA, would taxation in year of distribution for calendar year plans begin with distributions occuring in 2009 for the 2008 plan year?

I don't believe that it is required. We have some that were copied from reference materials that do not require a plan sponsor's signature.

Only a spouse can give spousal consent, and a pre-nup is signed by someone who is not a spouse. Therefore, I don't think the pre-nup agreement would be considered at all with regard to the plan.

I have a question about Medicare as secondary-payer exception for a group health plan of an employer with at least 20 employees. If there are 6 non-union and 50 union employees and the plan is for the non-union employees, and they have a non-union employee turning 65, would Medicare be the primary or secondary payer for that employee? Thanks for any help.

We do not have a plan document yet. We will probably try to talk to client into a new SEP. I was asked to find out about a change in plan sponsor in case the client wanted to go that way. Thanks

Can a SEP change plan sponsors? Thanks for any help.

We are going to have them contribute the lost earnings and will prepare a 5330. They won't have to pay that much. Thanks for your help.

You are right. It wouldn't be worth the trouble. I have had the good fortune to have clients who are very reliable about their 401(k) deposits so I didn't realize the penalty was only on the lost interest. Thanks for your help.

I have a client that was late once with a 401(k) deposit. Is it possible to have the key employees wave their right to lost earnings (and also pay less of a prohibited transaction penalty by only considering the non-key participant's deferrals late)?

According to the 5500 Preparer's Manual, the DOL says to include dependents on that line. The only problem I have ever had with that item is leaving it blank when the data sheet from the insurance carrier said to leave it blank. That will generate a notice.