Nassau

My client would like to close the US Growth Fund and and map assets and allocations to the LifeStrategy Moderate Growth Fund. The client does not have a QDIA Questions: Can someone tell me what information I should be providing the client with such as: requirements with respect to communications, etc. Can you provide me with the Code or Regulations regarding fund mapping?

My client would like to close the US Growth Fund and and map assets and allocations to the LifeStrategy Moderate Growth Fund. The client does not have a QDIA Questions: Can someone tell me what information I should be providing the client with such as: requirements with respect to communications, etc. Can you provide me with the Code or Regulations regarding fund mapping?

My client is unsure of who legally should be the correct beneficiary in the following situation and would like our legal guidance: A participant changed their beneficiary on-line from their spouse to their sibling in April 2011. The participant passed away this month and now the spouse has come forward as the beneficiary. In reviewing the account we found that the spouse is not listed as the beneficiary, and in reviewing the death certificate we see that the participant and his spouse were separated. This would mean that the participant changed the beneficiary on-line without proper authorization from his spouse by selecting that he is not married (which is not true). Would the account still go 100% to the spouse? The client is concerned that because they were separated that it should not be given to the spouse and would like our legal opinion.

Participant was rehired as an employee in 2008 but with no 401K eligibility. He never became a participant again in the plan, so he is technically still a "terminated" participant that is above the age of 70.5. The money deposited to his account in 2009 represents earnings due to an error in 2007. So, my question is this money still subject to an RMD? (as both cost basis and earnings are subject to RMDs). Please note, Per client ppt was rehired on 12/08/2008 as a special contract dentist with no 401k eligibility.

What is the Federal tax withholding percentage for a non-spouse beneficiary death benefit to an estate? I thought a non spouse beneficiary to an estate could elect a lower Federal Withholding percentage than 20% since it's death benefit to an estate distribution not a normal rollover? Please note that the Non-Spousal Bene would like to take a distribution from the account that was transfered from the deceased's account. The non-spouse beneficiary is the executor of the estate. The participant wants to know definitively if she can withold a smaller percentage of federal witholding at 10% versus 20%

If aan employee fails to return to work after qualified military service and has not provided notice of intend not to return to work to the employer, at what point can the employer terminate the employee from the plan? and stop years of service?

Fund mapping on a plan resulted in over 1500 Confirmations being generated. During the project, communcations were sent to Participant's advising them of the upcoming change. The client does not want these confirmations to be released as long as there are no legal or compliance issues that could arise. They're concern is around the the volume of Participant activity to their Service center as a result of releasing these confirmations. Question: Is there any legal or compliance issues with not generating confirmations for this particular transation? Please cite the Code or Regulations if this is prohibited. Thanks

We have a spousal beneficiary who would like to roll the pretax assets in the plan to her Roth IRA at an outside institution. Is this permissable and if so how is it accomplished? Is there any tax withholding?

A spouse beneficiary would like to roll the pretax assets in the plan to her Roth IRA at an outside institution. Is this permissable and if so how is it accomplished? Is there any tax withholding?

My client is questioning their fiduciary responsibility as it relates to retaining "determination of benefits" data/records, such as in the case of termination request calculations?

If a plan allows for Roth Contributions and Roth Rollovers, Can a participant rollover pre-tax deferrals from another qualified plan into the Roth rollover source in the Plan, effectively converting the contributions to Roth? Is this allowed?

Plan participant died in 2010 and designated beneficiaries were paid out. Executrix of the estate is inquiring about accounts and balances held by decedent as of the date of death. Is there any obligation to provide information to the executrix (other than the information that there were named beneficiaries for the 401K account)? Since there were named beneficiaries is the account includable in the estate assets?

Plan participant died in 2010 and designated beneficiaries were paid out. Executrix of the estate is inquiring about accounts and balances held by decedent as of the date of death. Is there any obligation to provide information to the executrix (other than the information that there were named beneficiaries for the 401K account)? Since there were named beneficiaries is the account includable in the estate assets?

I received the following question from one of my clients..... A participant has applied for a hardship withdrawal. She wishes to take it from her Roth account (403(b) Plan). Based on the IRS Q&A that I viewed on line, the withdrawal will be prorated between Roth contribution basis and earnings. That was not what I was expecting, given that the maximum withdrawal is limited to the participant’s career-to-date contribution total. Please let me know if you see anything different about the basis/earning proration." Can anyone comment on this question or provide a response?

What are the implications if a Recordkeeper does not display the vesting/vested balance, or a disclosure that they are unable to provide an accurate vested balance on the quarterly participant statements?

PPA states that in a plan where the participant has the right to direct the investment of the assets of their account that once each calendar quarter a statement must be furnished. Is it a regulatory requirement to include participants' vested balance on quarterly statements? If a client can only confirm vesting on an annual basis and the vested balance is only displayed on the 4th quarter statement, is this in compliance with the regulatory requirement?

This is a general question. PPA states that in a plan where the participant has the right to direct the investment of the assets of their account that once each calendar quarter a statement must be furnished. Is it a regulatory requirement to include participants' vested balance on quarterly statements? If a client can only confirm vesting on an annual basis and the vested balance is only displayed on the 4th quarter statement, is this in compliance with the regulatory requirement?

My client's loan policy and plan document provides for an in-service withdrawal for a participant who has defaulted on a plan loan. The loan policy provides the following language: To prevent the continued accrual of taxes and penalties on defaulted loans which may not be foreclosed because you are not yet eligible for a distribution, you may elect to receive an in-service withdrawal from the Plan solely for purposes of allowing the Plan to foreclose on your vested profit sharing account balance due to a default on a Plan loan. The maximum amount that can be withdrawn is the amount of the unpaid loan balance, plus any interest owing to date. Further, the withdrawal may not exceed your vested profit sharing account balance minus the amount of Employer contributions allocated to that account during the two-year period immediately preceding the date of withdrawal. The request must be made at the times, in the proper form, and in the manner determined by the Committee. My questions are as follows: 1. Is the "Foreclosing on Plan Loans" - in-service withdrawal considered a 411(d)(6) protected benefit? 2. If not, what type of lead time would participants need to remove this withdrawal provision?

If a participant designates a trust as his beneficiary and the participant dies. Can the trustee (i.e., one of the beneficiaries of the trust) rollover/transfer the trust to an IRA?

The ABC Company drafted there new plan which includes hardship withdrawals. The attorneys have included an added hardship reason which I have known as facts and circumstances. In addition to the safe harbor reasons this plan states "any other contingency determined by the IRS to constitute an "immediate and heavy financial need" within the meaning of the Treasury Regulation Section 1.401(k)-1(d)". When I questioned the client about this addition the attorney told ABC Company that this is now standard practice. Is this true?

A participant in the ABC Company is looking to term her account. Her balance is over 5000 so she is required to have spousal consent signed and notarized. She claims that this is going to be a issue because she is a abusive marriage and has legal court documents that reflect this information. If she can provide court documents, would she be able to get a exemption from having to have spousal consent signed and notarized? Please provide your thoughts and the Code and/or Regs that provide exemptions from spousal consent?

My client has 44 new hires from an acquisition that participated in a SEP- IRA plan and now they are in a 401(k) Plan. Are individual contribution limits to a SEP - IRA separate from the limit to a 401(k) Plan or added together. If a participant contributes $5,000 to the SEP - IRA Plan but now is eligible to participate in a 401(k) Plan, are they limited to contributing $11,500 to the 401(k) Plan? or Can they contribute the full $16,500 to the 401(k) Plan?

My client has 44 new hires from an acquisition that participated in a SEP- IRA plan and now they are in a 401(k) Plan. Are individual contribution limits to a SEP - IRA separate from the limit to a 401(k) Plan or added together. If a participant contributes $5,000 to the SEP - IRA but now is eligible to participate in a 401(k) Plan, are they limited to contributing $11,500 to the 401(k) Plan? or Can they contribute the full $16,500 to the 401(k) Plan?

My client has asked for advice concerning outstanding checks from a prior recordkeeper who has gone bankrupt. The clients question is... "I came across an old file with distribution checks from ABC Company, the XZY Company 401(k) recordkeeper. There are 7 checks and the amounts range from $174.47 to $1,773.39. It doesn't look like accounts for these people were sent over from the ABC Company to the new trustee and recordkeeper, so I'm not sure what happened to the assets since these checks were never cashed. The checks are not valid anymore and the former recordkeeper went bankrupt so there's no one to contact. What do you suggest we do?" I am really not sure what the best way to address this situation would be and would appreciate any guidance. Can anyone provide guidance on this situation?

If a trust terminates, how does a trustee of the trust distribute the assets. Can the executor move the trust name over to her sole individual name *( under her SSN) What documents are needed if this can be done