Kimberly S

We see it all the time in balance forward pooled accounts. The employer wants to prefund for cash flow purposes, but not allocate until the end of the year when they know who has met the allocation conditions.

Also look at what is says about the Rule of Parity and Break in Service rules. This participant was 0% vested and appears to have had a 5 year break in service.

I don't think it will accurately calculate the earned income, after the SE tax deduction, because of the Social Security withholdings on the W-2 income.

The part I'm missing is why the participant wants to continue deferring if he is getting no paycheck because of it.

You are probably going to have to do that calculation manually rather than having Relius calculate it.

I agree no controlled group, but it sounds like a classic affiliated service group. In that case you now have a serious coverage issue.

I agree with Janet about the coding. But I'm curious why a 1099-R with the participant as the recipient would ever be mailed to the participant's ex-spouse.

From what I know of the tax preparation software, I believe that would work so long as they file on paper. If they file electronically the IRS will not find the 1099-R filed by the plan to match them up.

As a TPA, we would only release information to or at the request of the plan sponsor or trustee because we have a contract with them. Absent that, we would probably also require a subpoena. Fidelity probably doesn't have the information you need. If they took over the plan in April of 2005, it is highly unlikely they have any records before January 1, 2005 (assuming it is a calendar year plan). The prior record keeper is who you should be contacting. Depending on how frequently the plan is/was valued, it may not be possible to get values as of those exact dates. If you have quarterly statements near those dates, you should be able to get an idea of what the investments are and seach for changes in value between the statement date and the date you need.

Or do you send a 1099R for $400 and letter saying the loss was $430, and tell the participant to pay back the other $30? (In case it's not obvious, I'm agreeing with everyone who questioned how you can lose more than the investment.)

The value of MOST investments fluctuate daily. But the original post specifically says it is in a self directed brokerage account. That sounds like a daily valued account.

I've worked with a number of plans in Georgia over the years and never heard of that before. Is your question about certain types of organizations because it an unusual business type?

Unless, of course, they want it changed because they changed their minds.

Not a detriment -- a bonus on the last day of the year rewarding them for making your test work better. The scrabble score would need to be limited to a particular number of letters to avoid rewarding those with long, unpronouncable names.

I've always understood that only compensation paid by the employer was included, but your W-2 comment has me confused. Is the employer or the third party the payor on the W-2?

Take some small consolation that you were awarded sole custody in a state with a presumption of joint custody.

The formula that you describe appears to be the calculation for the maximum employer contribution (match plus profit sharing) that she can make, but it is missing a step. One half of the self employment tax must be deducted from the compensation.

The part where it talks about operating the plan in accordance with its written document comes to mind, but doesn't give the answer that you want.

We're discussing potential issues for automatic enrollment plans that transfer between service providers as we design our internal procedures. Has anyone seen any guidance about what to do if an autmatically enrolled participant's 90 day window for withdrawal falls during a black out period?

Most state statutes define officer for corporations. Typically it is a President, VP, Secretary, Treasurer and possibly Chairman, Assistant Secretary and Assistant Treasurer. For other business structures it is less clear.

If they are receiving an employer contribution (match) why would you NOT include their salary?

We're having a disagreement about how a plan that terminates its safe harbor contribution mid year is treated for top heavy purposes. Some of my associates believe that because the plan was safe harbor on the determination date, the fact that they amend away the safe harbor during the year does not change their top heavy status during the year of the amendment. Others believe that although the balances are determined as of a date when the plan was safe harbor, once the amendment is effective, the top heavy exemption goes away immediately. We haven't been able to locate any authority to support either position. Knowing that a gut feeling is not necessarily a reliable authority, I'm hoping someone here has something more definitive.

The IRA custodian should be notified that it was not eligible for rollover.

I'm confused. I'm looking at the handout from a PPA seminar that clearly state that basis (which is defined as after-tax contributions, repaid deemed distributions and Roth) can be rolled over. Was the seminar presenter wrong?

Although it is not a requirement that the divorce be final, I can imagine that a judge might be hesitant to sign a DRO before everything else is finalized. If a QDRO is processed before the property settlement is finalized, it could be a real problem if the negotiations break down.