david rigby

Does the ERPA know how to do research? Instructions for Form 8821 include:

OK, this is picky. If there is already guidance on this point, please point me to it. I have not found any direct guidance on this, so I'm suggesting some: Section 101© or WRERA amended IRC 436(d)(5) by adding this sentence: "Such term shall not include the payment of a benefit which under section 411(a)(11) may be immediately distributed without the consent of the participant." 411(a)(11)(A) reads" "If the present value of any nonforfeitable accrued benefit exceeds $5,000 a plan meets the requirements of this paragraph only if such plan provides that such benefit may not be immediately distributed without the consent of the participant." The WRERA summary by the Congressional Research Service, http://assets.opencrs.com/rpts/R40171_20090129.pdf, and the Technical Explanation by the Joint Tax Committee, http://www.jct.gov/publications.html?func=...own&id=1252, both refer to "$5,000". However, many plans have been amended to change the default payout limit from $5,000 to $1,000. Once can read the statute very "tightly" and suggest that the 436 restriction applies to the dollar limit in the plan, even if less than $5,000. Alternatively, one can read the committee reports and suggest that Congress meant $5,000, even if the plan uses a lower limit. I suggest the latter approach. Any thoughts?

Do you need another document for existing plans? Don't the principles apply to any search for missing participants?

Thank you for using the technical term.

Search these Message Boards (that is always good advice) for links to the IRS and SSA letter forwarding programs.

No discussion about trusts or asset pools. Not sure what you mean. Does changing the current benefit structure (in this case, for the purpose of impacting one person) create a prior benefit structure? (I don't know, just asking.)

Will this cause a failure under 1.401(a)(26)-3?

Maybe nothing. Is it a material change?

IMHO, the existence of the NC is separate from the issue of the plan termination and distribution. I see no problem with showing a NC.

1. Can you use a val date of 12/31/08 if the plan no longer exists? Would the correct val date be EOY = 10/31/08? 2. Why is a non-zero NC a problem?

10 years? PPA sec. 407.

IRC 436(f)(3). Note, as spelled out in the (proposed) reg, the restriction is assumed to "apply" if any participant could be limited, without regard to the question "did any participant terminate/retire...?"

I thought the deemed reduction applies only if a 436 restriction would be eliminated. thus, if no (possible) restriction, no reduction. Have I missed something?

You should probably get a copy of IRS Publication 560. http://www.irs.gov/app/picklist/list/publi...NoticesPdf.html call 1-800-TAX-FORM.

... with a possible impact of 401(a)(17), which might be important.

Don't forget that some plans define NRA (vesting) differently than NRD (commencment). For example, I've seen plans with NRA = age 65, while NRD = age 65 + 5th anniversary.

SoCal has a good point, about avoiding commutation functions. However, it may depend on the purpose for which Andy needs this: if used for an actuarial conversion factor, then good precision is desired. If used for valuing liabilities, a close approximation may suffice (assuming any affected liabilities are very small relative to the total).

Why?

Will direct deposit help? i.e., if the bank knows of the death, will this increase the likelihood of feedback from the bank?

This is probably correct, but the owner may be confusing "terminated" with "liquidated". As for fiduciary liability, try the EBSA website. Also, search for the term "orphan plan".

The name is probably based on: - Greenville has a "motor mile", pretty significant for a city its size; - BMW has a nearby plant.

SC indeed! That is the "Greenville Drive". And James Taylor is from NC. BTW, the Salem Red Sox are(is?) in the Carolina League, but the team is located in Salem VA. As always, Go Braves!

O contraire! And who would that be?

Data as of 30-JUN-09 Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.37 5.37 Aa 5.75 5.81 5.78 A 5.96 6.25 6.11 Baa 6.96 7.37 7.17 Avg 6.22 6.20 6.21 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 1.22 Medium-Term (5-10 yrs) 2.78 Long-Term (10+ yrs) 4.10

Yes.