david rigby

Also, note the Employee Plans News, issued 03/31/09. w/r/t the definition of MV rate of return to be used in rollforward of credit balances, JH said "I think you don't want more than you already have." Unlikely that the IRS will devote any time to defining this in regulation. IMHO, a reasonable interpretation of the statute is to determine a rate of return on a cash basis (no accrued anything at BOY or EOY) using whatever time-weighting factors are available and reasonable. (For example, I can see reasonableness in using 1/2 year for monthly benefit payments, but not for ER contributions. You decide.) Be carfeul about NC. Note the change in definition in WRERA. Not trivial.

Good overview. In addition, the 2008 AFTAP is deemed to be applicable for the first 3 months of 2009 (unless it is actually certified in that time).

Does the SPD have to detail the benefit formula(e) that apply to those participants who are inactive?

Choice is permitted only if 500 or fewer participants. See: - 1.430(h)(3)-1(b), in federal register 5/29/07, and - Notice 2008-85, in IRB 10/20/08. However, it states "sponsor" is permitted to choose, which does not sound like an actuarial assumption. Perhaps, it is part of the method. But there may be something I've missed.

Data as of 31-MAR-09 Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 5.39 5.39 Aa 6.14 6.04 6.09 A 6.41 6.87 6.64 Baa 8.04 8.85 8.45 Avg 6.86 6.79 6.83 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.91 Medium-Term (5-10 yrs) 2.08 Long-Term (10+ yrs) 3.37

Possibly relevant? http://benefitslink.com/boards/index.php?showtopic=29101

Comments from SoCal and Effen are "spot on". A "small plan software" package may be perfectly reasonable for this plan. Other issues that could arise may include: other plans within a controlled group, non-qualified plan(s), minimum coverage, time spent responding to auditor, completion of 5500, different benefit for different groups/divisions, etc. One issue that will likely be irrelevant: top-heavy.

Yes.

I agree with AtA, but add the caution, "did you file the Form 501?"

Is an answer available from Q&A T30-T31 in the 416 reg?

I believe you are searching for the term "safe harbor".

The amendment should probably be dated currently, but it can pick up retroactive service. Don't forget to "catch-up" on any benefits paid in the meantime. BTW, a verbal agreement is not the ideal documentation. Have the plan's ERISA counsel draft a written agreement at the same time he/she is drafting the amendment?

Any plan provision that might permit a participant to "cancel" a distribution after the fact? Likely not; many plans are more specific, stating that a participant can change his/her election until the distribution has been made. If no plan provision that permits this, then it looks like a distribution, and the 1099 should not be amended.

Try searching these Message Boards for "settlor". Same advice for DOL website.

"official penalty"? Who knows? But, IRC 3405© requires the withholding. 3405(d) says "the payor ... shall withhold, and be liable for, payment of the tax required to be withheld..."

Freeze it now, and ask your ERISA attorney to opine on the question? At least it won't get any worse while you wait for an answer.

For 412 purposes, we are beyond the 2-1/2 month time period for recognizing amendments, anyway (assuming a calendar year plan).

What does the plan say about allocation of excess assets? If it gives the excess to participants, this entire action may violate the plan itself. IHMO, you've followed the Code of Professional Conduct. May need to review some ASOPs for a more complete answer. BTW, under Precept 9, I don't think you can "advise" the plan sponor's auditor and/or attorney of this situation. Cash the check. Except for the 2 year delay to get the asset reversion, this could be viewed as "no harm, no foul" (assuming excess assets to the ER under the plan).

BTW, this definition does not mean the plan will automatically pass the ADP test.

IRC 411(d)(3)

It helps much! With that change, my result: DAF(Nov) = 29.083 DAF(Dec) = 43.82

Using homemade spreadsheet, I get different DAF values than Andy, but similar relationship.

The celebration will be even larger in 2015.

Congress and "brilliant" in the same discussion! Very funny.

Is this person an employee and a vendor? W-2 is for ER/EE relationship. Review instructions for W-2 and/or 1099?