david rigby

Pardon my idiocy, but what is a "non-retiring employee"?

Although implied in the title to the forum, the original question does not state this is related to a benefit plan. There have been a few earlier discussion threads on this topic, and the Search feature may help you. (You will probably find additional comments like the one from mjb.) For example, http://benefitslink.com/boards/index.php?showtopic=31425 http://benefitslink.com/boards/index.php?showtopic=26964 BTW, in our office, we do not use password protected or zip files, as those protections are not significant.

Maybe. It depends. Seriously. A few more facts, please.

It is possible I missed it reading above, but have we established that ERISA is relevant? Could we be talking about governmental plans?

Right! If the plan is ambiguous on how to handle the short plan year, amend away the ambiguity. For example, credited service may be different from vesting service.

Of course, you have informed your E&O carrier of this arrangement?

Perhaps this is the reference needed: IRS Reg. 1.404(a)-14©:

I agree with above advice. You could read ERSIA sec. 4041(b)(2)(D) either way, since it uses "commence" and "final". However, also see 4041(b)(3), and (especially) the corresponding Reg. 4041.22. IMHO, that regulation makes it clear how the PBGC views the statute.

I found nothing in the Gray Book on point.

Have the auditee draft part of the audit report?! Is the auditor lazy? I agree with you about the benefit calculations: it is nonsense to retype (most) corrections. The auditor may be viewiing the forest but missing the trees: the important aspect of calculation worksheets is that they are verified, initialed, checked, etc. Worksheets are not public documents; IMHO, it is reasonable for worksheets to show corrections as they are made.

Hold on here. If you work for the local housing authority, that could mean you are covered by a governmental plan (that is, sponsored by an organixation that is a government or agency of a government). If so, such plans are not (automatically) subject to ERISA requirements. Thus, the terms of the plan, and not any requirements under ERISA, will determine what are the naming/changing rights for any beneficiary designation.

Seems likely the IRS will treat this as a compensation program, rather than a qualified plan. Thus, they will expect amount to be subject to FICA tax and not eligible for rollover.

Do we know that or just assume it?

If the individual CB accounts receive an "interest accrual" based on the investment return of the funds chosen by each participant, would that not foul-up "definitely determinable"?

Generally, the plan should define the conditions. For example, will it be offered only to those under 62, or those under 65? IMHO, this option is never cost-neutral to the plan. For that reason, I recommend against including it.

I'll let the attorneys comment on duty, but.... - it might not be an error. - you work for the plan, right?

Do you mean participant? or alternate payee?1. If the QDRO states one form of distribution (which is permitted by the plan), but a different form is used, how is that "support"? 2. Does the Plan have its own ERISA counsel? It should.

Is this "voluntary contributions"? If so, isn't that accounted for as if it were a separate DC plan? (In 25+ years, I've never seen voluntary contributions; I could be wrong.)

Facts are few and far between. More specific? (Please turn off CapsLock key.)

Where is the duly adopted resolution to terminate?

Someone in my office got an advance copy today. 390 pages!

Not much chance of that!

This may be an issue of deciding which is worse. IMHO, the worse alterntive is always having to prove a distribution was made when the ex-EE gets the letter from the SSA. So.... I suggest put them on the SSA now, and use the D code as soon as you are able.

Andy, possibly an ABCD issue as well?

File the 5330 as soon as possible. The 10% cannot be waived, and you probably cannot "pre-pay" any interest and/or penalty. If there is any possibility to "advance" some other contributions (made for a later plan year), that is worthy of consideration. You cannot change the funding method on the amended Schedule B, but you can consider whether any assumptions should be changed.