david rigby

You might be a redneck Jedi if... 1. You ever heard the phrase, "May the force be with y'all." 2. Your Jedi robe is a camouflage color. 3. You have ever used your light saber to open a bottle of Bud. 4. At least one wing of your X-Wing fighter is primer colored. 5. You have Bantha horns on the front of your land speeder. 6. You can easily describe the taste of an Ewok. 7. You have ever had an X-wing up on blocks in your yard. 8. You ever lost a hand during a light saber fight because you had to spit. 9. The worst part of spending time on Dagobah is the “dadgum skeeters”. 10. Wookies are offended by your B.O. 11. You have ever used the Force to get yourself another beer so you didn't have to wait for a commercial. 12. You have ever used the force in conjunction with fishing or bowling. 13. Your father has ever said to you, "Shoot, son come on over to the Dark Side...it'll be a hoot." 14. You have ever had your R-2 unit use its self-defense electro-shock thingy to get the barbecue grill to light. 15. You have a Confederate flag painted on the hood of your landspeeder. 16. Although you had to kill him, you kinda thought that Jabba the Hutt had a pretty good handle on how to treat his women. 17. You have ever accidentally referred to Darth Vader's evil empire as "them damn Yankees." 18. You have a cousin who bears a strong resemblance to Chewbacca. 19. You suggested that they outfit the Millennium Falcon with redwood deck. 20. You were the only person drinking Jack Daniels on the rocks during the cantina scene. 21. If you've ever heard "Luke, I am your father...and your uncle!"

What a mess! IMHO, this is not a client you want.

ERISA 4044 does not apply to government plans, does it? As often stated here, what does the plan say? Most plans, whether or not governmental, require the participant to have some "event" in order for a plan disbursement, such as termination, death, disability, or retirement. The current situation appears more like a "transfer" or "spinoff". That normally requires the governing authority to authorize the new plan and authorize the transfer. Has any of that happened? The participants don't get to make this decision. As far as "their share", the plan's actuary should be intimately involved in this determination. Careful review of plan provisions is in order. IMHO, a plan that is 70%-90% funded is not a good candidate for such a transaction.

Heh heh. Don't you just love giving advice to attorneys.

I realize this is Friday, and you guys are goofy, but never "get up ... and look for the answer" when BenefitsLink is close at hand: http://benefitslink.com/IRS/revproc2003-44.html

How can this be acceptable? Seem like the Plan fiduciaries will be considered "part of the problem" if they don't take some action. Methinks a judge or jury would have no trouble reaching that conclusion. Perhaps the plan sponsor should verify that its fidelity bond is up-to-date. Perhaps the broker's employer should do the same.

Perhaps not relevant, but this is not exactly the condition for avoiding the AFC. BTW, is there a concern under Reg. 1.401-4©(2)?

This may be the correct result, but don't go so fast that you overlook other facts. Don't have to use the date received by the trustee, if the payment was mailed (or wired?) on an earlier date.

If that is the goal (to keep participant count low enough to avoid audit requirement), then you can amend the plan (prospectively). It might help.

That may not be possible. Very important not to confuse "termination" with "merger." Regs can be reviewed here: http://ecfr.gpoaccess.gov/cgi/t/text/text-.../26cfrv5_02.tpl IRS Reg. 1.414(l)-1(l) (BTW, both of these parentheses contain a lower case letter L, not a numeral one.) "Merger of defined benefit and defined contribution plan. In the case of a merger of a defined benefit plan with a defined contribution plan, one of the plans before the merger should be converted into the other type of plan (i.e., the defined benefit converted into a defined contribution or the defined contribution converted into a defined benefit) and either paragraph (d) or paragraphs (e) through (j) of this section, whichever is appropriate, should be applied." The conversion of the DB plan to a DC plan must precede the (proposed) merger. It is this conversion that gives participants rights, generally similar to a plan termination.

Page 3 of the 5500 instructions: http://www.dol.gov/EBSA/PDF/2004-5500inst.pdf

Is there not a potential for different FICA taxation?

You should have already been provided an SPD, without having to ask. Is it possible you got one and "filed" it?

SoCal, Perhaps this is my day to be an idiot, but can you explain that response? Example?

I believe the proper analysis is that an accrued benefit cannot decrease solely due to an increase in the SS benefit and/or wage base. Is that an adequate answer to your Q?

Insurance? Is this VP saying that there is insurance against bankruptcy? Funding? Qualified plan!

I agree with Blinky, although I might be more emphatic: it should be unacceptable that your software/procedures are the cause of failing to administer the plan according to the terms of the document. Fix it, either by upgrading your software, or changing the plan. Important: changing the plan may not be a true "fix". See IRC 411(d)(6).

Depends on what you mean by "highly paid". The Aon/GSU replacement ratio study can be reviewed here. Much is devoted to pay levels up to $90K, but there is also some discussion at higher levels. See page 14.

...plus interest if any portion of the contribution was made before the end of the plan year.

Before mbozek says it, this plan needs competent ERISA counsel, soon. If the plan administrator needs help finding counsel, I suggest asking the plan's actuary for two or three recommendations.

Kirk and mbozek both raise valid points. But from this layman's point of view, the attorney was still "deficient", primarily because the QDRO is an immediate negotiating tool as much as it is an effort to obtain a portion of the participant's benefits.

Difficult to answer your questions without more info. Strongly suggest you obtain and read the Summary Plan Description (SPD) for the plan. (BTW, you should have already been provided an SPD.) The SPD will include a summary of pertinent plan provisions, and may provide some answers. However, the terms of the actual plan document are controlling. (The plan must be a formal written plan document, not merely a promise by the employer.) If you want to read it, or obtain your own copy for a nominal fee, then the employer must make that available to you. You may also find useful reading material on the DOL website. For example, http://www.dol.gov/ebsa/faqs/faq_consumer_pension.html http://www.dol.gov/ebsa/consumer_info_pension.html

No expert I, but my thought is that you are violating the terms of at least one plan document.

No distribution? Your termination is void. Check the letter. Check the plan provisions. Start over with the termination process.

Well, almost. You do not have to modify and re-issue the SPD. An SMM should do it.