david rigby

Hey I'm just guessing, but I'll bet your plan document defines how contributions are allocated, and then it defines how earnings are allocated.

Data as of April 30, 2020 (Thursday) second month-end after beginning of Coved-19 pandemic/isolation Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 2.38 2.38 Aa 2.71 2.43 2.57 A 2.95 2.97 2.96 Baa 3.50 4.24 3.87 Avg 3.05 3.01 3.03 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.28 Medium-Term (5-10 yrs) 0.47 Long-Term (10+ yrs) 1.14 Observation: (1) Comparing the Avg rates to 6 months prior, current rates are 30-35 points lower. (2) Comparing the Avg rates to 12 months prior, current rates are about 110 points lower.

My experience is that accrued income is included. I've also included that information in the ASC715/FAS87 assets. Probably, the important rule is "Be consistent". If considering a change for funding purposes, don't forget to review the relevant Rev Proc w/r/t to above advice. If considering a change for accounting purposes, get advance input from the auditor.

Charging a reasonable fee may be appropriate; what does the service agreement say?

IMHO, you should direct your question to the actuary.

Wow. As I recall, there was very little guidance (maybe none) in the 80s. The first item I recall was Revenue Procedure 95-51 (I'll post a copy or link if I can find one), then Rev. Proc. 98-10 (https://www.irs.gov/pub/irs-drop/rp98-10.pdf), and then Rev. Proc. 99-45 (https://www.irs.gov/pub/irs-drop/rp-99-45.pdf). Much better consolidation and advice in Rev. Proc. 2000-40 (https://www.irs.gov/pub/irs-irbs/irb00-42.pdf).

Let's go back to the original question. The above advice is correct, but might be (from your perspective) somewhat disjointed. Your question is answered with another question: Does the employee have a distributable event under the terms of the plan? (That term typically refers to death, disability, retirement, other separation of employment. Those terms might be defined in the document itself. Read it. If you don't have access to the plan document, get a copy of the Summary Plan Description.)

Don't overlook the (apparent) partial termination in 2020.

What does "processing" mean? Assuming the form is complete, why would you not mail it?

Clarification needed. Is the ER stating the plan is frozen (or frozen to new participation)? If so, the effective date of freeze will be relevant. Does this quote mean something else? The participant needs to get a copy of the Summary Plan Description (SPD).

There is no "prior year filing".

The original questioner may find it useful to bookmark the DOL page that contains copies of 5500 Forms and Instructions. https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500

A should also decide who is in the plan; "keep the plan" might mean "keep it to cover subsidiary B" or it might mean something else. In addition, if the coverage is expanded, A should consider how to define eligibility service and vesting service.

Is the answer already specified in the plan document(s)?

It is my understanding that a change of plan year must be enacted on or before the date of the short plan year, and this has always been the rule/principle.

Data as of March 31, 2020 (Tuesday) First month-end after beginning of Coved-19 pandemic/isolation Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 2.73 2.73 Aa 3.35 2.82 3.09 A 3.69 3.37 3.53 Baa 4.39 4.86 4.63 Avg 3.81 3.45 3.63 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.34 Medium-Term (5-10 yrs) 0.53 Long-Term (10+ yrs) 1.2 Observation: (1) Comparing the Avg rates to 6 months prior, current rates are 10-40 points higher. (2) Comparing the Avg rates to 12 months prior, current rates are about 25-30 points lower.

Does a stock sale mean the plan is terminated? Is there anything in the sale agreement that requires the termination of the plan?

Implied in your question is that you have a Qualified Domestic Relations Order (QDRO). Correct? If so, has it been reviewed and accepted by the plan administrator (something in a property settlement is not sufficient)? If so, the terms of the QDRO should indicate what options (if any) you have. Assuming you refer to a defined benefit plan, some (perhaps most) such plans do not offer a lump sum option unless the value is less than a fixed amount (eg, $5,000).

https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500 Is page 6 of the Instructions a sufficient answer?

No, the second sentence states HCEs but the context implies NHCEs. I'm asking for clarity. And, I don't care about "client veracity". A statement of "opportunity to defer" is NOT the same as "negative elections".

Communication is important. One hopes that the ER has documentation of all communication to EEs. Cynchbeast, does your second sentence need to be edited?

I re-read the original post, and identified the phrase "...advise on how I should approach unwinding this ..." It appears the original poster has (or thinks he/she has) some personal responsibility for fixing the situation. Undoubtedly, the advice from Bird (get legal help) is correct, but the first step might be to identify who really does have the responsibility. BTW, several readers here will be able to refer to a qualified attorney.

Peter, would it be hasty to make any such application without accounting for any provisions in "relief" legislation and regulation?

Actuary/non-lawyer opinion: Unless there is precedent and/or legal interpretation for this, the TPA might be exceeding its authority to make such determination. But I could be wrong.

Sad.