david rigby

I have no idea about whether the facts lead to UBI. However, the possible investment should consider other fiduciary issues: for example, how liquid is it?

If your firm (TPA?) was not involved in 1987, there is (probably) nothing you can do (i.e., don't lose sleep over this). Either way, you might suggest that the sponsor check in the personnel file of the former employee, if such file can be located. (Don't assume it no longer exists.) No guarantee, but it might be worth a look.

Note that "it" refers to a distribution of the account balance, not to the RMD.

You can make changes at the same time as restatement. Keep in mind that is an amendment that is incorporated into the restatement. (Likely, you've seen a phrase such as "as amended and restated effective January 1, xxxx.") IRS Regs covering section 411(d)(6) can be accessed thru this link. http://www.ecfr.gov/cgi-bin/text-idx?&c=ecfr&tpl=/ecfrbrowse/Title26/26tab_02.tpl

I have no qualms about the prior advice. Just in case it's relevant, I reviewed the 2014 Gray Book table of contents (cumulative). Nothing on point. Perhaps you can submit this as a question for next year's edition.

This might be shorthand for something. Does it refer to an effective date in a plan amendment? or perhaps some administrative date?

Data as of 29-AUG-14 (Friday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 3.95 3.95 Aa 3.99 4.01 4.00 A 4.05 4.15 4.10 Baa 4.57 4.59 4.58 Avg 4.20 4.18 4.19 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 1.27 Medium-Term (5-10 yrs) 1.90 Long-Term (10+ yrs) 2.81

Correct, if the value is > $5000. Of course, this is a plan termination, so some type of distribution is being "forced". However, if you cannot purchase the annuity exactly as the plan provides (since there is no vendor willing to sell it), what choice is left? IMHO, the remaining choice is to buy what the insurer will sell, which is (under my assumption above) an immediate annuity and it may also include the default J&S. This is the information that might be used to convince the participant to elect the $6,000 lump sum rather than refusing to sign the form. The insurer may be more flexible if the purchase price is greater than some minimum amount, based on its own internal marketing conditions. In these comments, I'm only reflecting my opinion, and not any detailed survey of insurance company practices.

The reference to "$8/month" should have pointed out (my assumption) that the insurer will sell the annuity only on an immediate basis, so the monthly benefit will reflect some type of early commencement.

Your message is so rambling and lacking in punctuation, good grammar, and proper spelling that I have no idea what point(s) you are trying to make. I have no idea why you referenced Aaron Swartz, John McCain, or Granny D. But perhaps it's just me. There is an edit button available if you want to revise your post. Or you can ignore this if you choose.

No automatic rollover is not an option. Inform the participant that the plan must distribute her benefit. If she fails to make an election, the plan will make the election for her, and that is an annuity payable in the normal form (or J&S if applicable). As mentioned by JAY21, it may be difficult to purchase that annuity (but you don't have to tell the participant). When she finds out that her benefit will be $8/month for the rest of her life, maybe she will sign the form.

Changing the name of the company is not the same as changing the name of the plan. Likely, a plan name is accomplished via plan amendment.

Ask company attorney and/or accountant if they have a copy?

Agree. The best reference is the last paragraph immediately prior to the heading "HOLDINGS", on page 9 of the IRB from August 11, 2003. http://www.irs.gov/pub/irs-irbs/irb03-32.pdf BTW, there is nothing recent in the Gray Book on point. IMHO, this is because Rev. Ruling 2003-85 is not ambiguous. - There is an older Q&A (Gray Book, 98-33) that states amounts transferred above the 25% threshold will receive the 20% excise tax rate. The exact Answer is "Any transferred amount in excess of 25% would be taxed as a reversion at the 20% excise tax rate." - My recollection (I attended the 1998 Enrolled Actuaries Meeting when the Gray Book was first discussed) is that this Q&A created significant controversy; i.e., "that's a ridiculous result". Such controversy (I think) was the impetus for the IRS to rethink its position, eventually leading to Rev. Rul. 2003-85.

... and if the plan is not clear, it's time to make sure it's amended.

Good grief. Why not just amend the plan to make it clear (at least prospectively)?

Neither 411 nor 417 will have any effect on a NQ plan's requirement w/r/t spousal consent. Neither will inhibit the plan in including or excluding or changing such provision. The plan itself might include a provision that could affect (yes, that is the correct word) the ability to change any such provision.

BTW, this discussion points out the inconsistencies in this area. http://benefitslink.com/boards/index.php?/topic/52072-2011-contribution-deadline-91512-or-91712/?hl=holiday#entry225396

It isn't the deduction that is relevant, since $$ coming out of the plan will come back into his income. It's the permanent exemption from FICA tax. (But hey, I'm not giving tax advice.)

BTW, it may be useful to re-read IRC 4980 to make sure no special conditions apply (eg, bankruptcy). If the one-man company can establish a DC plan to receive the excess, that may eliminate the excise tax entirely. See also Rev. Ruling 2003-85. http://www.irs.gov/pub/irs-irbs/irb03-32.pdf

A few prior similar discussion threads. Try the Search feature. My recollection is that the IRS permits the "next business day" rule for a filing (eg, form 1040 or form 5500), but it does not apply to other due dates.

Increase benefit, up to 415 limit? Cover someone else (perhaps spouse)? I forget: is there any reason why you can't have a one-person qualifed replacement plan?

The due date for the SSA is triggered by the 5500, but that does not make it part of the 5500. File it.

Data as of 31-JUL-14 (Thursday) Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 4.15 4.15 Aa 4.15 4.21 4.18 A 4.21 4.34 4.28 Baa 4.69 4.81 4.75 Avg 4.35 4.38 4.37 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 1.30 Medium-Term (5-10 yrs) 2.04 Long-Term (10+ yrs) 3.04

Follow the terms of the plan, which probably does not anticipate a second election, for anyone. However, if the governing authority (maybe the corporate Board of Directors, for example) wants to permit a new election, such election can be created via plan amendment. The plan should seek advice from ERISA counsel on how (or whether) to do this (discrimination? precedent?, etc.)