PainPA

I never came across something like this... A participant turned 70 1/2 in 2010. He is actively participating in the company 401k. He has an outside IRA that he would like to roll into the 401k plan to avoid the RMD. The plan doc allows for the RMD to be at retirement date instead of 70 1/2. Is there anything I would need to be concerned with him bringing in the IRA to the plan? The only think I see for him to do is to take the RMD for 2010 before rolling it over to the plan. Any thoughts or concerns?

Sorry for the lack of clarification... all of my plan terminations have been complete termiantion... they either died becuase of a lack of interest or the plan sponsor could not afford... I was going off the previous post that the buy/sell should have identified the intent... but from what I am hearing that since Comp A bought Comp B they are the proud owner of another plan. Do they have the option to merge or not merge Comp B with theirs?

The buy/sell agreement did not identify the company B 401k plan

It was a stock purchase.

Company A is not acccepting the Company B plan. Are you saying that in my Company B document the plan successor language would be automatically make the A the plan sponsor?

A company purchased a company that I admin a plan for. The company is not accepting the plan but will accept the rollovers. The exisitng company would like to keep the plan open and offer the employee the ability to roll into the new company plan, roll to an IRA or keep in exisiting plan. There are a couple loans in the plan. Can these loans still be paid on (obvioulsy not thru payroll deduction) as to not to default? The loan policy states "MANNER OF REPAYMENT. Loan payments will be repaid by payroll deduction repayments as of each payroll withholding period (but at least quarterly). If the applicant revokes the payroll deduction election, the entire unpaid principal sum ofthe loan plus accrued interest (plus any other amounts due under the loan) will become due and payable." Can this be changed to accept payments? What options does the company have for keepign the plan open?

it states as this in the SPD.... "..... you subsequently return to employment after you have incurred five consecutive one year breaks in service, you will lose credit for all years of service prior to the breaks in service. A break in service is a plan year during which you complete fewer than 501 hours of service unless you have an authorized leave of abscence." 1.) If I am reading it as if today was 10/3/2009... at that point he has incurred only 4 breaks and he is allowed in the plan, the first of the month following... (of which I was only recently notified that he was rehired) 2.) If I am reading it on December 31st and the plan sponsor diligently sends in the census and he only worked 499 hours in 2009... then he has to wait 1 yr and enter the 1st of the month following... 3.) If I am reading it on December 31st and the plan sponsor diligently sends in the census and he worked 502 hours in 2009... then he should have went into the plan on November 1st... Thanks for your thoughts... I just picked up this plan and continued to use the exisiting EGTRRA restated document in which the lawyer was the also the TPA.

I am probably not typing all the info on my mind but that is what my document says as well... but is the 2009 service break not an issue becuase he was rehired before the 5th year (2009) or is that yet to be determined by how many hours he works in 2009.

it is a 401k and the document is a customized lawyer document and not your normal easy to read. i guess my question deals more with understanding the 5 years breaks in service. If this applies does he start like a new employee? 2004 - 501+ hrs 2005 - 0 hrs 2006 - 0 hrs 2007 - 0 hrs 2008 - 0 hrs 2009 - if he does not work 501 hrs this will be the 5th year I never really had to did into this ever before so my understanding could be totallly off. My understanding if he does not work 500+ hrs in 2009 he loses all prior service so he will have to wait 1yr to enter then the match going forward will start a new vesting schedule. ???????

employee left employment on 4/27/2004 - was 80% vested and left the money in the plan employee was rehired on 10/03/2009 he worked 501+ hrs in 2004 Is employee starting all over with a 1 year wait enter on the quarter?

It is Private 401(k) and it appears to be a dividend of which the plan was an unallocated trustee directed plan at the time. So the dividend is for everyone.

I have a client who saw an old plan name in the newpaper (merged into the existing plan about 10 years ago) for unclaimed money. He was the trustee then and is now. Any ideas on what can be done with the money? or the proper methods i should use to capture this... We are only talking about $1,500.00

I deal with a handful of Pennsylvania Governmental Money Purchase Plans. They are all straight forward plans in that the same contribution % is given to all ee's. I have come across a new plan whereby the governmental agency as a whole opts out of social security. However, they are looking into the option of allowing the employees to opt in but then those employees would not receive the same contribution as those that opted out. Does anyone see a concern in the plan docment classifying the ee's in one of these categories, with those opting in to social security receiving a contribution much less than the other group. The groups would be: Class A = Opt IN Class B = Opt Out Comments are greatly appreciated.

When you said "other EEs", do you mean from the Union?

Do you think there are any issues in the Union sponsoring the SEP even if Company A has an exisiting 401k? Does Company A still get to take the decution for the contribution? Company A is going to calculate and cut the bi-weekly check directly to the financial vendor. That is their only involvement they agreed to in the plan.

A union collectively bargained for an employer contribution on behalf of it 70 ee's employed at Company A. Multiple questions: 1) Can the union sponsor the plan for that collectively bargained contribution? basically Company A does not want to deal with the plan and part of the agreement was that they were to fund the plan, not sponsor or admin. 2) Can the plan be a SEP? even though it is 70 ee's the ER contirbution is not much.

The loan policy definitely states for foreclosure (hardship) but it also states it is for the benefit of the employee. The more detailed question would be... Does the deed that has both names to the home sufficient to override the foreclosure notice that only has the spouse name (Non-Participant).

looking for commentary on a loan for a participant in a plan which allows loans for foreclosure. However the foreclosure notice is in the spouse name becuase the loan is in the spouse name. However they have the deed which lists both names. The plan sponsor is holding back allowing the loan becuase the foreclosure does not name the participant? Does the deed suffice for supporting documentation to provide a loan to prevent foreclosure?

Thank You... have you ever heard of participant being able to OPT IN to social security even if the employer does not?

Is it true that if a governmental employer who has opted out of social security and has now decided to provide a retirement plan, could adversely hurt the social security of an employee that worked in the private sector and paid into SS for 10+ years? Does it matter what type of plan is started? SEP, MPP, 401a or DB?

Specifically to a John Hancock product. Where is everyone posting the AIC fees coming from plan assets on the Schedule I? or should I say what is the argument for the correct line. After pulling down data from Larkspur the reporting is varied but most are reporting the charges on line 2c of the schedule I and not in 2h. I re-read some of the 5500 preparers manual for this and I still think it is under line 2h.

If a 5500 has never been filed, at least cannot be seen on freeERISA and all the other public websites, how far do you have to go back with the filings? I understand that the Delinquent Filer Voluntary Compliance Program caps the penalty at a per plan max of $4,000.00 for a large plan. How far do you have to go back? I have heard that you would only have to file 3 years worth (2004, 2005 & 2006). Is there any documented evidence of this or is it obtained through a Private Letter Ruling?

Thanks for your helpful insight... your ideas confirm what I was thinking... it is good to hear it from another person in the business. Yes the LLC is the sponsor.

Thanks for your insight JanetM Needless to say we have been talking Fiduciary responsibility. The doctors did not care about the 401k even though they knew about it and sponsored it and were signing it. The trustee on the reporting has a payroll clerks name. Great opportunities for us. Once the dust settles I plan on merging the 001 to the 002 and make the 002 with participant directed accounts, and of course keep the personal brokerage accounts in tact for the doctors. The lead accountant was very surprised and was adamant that they did not have a 401k. The underlying question in part #2 is that they were filing a 5500 for so many years with a EIN that did not exist. Is that OK ? Should all those previous filings need be amended?

I was asked to look at a plan(s) and came across some unique situations and was wondering what FLAGS these concerns would raise: 1) The existing "main" plan is id 002 (Profit Sharing only - trustee directed). Old plan 001 was a MPP back in 2002 (MPP source is segregated properly). A payroll company opened a 401k plan for the NHCE's in 2006 under 001. Is 001 OK? Does this need to be changed to 003? The TPA of plan 002 does not know anything about 001 being opened... either did their accounants... 2) Plan 002 is using an EIN from a long time ago (est 1998) before it switched/merged to an LLC. The new 401k (plan 001) is using the correct EIN. Does changing plan 002 to the correct EIN raise any flags? and or should any corrected filings be made with the correct EIN for all those years? Thoughts from anyone? Thanks