Andy the Actuary

You youth have no shame -- truncating in public!

The bottom line with a lot of these questions regarding one-person plans is if the client is under government scrutiny (e.g., a physician for Medicare fraud), then these just represent more nails that can be driven into the coffin.

But, people do expire, in particular if they live in a city where the sports teams disappoint.

I checked both the instructions and form 10 (attached). There appears to be no reportable event for a plan this size. 10.pdf

A single employer sponsors a frozen (1993) db plan covering about 40 participants. FT=1,000,000 and assets=$500,000. The following appears in the Annual Funding Notice that Relius spits out: The law requires a plan sponsor to provide the PBGC with financial information about the sponsor and the plan under certain circumstances, such as when the funding target attainment percentage of the plan (or any other pension plan sponsored by a member of the sponsor's controlled group) falls below 80 percent (other triggers may also apply). The sponsor of the Plan, and each member of its controlled group, if any, was subject to this requirement to provide corporate financial information and plan actuarial information to the PBGC. The PBGC uses this information for oversight and monitoring purposes. I'm blanking on what is supposed to be filed with the PBGC in this situation. I do not see where a low FTAP [and this plan is not even subject to AFTAP certification] is a reportable event. HELP !

Burp, Inc. authorizes Andy the Actuary to submit our 5500. Whata Burp, President ============================================================================ Andy the Actuary acknowledges receipt of Burp, Inc.'s authorization to have me submit their 5500. ============================================================================ Burp, Inc. acknowledges that Andy the Actuary notified me of receipt of my authorization for him to submit our 5500. ============================================================================ Andy the Actuary confirms that I have received Burp, Inc. acknowledgment that they received my acknowledgment of their authorization for me to submit their 5500. ============================================================================ And keep a goin' . . .

Don't you mean the Dead Birds?

Wow. One of the rare models of Mustang. And a convertible! So, does the word 'actuary' come from the latin phrase: ".. well, um, that is, .. actually .." No, actuary is a short-name for a coup which houses strange birds.

You're obviously color blind and don't know your cars. Look again. It's a fire-engine red Mustang!

Enough, enough. Here is a photo of the Mustang you have all been pleading to see:

Again, agree with wearaway making perfect sense and is the appropriate treatment. It, however, makes even better sense when the plan language provides for it. In short, I would follow such approach. Being from Missoura, however, it was incumbent upon me to request, "show me."

(1) In her 40s (2) Medical hardship? No one knows about her C. (3) She cleared out her entire 401(k) account, which would include deferrals. (4) Artistic license, though some of the dialogue is poetry (As a teacher, she told one of her students to remove the stick.) (5) You should watch more TV. It is good for your soul as well as the ratings.

I had made that comment to my spousette but offered that the writers had taken the poetic license of stating 401(k) as 403(b), "tax deferred annuity," or "tax sheltered annuity" were not as commonly known.

We have become fans of Showtime's "The Big C," a dark comedy in which the principal character has terminal cancer. She is a teacher and has not divulged her illness to family or co-workers (she appears to have no friends!). In a recent episode, she cleaned out her 401(k) to go on a shopping spree (she bought a fire engine red Mustang). Having been born toilet trained, it occurred to me that she could not have taken (a non-hardship, and shopping spree wouldn't qualify as hardship) distribution while still employed. I'm glad they gave her the money because the car was beautiful.

http://benefitslink.com/boards/index.php?showtopic=46669 hope this is helpful

You knew this was coming: Do you have a written source?

Only if you ask them!!!!

Yes, you should pray that Congress does not repeal the relief retroactively! Your approach makes sense. Relief was granted after the 2009 SB was issued. Suspect the 2010 SB will have some relief reporting provision.

So, as a matter of consistency, the 2008 Form possibly could have been an EZ. Looking at the instructions for the 2008 Form it appears that "final return" means the very last return and not the last 5500. You need to do what feels comfortable after possibly discussing with the IRS. If I were preparing the forms, I would not amend 2008 and in 2009 file an EZ since it would clearly be a one person plan in 2009.

I'm inferring that the question you're asking what does "covered" mean. In particular, does covered mean on any day during plan year or as of the end of the year for purposes of determining whether to file an SF or EZ? (It is simply delightful that anything I've located in print is conveniently silent on this.) Thus, for example, what do you file when at the beginning of the year there were 3 nonowner employees and 1 owner? The 3 nonowner employees were terminated and presumably received a distribution of their vested benefit. This is my opinion and my reasoning. If we were required to file an SF, we would then have to provide an SAR or AFN to the covered participants. But, there are none. In short, I would file an EZ and show the number of participants at the beginning of the year on 2009 line 5a as 4. You certainly can call the IRS hotline on this at 1-877-829-5500 Monday through Friday. At least that's what the EZ instructions contend.

While wear-away (because of compensation decrease) makes the most sense as a plan design, where does the code/regulations say it must apply? Unless I've overlooked some provision, the only wear-away appears to be with the early retirement language in 1.411(a)-7©

Advantage would be if the Plan does not provide for early retirement. Then, accrued benefit could decrease because the decrease is not owing to an increase in age or service. However, would recommend that affected participants be advised that they will lose pension by continuing to work.

Not necessarily. See 1.411(a)-7© that provides that Normal Retirement Benefit is the greater of any early retirement benefit or accrued benefit under the formula.

Help no longer needed. If you need help and the facts are the same, please feel free to send me a personal message and I'll do my best to walk you through this mess. Facts: -- File 2009 5500-SF for Defined Benefit Plan. I will be submitting in behalf of client. -- Have applied for signing ID -- Am using Relius IFILE xml export -- Have passed Relius validation -- xml successfully inported into efast without error but shows "in progress" Ouch: -- I have looked at xml file and even though client signed copy of first two pages of 5500-SF was added in Relius, file does not appear in xml. -- When I get to efast website, I don't see in drop-down menu where to add attachments. -- I spoke with the DOL who referred me to 130 page manual which I was unable to search for answers. Plea for Help: Would sincerely appreciate it if someone who has successfully filed a DB 5500-SF via IFILE would send me a personal message with a telephone number. Would appreciate being walked through process.

Help no longer needed. If you need help and the facts are the same, please feel free to send me a personal message and I'll do my best to walk you through this mess. Facts: -- File 2009 5500-SF for Defined Benefit Plan. I will be submitting in behalf of client. -- Have applied for signing ID -- Am using Relius IFILE xml export -- Have passed Relius validation -- xml successfully inported into efast without error but shows "in progress" Ouch: -- I have looked at xml file and even though client signed copy of first two pages of 5500-SF was added in Relius, file does not appear in xml. -- When I get to efast website, I don't see in drop-down menu where to add attachments. -- I spoke with the DOL who referred me to 130 page manual which I was unable to search for answers. Plea for Help: Would sincerely appreciate it if someone who has successfully filed a DB 5500-SF via IFILE would send me a personal message with a telephone number. Would appreciate being walked through process.