Andy the Actuary

Suggest trying to submit with $0. Fear is if you file with $1 reversion, IRS will be looking for excise tax payment forms. If rejected (worse comes to worse), will filing a 5500 rather than 5500-SF work?

Does the software allow you to enter decimals? If so, enter .001 or even .01.

Relius also validates when both "m" and "n" are left blank!

Questions "m" and "n" of the Part IV on Schedule H pertain "individual account plans" and "black out" periods I have submitted 5500 drafts for two plans that are audited by different accounting firms. One auditor says leave "m" and "n" blank since they clearly are not relevant. The other says the instructions for Schedule H, Part IV say to leave no question blank unless instructed so they advise to answer "no" to "m" and "yes" to "n." Like Rhett Butler, I don't give a . . . and want only (a) for all the auditors in the world to be happy and (b) the 5500 filing not to be kicked out. How are other practitioners completing "m" and "n?" Can anyone supply specific guidance?

Our baby CAT named IRA

To view forms -- no signature -- go to www.freeerisa.com

Have always advocated that more is better. I can recall visiting a confectionary as a kid. I asked the clerk how much was the striped candy in the bin. He said that I could have all I wanted for a penny. I said give me 2 cents worth.

In the case of a third party signing/submitting in behalf of Plan Sponsor, DOL EFAST2 Q&A indicates to attach first two pages of the 5500 with plan sponsor/plan administrator signatures. ASPPA No 22-10 on its sample filing authorization form says Page 1. Has the DOL changed it's position on what needs to be attached?

Actually, and here is where I got confused, ASPPA said, "The entire Schedule SB or MB (but not the attachments) must be a separate attachment labeled "SB (MB) Actuary Signature." You have interpreted this likely correctly as ""The entire Schedule (but not the attachments) SB or MB must be a separate attachment labeled "SB (MB) Actuary Signature."

Might suggest wording, "The Plan Administrator will advise if this affects you," since "you" will likely not know whether or not you should contact PA or more realisticly, will even read The Little Golden Book of Pension Plans.

A pdf of an SB that is signed or initialed must also be embedded in the xml transmitted to IFILE (at least that's how I'm doing it). Must the pdf of the SB include all of the attachments (plan provisions, assumptions, age/service array, etc.), or do we simply embed the first 3 pages of the signed/initialed SB?

Long live the memory of Bob Sheppard, tireless Yankees no-nonsense PA announcer. http://www.nytimes.com/2010/07/12/sports/b...=1&emc=eta1

Tom Lauricella's January 31, 2010 article in the Wall Street Journal entitled "Social Security Payback Pays Off" is worth a read. It describes a little known Social Security law. This provision offers pensioners who say retire at age 66 the option to repay at age 70 to SS all of their gross SS payments without interest and to have their pensions recalculated with the delayed benefit increase. Also, they receive a credit for the income taxes they may have paid. The catches are you need to come up with the cash and then you need to have a long life after 70. http://online.wsj.com/article/SB126489831806038027.html [this came up through Google]

It is common for DB plans to be silent regarding the calculation of average compensation for a re-hire. Suppose, for example, the plan says service attributable to a distribution is disregarded blah blah blah but the plan does not address includable compensation. In such case, follow the Plan, which would mean in the case of a plan calling for high consecutive average 3-years, use the average (if higher) used to compute the benefit on which the lump sum distribution was based. You would have no basis for doing otherwise.

The plan can still require a one-year wait to reparticipate.

If you work on small plans, have no concern: Item 19 applies only to plans with 1,000 or more participants.

Interesting music coming from the Ipod. It is a DB Plan and it was established before 1/1/1989 but as a single employer plan. Since that time another member of the controlled group has adopted the plan. Question: If it became a multiple employer plan, would it be able to use consolidated funding or is the exemption not for plans in existence before 1/1/1989 but rather for multiple employer plans in existence before 1/1/1989? Even if this works, not sure of the funding and tax mechanics and doubtful that the sponsoring organization would want to pay for the added complexity. But, you never know.

Hope it's okay. I just did so (as I've always done). However, I failed to check the instructions to determine if it was acceptable to use a paper clip to bundle them together. You never know!

Thanks for your thoughts. I categorically had believed "no," but sometimes am surprised. For example, I know there are certain rules about excluding leased employees if certain whoops are not jumped through. I appreciate the exclusive benefit rule reference since as a propeller head, I focus on number crunching and lunch and not the underlying legal issues. And yes, BenefitsLink is only the first stop. I previously obtained the client's authorization to submit this issue to the plan's legal counsel.

A not-for-profit organization maintains a foundation which is a separate legal entity. Employees of the foundation are on contract and are paid by the sponsoring organization but foundation employees are treated as independent contractors and paid via 1099. I.e., each is a self-employed individual. The sponsoring employer maintains a defined benefit plan. Can the sponsoring employer cove the contract employees under the pension plan with the contract employees' 1099 income counted as compensation for pension purposes? The sponsoring employer does not want to alter the 1099 arrangement so paying the employees W2 is not an acceptable option.

5500s will be submitted using IFILE. I note that attachments may be created either on the specific form (e.g., enter age service array) or using the edit form attachment to include a pdf. In the good old days, we simply piggy backed all the attachments to the 5500. Can this still be done -- i.e., add a single pdf glop (assumptions, plan provisions, age/svc array) or must each attachment be included to a specific spot?

I thought you retired from having frozen hard objects driven at your head?

Sorry. Could work for 10 unrelated employers and get maximum DB pension from each. DB and most DC limits apply in aggregate only when there is some ownership relationship among the sponsoring employers. This is not a universal. For example, the 401(k) limit on deferrals applies to the individual so cannot defer beyond the $16,500 (and $5,500) via coverage under multiple 401(k) plans of unrelated employers.

Would add to BenFold's letter that plan document was kept in compliance if the case. The question is what is the statute of limitations on penalties for failure to file 5500? If 3 years, then might be inclined only to file for such years and not all 10.

If he went to work for another party and has no actual or attributed ownership, then should be no different than if client took a job with GM, albeit his position with the SP is likely more secure. Further, client's DB plan is business as usual if plan is not terminated so may have to make contributions with after-tax dollars if client's not generating K1 or Schedule C.