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Does anyone know the IRS' current position on terminating a plan that will have a funding deficiency for 2008? We have a couple of plans that will terminate as of 12/31/08 because the sponsor will no longer exist. There is a minimum contribution under PPA for 2008 but neither sponsor can make the contribution. The PBGC will be taking over one of the plans but the other is husband and wife who will waive all benefits necessary. I know you cannot waive benefits in order to avoid minimum funding.

If a plan has an AFTAP below 80% is there an exception to the benefit distribution restriction that allows the plan to automtically freeze and be able to make lump sum distributions? The AFTAP is above 60%.

Does anyone know if it is acceptable to use numbers rounded to the nearest thousand on the Schedule B?

Post PPA, what interest rate should be used to project an employee contribution account to NRD to determine the benefit attributable to the ee contributions?

Is there a problem with a plan matching at a rate greater than 100% (i.e. 110% of the first 5% of compensation)? This is a nonsafe harbor plan with a discretionary match. No ACP failure problems.

Is it possible that as an alternative to converting a traditional DB plan to a Cash Balance plan, that you freeze the existing DB plan and start a new Cash Balance plan. Doesn't this in effect give you the A plus B scenario?

If a plan charges distribution fees directly to the participant, should the fee be a part of the taxable amount or netted off before?

I know that a PBGC covered plan that terminated in 2007 may not use the new segment rates for a payout in 2008. However, must you use the new mortality table or do you still use 94GAR?

I have a defined benefit plan that does not currently pay lump sums. If I convert to a cash balance and convert the current accrued benefits at actuarial equivalence, do all 417(e) issues go away? What happens if I later add a lump sum option?

Can a c-corporation with only one employee (the owner) establish a flexible spending account or will the plan automatically violate the concentration test? Is there an exception when there are no non-key or nhces?

Is this just for gateway purposes or can you use partial year compensation for calculatin the Normal and MVAL Rates?

Client has a cash balance and a dc plan. For allocation purposes, the compensation definition is total year to provide the top heavy minimum. Can we use entry date compensation for (a)(4) testing?

EGTRRA changed the 409(o)(1)©(ii) limit to $800,000. Was this required to be incorporated in the EGTRRA good faith amendment?

ERISA Section 4021©(2)(A)(i) defines a professional service employer as owned or controlled by professional individuals or by executors or administrators of professional individuals. What does "administrators of professional individuals" mean?

Can an employer prefund an HRA for the year and take a tax deduction for the funded amount or is he limited to the reimbursement amount? A trust is established and the plan is funded.

If you have a plan that covers only salaried employees and the employer does not track hours worked, must you state an equivalency for hours in the document? Is it sufficient to know that all employees are paid for x hours per week (e.g. 37 1/2) without actually tracking the hours?

Do anyone know the status of the IRS issuing a new category of preparer in order to allow unenrolled preparers to be listed on the Form 2848?

We do know that they were not advised about making the distribution. I've seen the forms and the correspondence. The plan is terminating and the plan is short on assets. However, the plan sponsor has agreed to contribute the shortfall to make the plan whole. Ironically, he would have gotten a much larger distribution had he waited until plan termination due to a decrease in GATT interest rates. THis is also a PBGC covered plan. I'm trying to decide whether or not to file with the IRS at this point.

What are the consequences of making a lump sum payment to an owner when the current liability is not 110% funded? We took over a plan that we are now terminating and have discovered that this occurred in 2002.

I have a client who has not amended their plan since ERISA. I've been able to put together all the documents. However, the TEFRA,DEFRA, REA Restatement is an individually designed document and the Tax Reform and GUST are regional prototypes. My question is - which 5300 series form do I use to file for the determination letter with the VCP filing? This is a straight forward profit sharing plan. Can I use a Form 5307 since the last document is a Regional Prototype?

If Bank A buys Bank B when must the employees of Bank B become participants in Bank A's 401(k) plan. The eligibility period is 3 months. Can you hold them out during the transition period under 410(b) or must you follow the eligibility terms in the document?

What is the appropriate correction for a distribution made to an employee who was actively employed and did not quality for in-service or hardship? The employee is an HCE.

Can this failure be corrected without filing with the IRS or must you file under VCP and request a waiver of the excise tax?

I have a KSOP that recently paid a stock dividend. I'm unable to find any language in the document which addresses what to do with the stock dividend on shares in suspense. The document does state that a cash dividend on suspense shares can be used to pay the loan or purchase additional stock. We have employees who are waiting to buy stock with their deferrals. Would it be reasonable to do this? Any suggestions?

Does anyone know of a vendor that has a 125 document with HSA?