GMK

It's a 12 month requirement, not a last day requirement. It only looks like a last day requirement because this participant started on 1/1. Until 12 months have elapsed, you don't get credit for 12 months. Wouldn't object to giving partial credit if the Plan Doc allows it.

qualification issue? not operating in accordance with the plan doc. no?

Maybe you can delay the distribution, especially if the Plan Document says you can, but FWIW, I view the severance payments as payments for services that the Participant already provided. On our records, if the person is not providing services after June 22, then the person would be inactive after June 22. But that's just me.

The Plan's QDRO Procedure may say how long the Plan will wait before requiring a new DRO, but it may also give the Plan Administrator some discretion. If everyone is now in agreement, I don't see why the Plan couldn't process a 2 year old Order that's qualified.

https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

and submit your claim and if necessary, your appeal in writing.

As chc93 points out, it is the participant that is asking for the money. Maybe thought that an in-service distribution would be easier and cheaper than a QDRO, but forgot to check if an in-service distribution is available. Or maybe planned to get the cash from another source that didn't come through as expected. So it goes.

^I believe that the employer must retain the records, like a signed copy of each 5500, not? (I don't know if EFAST keeps copies forever, but I wouldn't count on it for our plans.) This has some interesting comments: http://www.employeebenefitsupdate.com/benefits-law-update/2012/9/27/retention-of-records-for-employee-benefit-plans-how-long-is.html

See post #10

I'm with Bird.

and masteff posted more (maybe more useful) information here: http://benefitslink.com/boards/index.php/topic/58935-242b-rmd/#entry260162

maybe this helps: http://benefitslink.com/boards/index.php/topic/58921-242b-and-rmds/

and copies to the FBI ... maybe?

Maybe this, from 2003, helps (last 2 pages): http://files.ali-cle.org/thumbs/datastorage/skoobesruoc/pdf/02ColemanQualifiedCH092_thumb.pdf This is newer: http://www.nipa.org/blogpost/891501/163806/The-Latest-Q-A-s-for-TPAs

What does that mean? Is it the good news that they are no longer requesting the 2013 5500?

My great apologies for failing to highlight a very important holiday in the middle of April, namely, the BenefitsLink anniversary. Where would we be without that one?!

Just out of curiosity (and since the serious issue may at last be resolved), do we have to call you Johnson?

That's a beyond-lucky plan to have a free adviser and a free ERISA lawyer, assuming the fees aren't paid from the expense ratios of the plan's investment funds. (My apologies if I sound skeptical.) I don't know if there's a PT. I'd have to ask the ERISA lawyer.

Serious question - what, if any, federal pronouncements, official or otherwise, have been made on this argument, in the circumstances of this thread or under any other circumstances?

Nope, you can't do it ... because by the time you have procedures in place to ensure that there are no PT or 401(a)(4) issues, the employer will have had to spend money for HR work or ERISA attorney advice or probably both, and according to the OP, the employer won't spend the money. You increase participation by installing automatic enrollment or raising the match or both ... and I'll bet the employer won't spend the money for those, either.

I agree that you probably have to ask them if you have to spell out the definitions in the plan, which could very well be what they want. In a recent D/L review, we had to replace a paragraph in the Plan Doc that incorporated a section by reference with the text of the referenced section (3+ pages in place of a short paragraph). No fun, but it's what they wanted.

Here's a list of how state's do extensions: https://www.irs.com/articles/state-tax-extension-information For some, it's automatic with the federal extension. Some require filing a form. Some don't tax income. ...

With all the important holidays in the middle of April (Emancipation Day, Patriot Day, often Passover and Easter, my birthday, Kareem's birthday, my lifelong friend Tim's birthday, Jayne Mansfield's birthday, the Queen's birthday, etc.), they should make it simple by saying, "File your taxes on or before April 15 (regardless of when the important days are), or file for a filing extension." Done. My friends who are tax preparers would love it. This year the weekend is perfectly positioned for their celebration of the end of tax season, but the stupid extension due to holidays wrecks that idea. The filings could have been done by April 14, but some of their clients are lazy and clueless.

^Now we need a "more than like this" button. I missed the Saturday follow up completely ... nicely done, BG.

Happy 4/8/16