SheilaD

We have used http://www.employeelocator.com/ (no commissions for me either). They are very inexpensive and respond in 24 hours in most cases.

An ummaried participant in a very low benefit DB plan is due 180.00 per month (life annuity). She has terminated and is due minimum distributions starting in 2010 (first due by April 2011). If she receives a monthly benefit of over 150 per month she will lose certain medical benefits (not sure if state or federal). Can she donate all monies due to her in exces of 150 per month to a charity to avoid the problem? How would I code the 1099R to the charity? any thoughts would be appreciated.

The letter says that they are already enrolled in EFTPS (the clients call and ask why I have done this to them) and explain how to deposit their taxes electronically. Some of my less computer literate clients - already traumatized by electronic 5500 requirements want to continue to use their coupon books and make their one deposit (or two) per year in that manner. One of my clients called for a new 8109 coupon book (they ran out) and was told they would not need it because they would have to deposit electronically next year. Are all deposits required to be electronically deposited by 2011? I hadn't heard anything about this. Perhaps the IRS is trying to encourage electronic filing ...but I wish they would warn us. Clients are calling left right and center. Anyone else having this experience? Thanks

I have an almost identical situation and am proceeding witha 5500 showing zero's. I haven't done the form yet so I don't know if it will generate an error code on EFAST2

We are a small company and have a single actuary. He may semi-retire soon and will still review and sign my actuarial work as I am not enrolled. However, I am trying to set up a contingency plan for when (hopefully for him) he wins the lottery and moves to the tropical island of his choice. I want to speak to other actuaries (with my current actuaries' blessing) about fees and processes so I have a succession plan in place as well as an idea of the costs. I've been doing Defined Benefit work for over 20 years now using Relius administration and my current actuary is available to discuss my proficiencies. I should be clear that I am not looking to farm out the Defined Benefit work nor to hire an actuary (we don't have enought DB work for the latter). What I am looking for is have an informal agreement with someone to review my work and certify the Schedule B's that I prepare at some time in the future. I understand that we do not discuss pricing on this venue. I'm curious what other small firms do for their contingency planning and am inviting any actuary who might do this kind of work (is there a name for it?) to send me a private email. Hopefully that's OK. Thank you. opps I forgot sdott@northeastprofessional.com

We sent out a box on the last day of April and received most of the acknowledgement letters today with a few still outstanding. I think you have a bit more time before you have to worry.

I've never found a way around it and have had several clients in the position you describe.

I have a cross-tested PSP. Participants who terminate with more than 500 hours receive an allocation. One of the groups is Doctors who are hired after 2005. I have a doctor who enters in 2009 and is not highly compensated for 2009, and terminates in 2009 with more than 1,000 hours. He is zero percent vested. The document calls for deemed distributions to participants who terminate with 0 vesting and there is no mention of when the forfeiture occurs. The problem I have is that this doctor is getting a fairly high contribution because the client wants to benefit that group. This benefit in turn helps the plan to pass non-discrimination as the doctor is new. But the whole contribution is going to be forfeited either in 2009 or 2010. In my mind I'm thinking about the retroactive amendments when you fail a test and amend to increase the benefits for some NHCE's. I know that you cannot do this for non-vested terminees as it is not a meaningful benefit. Is there a meaningful benefit rule for general testing? If the contribution and forfeiture both occur in 2009 does it make sense to include the contribution in the test at all? I don't recall ever reading something that allows me to either exclude him from the test or to not count the contribution because it will be forfeited - but the fair part of my brain just thinks this should not work. Thanks for any thoughts.

I thought I read this somewhere but my search did not find it. Where can I find the guidelines for the auditors report that is attached to the Schedule H? I thought I'd read that there were size limits. Thank you (added after I posted) I did find that the entire filing cannot exceed 100MB but thought there was an individual limit.

I don't see it as any different then a manufacturer reviewing how other products of their kind are being sold prior to rolling out something new and deciding on the price. It's a point a reference. Not exactly the same as me calling all the TPA's in the area to have a meeting on what our prices should be. There's a fairly large difference. (And given how varied are the personalities in this business -- I don't think the meeting would ever work!!!).

More then 10 years ago our firm had a consultant come in who did some research and gave us a report on how our fee schedule compared to others in our local area. The consultant specialized in Pension TPA business. This was useful not only in seeing how other firms structured their fee schedules (flat fee vs a la carte) but to see if we were consistently under or over the market. The firm that did the analysis for us no longer seems to be in business. Is anyone aware of any other company that provides such a service? Thank you.

I've been using Datair's client and task manager software.

Without giving specific $ amounts we have been working with a rising fee schedule since this started. Back in 2008 it was X dollars for 6 months, then went up to X+Y (but we'll discount you back if you respond today); then 2X. etc. We are now at 2.5X and anyone who is late and has to go through the VCP program will be an additional X plus IRS fees. This seems to have worked well with motivating our clients. At this point 90% have responded and we have to assume that a certain amount of the non-responders are actually "lost". 70% of the restatements are complete. I've learned a lot about this process that we can apply when the DB window opens and hope to be more efficient.

We have some self-directed plans with Schwab accounts. The participants have seperate accounts for each source of money OR we do valuations that allocate the gains/losses between different money types. We do not do daily valuations.

You can use paper form for any plan year beginning in 2008.

Thank you - that makes sense. S.

That will teach me -- I tried to search on incentive! Thanks

This is a new one to me. My client can no longer make a match and has discontinued it with all proper notices, amendments etc. Of course, between that and the economy, deferral's dropped. He would like to hold an annual raffle for non-highly compensated employees who defer into the plan for some prizes as an incentive to defer. He might raffle monetary prizes (1,000 to the first person picked from the hat) or he might buy some prizes (a WII, or IPOD). My suspicion is that this may not be allowed but am curious as to your (collective) thoughts. thank you.

I have clients whose returns are posted on Free Erisa who are receiving letters that they never filed!

I would mark it as a total distribution as it is the entire amount payable to that recipient.

We have an ERISA 403(b) plan (had employer contributions) that is in the process of terminating. We hope to have it completed by mid-2010. The sole vendor is co-operating with us to get this terminated. There have been no employee or employer contributions for several years. There are around 130 participants. According to Field Assistance Bulletin 2009-02 transitional relief - none of the contracts need to be counted because they meet the requirements below. They are also not counted in the 5500 count. So am I preparing a 5500 with 0 participants and 0 assets? Any and all thoughts would be appreciated. "Specifically, the administrator of a 403(b) plan does not need to treat annuity contracts and custodial accounts as part of the employer’s Title I plan or as plan assets for purposes of ERISA’s annual reporting requirements provided that: the contract or account was issued to a current or former employee before January 1, 2009; the employer ceased to have any obligation to make contributions (including employee salary reduction contributions), and in fact ceased making contributions to the contract or account before January 1, 2009; all of the rights and benefits under the contract or account are legally enforceable against the insurer or custodian by the individual owner of the contract or account without any involvement by the employer;(5) and the individual owner of the contract is fully vested in the contract or account. Moreover, current or former employees with only contracts or accounts that are excludable from the plan’s Form 5500 or Form 5500-SF under the above transition relief do not need to be counted as participants covered under the plan for Form 5500 annual reporting purposes. "

I don't have insight - just an opinion. I think that this will relieve them of the independent audit requirement. I have a 403(b) plan that is trying to terminate and all of the contracts meet the definitions above. I'm wondering if I will file a 5500 with 0 participants. Any thoughts? I wonder if the 5500 instructions will offer any guidance. S

It doesn't take into account, however, the 25% of compensation deduction limit that Mike references above. So, in a small plan, a combination of all three limits may come into play. You might consider a 401(k) plan. Salary deferrals do NOT count towards the 25% limit but do count towards the $ 40,000 limit. Also, if over age 50, catch up contributions do not count towards either limit. Also keep in mind that if you are self-employed the calculation gets a bit more complicated.

I just came back from vacation and read your response. I re-read the examples that you gave me and it makes sense to me. thanks for your thoughts. S

A cash balance plan was adopted by my client in late 2008. EIN ends in 3 so deadline for filing for a D-letter was 1/31/2009. They were sent the signature pages for the submission and, between one thing and another, it fell through the cracks. Client never sent back the pages and we did not keep an eye on the deadline. What options do I have? If I read the guidance correctly, I can file off-cycle now but will not have reliance for the first plan year. If the plan had been adopted for 2009 I would qualify as a "new" plan - unless there is some special rule that I can't find that extends the deadline for new plans adopted right at the end of the cycle? What would you do? Thanks for your thoughts.