SheilaD

As I see it you are adding a benefit (i.e. the ability to take a lump sum between 1,000 and 5,000). I don't think that adding or increasing a involuntary distribution threshold takes away a protected benefit.

We prepare 1099R's for most of our clients. For balance forward and DB plans the charge is incorporated into the fee for the distribution package. For PS58's and other situations we bill based on the situation and the time needed. Are you looking to farm out the 1099's or are you trying to decide if it's reasonable to prepare them in house? A couple of the software firms (relius, datair) will also do them for your clients. Hope this helps

Jim Outstanding! Thanks for the assistance! BruceM One word of caution. If the plan is Top Heavy then a participant who is active on the last day of the plan year may be eligible for a top heavy contribution regardless of the hours requirement.

Thank you all for your thoughts -- and cautions. I am reaching out to every source I can find and those suggested above. I appreciate the help.

A client walked into my office the other day (sounds like the start of a joke) and told me her story. She and her husband run a small business with employees. He managed the plan. In early 2008 their broker (and tpa) essentially told them to take a walk because they were too small for her to manage. They went to Paychecks. The husband passed away shortly thereafter and now they have had a fire and there are no records left. They are in the process of firing Paychecks. She has no idea when the plan was effective, what teh provisions were or anything else. On the plus side the only money in the plan is salary deferrals. I am trying all avenues to try to get copies of things like plan documents and 5500's. We don't have contact information on the prior broker as the husband was the person who contacted him/her and we can't find records. I'm hopeful that we might get SOMETHING from the accountants office. I beleive I've been told that there is a website where I can look at the prior 5500's or I can contact the DOL and request (on the clients letterhead) copies. A few questions. Presuming that the plan document was never filed with the IRS, I was thinking of restating the document (as best as possible) and submitting it to the IRS explaining that what documents I lack and why. Agree/disagree? Has anyone used the website where you can get 5500's on line -- is that free erisa? And is it really free? Any other thoughts or warnings? Thanks to all and a Happy New Year.

We received a post form our forms software provider stating that we MUST sign form 945 as a paid preparer and get a tax identification number if we do not want to disclose our SSN. This is news to me -- but maybe I've been paying so much attention to DB issues under PPA that this passed me by. No instructions are available for the 2008 945 form yet. Any thoughts?

Everything I read says the deadline for a calendar year DC plan to adopt 401(a)(9) was December 31, 2003. But -- I have an old DC amendment checklist that indicates January 31, 2004 was the deadline. It was sooooo long ago and I cannot recall why I have that alternative date. I cannot find it on CCH or in the ERISA Outline Book. Perhaps my younger pension self was led astray by some side comment. Does anyone remember this alternative deadline?

I just wondered if you would be adding a forum for those studying for the ERPA exams. I'm not going to be taking them myself but I imagine there might be people interested. Just a thought.

Is the 5,000 maximum for a Dependant care FSA subject to any type of Cost of Living adjustments? It seems to me that the number has been the same for a long time which leads me to believe that there are no increases.

I would think that if you know the volume document sponsor the IRS can locate the letter. Otherwise they will probably want to review that document as part of the termination review. If you are relatively sure that the document was truly a volume submitter - there is hope that the document will 'pass muster'.

In order to issue the opinion letter for the GUST restatement the IRS had to review the prior document and/or opinion letter. The IRS will only ask for the most recent opinion letter so I think you are in the clear. FYI I had an instance where I knew the most recent document had been submitted to the IRS but could not find the letter. When I submitted for a new letter the IRS was able to locate the old letter for me. I don't know if I was just lucky or if this was representative of the IRS's capability.

I can't give you national but our firm's DC plans are split 75% balance forward, 25% daily.

Interestingly -- the last time I filed with a SSN the IRS sent the client a letter assigning a tax id to the sole proprietor.

I had to go visiting on the web to find out where you were coming from. Del Monte foods is a USA corporation. Their website proclaims their independence from the International firm. Del Monte Fresh Produce International is a European company. Some of their history is shared. If you are curious here is del monte foods: http://www.delmonte.com/company/default.as...e=oc_ourhistory Here is del monte international http://www.freshdelmonte.com/ourcompany.aspx

Yes - in fact the wellness condition has to be satisfied in the prior year and the credit is "deposited" on the first of the new year. He is currently in the process of meeting the condition for 2009. When we receive our benefit election forms in December of 2008 (for 2009) it will state that he has the credit already and that he should take that into account in making his elections.

Whole life insurance is a specified benefit. The guarantee part is not included on the 5500. Whole life insurance is a guaranteed benefit. The actuary does not include the cash value in the asset balance when determining the contribution for that plan year. Maybe we both just interrupt it differently. I think what you are discussing is more of a difference in funding method (for Defined Benefit Plans). On most of our DB plans we use "envelope" funding which means that we use the cash value of the insurance policy as part of the plan assets in developing the normal cost. This method can be used with whole life or other type of life insurance policy. A method that I saw more often around 20 years ago (I forget what it is called) offset the cash required to be funded at retirement by the guaranteed value in the insurance contract at retirement. When using this method you do not use the current cash value as part of the plan assets for calculating the cost it is already being "used" to guarantee a portion of the projected benefit at retirement. With envelope funding we always report the cash value in the plan assets. I do recall however that there was controversy about whether you needed to report the cash value when using the second method I described. In any case - with Defined Contribution plans we always report the cash value as part of plan assets. FWIW Sheila

I've been dealing with Mercer through the years about my husbands British pension. Their final word seems to be -- wait until he hits retirement age, disability or (hopefully not ) death. At that time we can collect his pension and it will be taxed "over there". I am being told the same thing......can we withdraw one lump sum at retirement age or do we have to get silly little monthly checks........ What I've been told is that it depends on the particular plan -- in my case the plan is with delmonte foods and they do not currently offer a lump sum -- but -- by the time we get there --- who knows.

I only have anecdotal information. My husband works for a large corporation. They are offering a wellness incentive. The election forms are clear that you elect the amount to be withheld from your pay and if you meet the incentive requirements and additional X will be deposited into you FSA. There is no cash alternative - but the flex plans offers a "credit card" to use for covered expenses so it works fairly well.

Can you not use a Data Entry Routine and export? I have a client that I send a report to each year in excel with the vested percent. It's a very large case and full of term's and rerhires so I actually export the vested percent, and years of vested service so I can check that the vesting is correct.

I've been dealing with Mercer through the years about my husbands British pension. Their final word seems to be -- wait until he hits retirement age, disability or (hopefully not ) death. At that time we can collect his pension and it will be taxed "over there".

Many viewers, but few actuaries. Do note that this same poll was already done in the COPA site. Can you share the results from the COPA site?

We are still researching this project (those pesky calendar year end 5500s keep getting in the way). We've gotten a little further -- have established that the association is indeed a valid association in the state. What I can't seem to get my mind around is how the benefits get to the jockeys without taxation. The association is "compensating" them with the 15,000 (assuming that they meet eligibility). Theoretically each jockey - as a self employed person -- could set up and individual 401(k) and dump the money in it. But if the association used the money on their behalf to pay a medical or life insurance premium I would think that the amount would have to be taxable to the jockey. I don't see how they could have a single pension/k plan that all of the jockeys would have the ability to contribute to or the equivalent of a cafeteria plan where the premiums would be tax free. One of my colleagues mentioned that some insurance companies give all of their commissioned sales people 1099's but they are eligible to participate in the insurance companies qualified plan? Perhaps there are special rules that deal with this situation but I've not encountered them. Has anyone else? Thanks for your thoughts during this busy time of year.

Ok, what's the 80/120 rule? This is my only plan in the 100 or so count range and this is the first year it went over 100 (last year). So I haven't done much reading on the large plan issues. If your plan was a "small plan" for 2006 (i.e. schedule I instead of schedule H) and this year you have less then 120 participants, you can file as a small plan for 2007. From the 2007 5500 instructions: (1) 80-120 Participant Rule: If the number of participants reported on line 6 is between 80 and 120, and a Form 5500 was filed for the prior plan year, you may elect to complete the return/report in the same category (‘‘large plan’’ or ‘‘small plan’’) as was filed for the prior return/report. Thus, if a return/report was filed for the 2006 plan year as a small plan, including the Schedule I if applicable, and the number entered on line 6 of the 2007 Form 5500 is 100 to 120, you may elect to complete the 2007 Form 5500 and schedules in accordance with the instructions for a small plan.

I'm getting more information each hour... From what I gather, there was a large jockeys association which these jockeys were members of and that association provided similar benefits. That association is going (has gone?) bankrupt so they want to form their own association. Perhaps I should back-up a step. I have never dealt with any benefits for any type of association. Is this what a VEBA is? What rules govern the definition of an association and regulate what benefits it can offer? Thank you for your thoughts. Sheila

As far as I know there is no IRS or DOL fee for filing an amended returns. Your own fee is up to you Sheila