jlea

From a fiduciary perspective, why would you want to permit rollovers from an IRA to a 403(b) plan subject to ERISA?

Has anyone filed Form 8928 yet? Any practical experience with the level of review, etc.?

Sorry -- there were no responses other than yours, but I would still really appreciate anyone sharing their experience with these filings.

Anyone have practical experience regarding filing Form 8928 and specifically, for instance: -- whether the IRS challenged the filing's characterizations (i.e., failure due to reasonable cause and not willful neglect, etc.) -- whether the filing of Form 8928 triggered an audit

JJRetirement, did you find anything on this?

The DOL has an online calculator for use with its correction program. It makes use of IRS underpayment rates.

Yes, important distinction and one I didn't amplify. My discussion with the DOL agent was in context of rank and file NHCE and, again, was corrected in accordance with EPCRS.

Yes, I'd begin by correcting in accordance with EPCRS. Hopefully you'll be able to correct under SCP and avoid the VCP fee. As for the PT issue, I have had informal discussions with a DOL agent who, while noting that it might technically qualify as a PT, agreed that correction in accordance with EPCRS returns the qualified plan to the position it would have been in had the error not occurred. She stated then that it would be a nonissue for the DOL.

Yes, and if an employer tries to terminate its SIMPLE IRA sometime other than at the conclusion of a calendar year, it results in an operational error that must be corrected. EPCRS applies to SIMPLE IRAs as well (at least the IRA charges lower VCP fees for them).

Yes, and don't forget timeliness on our wish list . . .

Based on the WRERA language and the guidance out so far, it seems the issue falls to each plan whether to offer everyone a choice regarding their otherwise RMD for 09 or to set a default rule, which is communicated to Ps and Bs, and act in accordance with the default except to the extent that someone requests otherwise. The amendment deadline is not until 2011. I'm anticipating, though, this decision will be made in the short term and the amendment will reflect the choice made. Would you agree?

Plan improperly distributes $150 of employer contribution as part of an in-service withdrawal. Discovered three years later. Participant is currently employed and remains a Participant in the Plan. Unfortunately, the amount at issue is over the de minimis threshold. Of course, Rev. Proc. 08-50 would say take reasonable steps to have the overpmt (adjusted for interest) returned to the Plan, notify the P that it was not eligible for favorable tax treatment, and, to the extent that there is a shortfall b/w what is returned and the amount necessary to make whole the Plan, the ER contributes the difference. My question: If the Plan notifies the P that the amount wasn't eligible for favorable tax treatment, can the ER just go ahead and make the contribution? ER doesn't want to request the overpayment if necessary.

You can also take a look at Section G (particularly Q&A G-1) in Notice 98-4. It specifically addresses the required notice prior to the annual election period in advance of a Simple IRA's Plan Year. I believe the termination notice requirement is the corollary to the otherwise applicable annual notice. http://www.irs.gov/pub/irs-irbs/irb98-02.pdf Of course, you would also need to comply with any notice provisions in the Simple IRA's Plan document and SPD.

The plan sponsor is saying that salary deferrals and matching contributions must be made on all comp earned through 12/31. They point to Publication 560 as support for the idea that contributions must be made to the end of the calendar year (they interpret this as literally through 12/31). The employer's last 2008 pay period ends on 12/21. Comp earned after that date will not be paid until 2009 (and consequently will be on the 09 W-2). I would like to find support for the proposition that because the employer operates on a cash basis, it is sufficient to end salary deferrals and matching contributions on comp earned through 12/21. Anyone encountered this or analytically similar situations?

Client terminating Simple IRA Plan at year end. Prototype sponsor says elective deferrals and matching contributions need to run through 12/31. Pay period ends 12/21. Client's accountant is saying that compensation earned after 12/21 will not be included in 2008 W-2, instead included in 2009 W-2. Prototype sponsor says Publication 560 addresses. I've read that publication, Notice 98-4, Form 5305, and Section 408(p). Of course, there are references to the Simple IRA running on the "calendar year" and termination at the end of the "calendar year." Nothing conclusively states that means all calculations running through 12/31 itself. Anyone encountered?