ERISA13

Anyone think that filing the Final 5500 as an EZ with a letter asking for abatement of fees would be the way to go? This was always a one-participant plan but the regular 5500 was filed by the former TPA in previous years. The plan is a part of an affiliated service group but the assets were never over $1,000 for the plan. Thanks!

I'm completing a Final Form 5500 and had a couple questions. The plan is a calendar year plan and the last participant's assets were distributed on 9-04-09 so we realize that the return is late so we will be filing under the DFVCP. My question is about what the plan year for 2009 is. I believe the plan year for 2009 will be January 1, 2009 to September 4, 2009 since the final assets were distributed on that day. Is that correct? I know I need to check the "Final Return" box since their are $0 assets and the "filing under DFVCP" box but do I also need to check the "Short Plan Year" box? I'm guessing I do, but this is my first Final 5500 and just wanted to double check. Thanks!!

We are trying to help a client with filing a late Form 5500 for the 2009 Plan Year. It's a calendar year plan and a Form 5558 was filed for 2009 to extend to October 15. Since the extension was filed we have found out that the plan was terminated back in 2008 and the final assets were distributed in May 2009. This made the Final 5500 due date 12-31-09. I was thinking we just needed to file under the Delinquet Filer Voluntary Correction Program until I read that the program was not available for one-participant plans. This plan has an effective date of 1-01-07 and only has one participant but has filed the regular (not EZ) 5500 in 2007 & 2008. The plan is a member of an affiliated service group. The one-participant in the plan was the only shareholder and the company was disolved in 2008. My questions are: Is this really a one-participant plan and the DFCVP is not an option for correcting? Will the fact that the plan has filed a regular 5500 for 2007 & 2008 and not a 5500-EZ or SF cause any problems? And since the plan has filed the regular 5500 in the past, is that the form we should use for the Final 5500 for 2009? Lastly, if DFCVP is not an option for correcting, what is the proper way to correct this? Thanks for any guidance on this!!

Anyone take the DB Exam lately? I'm considering doubling up during ASPPA's Fall Exam window and taking the DC-3 the first day of the window and the DB exam on the last. That would give me about 6 weeks to study for the DB. I don't really have any experience with DB plans but usually do well study and taking exams. I was just wondering if there were any big differences in the DB exam as compared to DC-1 & DC-2. It looks like the recommended reading for the DB exam is a 300+ page study guide and then a 1200+ DB reference guide. I'm guessing the reference guide would not have to be read completely but just read the areas the study guide outlines. Can anybody confirm that? Thanks for any info.

A plan sponsor of a 401K plan was late contributing the employee's deferrals basically on every payroll date in 2009. The first contributions for the year was not sent in until April 2009 and then around August contributions stopped all together. All the missed deferral contributions was caught up in May 2010. The lost earnings have been calculated and will be made this week. My question is how to show this on the 5330. On Sch C of the 5330. Is the "date of transaction" the 7th day after each pay date since they were all sent late? If I have to list each date is attaching a copy of the VFCP Calculator printout acceptable since there is not enough room on the form? Since the restoration of loss earnings will not be made until this week (7/2010) will I include that date any where on the 5330? I guess I've been lucky and haven't had to file a 5330 before so it's new to me. I really appreciate any guidance on this. Thanks!

We are taking over administration for a plan that has been in existance for 4 years and is on a John Hancock platform. The piror TPA never filed the Schedule A or D. They also never filed a Schedule R. I was wondering what the penalty would be for a plan that files the Form 5500 on time but does not file all the required schedules. Thanks for any info!

My understanding is that the electronic filing requirements only apply to plan years beginning on or after January 1, 2009. I just wanted to verify that for a noncalendar plan year ending 9-30-09 we can still mail the paper form and schedules. The 5500 due date was 4-30-10 and a Form 5558 was filed extending to 7-15-10. Please let me know if I have this right. Thanks!

Thanks everyone for the responses! I guess I would fall into the "young whippersnappers" category because I'm not sure I recognize "Hal." What movie?

So what if we allow all participants the same option to transfer their American Funds accounts to a self directed brokerage account at Merrill Lynch. Would that take care of the benefits, rights and features problem? Any other issues? Anyone else have plans where doctors or other owners want to have their own account set up with their own broker? I have inherited a few plans where the employees accounts are on a platform like Hartford or American Funds and the owners have self directed brokerage accounts at Merrill or Wells Fargo so I'm trying to see if these plans are in compliance. Thanks for the help!

We have a 401K / Profit Sharing Plan that uses the Corbel Defined Contribution Prototype Plan document. The plan uses the American Funds Record Keeper Direct platform and all the plan assets are held at American Funds. Participant directed investments are permitted. Now, one of the owners wants to have his balance at American Funds transferred to an account he has set up at Merrill Lynch by way of a trustee-to-trustee transfer and have all future contributions made on his behalf sent to this account rather than American Funds like everyone elses. The account he set up at Merrill Lynch is titled in the name of the Plan F/B/O the owner. Is this okay? Would a plan usually have to be amended to allow for this? It seems to me that if all participants are not given the same access to a seperate account at Merrill Lynch then it would be discriminatory. I would think this type of request would be fairly common and I was just looking for some guidance on how to handle it. Thanks for any help!

Thanks for the responses!

Hey Everyone, I just wanted to check to see if I understand something correctly. If an employer does not have an existing 401K plan and wants to set up a Safe Harbor 401K with an effective date of 1-01-2010 what is the latest the plan can be set up? As long as it is a NEW 401K would be alright to have everything set up and plan docs signed by 12-31-09? Since the SH notice timing rule for a new plan would be the same as the timing rule for a newly eligible employee wouldn't we have until the date the participants would be eligible to participate which would be the effective date of the plan, 1-01-2010, to give out the Safe Harbor notice? Thanks for your help!

We have a 401K plan that the employee deferrals have been sent late several times during the year. All the contributions have been sent in, they were just late. I have entered all the information for the late contributions in the VFCP online calculator and found the Total Lost Earnings to be $380.74. From what I understand we need to send the $380.74 to the plan and file a 5330 to pay the 15% excise tax and indicate on the 5500 that late contributions were made. My first question is on calculating the 15% excise tax do I include the amount of each deferral contribution that was sent late during the year? For example, if there were 3 contributions that were sent late and each was $5000 would the excise tax be (5,000 + 5,000 + 5,000 + 380.74) x 15%? My last question is what is the cost for applying under the VFCP? The plan has less than 20 participants. Is the cost the same as the VCP chart (20 or fewer = $750)? Any help will be greatly appreciated!

It is a Safe Harbor (match) 401K Profit Sharing Plan. The employees have not been notified of the new plan yet. However, next week the Investment Advisor has an enrollment meeting scheduled and we plan to give out the Safe Harbor notice at that time as well. So would we be fine to leave the Effective date as 10/01/08 (since there has not been any contributions made) and go ahead and give out the Safe Harbor notice next week for next year's funding. We do have in the plan doc a special effective date for deferrals as 01/01/09. Thanks everybody for your help!

The Plan documents have been signed with 10/01/08 effective date. There was not a Safe Harbor notice given for a 2008 contribution. The trust has been set up.

I am setting up a new plan that we originally were going to use 10/01/08 as the effective date. Since the employer currently maintains a SIMPLE IRA for 2008 we need to change the effective date to 01/01/2009. The plan docs have already been processed with the 10/01/08 date. No contributions have been accepted or anything I just need to change the effective date. I have looked for an amendment form to make the change but have not had any luck. I would appreciate any guidance. I'm new at this. Thanks!