ACox

The DOL says as small as possible and I believe they have said not to exceed 10mb. This number will be reduced in the future once everyone is accustomed to the EFAST2 filing process

Make sure that you do not forget about the original 5 year period.

Look at the Retirement Distribution section of your document. Some documents have a provision in that section that states that a participant can take a distribution after reaching NRA and while still working.

You are correct. The name cannot contain any symbols. Take the & out and any other symbols out and you should be able to file.

I would agree with your answers.

Tom, I have read the notice 2009-82 and I am still confused about how to apply the changes.

Can a plan opt to DO NOTHING with regard to the 2009 RMDs, give no elections to the terminated participants and beneficiaries, make all distributions per plan, permit no rollovers of the RMD amount? If yes, does the plan have to note that it is following its own rules? If the plan document references compliance with 401(a)(9) is it then obligated to amend even if it does nothing different?

You will get answers all over the board. The way I typically see loans handled, is the 50% limit is calculated on the date that the loan is requested by the participant.

On the DC side the FDIC will either contract with an administrator or just use the current administrator to terminate the plan and pay out the distributions. The FDIC wants things to move quickly to keep costs to a minimum. They will probably not want to file for a final DL from the IRS since that delays the termination of the plan.

Unless the document states otherwise, you should be okay to distribute the full amount of the participant's account. I have always used the 50% rule on the day that the loan is requested. If a participant has a 10K balance and requests a 5K loan, that would be acceptable under the 50% of vested account balance rule. What would be done if a week later the market tanks and now the remaining 5K in the plan is only worth 4K? The participant would not be required to pay a lump sum to bring the plan balance back into alignment with the 50% rule, nor would they be issued a 1099 for any default loan amount.

The loan goes into default when the first payment is missed. The cure period for the loan default is 90 days following the end of the quarter in which the default occurred. Based on the facts it sounds like the default was cured within the cure period and the loan should not be considered defaulted.

That was my basic response to the client with the one addition of can the participant provide me with name of the regulation that they are referring to.

I have received an email inquiring about a new regulation that Obama has signed into law that allows for distributions from 403(b) plans. I have not heard any information about new 403(b) regs and I cannot find anything on the internet that is recent enough to have been signed by Obama.

What does the document say regarding the timing of the match calculations? Is it an annual match - that is contributed each pay period, or is it a match that is calculated pay period by pay period?

Nothing stops the problem for sure, but try running the default investment report when you post your contributions. Once you have this report, fax it to the plan sponsor with every payroll that is processed. This way they will have received the default investment list and can provide any missing enrollment forms. If someone does slip through and goes into the default investment by mistake then it should be caught within a payroll or two instead of waiting a whole year. Also you may want to make sure you explain to the client exactly what report they are receiving. I ran into an issue with a plan sponsor where they had been receiving the report and did not know what it was so it was thrown away each time. Once it was explained to them they were much more attentive to getting the enrollment forms back to us.

I received a notification to that effect on one of my personal accounts. Therefore, I searched the internet and could not locate anything concrete about it applying to all 1099's