Bill Presson

It applies to plans with directed investments regardless of automatic enrollment.

These people might be able to help. Entrust Group I have no relation to this group.

Yes.

You can still file under the DFVC until you get a penalty assessment from the DOL. File under the program and do it right away. Respond quickly to the IRS letter as well.

I'm looking at one of these plans now. The only money ever put in the plan was the rollover of the IRA. Now the client has come to us to help "unwind" the plan. I'm trying to outline the options and none of them look very good. I called Benetrends and asked them how the plan was supposed to end. The answer I got was "oh, the corporation just writes a check to the plan for the stock, then the plan can be terminated." I'm really concerned about the prohibited transactions here. Also about the fact that no employer contributions have ever been made. Is there a PTE to allow the corp to buy the stock? If not and we find a custodian to hold the stock in an IRA, is there a PTE for the corp to buy the stock later? If we keep the plan going, the employer will have to pay the annual filing fees. If we keep the plan going and there are no employer contributions, what will the IRS/DOL say if it is reviewed? Yuck, yuck and double yuck.

I walked over to our audit department and asked them this question. The answer I got is they would not go back nearly that far. They would make a note to the audit report indicating what they were reviewing and then complete the audit on the current year. FWIW

Hi Monica. We use Relius and have been very pleased.

It's deductible if it's a sole proprietor or a partnership or some LLC's. I don't think the post said it was a corporation. I also believe (but don't have time to verify) that the contribution could be made within 30 days of the 9/15 deductible deadline for the corporation, shown as 2006 contributions and deducted on the 2007 1120.

I would have done it like this: Employer makes plan whole; TPA reduces fee to employer in equal amount to make Employer whole. Not that I have any experience with having to fix problems that were my fault.

I'm so exhausted by the notices. Many clients just assume we've done something wrong if they get an IRS notice. We can generally explain the issue, but it's costing us a small fortune having to deal with it.

You might also contact a newspaper in Lynchberg and see if someone there knows what happened to the paper. If you can get the new owner, they might be able to see if she is due a benefit. Make sure it's early enough in Lynchberg that they haven't started "imbibing".

There are lots of things you need to be concerned about. First you'll need to find a Trustee/Custodian that will hold the ownership interest in the LLC. Not sure that will be very easy. Then you need to remember that any earnings/profit from the LLC is owned by the IRA. Also, if there are any additional amounts that you have to contribute (split expenses, etc.) that will need to come from the IRA. This is probably cleaner than owning the real estate directly, but you still need to get some help from someone that has done this before.

You could accept the request and turn around and hire a good ERISA attorney to actually give you the answer. Just make sure your agreement with the attorney outlines what you want. Edited to add: Be sure to bill them for all your time and the attorney's time (after the point by WDIK below).

If the only change was from writing a check to not writing a check, it wouldn't really be a big deal. But that's not (most of) the real world. The typical case is the 15 person balance forward plan with a single brokerage account. We have to go through hoops now to make tax deposits, with much thanks to a friendly bank for accepting the 8109's. The brokerage firm is no help and some even refuse to write checks to the bank to allow the employer to make the tax deposit!

Yea, but I don't like him well enough to share a jail cell with him!!

This past week at the Relius Users conference, Craig Hoffman said that he has been told "informally" that the permitted disparity language is not intended to apply to DC plans. Not sure on when formal guidance would be released.

I assume it is a calendar year plan. If the plan distributions can be completed prior to July 31, 2007, you can use the exception in 29 CFR 2520.104-50 and just do one audit for the two years combined. That ought to save some money at least.

I'm at home and don't have all my reference material, but I'm pretty sure the permitted disparity disclosure information is only for DB plans.

You need to get the employer to stop sending you information on someone that isn't an employee.

I can't even imagine the difficulty in tracking this. I would handle it by billing a million dollars to the client for trades nor processed through our system. Seriously.

What about when a business moves? Since the address is in the SPD does that require an SMM?

Can you pay them a bonus that they defer into the plan?

I have just noticed this thread and saw this comment. I guess bayinsure still needs to go by the W-2 that the employer prepared, but if he is eligible to contribute to a 401(k) doesn't that count as an active participant?

I would have him sign a new form, but the money could be contributed to the same account.

The cite is actually from PLR 8940014. I got it corrected at my source.