rcline46

Because you cannot modify the language in a prototype document, the use of -11(g) instantly takes you out of prototype status and into an individually designed plan. You lose reliance on the prototype letter.

Although the auditor can do whatever they want, a limited vs full scope audit has to do with certification of the assets by an independent trustee. A SAS 70 is NOT required for the TPA. That being said, the auditor does have the option of reviewing the TPA procedures and practices which would cost more in lieu of SAS 70.

And one wonders why we cannot let amateurs operate ANY kind of retirement plan.

Unless RMPension jumped and loaded the Corbel release over the weekend (it came out after 5PM Friday) the only checklist available was for the prototype. I don't know when the ASP checklists became available. SO, I jumped to the conclusion he/she was looking at the prototype. If not, I apologize to RMPension, but my comments on the prototype still stand.

The short answer is yes. However, remember that you have a limited number of allocation rates in a prototype, and -0- is an allocation rate. ALso, remember that you do NOT have access to 401(a)(4)-11(g) amendments in a prototype. I don't think new comparabilily and prototypes mix well unless you are choosing to not do the best job for your client (my opinion).

I believe Harry Belafonte sang that song long before dear Jimmie. Along with the Kingston Trio and quite possible the Beach Boys. Jimmy was a late comer to the tune.

Remember that for ACCOUNTING purposes, a controlled group is different from PLAN purposes.

The PLAN SPONSOR must keep everything indefinitely. The service provider does not. This should be communicated quite clearly to the sponsor. Yes, the information may be kept electronically, but read the regs on electronic storage. In brief, you had better be able to retrieve the information you store. CHange in technology is no excuse for lack of retrieval. Those who stored on computer tapes not so long ago had to convert to other mediums.

You should keep plan documents and anything relating to the computation of benefits forever. This according to the IRS. THe prior responses only pertain to the Form 5500.

Have the attorney issue a written legal opinion that the law which says distributions on or after April 1 are restricted is hogwash and that you may rely on his written opinion as defense against any challenges by the IRS.

I would opine that in the eyes of the IRS, 6 months is 6 months, not some number of days. Therefore the end of the 6 month period is December 31, and if payment is AFTER 6 months, it will happen in 2008.

I would say it is how you state the results of taking the hardship. If you say the right to defer is suspended, I think you can resume when the suspension is over. If you say the participant elected a -0- deferral, then I would say you must go with the next available deferral change date. As a good actuary, I would ask 'What do you want the answer to be?' (That's an OLD joke!)

I think the loan is OK. THe amount borrowed is OK under the regs. The fact that the new loan is used only to pay off 2 old loans is not relevant.

The provision of the Black Out notice is assigned by the DOL to the Plan Administrator. In order to create the notice, they need to know when the current service provided requires the plan to be locked down so that all transactions are complete by liquidation date. Then they need information from the current provider as to when the final reconcilation will be done and provided to the new provider. Then they need to know how long it will take the new provider to process the provided final valuation and send investment instructions to the new financial institution.

IMHO, you correct by forfeiting and removing the person from the plan. Past 'improper' deductions will be offset by future reduction in deductions - a wash. and DOUCUMENT, DOCUMENT, DOCUMENT.

Relius Documents PC is a product to be licensed from Sunguard Corbel. It is not free. You must contact corbel to get the forms to license the product. Then, if your PC , Operating system and MS products are up to snuff, you can then install it.

Other than the fact it is illegal? Force outs over $1,000 must be put into an IRA.

Not an attempt at humor. If the DOL finds an existing plan with an insolvent sponsor, they will frequently initiate an investigation to make sure the assets and participants have not been adversely affected by the insolvency.

They can always write to the DOL and ask for a waiver. In a case like this the DOL might even want to do an investigation!

To calculate the earnings refer to Rev Proc 2006-27 (EPCRS)

Plan can pay the expense since it is part of the Form 5500 requirement.

Note that a controlled group for TAX purposes is not the same as a controlled group for PLAN purposes. Note 2 - if there is a controlled group I would bet there is also a large discrimination issue with the solo k! You need more information fast on this case.

1. YES and definitely YES. 2. Yes, or pay, or YOS, or ....

Got it! Thank you.

In 2009 we will have to prepare 5500s for 403(b) plans. If the participant count is over 100 then we will have to have an audit done. The question is the counting of participants. Will this follow the normal rule of 'eligible' employees or will the rule be modified for only 'participating', that is 'contributing' employees?