thepensionmaven

I believe this comes about as a result of IRS Circular 230. Additional guidance on this matter is to be found at the following link: Proposed reqts for 5500 preparers.

No, just 410(b) If you are failing the 401(a)(4) general test with the allocation you want, the answer may vary depending on what the document says. Does your document say the allocation must satisfy 401(a)(4)? From a long discussion of this last year, I gather most documents to not require satisfaction of 401(a)(4). The document we use does require it. An -11(g) amendment can not reduce benefits. The terms of the plan will determine what those protected benefits are.

That's the question.

Welcome to the new ERPA message board. Feel free ask your questions, express your concerns.

Thanks.

Sorry, the terminated employee worked less than 500 hours. Would you have any language for the corrective amendment to make the feature available? And exactly what is the failsafe language that would not make this possible? Thank you.

Do you still have this because I would like to see it.

We are working on the contribution for a new comparability plan (no deferrals) for the 2009 plan year. There are two groups- owners and all other employees. Eligibility is ages 21 and 1 year of service, entry is 1/1 nearest completion of eligibility. Definition of compensation is w-2 for all tests and limits. One of the NHCEs terminated in 09 with less than 500 hours. ABT was passed and so was 401(a)(4) for prior year. Plan passes gateway but not ABT with current NHCEs for 2009. We do have an employee hired 9/08 who would otherwise be excludable because she had not met the 1 year eligibility IF we bring this employee in as of 1/1/09, all tests are passed. Is this Ok and must this person receive credit for 1 year of service as of 12/31/09?

Where can I find these?

No, I am asking if the testing is the same for all types of cafeteria plans.

We are qualified plan TPAs and I have been asked by one of my clients to quote on and/or take over the admin of their 125 plan. Is there any testing other than the Section 125 eligibility test; the Section 125 Key Employee Concentration Test; and the Section 125 Contributions and Benefits Test? Are these also the tersts that are performed on a premium-only plan. Thanks.

I have been in business for the last 28 years, have acquired some plans, and have lost some plans. We all have. Clients move their plan investments all the time. Usually a TPA loses a client because the client is either unhappy with the way the TPA has been handling the business or because of fees. However, over the last six months, I have lost 3 clients for neither of these reasons- these employers were approached by John Hancock agents to move the investments from wherever they were to Hancock and/or Hancock related products. Nothing in and of itself wrong with that. It's just that most reps will ask the employer if they are happy with the TPA services --= these people do not even ask, they sell a bundled product, "go with Hancock and, oh by the way, you have to use our TPA." I got a little suspicious after I lost the first case, but this looks like a pattern. I complained bitterly to one of the regional marketing reps for my area when I lost my third case. He did not see anything ethically wrong with this business practice. Hancock seems to be the only company that condones such practices. I am wondering if anyone else is or has been in the same situation.

I was wondering if there was some sort of a survey as to what people are charging for the restatements. Prototype vs non-prototype and DC vs DB. I've held off doing the majority of my restatements as I do not want to under- or over-price myself out of the market. Is there some sort of a range that people are charging?

Go with Datair, Accudraft is about 5X the cost.

I've been using Datair for over 5 years. Every time I think of switching, I'm amazed at what the other software vendors charge, so I'm sticking with Datair for now.

My client was just asked by their CPA to obtain an engagement letter as the TPA for the plan. The client was also told this is a "requirement". I have been in business for over 25 years and have used an engagement letter once in that time. I have found that most clients will not sign. My engagement is getting my fee up front. If there is a requirement to do a retainer/engagement letter, who is requiring??

Can hardship distribution be take from Employer 401K safe harbor contributions? Document says yes but insurance company says IRS says no and will not allow.

We recently took over a 401(K) plan and the definition of compensation is W-2 Gross (Box 5). The client also sponsors a Section 125 plan. The previous TPA was using W-2 box 5. The plan document states that the ADP/ACP tests shall be based on Gross W-2 w/o reduction for employee deferrals or employee contributions to a 125 plan. Client wants to reduce W-2 by contribution to the 125 plan. Would this be OK??

Anyone have any sample amendments to allow for an "in-service" distribution from a pension plan at age 62?

I believe that in order to have in service distributions at age 62, the plan's definition of Normal Retirement Age must be at least age 62. Anyone have any sample amendments??

Do you need to run the General Test under 401(a)(4) for an Age Weighted profit sharing plan?

Yes, thanks. Changing the eligibility sounds great, but the eligibility is 1 year, so I don't think so. Also, the PS allocation is New Comparability, I don't think the plan will pass the general test if we exclude the participant.

Yes, thanks.

Yes, please.

If the participant worked 1000 hours in 07, went on maternity leave in 08, came back and worked less than 500 hours in 08, she does not get any employER contribution, but must get the 3% safe harbor. She does not get a profit sharing contribution because she did not work 1000 hours. How does the plan pass coverage or would you just exclude her from the profit sharing contribution, and, on what basis?