k man

of course, but my beneficiary might not do anything. that is the gist of my question. ie. what can the plan sponsor do without his consent? jsimmons seems to have answered it.

ok so my question is this. do you just send the money to the beneficiary? do you ask them to fill out rollover form? trying to figure how to do this from a technical standpoint.

pax good catch. i meant beneficiary.

participant died with a designated beneficiary. plan says that the benefit must be paid out by the end of the plan year following the date the participant died. my question is as a practical matter how do you facilitate this distruibution? how do you force the participant to complete distribution paperwork?

in my view you have to see how your plan defines separation from service and whether post-severance compensation is excluded. if they have had a separation from service in 2005 they wont be entitled to a contribution in 2006.

does anyone know whether you can just terminate the safe harbor contribution but keep the 401(k) in effect?

is anyone familiar with the substantial business hardship exception for terminating the safe harbor nonelective contribution portion of the plan? client had would like to keep the 401(k) portion of the plan going but in order to do so would need to qualify for the substantial business hardship. there are several factors listed in the code but the list is not inclusive of all factors. i am wondering if there is other guidance. ie. if you use the definition of substantial business hardship in 412 do you also need service approval?

i think you contribute up until the term date and test adp/acp. of course the people might not have compensation for the remaining portion of the plan year due to separation from service.

maybe imply was a poor choice of word but they are silent with respect to nonelective while they are specific with respect to match. in any event thanks for the response. do you have a link to that asppa comment?

the plan is a safe harbor nonelective plan. is it necessary to give a 30 day notice prior to terminating a safe harbor plan mid year? the regs seem to imply you follow the same rules for terminating a SH match but they are not clear to me.

the rule says you only need to file a 5500 for fringe plans associated with a welfare plan with over 100 participants. what does associated mean? our client has a welfare plan but i dont know whether they are associated.

anyone ever get a letter on the 408 waiver of 60 day rollover rule due to error of the financial institution. i have two cases from a couple of years ago where the "rollovers" were not treated as such due to errors. now i must decide wether to throw myself at the mercy of the IRS and get letter or let sleeping dogs lie and raise the issue if they ever get audited. any opinions out there would be helpful.

anyone think this is a problem: partner/doctor requests proposal from tpa/ria firm in which son-in-law is an employee. ultimately dr decides to hire tpa firm to administer and be ria to the plan.

A participant took a regular 5 year loan and used the proceeds to acquire a principal residence. subsequently the participant decides he wants to extend the repayment terms. can he modify or refinance this existing loan so that it is a home loan at some time after the purchase of the residence? what would be the procedure for this. ie does he have to take a new loan or can you just modify the terms of the existing loan?

it is an odd question but do Plan Administrators have any discretion to require that distribution request documents are notarized by the participant. in this case they are suspicious that maybe the participant is not at the address and they when they call someone else answers the phone.

an executor has not come forward. i dont think there has been an estate opened.

good suggestion. i need to confirm that there is no dispute amongst heirs. ie. that bro is the only one.

a participant died without a beneficiary designation. the decedent has no heirs except for a brother. according to the plan the money gets paid to his estate. the size of the account is small and we doubt there has been a probate case set up. what are you supposed to do in this case with the money?

it is sort of a strage rule because at 59 1/2 you would be able to get a lump sum without penalty. so by taking the early distribution you are forced to limit your options.

participant completed an enrollment form requesting a certain percentage of pay be deducted for 2005. however, employer failed to implement instructions. how can this be corrected? i think you need to follow the VCP method for exclusion of an eligible employee. basically the employer has to contribute at the deferral percentage for her group. do you agree or disagree?

in order to qualify for the substantially equal periodic payments exception in 72(t)(4), must the payments be for the life expectancy of the participant? someone in my office seems to think the distributions can be over a period of 5 years. the code seems pretty clear that it is life expectancy.

Prototype. no no i dont know n/a concerning the state court suggestion that might not be a wise move fiscally as the VCP fee is only 750. what are some of the ways to establish a plan absent a signature? we dont have a corporate resolution either.

i guess i am still wondering, if the plan has been amended to eliminate involuntary cashouts over 1000, what would you do if you have accounts between 1-5k? the plan says you must purchase an annuity for people with more than 5,000..

the plan was amended so that only accounts less than 1000 can be cashed out. there are no mandatory IRA's because the limit has been reduced to 1000. if the plan terminates, what does the plan administrator do with accounts that are between 1000-5000 if the participants don't complete distribution paperwork?

A1. it a plan of a controlled/affiliated group of employers. A2. i believe so A3. not sure... A4.. very good point. i think we should ask them.