Hoard1

Last contribution to the plan was 8/31/86. This issue was raised during the IRS review for plan termination. Employer is terminating the plan because they can't afford to make contributions. At what point would you say the plan terminated (discontinuance of contributions under 411 (d) (3))? Forfeitures occured subsequent to the 86 Plan Year. How far back can they go to require restoration of unvested account balances?

On Plan termination of a Profit Sharing Plan the Service is taking the position that since there were no contributions to the plan for several year there was a plan termination in prior years requiring full vesting. Has anyone else delt with this issue and possible responsces.

Is there a cite for the "Substantial Owner Waiver"?

Or how about this - Non contributing participants with less than $25 or $50 will have their $$ pooled in a saving account in the name of the plan with interest allocated to it. That way they will be out of the fund providers recordkeeoing system so the client won't be charged a participant fee from the fund provider

An Employer want to shut down their DB Plan. It is currently underfunded by 75,000. Current 412 deductible limit is 40,000. Can the Employer fund the plan with 75,000 take deduction for 40,000 and close the plan? Is there any carryforward deduction of the additional 35,000? Any other thoughts.

What if some of the non-contributing Participants are HCE and Key ( do not participate to avoid Top Heavy Contributions )?

A 401(k) Plan has serveral participants with small balances (less than $25.00 for prior PS forfeitures)who are not contributing to the 401(k) portion of the Plan. Is there any way to either cash these people out of forfeit their account balances without a severence of service? The Employers does not want to continue to pay a participante charge for non-contributing employyees. Could the plan establish an administrative proceedure that would require participant fees to to taken from the account balances of non-contributing participants? This would clear these small accounts. Because there are several participants who are contributing small amounts to the plan ( $5 & $10 a pay check )the employer does not want to charge fees to all participants.

In the first year of the Plan an Employer allowed two employees to withdraw their 401(k) contributions without hardship paperwork and allowed them to continue to contribute to the plan. Is this correctable? What would be the method of correction?

For 410(B) a Controlled group of corporations need to be tested. What date would you use if the plans of the Controlled Groups have different Plan Year Ends?

G13 works like a charm. Society site is difficult to navigate in Surprise Surprise

Trustee paid 35,000 for ernst money contract on land as a plan investment. At closing there is a simultaneoues transaction to sell a portion of the land the proceed are used purchase the property. At no time is the property leveraged by either by intent or actually. Is this a prohibtive transaction? Any thoughts?

is there a place to get the 30 yr Treas const. maturity rates? ASAP ASAP has a nice summary but was last undated 3/15/99.

What provisions of a Plan Document need to be amended to convert a Profit Sharing Document with a Comp to Comp allocation (Regional Proto-type) to a Cross Tested with an allocation formula based on rate groups? I do understand that by doing so you have created an individually designed document subject to higher user fees for submission.

An Employer wishs to terminate it's defined benefit plan that is 75,000 under funded. The Employer would like to deduct the full 75,000 in the year of termination. The plan is funded under the individule aggregate method and the contribution produced under the method is less than the required amount to sufficiently fund the plan for PBGC purposes. The Employer has changes Actuarial firms in the year of termination. Can the new actuary change the funding method to unit credit and get the full deduction to fund the plan? Any other thoughts to solve this clients problem. Thank you.

1st Golbal has set up a program that requires participants to make investment changes and transfers online (no 800 access). I was wondering what anyones thoughts on this approach are? Not everyone has internet access. COuld this create a DOL issue. At a minimum it will shift additional responsiblity back to the employer to make sure all participants have access to their account information.

Does anyone know if a 401(k) can have direct investments in Drips as a plan investment. I spoke with one person who said the transfer agent probably would not allow the investment to be held in the name of a qualified plan becaue they would not want to be construed as a trustee. Any thoughts?

Thanks for the info. Surprising that participants in 401(k) plans are not mandated to receive statemnt and must request them. I'll waite until after July 15 and request a statemnt if one has not arrived by that time.

Does the circumstances outlined above change for terminated participants? As a terminated participant I will not know when the valuation is completed. Is there a DOL SAR requirement?

Is there a deadline to provide participants in a pension plan ( 401(k & MPPP) a statement of their account balance. PYE 9/30/98. I thought there was a 256? day requirement for SAR. Is there any day requirment for statemnts and what are the penalties for noncompliance?

If a Simple IRA is Adopted effective 7/1/99 is compensation for purposes of the matching contribution based on the full calandar year or only from 7/1/99? Is there a cite for this? Conversely, could you make the plan effective 1/1/99 and extend the 60 day period to include 7/1/99?

COntrolled Group of Corporations(Auto Dealerships) erroneously omitted a Corporation (Bank w 8 employees) from the Nationally Sponsored Plan. In fact the Plan could not accept the Bank because it was not an Auto Dealership. Provided the plan passes 410(b)with the inclusion of the Bank employees are there any problems with their exclusion. If the Bank decides to sponsor a Plan, is there any way to test it seperately or would I have to look to average benefits test to pass 410(B) because ratio test will probably fail? Is ADP & ACP testing done on a Plan by Plan basis for COntrolled group or are they aggregated?

Controlled Group of Corporations (Auto Dealership with 15 30 Participants) eronously ommited from a Nationally Sponored Auto dealership plan a third Corporation (Bank with 8 employee) based on SLOB rules. Provided the aggregated group passes 410(B) are there any other problems ( ie document not specifically excluding Bank). If the Bank was to sponsor a Plan it could not pass 410(B) on a ratio test so I believe we would have to look at average benefits test. Is there any way to pass coverage separately without aggragating the plans? Would setting up the plan identical in provisions to Auto Dealership Plan be a Safe Harbor approach to compliance. Do these groups need to be aggregated for ADP & ACP testing of a 401(k) provisions. Any thoughts?

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Two Controlled Groups of Corporations of 55 an 60 Participants ( Auto Dealerships)erronousley ommited a smaller controlled group 10 Employee Bank from the Nationally Sponsored Plan they adoped under seperate lines of business. Provided the Plan passes coverage is there a problem with the exclusion of the Bank? If the Bank were to sponsor a Plan could it be tested seperately?

Thanks for the help.