JanetM

We tell HCEs that if they max out early they won't get the full match. If you match on each payroll without annual true up the HCE won't get full matching amount. The only way I see to fix it so they get the max is to add the true up.

LOL not at the moment

Stupid or not it made me laugh. Our company has discount arrangement with the airport parking, theaters, windshield repair company that comes to the parking lot, resaurants................ We even sell stamps and movie ticket once a week. Gym on first floor, massage folks here four days a week. Yoga, spinnning, and weight lifting classes...................

If you invest after tax you start will smaller account balance. If you invest pretax you make contributions earlier, those contributions are invested longer and therefore earn more. Is same as depositing $100 now or $50 now. What is worth more later????

Are you saying the ER is part of multiemployer plan? Look at plan document and see what it says. Plan can always go back are audit its own records. Don't think you have arguement for laches if this is multiemployer plan. Most of them are disorganized and poorly run and if they become underfunded enough then the regs state that ERs have to pay up regardless of amount set by CBA.

LOL I just looked at it and it says DOB is 10/04/1912. Dang, through age comes wisdom.

If PD is silent, I would fall back on ERISA and apply the BIS rules. This person incurred a BIS and should start over.

If he got divorced there is no spouse.

If it were me, I would leave the MPPP separate and freeze it. Amend to 0% contributions. This will prevent any issues with J&S benefits attached to MPPP. You can add 401K to existing PS plan, amend to cover all employees. Then merge the new companys 401K into the holding companies plan.

As long as you have a plan they can put it into that allows CODA.

Make small adjustment to loan procedures and allow the terminated employee to continue making monthly or quarterly payments on the loan balance. That will keep the loan out of default and the funds and loan asset can be distributed at one time.

Maybe I am missing the point here, but what are these "lost earnings" the result of? Is this a question of money goes to broker and it sits for day or two before being invested? Or is the money sitting for long periods in non interest bearing account.

Using your example. Assuming both plans are calendar year plans. Plan B merges into Plan A on 5/31. Plan must have audit of 5 month plan year and file 5500 by 12/31 or if extended by 3/15 of the following year. Plan A finishes calendar year and does normal 12 month filing and audit.

Yes you have withdrawal liability. Unless you fall under the expected industries. You had obligation to contribute and not you don't have obligation to contribute. This is complete withdrawal.

No, because it isn't subject to J&S rules.

Compulsive collector? Does she share or hoard? LOL I have to admit I am guilty of collecting a bunch of stuff for the folks in my office.

This happened in one of my plans couple of years ago. ERISA attorney said it was okay to reverse the hardship since there was no basis for hardship anymore. This was actually made easier by the fact that the tax withholding had not been remitted.

You're welcome!

Think of it this way. 5 plans have an investment in a MT. That MT files 5500 for only the assets in the MT. Then each plans has entry on MT investment & earnings lines. 5 plans have other investments other than MT. Those assets are reported as if there was no MT. Clearer now?

Found it in CCH ................... REV-PROC, PEN-RUL 17,299L-94, Rev. Proc. 91-64, 1991-2 CB 866, December 16, 1991. Rev. Proc. 91-64, 1991-2 CB 866, December 16, 1991. Internal Revenue Service: Determination letters: Separate lines of business The IRS has released procedures setting forth the industry categories prescribed under Code Sec. 414® and section 1.414®-5©(3) of the Income Tax Regulations for determining whether an employer is treated as operating qualified separate lines of business. Back references: See "Finding Lists." SECTION 1. PURPOSE 01. This revenue procedure sets forth the industry categories prescribed under section 1.414®-5©(3) of the Income Tax Regulations. This revenue procedure is promulgated pursuant to authority granted in section 7805 of the Internal Revenue Code, section 414® of the Code, and section 1.414®-5©(3) of the regulations. SEC. 2. BACKGROUND 01. Section 414® of the Code sets forth the rules for determining whether an employer is treated as operating qualified separate lines of business for purposes of certain employee benefit provisions under the Code. If an employer is treated as operating qualified separate lines of business under section 414®, certain requirements under those provisions are applied separately with respect to the employees of each qualified separate line of business operated by the employer. These requirements include the minimum coverage requirements of section 410(b), the minimum participation requirements of section 401(a)(26), and the 55-percent average benefits test of section 129(d)(8). 02. Pursuant to section 414®(2)© of the Code and section 1.414®-1(b)(iv)(n) of the regulations, an employer is not treated as operating qualified separate lines of business under section 414® of the Code unless each separate line of business operated by the employer passes administrative scrutiny. The regulations provide two general methods for satisfying this requirement. Under the first method, a separate line of business that satisfies any of the safe harbors in section 1.414®-5 of the regulations satisfies the requirement of administrative scrutiny. Under the second method, a separate line of business that does not satisfy any of the safe harbors in section 1.414®-5 nonetheless satisfies the requirement of administrative scrutiny if the employer requests and receives an individual determination from the Commissioner that the separate line of business satisfies the requirement of administrative scrutiny. 03. Among the safe harbors provided in section 1.414®-5 of the regulations is the safe harbor of section 1.414®-5© for separate lines of business in different industries. This safe harbor is satisfied only if the separate line of business is in a different industry or industries from every other separate line of business of the employer. 04. Where a separate line of business does not satisfy any of the safe harbors in section 1.414®-5 of the regulations, a determination may be requested from the Service that the separate line of business passes administrative scrutiny, but only if at least one of the requirements set forth in section 1.414®-6(b) is satisfied. For example, pursuant to section 1.414®-6(b)(2)(ii), a determination may be requested if 90 percent of the property or services provided by the separate line of business falls within one or more of the specified industry categories and no more than 10 percent of the property or services provided by other separate lines of business falls within the same industry category. However, this revenue procedure does not establish a program for processing requests for a determination whether a separate line of business meets administrative scrutiny. The Service will publish procedures relating to such requests at a later date. 05. Section 5 of this revenue procedure sets forth the industry categories established by the Commissioner for purposes of the safe harbor in section 1.414®-5© of the regulations and the administrative scrutiny determination in section 1.414®-6. 06. The industry categories listed in section 5 of this revenue procedure are derived from the Standard Industrial Classification codes (the "SIC" codes) set forth in Executive Office of the President, Office of Management and Budget, Standard Industrial Classification Manual (1987). The SIC codes are arranged by one-digit divisions, two-digit major groups of industries, three-digit industry groups, and four-digit industries. The industry categories listed in section 5 of this revenue procedure are based on SIC codes at the two-digit level corresponding to major groups of industries. The Service anticipates that these industry categories may be modified from time to time to reflect technological, institutional, and other changes in the economy, taxpayers' and the Service's experiences in working with the industry categories, and changes in the SIC codes from which they are derived. SEC. 3. SCOPE This revenue procedure applies to all persons to whom the safe harbor in section 1.414®-5© of the regulations applies and to all persons who satisfy the conditions under section 1.414®-6 that make them eligible to request a determination. SEC. 4. APPLICATION The industry categories for purposes of applying section 1.414®-5© of the regulations are set forth below. The SIC code or codes to which a particular industry category corresponds are set forth in parentheses following the name of the industry category. Except as otherwise indicated, each industry category is intended to have the same content as the SIC code or codes from which it is derived. Although each industry category describes an industry in general terms, the category includes all property and services that are provided to customers by businesses in that industry. Thus, for example, agricultural entomological services (SIC code 0721) are included in the food and agriculture industry category listed below. Section 1.414®-5©(1) of the regulations requires that the property or services provided to customers of the employer by a separate line of business must fall exclusively within one or more of the industry categories listed below, and that none of the property or services provided to customers of the employer by any of the employer's other separate lines of business may fall within the same industry category or categories. In determining whether this requirement is satisfied, the SIC code or codes (if any) assigned to the employer's establishments by the Census Bureau are not determinative, because they look to the activities conducted at each of the employer's establishments rather than to the ultimate property or services provided by the separate line of business to customers of the employer. Thus, the employer must look directly to the property or services provided by the separate line of business to customers of the employer to determine whether the requirements of the safe harbor are satisfied. SEC. 5. INDUSTRY CATEGORIES 1. Food and Agriculture. Food, beverages, tobacco, food stores and restaurants (Groups 1, 2, 7, 8, 9, 20, 21, 54 & 58). 2. Textiles and Clothing. Textile mill products, apparel and other finished products made from fabrics and other similar materials (including leather and leather products) and general merchandise stores (Groups 22, 23, 31, 53, 56 & 57). 3. Forest Products. Pulp, paper, lumber and wood products (including furniture) (Groups 24, 25, 26). 4. Transportation. Transportation equipment and services (Groups 37, 40, 41, 42, 44, 45, 47, & 75). 5. Finance. Banking, insurance, and financial industries (Groups 60, 61, 62, 63, 64, & 67). 6. Utilities. Public utilities and other regulated industries and communications (Groups 48 and 49). 7. Coal and Metals. Metal industries and coal mining and production (Groups 1O, 12, 14, 33 and 34). 8. Machinery and Electronics. Industrial and commercial machinery; computers and other electronic and electrical equipment and components (Groups 35, 36 & 38). 9. Petroleum and Chemicals. Oil and gas extraction, production and distribution (including gasoline service stations); petroleum refining and related industries; chemicals and allied products; rubber and miscellaneous plastic products (Groups 13, 28, 29, 30, 46 & 55). 10. Construction and Real Estate. Construction industry, real estate, stone, clay and glass products (Groups 15, 16, 17, 32 & 65). 11. Leisure. Entertainment, sports, hotels (Groups 70, 78, 79, & 84). 12. Printing and Publishing. Printing, publishing and allied industries (Group 27).

Did the employer stop withholding the payments? How could this happen with active employee?

It has been my experience with sheet metal workers national pension plan they don't budge much. The various regs are found between ERISA 4203 and 4221.

You would still need the language if you allow after tax contributions.

It would go on line 1, only fees $5,000 or more are detailed.

Generally in any DB plan once you begin a benefit you can not change the form later. IMHO I don't think this should be done.