JanetM

betheeg, If you union negotiated into deferal only plan then they stay in going forward. As mjb points out, you have to negotiate any change with the union. The employer can add safe harbor, profit sharing and match at any time. Employer can exclude the union from any or all of these contributions and still pass all cover and non discrimination testing.

Yes you can exclude union employees from plan. Question is why? Allow them to contribute but don't give emplorer match or anything else. Those who have balances and are still employed would keep the funds in the Plan.

We allow participants to enter the beneficiaries into online system. The one plan that requires spousal consent has that message on the screen, and tells the participant to request the paper form and send it in. If they do not do so the designation is invalid.

Rev Rul 80-155 is still good. Seems kind of fishy to me, the assets are required to be reported on 5500EZ using their current value, not cost. The accountant needs to read the instructions to the form. Beginning balance & ending balanceshould incude unrealized gains & losses on line 11a.

Rules are Partnership (and their spouses) file EZ If there are any employees the filing is 5500

Instructions for the 5500 say you should file an amended return if any data on the form and schedules is incorrect. Since they went through VCP I would think that would be part of the correction. I could be wrong. Can't be that much work to amend - you aren't changing but a couple items on the forms. Send a letter sent along with the amended returns explaining why you are doing it.

We use QSLOBs here, our CG is 38 legal entities and 24,000 employees. I agree that in small emplpoyer market they aren't used or useful very often. Not sure about ASG use, all my SLOB experience has been with large group.

WDIK, we send them a note explaining the change in amount and telling them they can get a amortization schedule if they want one. Most folks are just happy knowing the amounts and that the payoff dates won't change. We have folks who go betweem semi-monthly (salary) and weekly (hourly) all the time, in addition to the semi-monthly and biweekly changes. Promissory note does have a line regarding that - payment amount subject to change in the event payment frequency changes.

Yep, killed some time today looking at this. Isn't quite as easy as I thought it would be. Thanks Tom!

We do this all the time and have never considered it to be refinanced loan. We just adjust the amount of loan payment and notify the participant. Since our loan rules and promissory note say the loan will be paid back via payroll deduction in X number of payments over X number of months, if the pay frequency changes the loan payment will aslo change.

Enut, yes GCM 39310 says all should be made 100% vested. But not all courts have agreed with this. A circuit court reached a contrary result and ruled that partially vested former participants do not have to be vested on plan termination if the employer went out of business. When Walter Borda quit working for the Hardy, Lewis, Pollard & Page law firm, he was only 40 percent vested in his accrued benefit. When the plan was terminated three years later after the law firm split into two firms, partially vested employees forfeited their unvested benefits. Mr. Borda claimed he should have become fully vested in his benefit at plan termination. The plan administrator disagreed, arguing that because the plan sponsor no longer existed, terminated participants could not avoid forfeiture by returning to service and earning additional vesting under the plan. Therefore, terminated employees were not affected employees entitled to vesting under ERISA. The court agreed with the plan administrator. The court found nothing in ERISA to contradict the plan administrator's interpretation. Interestingly, the court did not consider the plan administrator's refusal to vest terminated participants inconsistent with the IRS requirement to vest all participants with unvested benefits on the plan termination date. Implicit in the IRS position --in the view of the court --is a belief that the separated employee still stood to be affected by the plan termination. To determine which employees were affected employees, the court relied in part on a three-part analysis from Bayer v. Holcroft/Loftus, Inc. [769 F Supp 225 (ED Mich 1991)]: 1. The participant's employment ended long before the plan termination. 2. There was no evidence that the participant's termination was linked directly to the plan termination. 3. Plan participants were unaffected by the plan's termination unless they were employed by the plan sponsor when the plan was terminated or their discharge was linked directly to the plan's termination. [borda v Hardy, Lewis, Pollard & Page, PC, 138 F 3d 1062 (6th Cir 1998)]

I would think it would be facts and circumstances. Did the employer begin downsizing in 2005 for eventual closure? Is the employer just terming the plan to retire? Will all employees eventually be let go? Will business continue. Were participants notified that plan would terminate? Do these 3 constitute a large % of population? ERISAnut, don't understand how you can just say the three would be 100% vested as long as they don't receive distribution?

Are you typing about flexible spending accounts under a cafeteria plan? You have lots of ideas wrong. Yes it reduces taxable income, but NO it does not reduce contributions made to or for the participants to pension, profit sharing and 401k plans. Think you need remedial lesson in flex spending and cafeteria plans before you try to ask questions. The only disadvantage to the employee is if they don't make a good estimate of future expenses and some the funds are lost. Eligibility requirement depend on how the employer set it up and what the different plan provisions are. Like I said, you need to do some more studying before you go off half informed trying to ask questions.

There are notaries who will notarize anything for $20. I tell them to send photo copy of license and SS card or any thing that has SSN and DOB.

The new corp has new EIN - plan plan could continue to use same EIN as before, just make sure the sponsor change is indicated. Your plan has full year, you simply had change in sponsor. Nothing has to change - just make sure the documents reflect the change in the name of the corporate sponsor and life will be good. Don't forget the amendment to the plan if you change the name. Your trustee and other service providers might want something to show new plan sponsor also.

Did this person have an accrued benefit when they termed in 2004? If they had a benefit due to them they must be counted on line 7b as inactive. If they had no vested benefit they are not included.

Do you mean you were spun off into a new corp? Who sponsors the plan? You or someone else? Need to know more....

It would have to be negotiated with the Union, since inclusion in Multiemployer plans is normally a bargained for benefit. Good luck getting out.

No, Schedule A is for insurance contracts.

Depends on who issued the bond. See 2(ii) and read through the exceptions that don't have to be reported. Definition of reportable transaction for Annual Return/Report (a) General General. For purposes of preparing the schedule of reportable transactions described in §2520.103-10(b)(6), and subject to the exceptions provided in §§2520.103-3, 2520.103-4 and 2520.103-12, with respect to individual transactions by a common or collective trust, pooled separate account, or a 103-12 investment entity, a reportable transaction includes any transaction or series of transactions described in paragraph © of this section. [Corrected April 4, 1978, by 43 FR 14009; amended April 19, 2000 by 65 FR 21082.] (b) Definitions (1) (i) Except as provided in paragraphs ©(2) and (d)(1)(vi) of this section (relating to assets acquired or disposed of during the plan year), "current value" shall mean the current value, as defined in section 3(26) of the Act, of plan assets as of the beginning of the plan year, or the end of the previous plan year. [Amended July 1, 1996 by 61 FR 33847.] (ii) Except as provided in paragraphs ©(2) and (d)(1)(vi) of this section (relating to assets acquired or disposed of during the plan year), with respect to schedules of reportable transactions for the initial plan year of a plan, "current value" shall mean the current value, as defined in section 3(26) of the Act, of plan assets at the end of a plan's initial plan year. [Amended April 19, 2000 by 65 FR 21082.] (2) (i) A "transaction with respect to securities" is any purchase, sale, or exchange of securities. A transaction with respect to securities for purposes of this section occurs on either the trade date or settlement date of a purchase, sale, or exchange of securities; either the trade date or settlement date must be used consistently during the plan year for the purposes of this section. For the purposes of this section, except as provided in paragraph (b)(2)(ii) of this section, "securities" includes a unit of participation in a common or collective trust or a pooled separate account. (ii) Solely for purposes of paragraph ©(1)(iv) of this section, the term "securities", as it applies to any transaction involving a bank or insurance company regulated by a Federal or State agency, an investment company registered under the Investment Company Act of 1940, or a broker-dealer registered under the Securities Exchange Act of 1934, shall not include: (A) Debt obligations of the United States or any United States agency with a maturity of not more than one year; (B) Debt obligations of the United States or any United States agency with a maturity of more than one year if purchased or sold, under a repurchase agreement having a term of less than 91 days; © Interests issued by a company registered under the Investment Company Act of 1940; (D) Bank certificates of deposit with a maturity of not more than one year; (E) Commercial paper with a maturity of not more than nine months if it is ranked in the highest rating category for commercial paper by at least two nationally recognized statistical rating services and is issued by a company required to file reports under section 13 of the Securities Exchange Act of 1934; (F) Participations in a bank common or collective trust; (G) Participations in an insurance company pooled separate account; (3) (i) Except as provided by paragraph (b)(3)(ii) of this section, a transaction is "with or in conjunction with a person" for purposes of this section if that person benefits from, executes, facilitates, participates, promotes, or solicits a transaction or part of a transaction involving plan assets. (ii) Solely for the purposes of paragraph ©(1)(iv) of this section, a transaction shall not be considered "with or in conjunction with a person" if: (A) That person is a broker-dealer registered under the Securities Exchange Act of 1934; (B) The transaction involves the purchase or sale of securities listed on a national securities exchange registered under section 6 of the Securities Exchange Act of 1934 or quoted on NASDAQ; and © The broker-dealer does not purchase or sell securities involved in the transaction for its own account or the account of an affiliated person. © Application (1) Except as provided in paragraph ©(4) of this section, this provision applies to -- (i) A transaction within the plan year, with respect to any plan asset, involving an amount in excess of 3 percent of the current value of plan assets; (ii) Any series of transactions (other than transactions with respect to securities) within the plan year with or in conjunction with the same person which, when aggregated, regardless of the category of asset and the gain or loss on any transation, involves an amount in excess of 3 percent of the current value of plan assets; (iii) Any transaction within the plan year involving securities of the same issue if within the plan year any series of transactions with respect to such securities, when aggregated, involves an amount in excess of 3 percent of the current value of plan assets; and (iv) Any transaction within the plan year with respect to securities with or in conjunction with a person if any prior or subsequent single transaction within the plan year with such person with respect to securities exceeds 3 percent of the current value of plan assets. (2) For purposes of determining whether any 3 percent transactions occur, the "current value" of an asset acquired or disposed of during the plan year is the current value, as defined in section 3(26) of the Act, at the time of acquisition or disposition of such asset. (3) Plans whose assets are held in whole or in part in a common or collective trust or a pooled separate account, as provided in §§2520.103-3 and 2520.103-4, and which satisfy the requirements of those sections, are not required to prepare schedules of reportable transactions with respect to the individual transactions of the common or collective trust or pooled separate account. (4) For plan years beginning on or after January 1, 1988, 5 percent shall be substituted for 3 percent in paragraphs ©(1) and (2) of this section for purposes of determining whether a transaction or series of transactions constitutes a reportable transaction under this section. [Amended on March 1, 1989 by 54 FR 8624.] (d) Contents (1) The schedule of transactions shall include the following information as to each transaction or series of transactions: (i) The name of each party, except that in the case of a transaction or series of transactions involving a purchase or sale of a security on the market, the schedule need not include the person from whom it was purchased or to whom it was sold. A purchase or sale on the market is a purchase or sale of a security through a registered broker-dealer acting as a broker under the Securities Exchange Act of 1934; (ii) A brief description of each asset; (iii) The purchase or selling price in the case of a purchase or sale, the rental in the case of a lease, and the amount of principal, interest rate, payment schedule (e.g., fully amortized, partly amortized with balloon) and maturity date in the case of a loan; (iv) Expenses incurred, including, but not limited to, any fees or commissions; (v) The cost of any asset; (vi) The current value of any asset acquired or disposed of at the time of acquisition or disposition; and (vii) The net gain or loss. (2) The schedule of transactions with respect to a series of transactions described in subparagraph ©(1)(iii) may include the following information for each issue in lieu of the information prescribed in paragraphs (d)(1)(i) --(vii): (i) The total number of purchases of such securities made by the plan within the plan year; (ii) The total number of sales of such securities made by the plan within the plan year; (iii) The total dollar value of such purchases; (iv) The total dollar value of such sales; (v) The net gain or loss as a result of these transactions. (e) Examples These examples are effective for reporting for plan years beginning on or after January 1, 1988. (1) At the beginning of the plan year, XYZ plan has 10 percent of the current value of its plan assets invested in ABC common stock. Halfway through the plan year, XYZ purchases ABC common stock in a single transaction in an amount equal to 6 percent of the current value of plan assets. At about this time, XYZ plan also purchases a commercial development property in an amount equal to 8 percent of the current value of plan assets. Under paragraph ©(1)(i) of this section, the 6 percent stock transaction is a reportable transaction for the plan year because it exceeds 5 percent of the current value of plan assets. The 8 percent land transaction is also reportable under paragraph ©(1)(i) of this section because it exceeds 5 percent of the current value of plan assets. (2) During the plan year, AAA plan purchases a commercial lot from ZZZ corporation at a cost equal to 2 percent of the current value of the plan assets. Two months later, AAA plan loans ZZZ corporation an amount of money equal to 3.5 percent of the current value of plan assets. Under the provisions of paragraph ©(1)(ii) of this section, the plan has engaged in a reportable series of transactions with or in conjunction with the same person, ZZZ corporation, which when aggregated involves 5.5 percent of plan assets. (3) During the plan year NMN plan sells to OPO corporation a commercial property that represents 3.5 percent of the current value of plan assets. OPO simultaneously executes a note and mortgage on the purchased property to NMN which represents 3 percent of the current value of plan assets. Under the provisions of paragraph ©(1)(ii) of this section, NMN has engaged in a reportable series of transactions with or in conjunction with the same person, OPO corporation, consisting of a simultaneous sale of property and a loan, which, when aggregated, involves 6.5 percent of the current value of plan assets. (4) At the beginning of the plan year, ABC plan has 10 percent of the current value of plan assets invested equally in a combination of XYZ Corporation common stock and XYZ preferred stock. One month into the plan year, ABC sells some of its XYZ common stock in an amount equal to 2 percent of the current value of plan assets. (i) Six weeks later the plan sells XYZ preferred stock in an amount equal to 4 percent of the current value of plan assets. A reportable series of transactions has not occurred because only transactions involving securities of the same issue are to be aggregated under paragraph ©(1)(iii) of this section. (ii) Two weeks later when the ABC plan purchases XYZ common stock in an amount equal to 3.5 percent of the current value of plan assets, a reportable series of transactions under paragraph ©(1)(iii) of this section has occurred. The sale of XYZ common stock worth 2 percent of plan assets and the purchase of XYZ common stock worth 3.5 percent of plan assets aggregate to exceed 5 percent of the total value of plan assets. (5) At the beginning of the plan year, Plan X purchases through broker-dealer Y common stock of Able Industries in an amount equal to 6 percent of plan assets. The common stock of Able Industries is not listed on any national securities exchange or quoted on NASDAQ. This purchase is a reportable transaction under paragraph ©(1)(i) of this section. Three months later, Plan X purchases short term debt obligations of Charley Company through broker-dealer Y in the amount of 0.2 percent of plan assets. This purchase is also a reportable transaction under the provisions of paragraph ©(1)(iv) of this section. (6) At the beginning of the plan year, Plan X purchases from Bank B certificates of deposit having a 180 day maturity in an amount equal to 6 percent of plan assets. Bank B is a national bank regulated by the Comptroller of the Currency. This purchase is a reportable transaction under paragraph ©(1)(i) of this section. Three months later, Plan X purchases through Bank B 91-day Treasury bills in the amount of 0.2 percent of plan assets. This purchase is not a reportable transaction under paragraph ©(1)(iv) of this section because the purchase of the Treasury bills as well as the purchase of the certificates of deposit are not considered to involve a security under the definition of "securities" in paragraph (b)(2)(ii) of this section. [Corrected April 4, 1978, by 43 FR 14009; amended on March 1, 1989 by 54 FR 8624.] (7) At the beginning of the plan year, Plan X purchases through broker-dealer Y common stock of Able Industries, a New York Stock Exchange listed security, in an amount equal to 6 percent of plan assets. This purchase is a reportable transaction under paragraph ©(1)(i) of this section. Three months later, Plan X purchases through broker-dealer Y, acting as agent, common stock of Baker Corporation, also a New York Stock Exchange listed security, in an amount equal to 0.2 percent of plan assets. This latter purchase is not a reportable transaction under paragraph ©(1)(iv) of this section because it is not a transaction "with or in conjunction with a person" pursuant to paragraph (b)(3)(ii) of this section. [Added March 9, 1978, by 43 FR 10130; amended on March 1, 1989 by 54 FR 8624.]

QMCSO - Quit Making Children So Often

Yes you issue 1099 and report to IRS using code G. Don't forget to report on SSA when 5500 is filed.

IRS - Infernal Revenue Service DOL - Doesn't Operate Logically

IMHO if you give them longer period no one would opt out because they forgot. Then they get the first check with the deferrals taken out and they run screaming to payroll/HR asking who no one reminded them. Now you have to pay fees for very small balance participant accout. If fee comes from accout balance the person will soon be reduced to zero. I would never give more than 30 days, and give them a reminder if possible.

We plan sponsors report who has future benefits. Wast he business bought by someone else? Was this a 401k plan or defined benefit plan. If defined benefit plan you can start with the PGBC and see it they took it over. If it was 401k or profit sharing you most likely got you money years ago and no one told the SSA.