JanetM

Dave, you deserve our heart felt thanks for creating such a wonderful site for all of us in the benefits community. Many thanks!

Every once in a while I think of it as job security........ no one is crazy enough to want my job.

401 Chaos, We recently did this. Consolidated a bunch into one large plan. Filed all the originals as final and moved forward with new plan number in first year filing. jigpsu100, am guessing this wrap plan covers 2004 filing. That means the original separate benefits terminated in 2003. You would go back and amend 2003 filings to be final. If the wrap plan took over during the plan year you may be in trouble since the due date for filing 2004 filing for termed plans is 7 months after end of year. Example if the new wrap plan took over 7/01 then the termed plans are due 1/31/05 or with extention 04/15/05. clear as mud?

Thought you could suspend the loan payments if employee was on qualified leave of absense. They just have to payoff within five year period. I have never seen the reg you quoted, what is the cite?

You need to get SPD for the DB plan. Read the definition of year of service and the dates the plan uses for counting service credit. ERISA states if you have 1,000 hours worked during plan year you are credited with year for vesting purposes.

Had this years back when I did TPA work. We sent the year end package (bound report containing trust acct, participant data, 5500, SAR etc.) via US mail with return receipt to the Dr. or lawyer. The bound in letter would indicate that each participant must receive copy of SAR by a certain date per the regulations. We would quote the regs and all that. Basically it was CYA for the CPA firm I worked at, kept the partner in charge happy and put the onus back on the client.

If you are giving contribution in order pass a failed test, that contribution must be 100% vested.

Beth, We do consider any changes annually. Normally the organizational chart stays fairly static that high up the food chain. If nothing has materially changed then we stop looking. Occasionally they do a major shuffle with the group of 20 (or is it 22 now) companies and then we take a good long look.

We use QSLOBS. The non discrimination & coverage testing done each year must be done on QSLOB basis and passed on QSLOB basis if you wish to keep SLOBs. You must ensure you meed three criteria (50 ee's working +17.5 hrs?6months/year, notify IRS it considers itself to have SLOBs, satisfy adminstrative scrutiny. This also affect you in your counting for the schedule Ts. You file the original 5310-A when you want to be QSLOB and then, unless you hear from IRS or new guidance is issued, you only file again if you modify or revoke QSLOB. Hope that helped.

This happens to us all the time. Participant makes lump sum payment to pay off loan and we take one or two more deductions before we get the wrap back from the recordkeeper. The record keeper can't post payments to loan if it is paid off so the funds are returned to the employee in another paycheck.

Opps, missed that part. Must be fixated on Friday quit time..... not paying close enough attention. Thanks for pointing it out.

No Name I agree with you. Donkey Kong, shame on you. GBurns has been very polite lately, we should appreciate him not attack him. What's wrong with being a softie.

When you say they hit 100, when was that? You count on first day of plan year. If it was 100 at you are a large plan. But having said that you can use the 80/120 rule to file as small plan.

I googled and looks like it is out there in new and used forms. Good luck gettin a bunch. Have you considered dropping Ted a line and asking who has a stock pile.

I would show a D and then if the future report as A again if needed.

You may also have an issue with recordkeeper/trustee/custodian. Why should they keep the accounts active with zero balances after first distribution while you putter around and wait so long to make final contribution. They may charge you big bucks for this. Take special note of Pensions comment. Can you pass tests?

You would count all those eligible for benefits. It gets dicey when you have some opting for some coverage and some for another. Can you look at largest group and determine if there is any one opting for other benefits who is not included in largest group? If this is not the case, you should count each employee electing some form of benefit. Do not count children, spouses, beneficiaries or anyone entitled to benefits under QMCSO as participant. One way to fix this is to find one inexpensive coverage and automatically cover entire group. We use various levels of life insurance from $5,000 to two or three times salary. The rule is in DOL reg section 2510.3-3(d) sorry I can't find a link to it right now.

If the ex spouse gets the funds from qualified plan via a qdro it is taxable to ex spouse, if they get if from the participant taking a loan it is not taxable to anyone (as long as it is paid back). Hardship doesn't seem proper, not avoiding foreclosure or making down payment. Besides that makes it taxable with penalty to participant. With todays low rates why not do home equity loan or something.

No where in the AICPA audit guide does it say the beginning of the the plan. It does require the auditor to review prior year data as the statements are comparative and show current and prior year data. The high quote could be intending to scare you off. There are all kinds of new documentation requirements (CYA type of stuff) due to SOX so my first guess is the CPA firm doesn't want the work/headache/liability. JDuns .... 99% of the time the opinion is not an opinion but rather a disclaimer, and nothing anyone can rely on in a court of law.

I agree Pax. Why would the PA want to do something that could get them in trouble? Can't the participant figure out another way to scam the system and get the taxpayers to support them?

You could try freeerisa.com for past 5500 filings. Or go to their websites and see if they post the SAR for participants. Not sure what numbers you are looking for.

Archimage, yes the CBA has to provide for participation in the plan. Taxbones, why would employer allow them in their plan if there is Union plan that they have bargained for. Sounds like more work then it is worth in the long run for employer by adding to headcount. I suppose if that were bargained for you would be allowed to do it. Have seen really stupid things put in CBAs in the past.

You can do that with one plan. Since you are allowed to disaggregate the union group for testing, and therefore test them like they are a separtate plan, you will not suffer in ACP for not matching. You can even give the non union group safe harbor contributions if you want.

Depends on the plan. What does it say about failure to precert procedure? Most common is impose a penalty for failure to follow pre-service requirements. Have not actually seen plan that flat out denys the claim for failure to precert.

Under transition rules you don't have to worry about control group issues until plan year beginning 01/01/06. You have until end of plan year following year of acquistion before you have to apply control group rules.