JanetM

Sure the answer would be the same either way. Participants can't decide were the assets will be kept or who will do the admin.

Give deferrals back and quickly set up plan. Employees can not make deferrals to a plan until one has been adopted and set up. The sooner you get it going the sooner the employees will be happy.

Thanks Kirk, will hunt them down. Didn't realize they changed this every year like clockwork.

If you read 2001-1 IRB page 194 they say the notice must contain .03 notice must contain 1 description identifying interested parties 2 name of plan, plan # and name of PA 3 name and EIN of applicant 4 that app for det letter will be filed 5 description of eligible participants 6 is IRS has issued determination 7 that addressee can comment and how to do so 8 due date for item 7 9 number of item 7 needed for DOL comment 10 where and how interested parties can find more information No where in the reg does it say you can't combine the notice with other notice. We did it after and acquisition few years back. One company - two DB plans and one DC. Salaried folks received on DB/DC letter and hourly got another DB/DC letter distinguishing the two DB plan. Saved some pennies on the mailing. Come to think of it, I can't think of any mandated communication that the regs specifically cover the combination of plans issue. Bud, you can get to IRB by going to IRS site at http://www.irs.gov/businesses/lists/0,,id=98230,00.html

The date of distribution. That is the date the actual number is determined and recorded.

And the sooner we would all have head back to work. LOL

Since you can't take away benefits already accrued - that would cover the 3% up to today. I thought match and NEC would be treated the same. Maybe and using too much logic and assuming. Better to be safe then sorry.

You had to give 30 days notice before stopping the safe harbor contributions..... And since the amounts are 100% vested the participants have already accrued the 3% up to today. (As R Butler stated) If you gave notice today you would have to make the 3% contribution for the benefits that accrue over the next month. Am thinking it was notice 2000-3 and 4 - (but I could be delusional and it is somewhere in the regs)

I don't see a problem with it. Since they cover the same group with same eligibiltiy. Just make is clear the notice covers both plans.

Oh Kirk, how could you think that? We would miss you at the WP lunches if you did. ;-)

My guess Kirk is that Lori is referring to a face lift.

Right on the Fica. But then they file to get it back at the end of the year. But Employers can't get it back.

The warn penalty statew you have to pay wages and benefits just as if they were employees for the 60 day period. Seems since you have to do that, the benefits that would include retirement and health and welfare. Kirk Maldonado - can you confirm?

In K plans you are allowed to disaggregate the union and non union groups for testing. The union folks have to pass ADP/ACP testing. You are allowed to have dual formula like you propose and still be safe harbor plan for non union folks. You only have an issue here if you have any union HCEs.

Kirk, I like your method. Getting letter from the doctor will give employer gounds to allow under the plan. And of course if IRS disallows then they have some thing to fight it with.

This could be dangerous area, but who decides what is disfiguring? Do some minor acne scars count if the person is really bothered by them? This is one I hope I don't have to make the call on.

Since it doesn't treat, mitigate or prevent a medical condition I would call it cosmetic.

You're right blinky, must have spaced the fact the original was in 2004 and this is not 2005. wonder if this is how senility starts?

It is common to do clean up distribution in same manner as original, logic being that the entire distribution is treated in same fashion. If the took cash and had tax withheld I would do the same with subsequent amount. If they had rolled the first distribution you would have to issue the second amount as rollover.

You are correct, the audit report goes with the 5500 and the E and SSA are not given to participants. This is the same thing available on sites like freeerisa.com - but they don't show the audit report.

Few years back I worked on a number of VEBAs. In reporting employees on schedule C I used EIN and not employees SSN. We never lumped the employees together. Have seen how Multiemployer plans do the same and use the EIN, but then I have seen them use SSN too. INHO as long as instruction say to list them, I would. This is interesting topic, waiting to see if anyone else was given that advice too.

If SPD says only claims incurred while a participant they are out of luck on claims after date of change. If the have unpaid claims incurred while a participant they need to get those filed before the run out period ends. This would also be in the SPD.

Santo Gold, You are correct. In merger you don't have to vest, and participants have no option of distribution. You would be better off doing merger of two plans rather than terminating one plan. If you terminate one plan and allow participants to cash out you may face serious employee moral problems with the group not allowed access to their money. Employees are like children when it comes to issue of money.

No. Not if paid from sponsor assets.

IMHO you have two options. First, you can opt that the account doesn't cover the fee and you can't do the distribution or second, you can take 100% of the balance and write the remainder off. How do you handle the 1099? Is the gross amount listed the distribution and the processing fee or just the distributed amount? Seems to me if you use the amount distributed and fee as gross amount then you have to issue a 1099 if you do make distribution (and take it all as fees). Wouldn't it be easier to just take a small monthly fee from all and eventually eat up the small accounts?