JanetM

Good point Katherine. Ntutini - you don't have to have the "exact" same benefits for both companies. There are discrimination tests that must be passed, but you have until 1/01/07 before the control group rules would apply. Have you considered negotiating with the current providers to continue coverage for a while. This would give you time to study the issue and make better informed decision.

Hey Forms, Did someone tick you off today? How about a little tolerance..........

This may be a simple answer........ but did you ask them? Did you look on Freeerisa?

Was it a stock or asset deal could be the first question. If stock deal they continue the benefits they had before. If asset deal it should be addressed in purchase agreement.

quint, I see your point. There have been times I followed GBurns around the boards honing my antagonistic and hostile skills.

I don't. You must have a warped sentimental streak quint.

good point. Has been long week. This HCE doesn't have too many options in qualifed plan.

Why not make elegibility one year of service. That should exclude lots if there is high turnover.

He has only a few options, none of which are free. Automatic enrollment. Safe harbor match. EDUCATION on advantages to participating

Perplexed, if this plan has been around for a few years these hourly folks must be union. Union are disaggregated for testing. There is not reason to exclude any hourly or union folks from the plan. Why not try the asset angle. If you allow these hourly folks to participate the assets will increase faster and the fees will go down in the future.

First, if you are just selling assets and the buyer is not taking over union contract there is no transfer of liability for withdrawal. Maybe I don't understand the fact pattern. If buyer triggers a withdrawal in the following five years the liability will be calculated using the method specified by Plan. Could be based on % of contribution dollars or hours contributions were based on (aka contribution base units). The determination of the final liabiltiy belonds with the Plan. If withdrawal is partial it can't be calculated until the year following the year the withdrawal took place. The bond amount would be calculated based on the Plan in total. For example, Central States and Sheet Metal Workers have huge unfunded liabilities.

calcu, You have it exactly right.

You don't add the balances for HOB. Look back at total of all loans outstanding for the last 365 days and see what day had the highest balance. That is the number you use to see what amount is available. Jquazza is saying that six months ago the HOB for loan was 40K, now the balance on that loan is 10K. Today you look at 40K as HOB. There is 10K available for loan. new loan is taken current (for both loans) balance is 20K). The HOB for all loans during the past year is 40K.

Chaos, By that interpretation all employees who are termed and sign the release to become participants will forever be participants. You can't pay a participant until they cease to be active participant. Your interpretation says they don't become participants until they terminate. Since they are not employees of the sponsor how to suddenly become eligible to receive benefits from the plan? Am I misunderstanding you?

We do snapshot count on last day of the year and count all those who are elibible to receive the benefit. Our interpretation is that the count is of active participants who have not been severed. Those servered have recieved a benefit and no longer eligible. How does the document define participant? Does employee become participant by virture of employment or at the time of termination? Our plans state you become a participant after 1 yr service and remain a participant until you quit or are terminated.

Are you looking at sponsors financial statement footnotes on FAS87 or the Plan financial statement foot notes?

Are they saying the income/expense for the year is recognized in statements?

You will only have schedules if the plan is funded. File the 5500, indicate it is funded from general assets of the sponsor.

Watch his mail for statements. Go to unclaimed funds websites. Go thru old bank statements, you can get them from the bank, to see if there were contributions made.

I agree with Katherine. Yes the plan sponsor should be able to complete the 5500. They should also be able to file their own 1040 - but look how many use professionals... they are afraid to make a mistake and it will cost them money. Sad part is many plan sponsors who do their own 5500s get in trouble with IRS and DOL.

Are there any earnings that are taxable? Am thinking that any distribution from plan needs to be on 1099R, even if nontaxable. But an at a loss to find a cite for you.

Or have them return the most recent net pay to the company and then just void that and reprocess so it goes thru payroll. We did this with year end bonus a few years ago. Payroll forgot to ask exec staff if they wanted to change deferrals for bonus.

Any word on when the guidance will be out?

You don't HAVE to merge the plans. The window for not having to aggregate for testing is the close of the plan year following the year of the merger. Aggregate the plans and see if you pass coverage and discrimination testing as control group. If not you may not have better luck after merging the plan.

Even if the plan was EZ with less than $100K, you still have to file final 5500. Don't forget the proper amendments/resolutions need to be done also.