JanetM

Check the funded status of the plan carefully. Find out the number of contributors, depending on the industry this could be under more pressure than some industries. Find out how the benefit accruals relate to contributions of plan and other contributors. (Have seen were accruals aren't always tied to contributions) Ensure you really want to become a bystander. Once you give the MEP the funds you don't have control over how the fund in run. IMHO run away fast. In full disclosure - company I work for is contributor to 2 MEPs and the situation gets uglier and more expensive every year.

I don't think I have ever heard of time period for transition. Call around to other TPA or CPA firms to ask about adopting their prototype.

Company B would use 001 since this is the first qualified plan they are sponsoring. Each sponsoring EIN starts numbering at 001 for pension/retirement plans and (normally) 500 for health and welfare. When new sponsor takes over a plan, via merger or change in corporate structure you usually end up with new number.

If the disqualified person isn't the plans sponsor good luck getting them to file and pay. It will fall back to the plan sponsor to do.

It is the plan sponsors responsibility to file the 5330. If they had not knowledge of PT they would not file. Not sure what you mean by recourse of the disqualified person. IRS/DOL goes for the plan sponsor for the filing and payment not the disqualified person.

Since you can't have both a 401k and SIMPLE in the same year, you have to "undo" the adoption. I understand you can set up trust before you adopt a plan, but no trustee I have worked with would set up trust months before the plan is effective. No safe harbor notice was given - must note we are all assuming that this new plan is SH 401k.

If all you have is signed plan, toss it and start over. If you have set up trust and have trust agreement and all that stuff you will need to recind those in writing too.

Is the plan sponsor, a fidicuciary, going to be able to document that the move to the bank with attendent higher fees is in the sole interests of the participants? This smells bad. If the bank is going to give company a discount on loan if they get the fee revenue from 401k plan it would be a PT.

Thanks GMK. These days seems millions and billions aren't enough to get people worked up. Now it is trillions...............

Who was it who said "a few billion here, a few billion there, now you're talking real money"?

George, I meant the US bank bail out relating to morgage loans and frozen credit markets. Similar bailouts and backing by FDIC type entities is happening in all corners of the globe. S Korea, I believe is the most recent to guarantee deposits and shore up banks. The effects will be seen when the credit crisis eases, lessening the cost of short term lending between banks and companies. The recent run up in cost is related to drop in funds available. Now LIBOR is dropping and money is flowing. Stock prices are recovering. Retailers are borrowing to buy inventory to sell. The economy will stumble along. How can rate cut or FDIC protection help anyone if no one is lending. FDIC only protects what you don't spend. If you don't spend you don't stimulate the economy. The FDIC move only acted to stop folks from taking funds and putting in the Bank of the Mattress.

Larry, ADP has number of tools on their site. Under local taxes (http://www.complianceconnection.adp.com/Toolbox/LocalTaxes.aspx) there are only local taxing authorities in PA, OH and DE. The state fast facts page is good source of info too. The main tool box is at http://www.complianceconnection.adp.com/Toolbox.aspx. American payroll association is also good place for research - if you are a member, if not call you freindly payroll person and see if they have access to APA site.

Simplistic view - the bailout will increase the liquidity in the market. Helping the stock & bond markets in general.

Looks like the 402g =16,500 and c/u is 5,500

No, nor do you show contributions or distributions on MT. Show as transfers in or out.

With relius you can print the forms to pdf and email. They print sign and mail. Just remind them to either scan it again after signing or make a copy for their records and yours.

The number won't always help. Looks like Frontier Trust was acquired by BISYS who was acquired by Citi. Have you looked into possibiliyt the account was escheated ? If you dad set it up and moved around a lot the custodian may have lost track of him. Normally afer so much time passes the funds are escheated to the state.

Anything can be fixed if you have enough money.

I have done the financial statements and first draft of foot notes for this company for 9 years. The 12 I mentioned are DB - there are 4 additional DC. the DB note discusses market conditions and ends with " .. because the value of assets will change with market conditions the amount of gains or losses that will be recognized in subsequent periods and the impact on funded status and future minimum required contributions if any, cannot be determined". I believe the DC not will have the market conditions language and then end with short line about the the impact on future value of the individual accounts will depend on the asset allocation blah blah blah. That was the gist of the draft note I saw. The audit partner at the firm we use is also a member of the AICPA employee benefit group - they are the ones who update the plan audit guide used by all auditors.

Yes the auditors are over board again this year, my 12 plans are all getting an additional footnote that discusses the market. And yes to the holding all the financial statements hostage until they see september numbers. Someone remind me why I wanted to manage retirement plans and do all the accouting and reporting?

Wonder if the below mentioned Frontier is the same company. 13JUL07: BISYS Retirement Services, a division of The BISYS Group which is in the process of being sold to JC Flowers, has completed the acquisition of Frontier Trust Company from AXA Financial, Inc. With assets under management exceeding USD12bn, Frontier Trust has business lines consisting primarily of trustee and custodial services for qualified retirement plans. Existing employees of Frontier Trust, along with the current management team, will remain with the business and operate as a separate division within the retirement services business.

It wasn't difficult to look them up - they are bookmarked. What caught my eye was that we didn't have exactly the same estimates for catchup unrounded. That is why I looked at the inputs. Saw the difference in the numbers we were using.

Tom, The numbers you show as Jul to Sept are Jun to Aug. The sept number isn't out yet. Are you just estimating?

Ask TPA if they can show you where the rules allow T/ee PA to sign. Stop wasting time on showing them they are wrong, make they prove to you they are corect.

My understanding is this - form of payment is annuity, installment, lump sum.