JanetM

Tbob, reread edited post - should have said part not doc. Can't hold note in doc's account. Prior TPA needs to cough up funds to fix doctor, then pursue the participant outside of the plan. That is why they have insurance - to cover errors and omissions.

What if you classified the part of the participants account as loan and the rest as hardship? You have serious problem with prior TPA.

Seems to me the prior TPA made a huge mistake and should be responsible for making the Doc whole. The plan can (if allowed by plan document, if this didn't cross over the end of the year, and if not past end of cure period) reclassify the distribution to a loan and have participant pay back.

I thought you only attributed ownership of sons interest to father if son was under 21. If son is over 21 I don't see any common ownership - so no control group.

Seems like silly thing to do unless there is ER contributions. Something says you can't make them wait more than a year to defer their own pay or at age higher than 21. cites are 401(a)(1)(A)(i) and 401(a)(1)(B)(i). Be careful here, employees must be allowed to defer, but ER can avoid ER contributions for two years. But if eligiblity for ER is 2 years you can't impose vesting schedule.

Our self insured plan has the following language: Treatment for illness or injury arising out of, or in the course of, any employment for wage or profit , including, but not limited to, employment with the Company, without regard to whether such illness or injury entitles the employee or covered dependant to Worker's Compensation or similar benefits. From speaking with others that are self funded, this is the norm for just about all.

Do you ever wonder about the atty's and judges who see/write these? I admit they know nothing of ERISA most of the time, but why don't they ever ask. (am done whining). If it were me I would be on the phone to ERISA councel big guns. You say divorce decree states alt-payee give half back to participant. In 90% of the QDRO's I handle I don't see decree or property settlement. I just get the QDRO. If you had not seen decree, only the finished QDRO, would you ask the questions? Seems to be a lot of this going around here on BenefitsLink. Makes me wonder how many of them are really sham. (Maybe I should start requiring copies of decree and property settlement with every DRO).

why not gross up the amount so that they get the $1,500 and have the proper tax withheld?

Sunguard Corbel has good programs for basics. Go to corbel.com

You will first be wise to find out the funded status of the plan. If the plan is underfunded you will be liable for withdrawal liablility. Depending on which multi this is - the amount could be extremely large. What MEP are you referring to?

I read it to say active does not include those who have incurred break in service and those who received cash out of 100% of balance.

Kevin Wiggins: I may have been vauge. Old DC policy was to make alt-payee wait until participant was eligible for distribution. With that policy we were keeping track of couple hundred employees so that we could notify alt-payee if they were eligible to take distribution. DB plans are different, alt-payee can not receive distribution until participant is eligible for distribution. DC plans were amended to reflect changes and QDRO policy was revised.

voice activated keyboard?

Halka, what is your plan policy on qdros. When I arrived here as plan administrator, one of the staff was keeping track of a couple hundred alt-payees because the policy was the alt payee could not receive distribution until participant was eleigible to receive distribution (just like in the DB plans). Since that was nuts under DC plans I changed policy to treat alt-payees like term'd participants. Your last question - does the Trustee have responsibility. Would depend on if they are directed trustee. Does the Trustee have the authority to act without plan sponsor direction? Is this DB or DC plan?

CS - periods in I.R.S should be italicized. Blinky is busy on anther thread - we should invite him over to see how popular he is

Well Blinky, what do they win?

Are any of these folks related? Father/son?

Being USAF B4 being CPA, MBA I use then cause I can't type

Is CitationSquirrel the same as CodeNut?

Back in the days that I did TPA work, we would consider 2003 final year. Financial stmts and 5500 would show payable to zero out plan assets.

I have been through four IRS in the last four years. They really didn't look at the QDRO's per say, but they did look closely at distributions and documentation. One of the ones looked at was QDRO payout. Auditor just looked to see if it was signed by the judge and filed with the court.

Back in TPA days this happend to one of my clients in May 1999. Small PS Plan - no audit required, trustee/employer directed investments, balance forward accounting. Plan had about 35 lives, the "found" amount was little over $10,000 that had been invested in some kind of 5 year CD. CD matured and bank called. To make a long story short - We split it in half and allocated the amounts to participants in 1998 and 1999 based on balance - just like earnings. Since the turnover at this office was quite low it would have been easy (but not free) to recalculate prior balances so that paid out folks would have received their due. But that is not what the client wished to do in the end.

When I was a TPA we would just pay the residual (clean-up) distribution exactly as the original was done. If they rolled the first one - issue remaining funds to same IRA/Plan. If they took the cash just send them the check.

I too am CPA, now plan sponsor. Do you mean deferrals were never taken or deferrals taken were never deposited. If never taken - it is the employees responsibility to check pay stub for accuracy. If never deposited you have Schedule G and 5330 to file.

In the plans I administer, the logic is if you are paid for 8/31 you are considered an active employee on 8/31. You are terminated at midnight for things like health care coverage and employer contributions. You are considered active on the last day - 8/31.