MJ Hartman

why is it taking 1 hour to get document downloads from relius asp? i realize there is traffic due to cycle 3 restatements but this is unbelievable

I had the same issue a while back. Service provider (bundled) taking over a plan called and said the restatement for EGTRAA doc. was signed late (Feb. of 2010) and needed a VCP filing. these vendors have people who do nothing but go through a checklist and if it doesn't match up with what they see its obviously wrong in their world.

In the process of preparing a loan form for one of our platform 401k providers, it appears they deduct the loan processing fees from the loan check, thereby netting out the amount a participant will receive. ie a person requests a loan for $5000 but receives a net check of $4900 after fees are deducted for processing. however the platform deducts their loan maintenance fee quarterly directly from the participant's account on the 401k platform. How is this correct when it was my understanding that fees are not taken into account for tax purposes when receiving a distribution from a plan but a participant is somehow obligated to repay the administrative fee to the plan when taking a loan. The platform is also including any express mail delivery fees to be deducted from the loan check amount as well. If the participant has no ability to receive this $ in the actual loan, why are they obligated to repay it as part of their outstanding loan ??

thanks! this felt like an asppa test question and I'm still tired from 5500 filings!

ira owner born March 1941 dies 7/2011. spouse gets the inherited IRA in 2011. does she need to take an rmd in 2011 or can she wait until April 2012 if she isn't born in 1941 or later and base it on his rmd age 70 1/2. no rmd taken by 2011 prior to his death in July. does she even need to take an rmd?

thanks Tom. I'll send in the certified mail receipt that we sent in on behalf of all of our clients we filed extensions for. (we had many extensions due to our oh so fine 5500 software being so late in working correctly) along with the copies of the extensions that we filed. can't wait to see how many of our plans get this letter.

what's the story with the irs now sending out letters to clients that filed extensions timely, filed their returns through efast with confirmations of receipt and being told their returns were received late? why is it we are constantly responding to erroneous gov. correspondence that takes more time to prove we were meeting all of their "rules"? I thought this new system would eliminate all of this?

has anyone tried to file a return directly in the dol website using ifile? I just spent a good hour loading up a late return for a client (yes they gave me all of their filing info so I could log in on their behalf) what a nightmare! there is no way this is going to work with the general public... I have never encountered such a contrived process to file an informational return online.

called UT yesterday and explained the sequence of letters received. I was told to ignore the $15k penalty letter, that they would receive the updated correspondence that was forwarded by the client indicating the proof of DFVC filing prior to the date that the penalty would be applied... I didn't get the excuse that they were backed up in their scanning, but its pretty obvious that things are very much out of synch in their processes. are there planes flying low overhead there too?

my client got a letter from the IRS in Dec. stating their 5500 for 2006 wasn't received and they could file under the DFVC. the client filed immediately under the DFVC & filed the forms correctly and paid the $750 to the DOL client got another letter from the IRS dated Jan. 26th 2010 saying they needed a copy of the cancelled check and the form letter was asking for an explanation of the late filing, reason for delay, the name of the person involved causing the delay and if the person had the sole authority to pay the taxes... responed to that letter today (2/16) client just got another letter from the IRS today with a $15k penalty (dated 2/15/10). they refer to a proposed penalty notice CP213 ---- never got this letter. what should they send now?

update. talked with one of the brokers (of course there will be more than 1 involved). now they tell me there will be 3 hce's in the 412i plan plus the 2 nhces. I still told them thanks but no thanks. Any takers?

I'm not! thank you for the response; I have decided not to accept this plan as a tpa, there are too many issues that aren't making sense per what the attorney, the investment advisor(s) the actuary and the client are telling me.

I have been asked to draft a 401k s.h. match plan that will only cover hces' (7 hces)as the nhce's (2) will be covered in a 412i plan. no hce's in the 412i, just the non-highlys another tpa will be administering the 412i plan (actuary) I know that you can set up plans that just cover the nhces using a s.h. 401k plan to load up the db plan for the hces., but this is a new one to me. I know that coverage should pretty much pass. they are telling me the excluded staff aren't excluded by any classification of employee in the s.h. plan; I don't know if they will be cornering them in the parking lot to make them sign an enrollment form not to defer or are actually expecting to just exclude them altogether. this type of design just seems fuzzy, maybe its the 412i portion for funding? any comments would be appreciated.

my guesses are: #2 Casablanca #18 The Fly #20 Taxi Driver #9 is a real long shot; Monty Python & the Holy Grail???

I just got our new quote for e&o coverage for our tpa firm. premiums up 45% from last year? I realize that the premiums increase when our annual revenues increase, but this is unbelievable. is this standard practice? a $15k deductible is in place and the vendors we work with (Nationwide, Hancock)_require 1million in coverage... in business for 6 years and 25 years of admin. experience and no claims... this seems unreasonable. any comments? thanks.