KateSmithPA

The attachment above also reads, "The plan administrator must keep a copy of the Form 5500-SF, including schedules and attachments, with all required signatures on file as part of the plan's records." Does any one know if these signatures have to be original? Thank you.

I have a feeling this is a stupid question but I am going to ask it anyway. Are leased employees counted in the beginning of year participant count for purposes of determining if a plan is a large plan or a small plan? Thank you.

We have a plan that had spin-off in 2012. The effective date of the spin-off plan is 01/01/2012. The assets were all transferred in January, 2012. We are not involved with the now spinned off plan. For our plan purposes, does our beginning of year participant count include the eligible employees of the plan that left? They were included in our end of year count for 2011, but as of 0101/2012, they were not eligible to participate in our plan. Is it okay to have a beginning of year count that is less than last year's end of year? Thank you.

Would this also apply to a plan that permitted in-service withdrawals from money purchase funds,for participants who were not yet age 65? The correction is to take reasonable steps to have the participant return the funds? They did not adopt the amendment under PPA and HEART lowering in-service distributions to age 62 and were permitting in-serivce distributions from MPP funds for participants who reached age 59 1/2. Can they retroactively amend the plan to allow for in-service withdrawals from MPP funds at age 62?

We have a doctors group with a cross tested 401(k) plan. One of the doctors retired in March. The plan states that you do not get a profit sharing allocation if you are not there on the last day of the plan year, except for death, disability and retirement. So we gave the doctor a contribution. He does not want to fund a contribution for himself. Can he waive his allocation? All the doctors are in the same allocation group. If so, is there guidance? Thank you. Kate Smith

Client currently has profit sharing plan. He wants to terminate the profit sharing and start a SEP. One of the assets in his profit sharing plan is an annuity. Can her rollover his annuity to his SEP? Thank you.

Thank you both for your most helpful replies.

Thank you very much.

Is there a definite definition of fringe benefit? Plan excludes fringe benefits from compensation. Employees earn a "trip award" based on their performance. TPA has excluded from compensation, accountant is questioning. How do we determine if this is a fringe benefit or just a bonus? Thank you. Kate Smith

One of our client's advisors has recommended a type of age weighted or new comp matching contribution. We have never heard of such a thing. Could anyone point me in the right direction for research? Thank you. Kate Smith

This may be beating a dead horse, but we have a similar situation. Woman works for local hotel/restaurant company and has always worked full time. Due to the economy, for the first time, she has been laid off but expects to go back to work next year. Based on termination in 2012, her RBD is 4/1/13. If she returns to work prior to 4/1/13, would she still have to take an RMD for 2012? Thank you.

I attended the advanced pension conference in Chicago and learned during one of the sessions that a plan that holds certain unusual assets, such as collectibles, cannot file a 5500-SF, but must file a Form 5500 instead. Does this apply to a plan that files a 5500-EZ? Thank you.

Thank you to both of you. Kate Smith

We have one company with 5 divisions. 3 allocation groups for each division. Each division decides what their allocation rate will be. The plan as a whole passes the general test. Does each division have to pass the general test separately? Coverage is not an issue. Thank you. Kate Smith

Participant in FSA had lasik surgery in September. They are paying the bill over 2 years. They also have to go back to the doctor for regular checkups every 2 months, I think. Do they have to submit the entire bill for payment in 2011, or can they be reimbursed over 2 years? Thank you.

Participant in FSA has prescription from doctor to take a pilates class to treat arthritis. Is this eligible? Thank you.

Thank you, Larry. I appreciate the response. Kate Smith

If an employer is not concerned about the deduction of the employer contribution, what is the deadline for deposit to the plan. I thought it was the last day of the plan year following the plan year for which the contribution is being made, but I cannot find any reference to that. Thank you. Kate Smith

Thank you. We will look into VCP. I forgot to mention the participants were all terminated.

We have a similar situation to this. We recently took over a plan. There are 4 loans in default, dating back to 2007 and 2008. We do not know if 1099's were issued, or not. If they were not issued as they should have, what is the correction? Thank you. Kate Smith

Why is there no required withholding when distributing to an estate? Thank you. Kate Smith

We have inherited a large plan that uses individual brokerage accounts for the plan's investment. That is, every participant has his or her own brokerage account. Several of the accounts of terminated participants have balances below $10. One of them has $0.83. Is there a de minimus balance at which the participant does not have to be paid out, but the funds can be forfeited? It is clearly going to cost more than $0.83 to distribute that balance. Thank you. Kate Smith

An owner of a company has his plan assets in a self-directed brokerage account. The other plan participants' accounts are at a platform. (Let us assume the other participants were given the option of opening their own SDBA and chose not to.) The brokerage firm will allow the expenses that are due for the qualified plan account to be charged to the owner's personal brokerage account. He will then pay the expenses out-of-pocket and get a tax deduction. Is there anything wrong with this? The plan is not paying the expenses. Thank you. Kate Smith

If a plan has filed a Form 5500 in the past and has never been a large plan, then they may go up to 120 participants before they have to file as a large plan. A 403(b) has filed Form 5500 in the past, but it was not required to file as either a large or a small plan and there was no Schedule I or Schedule H required. In 2009, does the 403(b) plan still get to use the 80-120 rule? Thank you. Kate Smith

This is a very old post, but I have the same question. Participant terminated in 2002 and did not take a distribution (balance greater than $5,000). In 2010 participant becomes totally disabled and requests a distribution. Is this distribution exempt from the 10% penalty? Thank you. Kate Smith