Pension RC

I am working on a plan that requires 1950 hours for a year of credited service. I thought that it couldn't exceed 1000 hours. Can it? Can someone point me to the right section of the IRC? Thanks for any responses!

A DB Plan is terminating. Are the actives offered annuity forms if their lump sums don't exceed $5,000, or are they treated like terminated participants, who just get the lump sum option? Thanks for any responses!

I'm involved in a PBGC plan termination. A terminated participant would like to receive a lump sum, which is allowed under the plan. However, the participant notices have been distributed and the Form 500 was recently submitted. The participant would like, if possible, not to have to wait until the end of the 60-day review period. My reading of the Form 500 instructions is that this is fine since it is a terminated participant. Am I reading this correctly? Thanks for any responses!

Thanks for your responses! The specific question now is - why is it reported on the 1040 and not on 1065? Is it that reporting it on the 1065 will reduce the net schedule C income, which will, then, reduce the medicare tax?

My understanding is that the pension deduction for a partner should be reported on that partner's 1040, but the partner's accountant thinks that it should be reported on the K-1. Does anyone have a citation that states how it should be reported? Thanks for any responses!

Line 9 on PBGC Form 500 asks for the percentages of the active participants who will be covered by other plans. I assume that this refers to other plans sponsored by the same employer who sponsors the terminating DB plan - correct? Thanks for any responses!

A plan participant just passed away and there is a non-spouse beneficiary. Assuming that the survivor benefit will be rolled over to an inherited IRA, is there any time limit on how quickly this rollover needs to occur (other than the 12/31/2017 distribution deadline of the first RMD)? Any responses would be appreciated!

Thanks, rcline46. Good point. I just made that change, but my software is still giving me an error. Any suggestions?

We have a DB plan that has a 9/1 - 8/31/ plan year. Therefore, its 5500 filing date is 3/31 and, each year, we have filed a 5558 extending the deadline to 6/15. The plan terminated 8/31/2015 and, In late December 2015, the last participant was paid. Therefore, the final 5500 is for the short plan year 9/1/2015 - 12/31/2015. When I try to prepare a Form 5558 using our government forms software, I get an error stating that I can't extend the deadline to 6/15/2016, as this doesn't sync with a plan year end of 12/31/2015. Should I just override the software, as it doesn't recognize that the 6/15/2016 really is valid? Any responses would be appreciated!

Can anyone point me to a chart with the PPA restatement deadlines for various types of plans? Thanks!

Thank you both!

My understanding is that if a person has 5 IRA's and he rolls over the funds from one IRA to his other 4 IRA's this doesn't violate the one IRA rollover per year rule. Is that correct? Any responses would be appreciated!

Two employees were hired some time ago (maybe a year ago). They started part-time and, therefore, were considered ineligible to participate in the match. It turns out that they both were, in fact, eligible. Therefore, the company will be correcting the failure. One of the employees is truly a new hire and the other is a rehire. The new hire wants to start her match at 8% and the rehire wants to start it at 15% (which is what he was doing before he left the company two years ago). The question is whether the company’s correction must be based upon the 8% and 15% or can it be based upon the 3% match which is part of their automatic enrollment. Thanks for any responses!

I am preparing PBGC Form 501 for a DB plan that terminated and has paid everyone out, with the exception of about a dozen missing participants, who will be reported on the Schedule MP. A Form 5310 was filed, but the determination letter hasn't been received yet. My reading of the PBGC Form 501 instructions is that for line 3b (Date of receipt of IRS determination letter), if the plan isn't relying on the distribution deadline based upon receipt of the determination letter, line 3b can be left blank. Is this correct? Thanks for any responses!

Yup. Thanks!

Where can one find the non-relief funding segment rates for January 2014?

If a plan terminates 12/31/2014, then, on the 2015 5500-SF to question 11 ("Is this a defined benefit plan subject to minimum funding requirements?") would be No. Is this correct? Thanks for any responses!

I am involved in a DB plan termination. A couple of participants are non-spouse beneficiaries who are receiving the remaining portion of a period certain annuity. If there choose to rollover the lump sum value of their annuity, would it need to be to an inherited IRA? Would they be able to roll it over to the company's 401k profit sharing plan? Any help would be appreciated!

I am working on a DB plan for a self-employed individual. Assuming that he doesn't go on corporate extension, we can still extend his 5500 deadline, which will enable him to make his 2014 contribution until 9/15/2015 - it will just need to be deducted for 2015. Is this correct? Thanks!

I am involved in a plan termination. We recently mailed the NOIT, Notice to Interested Parties and NOPB's to 67 of the 73 participants. However, we were unable to find addresses for 6 participants after asking the plan sponsor and using a commercial online locator service. I understand that we may not have fulfilled the diligent search requirement yet, as we haven't yet inquired about any beneficiaries. Must this search be done by 60 days prior to the proposed termination date in order for the notice mailing to be timely? From the PBGC standard termination instructions, I get the sense that it only needs to be done prior to filing the post-distribution certification. Is that correct? Thanks for any responses!

Can someone point me to the source that a plan administrator has a responsibility to contact terminated vested participants upon their reaching normal retirement age? Thanks!

When doing a valuation for a new solo-practitioner DB plan, where there is no past-service, we've included the current year comp in a BOY val for the first year, but not for the subsequent years. I assume that, if there was past-service, then it would be inappropriate to include current year comp even in the first year (with a BOY val). Is this correct? Thanks for any responses!

I am working on a new 1-person defined benefit plan (effective 1/1/2013). Form 5558 was filed, but, ultimately, the contribution was less than $250k. Is it okay not to file a 5500-SF, or should it be filed since the 5558 was filed? Thanks!

I recently heard from an administrator, that the eligibility of a 401k/PSP was amended from 1 year to 3 months, effective 1/1/2013, in order for the this plan, together with the DB plan, to pass the coverage test. The administrator said that it was okay to still adopt this amendment, since, as a corrective amendment, the deadline was 10/31/2014. Is this deadline correct? If so, can someone point me to a source? Thanks a lot!!

Thanks for your all your responses. Our TPA firm wasn't involved in 1987, but I will share your suggestions with the plan sponsor.