RestAssured

Hi All. I have a client who performed an In-Plan Roth Conversion (IPRC) a few years ago. He was in a segregated account and even "carved out" that portion and opened a separate segregregated acct just for that newly-roth money (which is still inside the plan, keep in mind). Fast forward to now, and client is changing investment custodians. The new custodian is saying they won't accept this Roth segregated plan account because it's Roth conversion money. Is this something you've heard of? What can we do, besides finding a new custodian? My client has always been a little nervous about the IPRC, and now his fear is being proven. He is worried that when he finally rolls all his money out of the plan, he will be taxed again on that part which has already been taxed! Thanks all!

Thank you ESOP.

May I ask a related question of you guys? My client cut deferral checks to the brokerage firm/custodian in a timely manner. Each employee has a segregated account at said firm. The brokerage firm did not deposit a few of the checks for exorbitant amounts of time (one was 60 days later!). Where can I read more about this topic? And ... What is the remedy? Does my client need to formally ask for the brokerage firm to calculate & credit the employees' accounts with lost earnings? Thank you so much. I may copy & paste this question into a new topic, but this thread is somewhat related.

Yeah, I know an hour is wishful thinking.... silly me My main objective is to give the trustee confidence in either decision, keeping the stinky asset or forcing its sale. Read: confidence in ME so I don't lose a client. Because we all know that no matter what the situation, the TPA gets thrown out. At least it's happened to me...

Thank you ESOPguy. I think this situation is above my pay grade as well. I may spring for an hour's consultation with an attorney, though. I don't want to lose a profitable client because I don't seem confident in this matter. I appreciate everyone's thoughts and replies. Even you QDROphile.

Thank you for your replies. IS there a PT with the *participant's* spouse's employment at the bank which is an asset of the Holding LLC that said participant owns? Thanks a million.

QDROphile, I don't know if you were *trying* to be funny by saying I should puke, but it was not funny at all. How silly. I was simply trrying to be light-hearted in saying that I was nauseated. I also went ON to state that I think I've probably overlooked something. I was hoping that my colleagues could give a simple answer, such as mbozek did, as to a new way I could approach this issue. I'm sorry if you're having a bad day; you're typically a big help on these forums but this time you've been 'less than helpful'. No thanks to you. Mbozek, thank you. The trustee takes full responsibility in not educating himself of the investment before allowing T to invest. "Clearly a fid should be able to expunge/sell an investment if it is a PT or could subject the plan admin to a breach of fiduciary duty in allowing an impermissible investment." <---- I totally agree, no question. Does the fact that T's wife works for the Holding LLC's holding (the bank), make there a PT? I am pretty sure the Trustee here would love to get rid of the investment, we're just looking for a way to do so legally. Having there be a PT would be the grounds for the riddance of the asset. So the main question comes back to, could this be a PT? Thanks again Mbozek.

This Plan has many participants, each of whom has their own FBO account at a brokerage firm. This plan is considered 404© and a Participant "T" was allowed to invest in shares of a partnership in 2010, using his own balance of course. Many things have been squirrely with this transaction. For example, when purchased, the shares were titled in "T"s personal name and it took 4 years to get changed. Also, K-1's have just been obtained for all the years, and it took pulling teeth to obtain them. The icing on the crappy cake is that it has come to light that the Partnership owns a bank where T's wife was an officer. May the Trustee of this Plan "revoke", "recall", or otherwise force the sale of this investment (partnership shares) at this point? I have a feeling there is a Party In Interest here, but I can't decide b/c the PII is not related to the Trustee/Fiduciary of the Plan; she is only related to T. My client, the Trustee, is highly agitated and understands that he should have done more research on the front end, but what can he do NOW? Thanks for any and all advice. I've been reading legal-eze until I'm almost nauseated, but I think I'm overlooking something really obvious. Thanks.

Hi all. I recently posted under "Operating a Consulting or TPA Business", but I am still a little nervous about my new venture. Long story short: I have been a Qualified Plan DC TPA for almost 16 years, and love it, but need to increase my income. Someone approached me about needing someone to simply manage insurance premium payments and that little acorn has morphed into a full blown oak tree.... adding cafeteria plan admin to my existing menu of services. Is there ANYONE out there, maybe in the Pacific Northwest that would be willing to be an occasional 'mentor' to me? I say Pac NW b/c I'm in the SE and don't want this to be misconstrued as price fixing or client-stealing or ANYthing nefarious. I just need some reassurance that I'm on the right path, some guidance on marketing my services, and some pointers on education. I don't like reinventing the wheel. And I am willing to pay for your time! Thanks, and I hope this isn't too far fetched of an idea, but I'm ready to get this thing going, I just wanna know I'm going in the right direction!! Thank you!!

I'd LOVE the handouts Flyboyjohn, thank you!!

I had pretty much already decided against offering a Trust, b/c of all those extra regs. My follow-up questions are: Will the employer be ok giving me access to his business checking? Do I need to get a Bond or something similar?

Well, qdrophile, I pride myself on being very compliant in ALL that I do! I do not run a shoddy firm, nor would I have been in business as long as I have if I did (I hope!!). I am immersed in learning Cafeteria Plan rules & regs right now, but do you have any ADVICE or something specific I should read?

Hi All. I have been strictly DC admin for 15 years, and am now offering Cafeteria Plan administration. What have you all experienced in this regard? Am I crazy, or smart?! Thanks!!

My "strange" questions/problems seem to be coming out of the woodwork along with the pollen!! I have a doctor's group that for several years has been a quasi self-directed. Meaning, there are 5 different accounts set up from which participants may choose to go into, based upon their risk tolerance (ie, high risk, moderate, low risk, etc.). They have been able to change 2x per year, and I prepare a year-end allocation report as well as a mid-year. The doctors wish to change from this set-up to a plain Trustee-Directed account. Do I need to prepare a Blackout Notice? My inkling is "no", but I do think that some form of a notice must be given. Please help! Thank you!!

BG5150, while this was my thought too, on a serious note ~ can I just tell her that without being able to locate her at that time, her money was forfeited to remaining participants, and the plan and employer have closed? Thanks!

Nope. They are closed up. Did I mess up?? If so, I may need to send her $217, although I reeeaaaaalllly don't want to. Hopefully I did nothing wrong ~ I am also curious, if I 'did' mess up, what would have been the proper thing to do? File an SSA with the Final 5500? Thanks for your answers!

Well, no. We forfeited her balance back to other participants in the year 2000, after strenuously trying to locate her. Didn't think about it in 2005 (approx year of termination of plan).

I filed a Schedule SSA with the 5500 of a PS 401(k) back in the year 2000, for a missing participant with a balance of $217. Since then, back in the mid-2000's time frame, this plan closed. This girl's $217 was not a thought in my head, and guess what? She has filed for some sort of SS benefits, and they've given her notice that she has $217 in this old, closed plan. What do I tell her? Thank you!!!!!!

Hi LangLang. What was the outcome of this situation? I am curious too! Thanks!