abanky

I'd recommend taking the FM and the MLC exams instead of just the EA-1... Even thought they are two exams their passing rate is higher than the EA-1... and It also puts you in a position to go for your ASA if you decide later on down the road to do.

No 415 limit issue... Currently, he's pretty far under the 415 limit, so in the final couple years, we were thinking about increasing his allocation to get him as close to the 415 limit as possible. I wasn't sure if there was some accrual rules that I need to keep in mind when increasing the allocation that drastically.

So anyone sees anything strange in this.... say no other employees.

Say an HCE was receiving an allocation of 50% of compensation per year, what would be the potential pitfalls (other than having to give more to the NHCEs) to raising the allocation to say 75% of compensation?

at 12/31/2008, the plan was 90% funded. The owner passed this week. In terms of pvab, his lump sum payment would have left the plan with zero in the plan. The plan allows lump sums to the spouse. He was at NRA. Can his spouse take the qjsa until there is enough money to pay out a lump sum? or must she continue the qjsa until her death or plan termination? Also, she is also a participant in the plan not at NRA. Side question, assume the same thing as above, but the owner was taking RMDs. How would that be handled?

I have a plan with a 6/30/2009 plan year end... they are currently applying for a distressed termination. They refuse to contribute any more money to the plan (well, they say they don't have any money). Would they still be required to pay an excess tax on the rmc for the 2008 plan year if the distressed goes through?

yes, how about the first rate?

I currently have a end of the year cash balance plan. The AE interest rate is the 30 year treasury with a 3 month look back. The interest rate for crediting interest is also the 30 year treasury. How complex would it be to change from the 30 year treasury to 417(3) 3rd segment rate?

That's what I meant... if the aftap is 79, there is a 436 restriction, so the CB would have to be reduced to bring the % to at least 80. I was just wanting to clarify to myself that a 436 restriction did exist and reduction of the CB would not fix it, than you are not required to reduce the CB.

I know this has been discussed before, but... If the Aftap is 75 w/o cb, and 71 with cb... there doesn't have to be a deemed reduction of credit balances, correct? however, if the Aftap is 81 w/o cb and 79 with cb... there is a deemed reduction of cb to get the aftap to at least 80, correct?

I like how there is free shipping...

thanks guys, That is what I thought the answer was.

Does a pbgc covered plan have to terminate with the pbgc approval or can it just be terminated and paid out?

I have a cash balance plan with 4 HCEs and 10 NHCEs. 2 HCEs want to leave the company and start their own company. The plan has a shortfall. Can the 2 hces that are leaving waive part of their benefits so that the other 2 hces aren't on the hook for it?

Is the IRS program only for terminating plans?

Jay, I created this spreadsheet... (It's a variation of something relius was handing out). Let me know if you agree or if it's even close to calculating quarterlies right for both BOY and EOY. Thanks, Andrew NEW_BOY___EOY_Contributions.xls

Can anyone help me understand this? I have a DB plan that terminated and paid all participants out on 5/16/2008. We promptly filed the 2008 Form 5500 for the final filing. Basically it was a 2007 form with the 2007 crossed off everywhere and 2008 replacing it. We had done this before with no problems. I got a letter today... 11 months later, saying they could not except the schedule B... it had to be an SB. (I am aware of the notice that went out saying they won't except SB. Does any one remember what it was called?) My question is when did they officially release the SB? Am i suppose to use the PVABs as the funding targets? anyone else dealt with this? Andrew

That's the exact reason I was thinking this whole thing with eoy plans is crazy. Thank you very much for you help.

follow-up 1) form 10 is due 30 days after the quarterly contribution is required, so if we don't hear anything soon, we should file them soon for 4/15 quarterlies. Correct?

Yes, we are still doing end of the year valuations for all of our plans under 100... I have several questions: Am I correct in the following assumptions? 1) All plans regardless of size are required to have quarterly contributions for the plan year following a plan year with a shortfall. 2) For an end of the year plan with prior year shortfall, even though, the 2008 required contribution has not been calculated until after 12/31/2008, contributions were still needed to be made on 4/15/2008, 7/15/2008, 10/15/2008 and 1/15/2008. These missed payments are then penaltized. follow up questions. 1) Do pbgc covered plans have to notify the pbgc of missed quarterlies with form 10? 2) Is the 5% penalty applied the same way as for beginning of the year plans? Thank you, Andrew

I have a plan with 2 year eligibility. I have a key who terminated in 2008 and worked 1000 hours. He took an immediate distributions. He now is planning on returning in July,he will be working full time but will not be a shareholder or officer. My questions are these 1) is he a still a key? 2) when does he reenter the plan? Thank you, Andrew

Does a valuation need to be performed every year for a frozen plan with one participant?... mainly, in regards to the Schedule B

thank you very much.

In the components of net periodic benefit costs... is net loss (gain) 1) unrecognized (gain) loss / future years of service or 2) the difference between the actual return on plan assets and the expected return

Is it true that only PBGC covered plans need to complete this? Is there any other exclusions?