Jerry Erisa

I have found that TAG DATA is excellent. Quick, authoritative answers, with foundational citations. I use them often, as needed! Jerry ERISA

My question is a follow on, "has the Form 5500 Series changes been approved for the 2015 Form?" I am noticing that Janice Wegesin is providing a webinar on the 2015 Form 5500 Series on Wednesday, 9/23/15. So, either: a). she knows that the 2015 Form 5500 Series is finalized, or b). she will be saying "maybe" a lot in her webinar on 9/23/15 with regard to the 2015 Form 5500 Series? Any other thoughts or observations? If the 2015 Form 5500 Series changes have been finalized, there is a fair amount of operational work to be done to systematically collect the new information. Thank you

In mid June 2015, the DOL has been emailing certain plan sponsors with regard to their 2013 Form 5500 series, where Schedule I, Part II, line 4(e) shows no fidelity bond coverage for the 2013 PYE. Please see ERISA Section 412. The instructions to the letter state the plan sponsor should: a). Submit the fidelity bond coverage documentation via fax or email, within 15 days of the date of the specific letter, or b). If the fidelity bond answer was incorrect, and there was a fidelity bond, the plan sponsor should amend their Form 5500 Series via EFAST2. A copy of the ERISA rider should be forwarded to the DOL, as well. While not a sales person for insurance companies, there is at least one entity that may provide for special situation coverage.

If you remember IRS Notice 2014-35, it stated that if you wanted to take advantage of: a). the DFVC program, with the DOL's (electronic) EFAST2 ,, b). you had to also PAPER file any related (including delinquent) Form 8955-SSAs with the IRS within 30 days. It was a package deal. If you only E-file the Form 5500 Series forms with EFAST 2 under the DFVC, without going back retroactively and picking up any delinquent 8955-SSAs, and PAPER filing them timely with the IRS, the DFVC "deal" was off. Please note, this additional step relates to retirement plans only, and not to welfare plans. Unfortunately, the instructions under IRS Notice 2014-35, still say to PAPER file the 8955-SSA, even though the IRS now mandates the E-filing, of many if not all, the 8955-SSAs. QUESTION: Has this IRS Notice 2014-35 been formally updated and revisited to recognize that the PAPER filing requirement for the 8955-SSA is at odds with the IRS's requirement to E-file the 8955-SSA via the IRS's "FIRE" system?

Took over a new client in late Dec 2014. Was informed in the first half of 2015, that there was a participating ER. Can the participating ER sign the Participation agreement in the first half of 2015, retroactive to the first day of the plan's initial year, i.e. 1/1/2014? Lets assume the client wants/needs the participation of the EES in the participating ER. Thanks in advance for any suggestions!

Situation; a). We understand that under the 401(a)(9) Regs, a formal RMD election has to be made as to the form of benefit. If no election is made, then the default distribution method is the QJSA. b). We understand that the death benefits payable could be (de-facto) forfeited, if the participant chooses a life annuity and then dies unexpectantly. This is not appreciated by the expectant heirs who were looking for their inheritance. c). We understand that RMD election is permanent, with "Re-annuitization" under 1.401(a)(9)-6, Q/A #13 only allowed if: the participant terminates employment, terminates the plan, or terminates his/her bachelorhood and gets married, with a QJSA. d). We understand that a term certain payout of 20 years could be reduced, (if the client changes his/her mind) but not increased. Questions: 1). Is there an easier, operational way to handle this administrative quagmire? We are seeing all sorts of complications with some clients wanting an in-service distribution before the RMD starts, and of course, wanting to change it, as they earn additional credits. 2). On small family plans, it is tempting to merely pay it out as a LSD, roll to an IRA, and let the bank deal with the far simpler DC - Account Balance method of handling the RMD issues? Thank you, in advance, for your client savvy/ERISA conversant solutions to real world issues.

it appears that our colleague in the industry, McKay Hochman, addressed the issue on his website, with a FAQ dated 3/24/15. Thanks McKay/Hochman!

Based on my reading, Qnecs may be included in the ADP test only to the extent they are not disproportionate within the meaning of Treas Reg 1.401(k)-2(a)(6)(iv). QNECs under a Davis-Bacon feature are considered not to be disproportionate to the extent they do not exceed 10% of an NHCE's compensation. A similar rule applies to QNECs that are included in the ACP test. See Treasury Reg 1.401(m)-2(a)(6)(v). So, can the plan administrator use the excess, with an over 10% QNEC, to help pass the ACP test? In other words, can (s)he use the first 10% of a QNEC to help pass the ADP test, and use the last 2% (12% QNEC -10% limit = 2%) to help pass the ACP Test? Thank you in advance for any thoughts or suggestions for resources to consult!!

What does one suggest when there is a prospect with a Board Resolution specifically authorizing an EGTRRA Restatement, but the only signature/date is on the Board Resolution,.. not the four corners of the EGTRRA Adoption Agreement? Thanks for any input!

In the interest of full disclosure, Datair released its 2014 Form 8955-SSA, via its PR Release 1.28.5671 on a Release Notice dated March 4th, and uploaded on March 5th, 2015

Thank you QDROphile and David Rigby for your reasoned responses! For the Site Administrators/site advertisers, this is why I check "Benefits Link" every morning, before starting work. Thanks!! Jerry

Ok,... ....... now the request is to allow, "participants who are former employees, and these (former employee) participants' beneficiaries.. to have an inward rollover INTO the qualified plan. But, I am still concerned as this does not appear to be "pre-approved" language. If it is not pre-approved language, I may be losing "reliance".

a former employee's beneficiary? Has anyone seen this in practice? While we always wish to accommodate legitimate client wishes, this proposed amendment request borders, if not leaps over, into "non reliance" territory!? All of a sudden, we could be (?) accepting de-facto "participants" by virtue that their inward rollover money could be (?) in the plan, regardless if they never worked for the Plan Sponsor. Thank you for your thoughts and comments!

a former employee's beneficiary? Has anyone seen this in practice? While we always wish to accommodate legitimate client wishes, this amendment request borders, if not leaps over, into non-reliance territory!? All of a sudden we could be (?) accepting de-facto "participants" by virtue that their inward rollover money could be (?) in the plan, regardless if they never worked for the Plan sponsor. Thank you for your thoughts and comments!

The IRS released the official 2014 version of the 8955-SSA on Thursday, Jan 29, 2015. All the major Form 5500 series vendors (Datair, FTWilliam, Relius/Corbel ) are probably working to bring their electronic version to the market as fast as possible. I am noticing that some are not ready to release their 2014 version yet. Questions 1). What is the rest of the Benefits Community seeing? One has to fight the urge to compare vendors, but it is a natural business question to wonder if one or more vendors are faster than others. 2). Any information on your preferred vendor? Thanks