Jim Chad

Can someone tell me where I can find the details of the current rules for electronic distribution?

When reporting DIA's in brokerage accounts, do we have to look at individual stocks or just mutual funds?

FWIW my distribution fee is in the American Funds Direct notice.

I just printed the 404a disclosure including glossary from Great West and it is 42 pages! By using the ASPPA Glossary, I can reduce it all the way down to 36 pages! I expect some clients are not going to be pleased when I tell them to make copies and distribute to all of their employees. Some will probably ask "What happens if I don't do this?" What are you all going to tell them?

A new twist for me. A Plan is Safe harbor for Hardship. An employee wants to move. He has an FHA loan on the house he is trying to sell. To get a FHA loan on the house he wants to buy now, he needs to pay off the old FHA loan. Can he take a hardship dist to pay off old loan and enough for a new downpayment?

No. All 408b disclosures go to the sponsor of the Plan, usually the Employer.

Being picky, I know. But just want to remind you to think of HCE not Key. And yes, I think you have it right.

Austin: I think you are on the right track. I am doing it basically your way.

FWIW - I think someone in my office will be putting together excel spreadsheets and we will charge by the hour to do this. I need to vent. WHAT AN INCREDIBLE WASTE OF MONEY? WHY DOES THE DOL WANT EVERY 401(k) PLAN CANCELLED AND REPLACED WITH A SEP OR SIMPLE?????? Thank you, I feel better now.

I have hard a lot of good from people who use 3 sources. Sungard ERisa Outline Tag data

I use words "withdrawal" and "distribution" interchangeably; as if they mean the same thing. But sometimes, I hear people use them as if they have very different meanings. Can anyone explain the difference to me?

I think the answer is yes and no. Here is my take, FWIW First a hint that helped me keep straight which is which. 404c was voluntary disclosure to Participants. 404a is mandatory disclosure to participants. and 408b is the other one... disclosure to Plan sponsor. Now to your question. 408 requires we disclose what we expect to receive annually. I think we can give the same notice every year, until there are changes. 404 requires we disclose what we received to the Participants and I expect the plan sponsor will always see this. Anyone else have a different take?

Back to the original question: I have never heard of such a requirement.

Any thoughts anyone?

It's been a few days. Any additional thoughts, anyone?

I have several small plans where each Participant has his own brokerage account. Do we have to list the fees to buy and sell stocks and bonds or is just stating that there is a $25 per year fee enough?

I think I am getting a pretty good handle on what needs to be disclosed as far as compensation for the TPA (me) and the CPA doing the audit on large plans. But I have almost no information on what needs to be disclosed as far as comp for the investment adviser and the investment company. Are the prospectuses sufficient?

FWIW I believe that 404a does not apply because there is no Participant direction of investments. But 408(b)(2) does apply.

For 404(a) and 408(b)(2) disclosures, do Individual annuities = brokerage accounts? How about an individual account at a mutual fund? I have a plan with 4 participants where each person went where they wanted. 2 have a mutual fund family and 2 have individual variable annuities.

FWIW If they are able to defer, than, yes. Otherwise I think not.

This is an operational failure and the Participant should get exactly what the document says. So I would correct it first and then do all testing based on the correct allocation. Good luck.

I don't think so. But why would she want to defer when she is in the zero tax bracket?

FWIW I think she is eligible for TH.

FWIW I think the earning are Ok and do not need to be fixed. I would simply reclassify the current value of this money as Match.

Hey Tom, congratulations!!