doombuggy

I e-mailed the thread to boss lady, and she is asking if anyone knows if the 9/15 min. funding deadline has been extended. We have DB & DC plans (i work on some DCs) here, and she is concerned about the funding deadline next weeks for the DB and MPPs. All and Any help is really appreciated. Thanks!

This is great news! Our boss has been calling Washington, trying to get some help on this. I will pass this news on to her.

Anyone else? I was looking for info regarding the filing of Form 5500, and not necessarily tax deposits. We have some plans that are on the 5500 extension (5558s were filed), but we are looking to see if the October 15th deadline has been extended for us. We got some Frances, and are now watching Ivan.

A participant took out a loan in Sepember of 2001, and terminated in the month following the distribution. It looks like he never made any payments on the loan, so it's in default. He has an account balance, besides the $8000 loan, of under $5k. Can he be forced out of the plan? I am thinking yes - what do you think?

I recently changed r/k firms and moved here to FL. We got hit with Hurricane Charley three weeks ago, and may get Hurricane Frances this weekend. We still have 5500s that we are working on (or waiting on info from various sources). Does anyone out there know if the IRS grants additional time when you are located in a federal disaster area? I know they did this for those in the NYC area in 2001. Opinions? Or if you know who, where we can contact the IRS to get some info on this topic? Thanks for your help!

a client has called me asking if they can contribute employee bonuses that they are going to be giving 100% to the plan. I was thinking that this is not allowed. Am I correct? The adoption agreement has a question that says : May partiicpants make a special salary deferral election with respect to bonuses? No. The plan only allows for deferrals up to 25%, so if this employer wants put the bonuses in the plan, he can only do so according to the percentage that the employee has elected. If participant/employee A has elected to defer 10%, than only 10% of his bonus should go in there. The plan has match, so i assume that the bonus should be matched as well (up to the limit). Am I on the right track with this line of thinking? Thanks fo ryour help!

If only the EIN has changed, is that the ONLY item I should be entering on the amended returns in part II of the form 5500? Maybe this address problemis moot, b/c I don't need to put that on the amended return??

I have been asked to amend the 5500 for 1999 - 2002 for an off calendar plan year. The sponsor/employer's EIN changed, and they never notified us about it. They have been advised to amend the 5500 to show the correct EIN. My problem is that last month, they moved. Which address should I put on the amended returns, their address that they had at the time (their old address), or their current address?

You can order old forms from the IRS directly by calling 800-829-3676. I called first thing in the morning about 3 weeks ago (we are talking 8am or so), and had virtually no wait. I ordered forms for 1999 - 2002 for an off-cal. plan year like yours. They will have to be completed by hand or typed, but I only needed the 5500 itself.

One of the plans that I TPA is going to terminate. I found this out Monday. They got bought out on 3/26, and want this done yesterday. The plan sent in their last contribution already (I found this out yesterday). They have about $1300 in forfeitures from a distribution done last week, and one done about three weeks ago. The plan document says that match forfs are used to reduce; but no more contribuitons are going to be made. It is ok to spread these to the 25 remaining participants (who will become 100% vested) prior to the termination distributions? While I am on the topic: The plan has three trustees. One retired in February and the other two have resigned their "posts" at the company. The plan doc was not changed yet for teh first one, probably b/c they knew this buy out was going to happen. They have elected to amend the doc for the termination instead of waiting for a determination letter (I know, against our advice). Do all three trustees have to sign the amendment & resolution? As far as I know, only the one who has retired is willing to offer her services (so to speak) and sign all the papers & checks. The other two feel that since they no longer work at the co, they no longer have fiduciary duties. We told them that this is not so, but it sounds like they don't care. The CFo is hounding me for the resolution & amendment before he goes on vaction on the 14th, and I don't know who needs to sign! Help!

Line 7b says "retired or seperated participants receiving benefits." For a 401(k) plan, does this mean we should be listing only those people who are recieving annuity payments? If a person is retired or seperated, has an account in the plan, but has not taken a distribution, shouldn't they be listed on the next line, 7c? (other retired or seperated participants entitled to future benefits). I ran a 5500 Count report on Relius and it is plugging numbers into both lines, but I think they should only be on line 7c, as this plan does not have annuity payments. Your thoughts? Thanks!

I received a message from a plan participant/trustee this morning in regards to his possibly taking out another loan from the plan. The plan allows for up to 2 o/s loans at a time, and has no limitations on the purpose. He was asking about the terms of a loan for the purchase of a primary residence, so I am assuming that this would be the reason for the new loan. The problem is, the loan he took out in 2000 was for 15 years and the purpose listed is "real estate expenses." Since the lengh of the loan was for more than 5 years, I would assume that this is for a home purchase. Could he take out another loan to purchase a primary residence, even though his first loan is for same? My concern is that he has two loans of the same "type" o/s. Thanks for your help!

The plan allows for matching and p/s allocations to persons who are totally & perm. disabled (and are not actively employed at pye). Also, the vesting schedule does not apply to a person who is totally & perm. disabled. I assume that this is the issue the client is worried about (they did not give me the partiicpant's name, so I am just assuming this). I guess if his account is still active (meaning, he has not been paid out yet), and he is now listed as totally & perm. disabled, he would be entitled to the entire account balance, and not just what he is vested. Given that the SSA letter is retro prior to his termination from the company?

A client called and asked me about a participant who was disabled a couple of years back. He was out of work, and was eventually terminated in 2002. This person is apparently receiveing COBRA from this company, and was recently looking for an extension. This person apparently has turned in a letter from Social Security that states he is receiving benefits as a perm. disabled person. The letter is from October 2003. My client's question is this: Since he is condsidered perm. disabled by the gov't, should he be considered so in the 401(k) plan? My answer was no, because he was terminated prior to his status being changed to perm. disabled. Your thoughts?

All the replies here have been great. I took one of the CEEBS exams in the past, but then come to my current company, and they really pushed for ASPA designations. I am waiting on my QKA certificate as we speak! Sal's books are great (although quite large). A must for every desk of an administrator! etu22: Definately try the take home tests that ASPA offers (PAs and Daily Val). The books are great reference books (even though they are a bit basic). You should definately take these tests before trying the harder ones. Good luck!

The "recipient's Name" box on the 1099 MISC does have the plan's name. I have a feeling that the ID number on it might have been the EIN of the former plan. Thanks for your help!

A client of our received on of these from Turner Investment Partners. The client received a "dividend" check from them in late 2003 for $47. The check was deposited into the profit sharing portion of this plan (has a 401(k) feature as well), as that has the Turner fund that this goes to. I am not sure what to do with this 1099. The "recipient's identification number" is not the trust ein that I have on record. Any ideas? Thanks for your help!

I usually tell my clients that they should give the participant at least 30 days to respond. I do have one client that likes to give them at least 60, but the majority go with 30 days. The letter gets sent out from the trustee (not me, I am just the lowly TPA) and we recommend it get sent via certified mail/return receipt. The letter staes that the partiicpant has 30 days or whatever the specified period of time is to respond, or a lump sum check will be issued. I think my clients give a few extra days allowing for mail before sending in a completed form signed by the trustee to process. i am not sure if this helps you, but it's my two cents.

WE do, but I think that is b/c we were bought out by a bank and they require us to do everything they do. In this case, that can be a good thing. But they also require us to pass tests on GLB Privacy Act, Bank Secrecy Act, Right to Finanacial Privacy Act, etc...see where I am going with this? Sorry I am not much help for you.

Thanks for your help! Now if i could only get Relius to post their forfeiture spread! Thaks again!

I have a money purchase plan that adds forfeitures to the employer contribution. They have about $9K in forfs to add to their contribution this year. Their contribution is 25%. Is there a problem adding the forfs on top of the 25%? Two participants get $40K instead of 25% because of their comp. Is this contribution still ok? Thanks for any help you guys can give me!

WE love the ERISA books over here. They are much better than the Pension Answer Book. The 401(k) Answer book is ok, but Sal's set is better. We needed a new one for 2004 (didn't get last year's), and it's on it's way!

I agree with the previous poster. If no comp, then he should not be on the test, regardless of who he's married or related to.

I found the forms you mentioned, TBob, and called the participant. He cashed the check. Even though it was a lump sum, and that is not what he really wanted. So, thanks for the info, I have filed it away in case this happens again!

Ok, here's a good one that I hope you guys can help me with. We processed a distribution on December 15/16 (guy had forfeitures). On December 17, a letter was sent to the client, instructing them to cut a lump sum check and also cut a check for taxes from the plan's check book. Unfortunately, the distribution form asks for a rollover to be processed. The person who wrote the letter did not notice this, apparently. I was getting my 1099R files ready to print, and noticed the discrepancy in codes (Relius is telling me "G," but my data sheet says"1"). The tax check has already been cashed, and most likely, this client has already processed their last pay for the year. If this participant calls requesting a correction, how can this be corrected? Any ideas? Thanks for your help!