MBCarey

It was not reported on the 5500 but was reported on the corporate tax return. The approximatevalue ofthe trust is 1,289,241.30

I just discovered that a 2,151 employer contribution was not included on the 2005 Form 5500 for one of our plans. The deposit was for the account of a deceased participant whose bene had been paid out previously, but the participant was due a contribution which is not usually made until May of the following year. The deposit was not taken into account when the valuation was done so when the 5500 was done (on an accrural basis) the additional deposit was not included. The deposit was made and immediately paid out to the beneficiary. The deposit was made in 2006 and was recorded on the 2006 tax filing for the client rather than the 2005. Do you think we need to amend the 2005, 06, 07 returns or is there anyway to account for this in the current filing. Would we need to complete all the schedules to do this? Thanks

I did not think about that. You would be correct since all the (or at least most) of the participants were eligible when the plan began on 3/1. Thanks

We have a new plan effective 3/1/2008. This will be the first 5500 filed. 12/31/2008 the participant count was 216, but since it is a new plan there were no participants on the first day. Correct? There is an audit being doing, but should we be filing a Schedule I or H. Relius 5500 software keeps giving me an error when I try to file an I. I just assumed since the company is doing an audit, it would require the more detailed schedule. Thanks

I have a plan that requires that participants work a minimum of 1,000 hours to receive a profit sharing contribuiton. There is one participant who did not work 1,000 hours and the trustee has indicated that she shouldn't receive a contribution. The plan is top heavy. Doesn't she have to receive a top heavy minimum contribution?

Would it be possible to take the money that they church is currently holding and put it into the 403(b) plan. There is 10,000 for one priest and 5,000 for another that the church has been putting into a savings account. We are not sure how to handle these amounts. Any idea? Would it be too late to set something up for this year?

Sorry, Our church has broken away from the original denomination and is now apart of a new denomination. These priests can no longer have money sent in for their retirement to the original pension fund. Our church, however, has been putting aside the contributions for these two for the past couple years and is now trying to decide what can be set up for the two of them by our church to take care of their retirement contributions.

Can someone help me understand whether or not a church could set up a SEP for its priests. The church has been putting money aside to pay for contributions on behalf of two priests who can no longer receive contributions to the Church Pension Fund because they are no longer a part of the Church. For two priests, there is approximately 10,000 for one in a savings acct and 5,000 for another. Can this money be put into a SEP for these individuals? There is one other employee who has been at the church part time for the past 3-5 years, would he have to be put into the plan as well? There are no deferrals just church contributions. I am not sure what else they could do. It is too much money to put into an IRA and the money would have to be given to them first and then put into the IRA, correct? So it would have to be taxed as income? Any advice is appreciated.

Was wrong. Amendment in files in client office. Whew.....

We have a plan using a Corbel volume submitter document that was not amended for the Final 401(k) in 2006. The IRS has just requested information to audit the plan for the plan year 2006. This probably a dumb question, but does anyone have any idea of what the repercussions of this will be. Just want to give the client a heads up. Thanks

Thanks John for your response. No the plan does not say anything about the beneficiary having to file a claim. For unknown benficiar, it only says that "in the evnet that all or a portion of the disrtibution payable to a Part. or Bene remains unpaid at the later of the Participants age 62 or Normal Retirement after diligent effort by the administrator to find the beneficiary, then the amount may be forfeited or if after 2004 the value does not exceed 5,000, then the amount be paid directly to an IRA. If the beneficiary is later identified, then the benefit will be restored if it has been forfeited.. Should we try to locate the son and get him to make claim? If he does, then do we honor the DRO or is there even a QDRO? In your opinion, the DRO may not even be applicable. Is this correct? This is kind of what we thought at first.

I have a deceased participant who had no beneficiary on file. We were presented with a Will done 2 days before the participant died. The will was not probated and left everythiing to the deceased girlfriend and brother. However, as is normally what we do, we printed a copy of the obituitary which listed a son and grandson as survivors. The plan states that if there is no beneficiary on file that the proceeds are paid to the children of the deceased per stirpes. This happened last year and the son has never made any claim to the father's account balance in the plan. However, yesterday, we received two DRO's in the mail from family Court requesting payment from this account to the mothers of the son's two children (decesaed grandchildren) for unpaid child support. One child we knew about, the other we did not. Talking with our document people, they are of the opinion that until a legitimate claim is made for the account by a beneficiary, we cannot do anything with the DRO's. The account must remain in the deceased name until a beneficiary makes a claim. Any suggestions on what is right, Should we attempt to contact the son to request that he submit a claim or is the administrator's responsibility. Thanks. Any advice would be greatly appreciated.

We have a construction company plan that normally has layoffs in the beginning of the year with most people being rehired mid year. We have two participants who became eligible for the plan 1/1/2008. Both were given paper work to enroll 1/1 but did not return that paperwork because they were layed off and nor recalled until March. Both signed enrollment paperwork for the 7/1 entry date. I beleive that compensation from 1/1 to 12/31 should be used for the ADP test not compensation from the date they enrolled. For the same company, two employees also became eligible 1/1/2008, did not return paperwork, were layed off and eventually terminated as of March. Neither earned any compensatin in 2008 but were paid for their earned vacation and sick time. Should they be included in the testing for 2008. Appreciate your thoughts on these two scenarios. I cannot find anything in the document that speaks about this.

I know this is probably something I should already know. But I just got 6 off calendar year plans. And I am just not sure what COLA limits to use. The plan year is 9/1/2007-8/31/2008. When looking ahead to the next plan year, would I tell the client that the maximums are the 2008 Max. or the 2009 Maximums.

We have a private school with a Tax Deferred Annuity Plan which provides for a 3% non-elective safe harbor contribution for all eligible employees and a matching contribution of 100% up to 7 1/2% of annual compensation. Eligibility is a year of service and age 21. Can someone tell me exactly what I need to test, i.e. ACP, Non-discrimination, 410b, etc. The trustee seems to think they do not have to have any testing at all. Thanks

Sorry to be so dense. I would not count him in the testing until he is eligible, correct? I think I've been at this tooo long. Thanks

Can someone tell me if the son of an owner is hired in July and will not be eligible for the plan until he has a year of service. Is he still considered HC for 2008?

Contributions were in excess of plan limit. Some were made during the plan year and in the first quarter of the following year. I have not found anything specific in the Plan Document as of yet. There is also additional excess caused by a terminated employee who was not vested. Marybeth

Sorry if this is the wrong forum, but can someone tell me what is required if a money purchase plan is overfunded? Can the money stay in the contract to be allocated for next years contribution.

Can a participant in a qualified plan that has been making regular deferrals into the plan and terminates roll his balance over to an IRA and have it converted to Roth contributions? If so, what would he need to do? Pay taxes on the money immediately or claim as income at end of the year. This sounds a little strange to me.

Am I right that a "Stipulation" is not a DRO even though it stipulates exactly what the terms are. It is signed by both parties, their attorneys and a Standing Master In Divorce (whatever that is).

Is it acceptable to calculate vesting from date of eligibility rather than date of hire?

Can someone tell me if the max. hardship amount is mandated by the actual amount needed to satisfy the Hardship? I though this was true, but being Friday, I am second quessing myself. A participant needs 2525 to bring her house loan current but she wants to take 13,000. Is this possible?

The CEO (the CEO is not an owner) of a manufacturing firm (Company A) decides to move the plan to a new broker and TPA (Company B). The equity owner of Company A is not involved with the day to day management of the Company A, nor is he a plan trustee or administrator nor is involved in the decision to move the plan. After doing some research it is found that the owner of Company A has an investment in a venture fund (Company C)that has invested in the TPA firm (Company B). This investment is with Company C and the investor has no control over what the venture capital (Company C) can invest in or any managment control over any of the companies that Company C invests the venture capital in. Would this be consider a Prohibited Transaction or Arms Length Transaction? Is Company B considered a party in interest?

Can someone tell me if a 403(b) plan has to be reported on a Form 990 as a pension plan contribution?