Does a sole proprietor who establishes a defined benefit plan need to reside and work in the United States? I would think you'd need to reside here, and the source of your self-employment income would need to be from business conducted in the U.S.

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A participant is on a leave of absence (medical, for cancer treatment). She has an outstanding loan and the repayments were suspended for the leave up to one year. It's been two months since the leave began. She wants to refinance for an additional amount on the loan, and has applied for SS disability. She'll find out in two months if the SS Administration grants her claim. The plan uses SSA's determination for its definition of Disability. The employer has some documentation from the participant's doctor that indicates the disability is permanent, but the participant wants to come back to work and hasn't quit. Is there any reason not to allow the refi? My concern is whether this a bona fide loan for the refi -- will she ever make a repayment or have the ability to pay off the loan? Of course, who's to say whether she won't be able to make a pre-payment via check before the one-year suspension is up. The loan program allows for a total repayment via check. Otherwise, repayment is via payroll deduction. Thoughts?

The 403(b) plan as been around for decades. It's starting to grow rapidly, taking on a lot of 10- and 15-hour per week employees. The plan currently has the "20 hours/week" exclusion for the employer contribution, but not for the deferrals. Is there any reason why the employer can't add the exclusion for deferrals, going forward?

Form 5500-SF for 2013 was prepared for a client and filed late by about 2 weeks. Apparently client has received more than one notice from IRS because he's just been sent an IRS bill for $15,000. What's recommended here?

The following excerpts are from the QDRO entered in my divorce action. Does paragraph number #8 contradict paragraph #15?

8. The Alternate Payee's interest in the Plan shall be xxxx per month of each payment made to the Participant, payable if, as and when such payments are made to the Participant.

* * *

15. In the event the Participant is receiving retirement benefits at the time the Order is qualified, the Alternate Payee will be considered the Participant's surviving spouse for purposes of QJSA only if the Participant elected a joint and survivor annuity payment method and designated the Alternate Payee as the surviving spouse at commencement.

My spouse is receiving benefits. The arrangement with my ex-spouse is that I receive half of his pension now and 100 percent when he dies. Is that what the language above means? He had elected a survivor annuity payment method and designated me at commencement. But after reading the above language I'm confused, because paragraph #8 says I will receive payments only for as long as payments are made to the Participant.

The instructions for Form 5310 say to use the form for plans exempt under Section 401(a) and Section 403(a). It makes no mention of 403(b). Does a terminating 403(b) plan file Form 5310, or is there another option for a determination letter upon termination?