"Employer is winding down, and let go of an employee prior to termination of the plan. Employer wants to re-hire the former employee on a P/T or TEMP basis. The former e/e is a pension plan participant, is now a retiree and began monthly pension payments in July. If rehired and plan was in effect, benefit would be suspended. Can the employer re-hire this ex-employee without impacting his monthly pension payments, now that the plan is terminated?"

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"Quite a few years ago I sat audit for an EZ filer. Although we had always advised him to value his real estate investments at Fair Market Value each year, he did not take our advice. Consequently, the very eager IRS agent sanctioned him $15,000 (after negotiating from $25,000) for failure to do so and for carrying the real estate at cost year after year.... Fast forward to today. I have a new EZ client who has real estate in the plan and has never been told by his prior TPA about this requirement. So I went looking for it in the IRS 5500 instructions. And what do you know? The blurb about 'fair market value' is included in the 5500SF instructions with a reference to ERISA section 3(26). But it is NOT in the instructions for the EZ form! Is it possible that EZ filers are not subject to this rule since those plans are not subject to ERISA?"

"My client has two business entities that are commonly controlled. One entity conducts the business operations (Entity 1). The other entity (Entity 2) provides administrative support (e.g., payroll, HR, etc.) for both entities. Ideally, my client would like to offer a 401(k) plan for the employees of Entity 2. However, due to the demographics of Entity 1 and Entity 2's employees, and due to the fact they are commonly controlled, offering a 401(k) plan to only the employees of Entity 2 would likely result in coverage testing issues. My initial thought was to have Entity 2 make an election to be a QSLOB. My question relates to the 50 employee requirement. Specifically, Treas. Reg. Section 1.414(r)-4(b) requires those 50 employers to 'not provide services to any other separate line of business of the employer for the testing year.' Am I correct in saying that, if Entity 2 made a QSLOB election, that Entity 1 would be treated as a 'other separate line of business', even if Entity 1 does not make a separate QSLOB election for itself? If the question prompts any alternative solutions that would allow Entity 2 to sponsor a 401(k) plan, I would be interested in hearing them."

"We administer a 2 participant traditional defined benefit plan, a 100% shareholder and an employee. The plan has been in place for 10 years and has a calendar year end. 3 months ago the one employee/participant quit to move across the county. She was paid her 100% vested benefit. Today the 100% shareholder called and mentioned that she wants to retire next month and terminate the plan. Question: If the plan is terminated this month and distributed to the 100% shareholder by October there may be a small amount of excess assets that can be absorbed by the 100% shareholder. Must the terminated employee who was distributed fully three months ago be entitled to any of the excess assets?"

"Doctor A, age 45, has her own corporation, Corp A. Corp A is a participating employer in the ABC 401(k) PSP, sponsored by Group G. Doctor A decides to move out of state and leave Group G, and her corporation signs a new contract with Group H, which has no affiliation with Group G. Corp A signs a 'Withdrawal as Participating Employer' document to cease participation in the ABC 401(k) PSP. Group H sponsors the DEF 401(k) PSP. Corp A receives no further revenue from Group G; all of its revenue is now from Group H. What options does Doctor A have with respect to her ABC 401(k) PSP account, which includes salary deferrals as well as 2 other money types? Can she establish a rollover IRA? Or is the only option to become a participating employer in the DEF 401(k) PSP, and establish an account registered as such?"