Form 6088 - My DB plan's accrued benefit is not pay related. What do I use for column e (plan compensation) of Form 6088 (attachment to Form 5310)?

Can owners (or other participants) make 401(k) deferrals after they attain age 70.5? Is this a plan document issue; does the document need to allow for this?

Yes, and no. A plan document does not have to explicitly state that a participant over 70 1/2 can defer; a 401(k) plan is not permitted to impose a maximum age on the right to defer. With regard to owners, the same rule applies, although minimum distributions will also be required after age 70 1/2. These are two separate and independent rules; one does not affect the other.

For plan years after 12/31/2007, PPA extended the Annual Funding Notice requirement under ERISA 101(f) to include not just multiemployer plans but also PBGC covered single employer plans. If I have this right, PPA also removed the Summary Annual Report requirement for all DB plans. Is it true that, starting with plan years beginning after 12/31/2007, there is no annual notice requirement for non-PBGC covered DB plans?

I have an owner who attained age 70 1/2 in 2008, so is RMD is 4/1/2009. His attorney says he is not required to take the RMD due to the above law. When I read the law, it doesn't specifically address this scenario, but I see others have interpreted it to mean that this person should take their 2008 distribution payable by 4/1/2009. Can you give me something to use with the attorney?

RMD suspension and withholding - The passage of the Economic Relief and Technical Corrections Bill allows for the suspension of RMDs for 2009 from qualified plans and IRAs. The bill provides for suspensions but some individuals may continue with their routine RMD. Since the distributions are not required would any distributions made be considered eligible rollover distributions then in 2009 whereby anyone taking a distribution would be subject to the mandatory 20% federal withholding?

We have a client that we are correcting for 20 plan years. The client is unable to obtain annual reports that would reflect the actual allocations, in particular the gains/losses. We are correcting for a missed deferral and subsequent missed match. Is there a safe harbor or recommended method for allocating gains on the missed deferral and match?

MEP with 7 companies participating. 3 control groups exist within the 7 companies and one of the 7 provide management services to all.

1. Would it be correct to first test the groups individually?
2. Then test the 3 controlled groups?
3. Is there any additional testing based on the affiliated service group rule for the 1 entity providing service to all?

1. Yes.

2. There is no need to aggregate the three controlled groups for testing.