1. If a director in a private company defers his fees (which could be paid in cash or company stock at the director's election) in the form of phantom shares, but the account of phantom shares will eventually be paid to the director in cash, not shares, is the arrangement subject to the '33 Act registration requirements?

2. If a private company pays its director fees in company stock, am I correct in thinking that the shares have to be registered under the '33 Act or meet an exemption like Rule 701?

Thanks in advance!

After reading the Congressional Budget Office report, I was struck how misleading it is.

Their scoring method is the effect on the Federal Budget of tax revenues.

So if Congress forced private industry to pay a huge tax to a non-budget entity (read PBGC),

then more business deductions are allowed and tax revenues are "LOST" to Congress.

Meanwhile, the govt has taken a lot more money. What is not measured along the way is that PBGC is less likely to need a bail-out.

I would like to confirm my interpretation of the new 404(a)(7)©(iii). The way I read this is that if the DC contribution is 6% or less, than the 404(a)(7) limit (25% comp) doesn't apply, but if it is > 6%, the 404(a)(7) limit applies.

When I read some of the summaries I got the impression that you could ignore DC contributions up to 6% of comp, thus increasing the combined limit from 25% to 31%, however I do not think this is correct. Basically the way I read it now is that if the DB contribution is 50% of comp, you would be allowed DC contributions up to 6%, but the penny over 6% triggers this limit and would make any amount over 6% non-deductible. So if your db contribution was 15%, you could only put 10% into the DC without hitting the limit.

Agree?

404(a)(7)© PARAGRAPH NOT TO APPLY IN CERTAIN CASES. --

* * *404(a)(7)©(iii) LIMITATION. --

In the case of employer contributions to 1 or more defined contribution plans, this paragraph shall only apply to the extent that such contributions exceed 6 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under such plans. For purposes of this clause, amounts carried over from preceding taxable years under subparagraph (B) shall be treated as employer contributions to 1 or more defined contributions to the extent attributable to employer contributions to such plans in such preceding taxable years.

When filing a schedule a for a welfare plan, I have always reported the insurance carrier. I just received schedule a information where the TPA is listed instead of the ins. carrier. I have never seen this before. Has anyone else?

I called the TPA and all the person could tell me was that it is their name on the schedule a because the premiums are paid to them and they process the claims.

Anyone else have an opinion on this?

Thanks in advance for any help.

In reading the 2006 schedule B instructions, it indicates

" The Schedule B does not have to be filed with the Form 5500-EZ. However, the funding standard account for the plan must continue to be maintained, even if the schedule B is not filed"

Under What to file (5500-EZ instructions)

Note. Effective beginning with calendar plan year 2005, filers of Form 5500-EZ are no longer required to file any schedules or attachments (including the schedule B) with the Form 5500-EZ. Filers, however, must collect and retain completed and signed Schedule B, if applicable.

Does this mean the "retained" schedule B must be signed by the due date of the filing? It would be great if it did not matter when the B was signed.

Hello. What would be the deadline for a calendar year plan to add 401(k) and safe harbor provisions for the current plan year? If they are able to add these provisions in 2006, what are other deadlines they would have to be aware of - I am thinking of posting a safe harbor notice - does not posting a notice in 2005 mean they can't use for 2006? I am also thinking that I read somewhere that safe harbor has to be in place at least three months in a plan year.

Thank you very much!

I would appreciate a citation as to whether an employee on severance pay can continue making 401(k) deferrals.

Thanks,

Is this repealed effective in 2006 or 2008?

I had always taken it as "gospel" that if a participant terminated employment and wanted to roll over a remaining 401k plan balance, that any outstanding participant loan would be paid of at the time of the distribution. I am now getting a request from an individual who wants to roll over his entire balance, including the plan loan, to an IRA. Will an IRA accept a qualified plan loan and allow for ongoing repayment? Is this possible? If so, that's fine, I don't know enough about IRA regulations.

Thanks.

I am assisting an employer of a multiemployer plan that has been assessed mass withdrawal liability. The fund has proposed a four year payment schedule. The employer is seeking ideas on how to reduce their mass withdrawal liability and is willing to take an aggressive stance. Has anyone been able to reduce mass withdrawal liability other than by negotiating a reduction in the liability with the fund, obtaining an actuary to rerun the numbers, or extending the term of the repayment obligation?

I appreciate any and all suggestions.

Assume a plan participant had named her 18 year old daughter as her designated beneficiary under a 401(k) plan. The plan participant dies in late 2006, Under Section 829 of the Pension Protection Act of 2006, the daughter can elect to roll over the 401(k) account balance into an inherited IRA. Is the daughter required to begin receiving distributions during 2007 over her life expectancy? If this was the situation under the 401(a)(9) regulation effective in 2002, is the importance of this change only that the daughter can name a beneficiary of her inherited IRA? Thanks. Ed

You know and I now that you can't have a SIMPLE and a 401k plan at the same time. The IRS' web site even has a nifty little FAQ that helps make that clear to non-pension professionals.

The client has a controlled group. Yes, we've asked them every year about family members owning other businesses. Yes, every year they've told us "no." Turns out they've got a controlled group.

The company I knew about is my client. They sponsor a 401k plan. The company I didn't know about has a SIMPLE.

Only 1 NHCE contributed to the SIMPLE this calendar year. Do you just disallow the deduction to the SIMPLE and go forward?

I've looked, but I can't seem to find anything that gives me a hint as to how to fix this thing.

Thanks

Christopher

Does anyone know when these will be published? I know it has been in the month of October in the past, but I am attempting to complete some modeling for 2007 and I do not have the limits - specifically 401(k) and catch-up. Any help would be appreciated.

Does anyone know if you can create a report based on an account activity detail that will show activity by participant by month for the whole year? Sort of like the following?

----------------------- Beg Bal -----Contributions -------- Distributions ----- Gains/Losses -----End Balance

Participant Name

January

February

March

April

May

June

etc

Total

Thanks for any help in advance!

What are the penalties for a plan not being covered by a fidelity bond, if any?

We have a bunch of clients (some with a few $MM) and no bond.

If a state maintains a Section 401(a) defined benefit plan which permits employee voluntary after-tax contributions and the state also has a Section 457 plan to which employee may contribute through a salary reduction agreement on a pre-tax basis, are the employee pre-tax contributions to the Section 457 plan aggregated with any after-tax contributions to the 401(a) plan in determining a participant's annual additions for a limitation year?

I think I have this right, but I was hoping someone would verify:

401k plan started in 1997. Had a document at the time but never amended. 40 participants. Therefore, they need GUST, EGTRRA, RMD, Inv dist. We will have all the documents drafted, signed and dated (current dates) and follow the VCP submission process. Compliance fee is $1,000.

So far so good???

Also, is it required they they also request a document determination letter (we are using a prototype) and, other than the compliance fee, is there any additional up front or post review government fees/penalties for using VCP?

Thanks

We are a cost containment company specializing in medical bill review for group health and workers' compensation. We've been in operation for over ten years.

I'm looking for brokers that will market our services to their clients. We have a competitive broker agreement and will offer their clients free test bills to show the strength of our product.

I appreciate anyone's help for recommendations.

I know that elective deferrals are not really "elective deferrals" if they are paid into the plan before the compensation is earned. I'm trying to find the site for this. Can anyone help me?

Currently a GHP that offers a self-funded dual choice HDHP (HSA eligible) and a PPO. Currently- spouses w/ access to coverage by another employer are not eligible to participate. Are there any problems with changing eligiblity on the HDHP only to allow spouses w/ coverage elsewhere to enroll on the HDHP but NOT on the PPO. In particular are there HIPAA nondiscrination issues, cafeteria plan or self funded medical plan discimination issues?

Thanks for you help!