What are you currently running your participant loans at?

I believe a Qualified Disability Benefit can be an unreduced annuity benefit payable at the disability age (say 40) that that would have otherwise been paid at NRA including the future service/participation through NRA. Does anyone have any thoughts or opinions as to whether the present value of such unreduced Disability Benefit (annuity) can be paid out as a lump sum ? If the lump sum exceeds the present value of the current 415 limit, is that an issue ? I'm leaning towards thinking the Qualified Disability Benefit could be paid as a lump sum, even if greater than current age 415 limit, given it's an ancillary benefit not an accrued benefit subject to 415 limits (much like life insurance that complies with the incidental death benefits limits may be greater than the current 415 limit). However, I don't find much discussion or passages in our various reference sources on this topic so I would appreciate any thoughts or opinions on this.

Controlled group 2 Employers maintaining separate plans. Calendar year plan years. Employer A has a non-Safe Harbor 401(k). Employer B has a Profit Sharing Plan (no (k) feature).

Do you think it's permissible for Employer A to merge it's 401(k) into Employers B's plan and at the same time add the (k) feature and safe harbor to B's plan during the current plan year. It will be done with more than 3 months left in B's plan year?

We have a sole participant DB plan, the owner died, having taken one RMD from the plan.

No distributions were taken in '05.

Is the RMD for '05 calculated on his single life expectancy or the beneficiary's? The beneficiary is under 70 1/2.

Would the beneficiary have to take a distribution prior to the rolloveer of the plan to an IRA, on whose life expectancy is it calculated, and why???

Thanks,

Steve

Here is the situation:

An employer has an FSA and wants to add an HSA. Some of the employees who have exaused their FSA, but are still contributing into it, want to sign up for the HSA... Is this possible??!!

We have an employer group that has employees in a service industry. Some times these employees do not earn enough during a pay period to make FSA deductions. They treat these employees as having arrears and when they get their next paycheck, they make up the missed deductions.

My question is... if an employee is "in arrears" on the dependent care deductions, can their participation in the dependent care FSA be terminated? If so, is this an option that has to be given to each participant in arrears or can it be implemented across the board?

Thanks

Hello

I am aware that is is illegal to be broker on a qualified plan for a business whose owner is the broker's mother but can the broker be broker of a SEP or SIMPLE for the client's mother?

Employee participated in Employer's A 401(k) during early part of 2005. Employee terminated service with that employer and was subsequently employed by B. Employee participated in Employer B's 401(k). Employee has excess 402(g) deferrals.

Assuming it would still be timely, from which plan should the excess be removed?

What if employee rolled over his portion of Employer A's 401(k) to an IRA? Does this change the answer?

My supervisor wants me to compile a report showing employers tax savings for their FSA plans. She would like this to be based on total elections and contributions. Any ideas???

Anything I look at on the web are just exapmles of what an employer would save if they offered an FSA Plan.

An owner/participant in a DB plan would like to take distributions and avoid the 10% early withdrawal penalty. He will continue to work, so we will have to figure out a way to separate him from service, but that is another issue. Assume that there is a distribution event. Based on the facts, it appears that the only reasonable way to do this is to use the period payment exception to 72(t). The problem is that the owner/participant does not want to receive periodic payments based on their entire benefit; they just want to receive periodic payments based on a portion of their benefit. The three approved methods of distribution seem to take the entire benefit into account: (1) RMD; (2) fixed amortization; (3) fixed annuitization. Is it permissible to base the periodic payments on only a portion of the benefit for purposes of the period payment exception to 72(t)?

Employer sponsors a Profit Sharing Plan which allows for the purchase of life insurance. Plan holds a whole life policy FBO the owner, for which premiums are paid from the owner's annual plan contribution.

Client received a letter from the insurance carrier regarding Rev. Ruling 2004-20 indicating that, for policies containing a disability waiver of premium feature, the portion of the premium (i.e., employer contribution) attributable to same MAY not be currently deductible, possibly resulting in a non-deductible employer contribution - and all of the the ramifications thereof.

First I had ever heard of this and was curious if anyone else had ever encountered same, especially in conjunction with a DC vs. DB plan?

Thanks!

Our client (years ago) permitted participants in a profit sharing plan to purchase life insurance policies on self or spouse. these are single life policies (not second to die). Kirk's post from a while ago cites to 401 regs as permitting purchase of policies on a family member, subject to the incidental benefit rule. The DOL exemptions do not appear to address this situation. The class exemption from 1992 deals with policies on participant's life. A more recent advisory opinion expanded the interpretation to include second to die. Can a participant purchase a policy on his or spouse from the plan without violating 4975 prohibited transaction rules?

In practice - what does 402A(d)(2)(B) below mean? Does the 5-year timetable begin (for all future contributions) when you put the first dollar into the Roth 401k account? Meaning, for example: If I contribute $1 to Roth 401k in 2006, any and all distributions made in 2011 or later are qualified (even though the bulk of contributions came post-2006)?

Is the answer the same for Roth IRAs?

Thanks.

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402A(d)(2)(B) DISTRIBUTIONS WITHIN NONEXCLUSION PERIOD. --A payment or distribution from a designated Roth account shall not be treated as a qualified distribution if such payment or distribution is made within the 5-taxable-year period beginning with the earlier of --

402A(d)(2)(B)(i) the first taxable year for which the individual made a designated Roth contribution to any designated Roth account established for such individual under the same applicable retirement plan, or

402A(d)(2)(B)(ii) if a rollover contribution was made to such designated Roth account from a designated Roth account previously established for such individual under another applicable retirement plan, the first taxable year for which the individual made a designated Roth contribution to such previously established account.

Does anyone have an investment election report that can handle investment products (models)?

I would like to be able to print everyone's current investment election and for those that have elected models it would print the model name.

I haven't had any luck linking the PARTALLODET table. Tried linking using 'Left Outer' in the link option.

Help!

I have a plan that is terminating 5/31/06. We were notified that this was going to happen sometime in late January. We are still awaiting a written confirmation of termination.

I have three participants from the plan who have terminated in the past year - all not fully vested.

The first terminated in January, the other in March and the final one in April.

How far do we go back for making the terminated ee's 100% vested? Is there a reg or just a "rule of thumb"?

Thanks!

I have a current client that is a real estate firm - they are opening a title insurance company. Which under RESPA must be a completely separate entity - same ownership. Can they both participate in the same plan or do we need to set up a separate plan for the title company?

I read a post from several years ago regarding using refunds to correct a failed ADP test in a plan with a non-calendar year plan year. The question was regarding the 1099-R code to use. The practicioner who answered said that in their experience most off-calendar year plans distribute refunds after the 2 1/2 month period, paying the excise tax, so that personal returns do not have to be amended.

Just curious to know if anyone else has any experience in this type of situation.

Thanks!

We administer a small takeover PSP where the company owner / participant took out a $50,000 loan three years ago. He paid off the loan in full with interest within a year of taking it, however he should have made quarterly payments. As soon as we took over the plan, they received an audit notice. the plan was audited and the loan was determined to be a taxable distribution. I dont believe audit CAP is available because it is not a disqualification issue. Also, it appears no other correction program is available because the plan has been audited. Has anyone had this experience?

While other companies drop retiree health/welfare benefits, we are looking to ADD them to our benefit menu. As the "benefit analyst" here, I'm horrified that the original plan is this:

Must have worked here 20 years

Employee pays premiums (although the idea of employer paid is still being tossed about)

Benefit never ends until employee does (no stopping or COBRA eligibility upon Medicare eligibility)

I am trying to explain how this creates some serious financial liability for us, but seems to be falling on deaf ears. MY proposal is to:

*combine age with years of service, requiring that there be no retirement prior to age 55, with decreasing years of service requirements the older the employee becomes (example 55 + 10 yrs service, 56 + 8 yrs service, etc.) or some combination of age and service

*end coverage upon Medicare eligibility, allowing for COBRA participation at that time

*require employee to pay premiums

Does anyone have any other tips or things I should be thinking about??? Any help appreciated! Thanks.

Is an autopsy a reimbursable expense under a health fsa? If it is, please provide the supporting authority.

Thanks.