I am able to pruchase most trade association directories from the associations thenselves, but unable to do so with CEBS. I am currently doing a few senior level searches for Health and Welfare, Managed Care, and Insurance professionals. Should anyone out there want to advise me to a directory for sale or sell an older copy to me, I may be reached as follows: kmerrell@premiereassociates.com

I have exhausted my search of normal research channels, and have been frustrated by the lack of information on what constitutes a master trust and how one is formed/operated. Hoping someone here can help me.

I have an employer who wants to set up a separate plan at each of his two sites. He works with a couple of brokers, and likes to do recordkeeping himself. He wants to have a "balance forward" arrangement where all participants in each plan share in trust activity, and the recordkeeping is done once a year. I believe this would constitute a master trust because it is 2 different plans maintained by a single employer, with assets not segregated between the two plans.

What do I need to consider in this arrangement? I assume a separate trust agreement needs to be written for the trust, but does that trust need to file anything? 5500s?

Any insight would be appreciated.

The AGI limit on IRA to Roth IRA conversions will be repealed this week for a 5 year period.

Aside from the fiscal wisdom of Congress (for adopting it) or particiipants (for converting to Roth), does anyone see any issues with amending our profit sharing and matching contribution provisions to allow in service distributions for participants with 5 years of service and for contributions made at least 2 years ago.

The idea would be to allow participants to take an in-service distribution of non-401(k) funds and roll to a traditional IRAs that they could then convert to Roth IRAs.

Is the 5 year/2 year rule that easy?

Is there some discrimination issue if only HCEs somehow are the only ones taking the distributions?

http://www.ca9.uscourts.gov/ca9/newopinion...pdf?openelement

Miller v Xerox Corp. (9th Circuit 5/8/06), at the above link, deals with offsetting the accrued benefit in a floor-offset plan for an earlier distribution from a defined contribution plan. Miller requires limiting the offset to the "accrued benefit attributable to the distribution" within the meaning of 1.411(a)-7(d)(6)(i). Miller requires, I think, calculating the accrued benefit the lump sum value of which, on the date of the earlier distribution, equals the earlier distribution. My question is, where the earlier distribution was a lump sum, is this actuarial equivalence to be calculated using the plan's interest rate and mortality table for lump sums or the plan's interest rate and mortality table for annuities? The logic of Miller seems to require using the plan's interest rate and mortality table for lump sums.

We are considering a move away from Datair, after more than 20 years with that firm. There are a few requirements that a replacement system should meet in order to be suitable for us. First of all, it must be small-plan friendly. We have about 100 DB (including 412(i) plans), and the largest plan has about 30 participants. We have about 400 more DC plans, with the largest plan having perhaps 3,000 participants.

We also need a decent proposal system as a part of this. The output need not be beautiful, only readable. However, it absolutely must accomodate the type of creative plan designs that we have come to know to and love. (PLANGEN and like services need not apply. FYI, PLANGEN is not only restrictive as to plan design, it is only an assist to manually computed actuarial valuations. I'd never get through 100 plans yearly if I hade to do more than half of the work manually.)

Also, Datair provides documents, which would be a plus, but not mandatory.

Does anyone have any ideas on a suitable replacement system for our firm? What about document systems (prototype and volume submitter), as well as proposal and valuation systems? Any ideas or recommendations about past experiences would be appreciated.

Thanks in advance! Carol Caruthers, MSPA, EA for E. Dominic Firmani

A client is asking "what is the penalty for not having a Surety Bond in place for 2005". I've researched various technical references, but do not see any language that addresses this. In the meantime, I've already found a Surety company that will write a 2005 bond if/when the 2006 bond is purchased. Nonetheless, the client is pressing me for an answer. Thanx.

If an employee terminates with family coverage, covering a spouse and two children, and there are a multitude of health insurance plans available through a multitude of carriers through the employer, can the employee and his/her QB's enroll in any plan of their choosing? We recognize that the insurance companies may have an issue with accepting a QB's election due policy, but is there in something in the COBRA law that says something other than you must step back into what you had before the qualifying event occurred?

Can someone tell me the definition of a Key Employee for purposes of Top Heavy Testing.

I always confuse this in my head.

Thanks

Is this something used by an auditor for large plan filing? If small plan filings (using Sch I) require this, where can I find out more information? Thanks in advance

Participant elects the following as his beneficiaries:

Spouse 50%

Son 50%

Since the spouse is not 100% beneficiary, does the spouse have to sign off on naming someone else the beneficiary. Does the percentage have any affect on this ruling? Is there somewhere I can look that states this ruling?

Thanks

Jill

I'd like someone to point me in the right direction for information there may be on cashing in my SEP IRA immediately without penalty if I have a diagnosed terminal illness. I have about a year to go, maybe less. I do understand there will be tax to pay as it will be considered income. Tks.

I was wondering if anyone has heard anything from the IRS regarding Code Section 412(i) plans and IRS Announcement 2005-80 Settlement Initiative. I understand that these reviews will be centralized. An IRS representative recently stated to me that plan sponsors would be contaced in the next couple of weeks to discuss participation in the program. Has anyone heard anything yet on this subject?

Thanks in advance. Ed

My understanding is that pick-up contributions are subject to the same limitations on in-service distributions as vanilla employer contributions (i.e., retirement, disability, termination of the plan, etc.), under the general rule that pick-up contributions are treated as employer contributions for plan-qualificaton purposes. Employer, however, is not quite ready to give up hope that there is some mechanism by which they can be distributed in connection with a participant's transfer from one of the employer's plans to another (the way that some mandatory after-tax contributions to DB plans are, see, e.g., Rev. Rul. 60-281). Is there such a mechanism? If so, I haven't been able to find it. Thanks.

In what instances would you have to run 401(a)(4) testing on a Safe Harbor 401(k) Integrated PSP?

A client of mine is looking to increase plan participation. He has a bonus at the end of each year that he would now like to divide up between all employees who are contributiong to the plan. It would be a flat dollar amount accross the board and no HCE's would receive this. The plan allows for discretionary match contributions.

Anyone see any issues with this?

A client of mine asked if a 5500 needed to be filed on child care reinbursement. I do not handle these plans and am looking for some guidence.

Thanks

Does anyone know of any authority that would allow a 401(k) plan participant to aggregate the value of his/her 401(k) account with investments outside the plan held at the same institution to meet a minimum account balance requirement for receiving lower management fees that wouldn't create a prohibited transaction under ERISA 406(a)(1)(D)? I know that PTE 97-11 allows this for IRAs and Keogh Plans, but I can't find anything allowing it for other qualified accounts.

Is it possible to start a FSA plan mid-month? WOuld it have to end on the last date of the month?

I try and keep my plans qualified, so I am not sure of the answer to this. If a DB plan is disqualified, what happens to the assets in the plan. Let's say it's an owner who is the only one with a DB benefit.

My guess is he would have taxable income either at the individual or corporate level depending on who takes possession of the money. Any idea how this is reported as income on a tax return, either individual or corporate? Any other tidbits to worry about?

I was suppose to begin distributions from my deferred compensation arrangement at age 60 (I elected age 60 on my distribution form). I am 62 now and I have never received a distribution. Am I penalized for my company's error? How is this corrected