I see defined contribution would have to go to 2/20 or 3 yr cliff vesting for all nonelective contributions. (sec 1006)

To scroll down a web page, you can just hit your space bar if you're using the Firefox browser (instead of having to use your mouse).

We recently acquired a location in NY. According to the rep in the accounting dept that has been handling benefits for the staff out there, some of the employees have medical benefits with us but they are paid for by the NY DSS all the time so no employee contributions are collected for them. Sometimes when an employee goes on their maternity leave, DSS will pick up the cost to continue the benefit.

Has anyone ever had experience with this?

We haven't seen any record of checks coming in so I'm trying track where things are with this.

thanks!

I have nothing whatsoever to do with this stuff, so fortunately don't even have to read them. But I know some of you have been eagerly awaiting this...

http://www.treas.gov/press/releases/reports/reg15808004.pdf

P.S. - here's the "cover page." http://www.treas.gov/press/releases/js2956.htm

Can a person or company have a Simple IRA at 2 separate investment companies? For example, one employee having a brokerage account with a broker dealer and also having a mutual fund held at the fund company?

I have a client that I have been trying desperately to get census for 2004 to do his 5500. He had a new plan effective 10/1/04. It was a SH plan with the SH match. Employees all filled out enrollment forms, the plan was set up at the mutual fund company, and the safe harbor notice was handed out.

Here's the problem...he never started the deferrals (thus the lack of census!). I am not sure why, but it seems he just didnt get around to it.

Actually, he is just now getting around to having the deferrals taken out of employees checks (October 2005!).

I think I should get new election forms signed, but I have no clue how to handle 2004?

I have never run into this, looking for advice??

thanks!

Can a child, as a named beneficiary, rollover funds into an IRA and avoid taxes. I was under the impression that a spouse was the only person eligible to roll funds over.

Since hearing an IRS actuary say so at an EA meet a few years ago I've thought that it was not permissable to include on a DB plan's minimum funding standard account in-kind contributions (which in general would be a prohibited transaction).

However, I'm having trouble finding written guidance to this effect and would appreciate it if anyone can point me toward some.

This has to be one of the most complicated areas of qualified plans.

Have an employer who may want to sponsor a defined benefit plan. Here are the facts:

Company A is a construction company with 30 employees. It is owned by Mike 47%, Bill 47% and two non-related others for a total of 6%.

Company B is in the business of estimating project costs. It is owned by Mike 25% and Bill 25% and an unrelated person 50%. It has 10 emloyees. The unrelated person has no ownership in company A.

Company B wishes to sponsor a DB plan but does not want to cover employees of company A.

It appears no controlled group exists.

The question is whether an affiliated service group exists.

Niether company will act as a management company for the other. It is true that Company B will do some estimating for company A but the majority of work will be done for other unrelated companies.

Capital is a material income producing factor for company A so it cannot be an FSO. Capital is not a material income producing factor for company B so it would be the FSO. In this case, company B would be the FSO and company A would be the B-org.

Our understanding is that a significant portion of the B-org must be the performance of services for the FSO for an affiliated service group to exist. No services would be performed for the FSO. However, a significant portion of the FSO's business is the performance of services for the B-org.

Do we need to consider this in both directions or is an affiliated service group only present when the B-org performs significant services for the FSO?

Thanks much.

It is my understanding that receipt of Social Security Disability Income payments automically enrolls the individual in Medicare Part A coverage. Part B coverage may be waived, but Part A coverage cannot be waived by individuals that are eligible for coverage due to age and disability. Thus, if a Plan so provides, would it be appropriate to terminate COBRA coverage to an individual that is receiving SSDI because the are "entitled" (actually automically enrolled) to Medicare? All thoughts appreciated.

Client is non-gov, not for profit entity with a 457(b) Eligible Deferred Comp Plan.

Current plan document contains a "Involuntary Distributions" section that states: "The Administrator may establish a policy, in accordance with Code Section 457(e)(9)(A), for distribution of a Participant's account without the Participant's consent if the value of the account does not exceed $5,000."

Is this plan subject to the new automatic rollover requirements?

In simple language, could someone explain to me the difference between a mass-submitter plan and a non-mass submitter plan?

An example would be very helpful.

Thank you in advance.

A client wants to invest their future match and ps contributions solely in non-publicly traded er securities. It is an "eligible individual account plan" and the prototype document expressly states that there is no limit. Just out of curiosity - what is the difference between this arrangement and a non-leveraged ESOP (which are normally placed on more "high maintenance" individually designed documents)?

Also, we've tried to warn them of the complexity and the need for good securities attorney to keep them out of trouble. Any other pieces of advice to dissuade (ah hem, I mean "inform") them regarding this decision?

I talked to a prospect the other day, a non-for-profit entity.

In telling me all their problems, it came up that they have not filed 5500's in a few years on their 401(a) plan.

My question is under the DFVC, is the entity liable for seperate penalties with

the IRS and the DOL?

Thanks!

Willow

Here's a neat Firefox trick-- if you would like more than one "home" page to show up when you click the home icon-- each page will appear in its own tab-- just type the URL of each page into the usual home page field (Tools -> Options -> General) separated by the "pipe" character (it appears on my keyboard as the shift-backslash key, and looks like this: | ).

For example, to open the BenefitsLink search page and the BenefitsLink buzz page as your two home pages (each on a separate tab), you'd type this into the home page field (ignore the word CODE):

http://benefitslink.com/search|http://benefitslink.com/buzz/short.html

Would this constitue a distributable even for this employee? I'm guessing NO but I just wanted to make sure.

I'll probably get laughed off the boards here, but is there any ability to provide the safe-harbor 401k non-elective contribution under the DB plan in a DB-DC combo arrangement (permissive aggregation). I need some staff in the DB plan to pass 401(a)(26), but don't want them in the DC plan too in order to avoid a common participant triggering the 404(a)(7) 25% combined deduction limit. I'd like to still provide the 401k deferrals to the owners under the 401k plan, as I believe this has been clarified as NOT triggering the 25% deduction limit if they get no other employer contributions under the 401k plan. ADP testing is unlikely to provided desired results. I guess I was hoping maybe if the present value of the DB accrual for the portion of staff in the DB plan was valued on standard interest/mortality rates and was at least 3% of pay, and fully vested, it may qualify as a safe-habor for 401k deferral purposes ? The staff in the DC plan are easily getting the 3% and fully vested (if we design it that way). This is probably just a unrealistic hope, but isn't trying to have it all the American way ?

THis is a takeover plan that was administered by a CPA who apparently did not know that the maximum loan allowd was $50,000.

It is my understanding that this is a prohibitive transaction and a Form 5330 should be filed. I would also imagine we need to instruct the Dr to immediately pay the loan off to get the outstanding value under $50,000.

Are there any reporting requirements on the 5500?

Any advice or links with more detail would be appreciated.

Thanks!

the enclosed is the rp-2000 Male table

ok, at least it worked at this end importing into the system under tables, mortality

We have an employee who had been initially on what was supposed to be worker's comp leave. However, that was denied as it was an old injury and not related to her current job.

During that time when she was being eval'd for the W/C situation, she became eligible for FMLA. We sent her the paperwork which she never returned. Unless there was documented evidence of a need for leave, she was supposed to return to work by yesterday which she did not.

She also did not pay her portion of benefit costs which she was warned would end her coverage for non-payment in 30 days (which would bring us to 10/8)

Soo....

Her QE for COBRA was 9/27; her last payment for ANY coverage was 9/3; her "30 day grace period" ends 10/8.

Is she COBRA eligible? What would her first payment consist of, considering she would still owe from 9/3 - 9/27?