I need to know if money from a 401k Plan can be rolled into a 403b plan? I was under the assumption that it could be, but I might be wrong. If a participant terminates employment and begins with an employer offering the 403b, can they move their 401k into the their new employers plan??

I'm taking over a Pension plan and a 457 plan for a municipality and I have two questions. Does a municipality have a tax id # and what tax documents does the entity have to file regarding the Pension and 457 plans?

I'm used to working with 401(k) plans and their 5500's.

Thanks

J

Assume a plan is amended to reduce the involuntary cashout level to $1,000.

Does that mean that a plan must allow an annuity option if the pvab is $1,001?

Second question, when is the under or over $1,000 determination made? At the time of termination of employment, or at the time that a cashout would be made under the terms of the plan. What if the pvab is $1,001 this year and $999 next year, can it then be cashed out?

I'm just trying to gather options here, and this will be run through an attorney before being implemented....

Background: 501(c3), employee/president is NOT considered a Key Person or HCE. Even though she would normally be, her income has never been over 90k.

Employee (president) is retiring, and would like to essentially stop taking a paycheck at this point, and put all the income into an account (preferrably an HRA vs. a VEBA). She is owed deferred compensation (at the employer's option not the employee's since there was no money to pay her with) of several hundred thousand dollars. Currently, there is one other employee, who will retire at the same time at the first of the year. The corporation at that point will become a shell with no assets other than A/R (selling business via an asset purchase).

Survey says when its all said and done, there will be 100-150k cash left. She would like to adopt a HRA to push the money into to pay for retirement healthcare benefits, long term care, etc. Noting weird like life insurance, she intends to use it all up between she and her husband.

Ok, now my question... obviously she will have to include the second employee, who is also an officer, but only makes about 30k a year. She has no problem funding this to some level. The question is can you have two tiers in an HRA reimbursement, one for professional employees and one for staff, or I am completely barking up the wrong tree?

The other option would be to keep the corporation active and just fund assets directly from the coporation, but 990's aren't the easiest thing to do for a 2 person benefit.

We are a TPA firm that receives investment reports from the corporate trustee (associated with a large invesment firm) of a retirement plan, which we reflect in the 5500.

For the assets held for investment we have been provided a summary by types of investments, such as Money Market, Corporate & Foreign Bonds, etc. listing their cost and market value. Is this description sufficient for the Schedule H attachment for question 4h or do the actual investments need to be listed?

The assets include a common collective trust and various managed accounts.

could match formula be based on combo of age and service? age only?

Rate of match would increase as age tiers increase or age/service tiers increase.

i know --still need to pass acp and make sure no brf issue -- but only nhce's would receive it.

what about ADEA? allowable ?

Has it become generally accepted that the 417(e) subsidy on a lump sums must be considered in the MVAR ? I generally do it to be safe but have a case with a proposal using a general tested cash balance plan where I'd like to use A.E. of 8.5% to help my discrimination testing, but if I have to include the 417(e) subsidy (whipsaw) effect it's too expensive to pass the general test. The client can live with the whipsaw effect, but not the additional contributions needed to pass discrimination testing if the 417(e) subsidy must be included in the MVAR. Any practioneers out there that still think this might not be required or at least a grey area ?

I'm wondering if this is happening at all. THanks.

I'm not looking for any "secrets" or "proprietary" information. I'm just hoping to get some suggestions to help me better handle the SH notice situation in our office. If a new client wants to establish a SH 401k plan and you start discussions w/ them in middle of December, let's say how do you handle the new plan? Let's say you aren't able to get the client to commit to the 401k SH until early in January. Obviously they can't start deferrals until they decide to do a plan. Do you draft a plan document that is effective 1/1/2005 (let's pretend it is 2005) with SH provisions effective 1/1/2005 or do you date the sh 401k provisions later into the year? When do you give the notice? I was under the impression it had to be given 30 days BEFORE deferrals started. My boss says we have up to 60 days AFTER to give notice. I'd like to exchange info with anyone willing to discuss the topic.

Does anyone have a cite for the rule that taxable benefits provided to retirees are reported on Form W-2?

Thanks,

Ken Davis

Univ. of South Alabama

Can anyone tell me how you calculate the accrued liability and normal cost under this method?

Looking for some user friendly guidance on continuation of coverage - from what I have already read, not much official and topic is rather confusing.

Thanks.

Should the OYTC be calculated on the full face amount of the insurance or on the net amount at risk (FA-CV)?

We received Schedule D reporting stating that we have a PSA that must be reported. We also received a Schedule A from the same insurer listing unallocated insurance contracts of the same dollar amount as was listed for the PSA. How do we complete the Schedule H when it comes to reporting unallocated insurance contracts and PSAs. Obviously, if I put the amounts in for both the PSA and the unallocated insurance contract in the Schedule H I'm out of balance with the plan finanicals by the same amount. Did I get bad info from our insurer or am i just confused? We determined that our 5500 preparer had no clue because they backed into a number to get the Schedule H to balance with the financials. Now we are trying to clean up this mess. Any help would be greatly appreciated.

Can a defined benefit plan be designed or amended to permit only lump sum distributions in the event of a plan termination even for former employees currently receiving annuity payments?

A participant in a PS plan has turns 70 1/2 in 2005. He has terminated employment and is preparing to roll his account balance into an IRA. Can he roll his entire account balance into his IRA and take the RMD by 4/1/06 or must he take his RMD prior to rolling the balance into his IRA?? Thanks.

We have just taken the plunge to high deductible insurance plans and HSA's. But I am very disappointed with the limited options on who will serve as Trustee for the HSA's and how much they are paid to do it. Seems to me that the banks take all the money, do little if anything to service the account and are making a killing in fees. The bank trustee we are using charges a $3 monthly fee, $1.50 for each electronic debit plus numerous other typical bank fees. No statement is generated; only available on the web. A 1099 is generated each year. The account holder is fully responsible for determining the amount of the deductible contribution and the qualification of the disbursements. All services appear to be electronic and no human intervention is needed to maintain the account. I could accept the fees of $50 or so per year, per participant if at some point the fees were waived if the account balance exceeded $2500 or something.

I also have discovered that part of the $36 annual service fees are going back to the agent, I suppose to compensate him for the lower commission he earns for the high-deductible plan he sold.

Does anyone know of a bank that is willing to serve as Trustee for less? Maybe I should apply to the IRS to become a non-bank trustee for HSA's!

a participant in a profit sharing plan has received a lien. the lien wants to attach his account balance to pay for back child support of appx. $4500. has anyone seen any rulings on such?

In a Plan termination situation, what is done with participant account balances that do not return paperwork and have larger balances (over 5,000)? Does there come a certain point where the client can pay out the balances, or does the plan have to linger until the paperwork comes back?

Thanks

Can a plan have an effective date (for example, 1/1/05) when the sponsoring company was not started until say 5/27/05?