Hi-

I'm new to this board and haven't been able to find the exact infomation I've been looking for.

I am drawing very little income in 2005 and, therefore, will be in the lowest tax bracket. I live in Texas. I am 58 and married, wife is also retired and without income.

I have about $500,000 in a mostly pre-tax 401K. How do I determine if it is a good idea tax wise to convert this money to a Roth? Can I even do it?

Thanks,

Tony

Can the Plan Document or Amendment say that Accrued Benefits less than $5K "may" be paid out, does it have to be "will" be paid out?????

Basically, can the document give the option of Mandatory Cash-outs, without making them a requirement???

My company has wrapped many of its welfare benefits. The basic plan document is the wrap shell, with the individual benefit programs SPDs as attachments to the plan document.

Now the company needs to amend some of the individual benefit programs (i.e., we need to change the elimination period for long-term disability). How, logistically do you create such an amendment? The wrap shell doesn't go into elimination periods, but the attached LTD SPD does describe the elimination period. So, would my amendment be to the overall Wrap Plan, but just reference the portions of the LTD SPD that are being changed?

Please help.

My company has wrapped many of its welfare benefits. The basic plan document is the wrap shell, with the individual benefit programs SPDs as attachments to the plan document.

Now the company needs to amend some of the individual benefit programs (i.e., we need to change the elimination period for long-term disability). How, logistically do you create such an amendment? The wrap shell doesn't go into elimination periods, but the attached LTD SPD does describe the elimination period. So, would my amendment be to the overall Wrap Plan, but just reference the portions of the LTD SPD that are being changed?

Please help.

I recently came into about 20K and want to put it away. I want a good return (of course), but I don't want to be penalized for withdrawing if I have to. Without this money, I am financially sound. I make enough money at work to where I don't need to access these funds for bills or anything like that. I will, however, likely be getting married in the next 12-18 months where a little bit of that money might be nice to have. Anyone have any tips on where I should start looking to put my money? (I'm just looking for advice. If I end up making bad investment choices, its my own problem...I know that) thanks

P.S. If I put a lot of it into a 30, 60 or 90 day CD and just continue to roll it over until I decide its long term use, will that be bad?

I found a post about this question but it was 5 years old so I wanted a fresher response. A participant is requesting a hardship w/d under the safe harbor provision of medical expenses. However, he has indicated that he has already paid these expenses but now he is encountering a heavy financial need because he already paid the expenses with credit card and/or savings. My first thought is that he should not be granted a hardship because he has already paid the medical expenses and now his financial need is due to the lack of ability to pay his normal bills. Agree?

OK, when determining whether or not a refund has been processed prior to March 15, does the IRS look at the date of the check to the participant OR the day the amount was withdrawan from the plan assets?

Ex. withdrawal made 03/13 but the check is dated and mailed 03/17.

I have a participant who fits the definition of disabled. The volume submitter plan document allows optional forms of distribution as follows: "1) lump sum or 2) substantially equal monthly, quartly, semi annually or annual cash installments over a period certain that does not extend beyond participant's life..."

At this time he is not sure whether or not he will take a distribution. He wants the option to take a distribution in the future for whatever amount he desires (when the need arises). The options articulated above do not allow this. Can the plan be amended to accomodate this and if so can he still avoid the early distribution penalty?

An employer who has 3 classes of union employees runs a SIMPLE plan for their non-union employees.

Can the employer elect to include in their SIMPLE plan the union employees who are only covered under the national contributory DB plan?

If so, would the portion of compensation that is held out of their paycheck for the db plan be used in calculating the overall deferral limit of $14,000? Is the limit actually $10,000 due to the SIMPLE limits? Is it $10,000 minus their contribution to the db plan?

Any help would be greatly appreciated.

I would like to know if my company can include the company's potion of payment on the medical plan in the employee's pay check and be on a cafeteria plan, have it be deducted through this plan as payment for the medical plan, and still be able to write it off as a company expense for the company's taxes?

A participant takes a hardship withdrawal and is suspended from hardships for 6 months in 2004. The employer unwittingly continues to take deferrals from the participant's pay. The vendor returns the money to the employer in 2004, but the employer doesn't cash the checks or take any action. Now it's 2005. How is the tax reporting handled? Are the 2004 W2 forms amended? Are the participants' federal and state taxes amended?

When has a distribution of excess contributions occurred? Does it mean that the plan's account is actually debited, when a check is mailed to a participant, when a check is received by a participant, etc.?

Two HCEs in a client's 401(k) plan have excess contributions for the 2004 plan year (which is a calendar year plan year). The client has yet to issue checks to either HCE, but has been told by their benefits counsel that a "distribution" of excess contributions occurs if the check is dated March 15th or earlier--even if the check is issued after March 15. The client wishes to accept their lawyer's advice and issue checks to both HCEs now dated March 15, 2005 (so that (1) the HCEs will report the refunds in their 2004 taxes and (2) the client will escape the 10% excise tax). Is this OK? We have to prepare the 1099-Rs and want to make sure that we can, in fact, use code "P" instead of code "8".

We have always interpreted the regulations to require actual payment by March 15th which we think means the plan must mail the check to a participant no later than March 15th.

Thanks in advance for any comments.

Can anyone provide or direct me to some written QDRO procedures for Plan Administrators? All qualified plans should have these, but I know many don't.

Certainly, different plans and different circumstances could lead to diferent procedures,

but it's much easier to improve or modify than to have to entirely reinvent something.

An employer wants to give an incentive to attend nutrition and other "wellness" classes (no health standards are required in order to receive the benefit, so the proposed wellness regulations would not apply). The incentive would be additional employer flex credits under the cafeteria plan.

As a result, some employees will receive say $100 per month in flex credits, while others, who attend the classes, may receive $110 per month. My question is whether, under the cafeteria plan rules, a plan sponsor can give some employees higher flex credits than others (based on attending wellness classes).

EBIA's Consumer-Driven Health Care & Fringe Benefits outline implies that this is possible, stating that "Employers may give employees a financial incentive for participating [in a wellness program] (e.g. a small gift certificate, an extra vacation day, or additional flex credits in their cafeteria plan account)." The treatise does not address the cafeteria plan issues.

Does anyone know whether this could run afoul of the cafeteria plan rules?

We are looking at converting 51% of the shareholder's common stock to preferred in order to pay a dividend to amortize the acquisition note in a 1042 transaction. There is one Rev. Rul. that talks about a situation where the common was converted into another class of "common" with a dividend preference, and the holding is the new stock is not 306 Stock. However, in the state at issue here, state law says if stock has a preference as to dividends or liquidation, it is "preferred stock." Should state law matter here. If all the facts are the same as the Rev. Rul. except that the new stock is "preferred" under state law, should 1042 treatment be allowed. Have you ever seen such deals done prior to a 1042?

I am doing an e.o.y. 12/31/04 val for 2004. The instructions for Schedule B say to use Beginning of year numbers for line 2b. I noticed that my software system is including current liability amounts for participants who entered the Plan 7/1/04. This seems strange. The instructions for Schedule B does have this passage for line 2b instructions:

"If the current liability figures are derived from a valuation that follows the first day of the plan year, the participant and beneficiary count entries should be derived from the counts used in that valuation in a manner consistent with the derivation of the current liability reported in columns (2) and (3). "

I find the wording to be very confusing in this passage. But, anyway, my question is whether my software is on solid ground with adding in current liability amounts for 7/1/04 entrants for line 2b? And, if so, is it the above passage that justifies it?

A follow-up question is: Would it be a problem if I don't include in amounts for the 7/1/04 entrants?

For purposes of paragraph (3) , an organization described in paragraph (2) shall be deemed to include an organization described in section 501©(4) , (5) , or (6) which would be described in paragraph (2) if it were an organization described in section 501©(3).

Can anybody top this for incomprehensibility?

Please post anything that you think might rival or even overtake this model of complete unfathomable text produced by our beloved Senators and Congressmen. Let's start a list!

We recently adopted a Wrap Plan encompassing health, dental, long term disability, short term disability, and other benefit programs. The SPDs for the individual benefit programs are attachments to the Wrap Document and more fully explain the benefits.

Are the individual booklets for the benefit programs considered part of the Plan Document because they are attachments to the Wrap Document? Or are they considered SPDs?

The reason I ask is because the Wrap Document established one plan number for our welfare programs. However, the booklets for the individual programs still each had its old plan number (different for each program). Obviously, we want to update them so they all show the Wrap plan number. We are not sure if this is an amendment to the plan document or merely a small change to the SPD.

Any thoughts?

Thanks.

My company currently has several retirement and health plans. Whenever a change to a plan needs to be made, a board resolution must go to the Board of Directors. It is very difficult to get on the docket for the Board meetings. And the Board members often don't think they need to deal with certain ministerial plan changes. Most of our plans currently state that amendments to the plan are to be made by the employer. We have interpreted that to mean the Board of Directors. So all plan changes, major and minor, have been going to the Board for approval.

So I have been assigned to work on putting together a document that lists all types of plan changes and who has the authority to make them. Then we will try to get the Board to formally delegate authority to subcommittees or individuals (Finance Committee or VP of HR) to make those changes. Knowing our Board, my document and the types of changes permitted to be made by someone other than the Board will need to be finely defined.

Has anyone tried to put anything like this together? Any recommendations on sources or websites?

I know that if I say that "minor plan amendments" can be made by the VP of HR or Finance Committee, the Board will ask what "minor" means. So I will likely need to come up with a list of all types of plan changes. Has anyone seen this type of list?

Please help.

Thanks.

My company currently has several retirement and health plans. Whenever a change to a plan needs to be made, a board resolution must go to the Board of Directors. It is very difficult to get on the docket for the Board meetings. And the Board members often don't think they need to deal with certain ministerial plan changes. Most of our plans currently state that amendments to the plan are to be made by the employer. We have interpreted that to mean the Board of Directors. So all plan changes, major and minor, have been going to the Board for approval.

So I have been assigned to work on putting together a document that lists all types of plan changes and who has the authority to make them. Then we will try to get the Board to formally delegate authority to subcommittees or individuals (Finance Committee or VP of HR) to make those changes. Knowing our Board, my document and the types of changes permitted to be made by someone other than the Board will need to be finely defined.

Has anyone tried to put anything like this together? Any recommendations on sources or websites?

I know that if I say that "minor plan amendments" can be made by the VP of HR or Finance Committee, the Board will ask what "minor" means. So I will likely need to come up with a list of all types of plan changes. Has anyone seen this type of list?

Please help.

Thanks.