Has anyone applied the substantiation guidelines to a cross-tested plan for 401(a)(4) and 410(b) purposes? I reviewed Rev Proc 93-42 but found no examples of how the substantiation guidelines would apply to rate group testing.

Thanks

Hopefully I don't sound stupid with this question, but I just want to be sure. Lets say a client moves their plan from one TPA/custodian to another. Assets are transferred etc. We also provide the client with a new plan document, and call it a restated plan of the original. Thus, I assume no change in plan number, plan effective date or change to the continuing 5500 etc.. Is this how it works?

Thanks

Anyone ever heard of the IA 81 Male or IA 81 Female tables? If you could point me to the qx's that would be great (assuming they exist).

Now that deemed IRAs are permitted in qualified plans, does it follow that after-tax IRA money may now be rolled into a qualified plan?

We got a strange call from one of our clients this morning. While a coworker actually took the call, I am doing the research. She has a new employee who is asking if he can roll his Roth IRA into the company's 401(k) profit sharing plan. I know starting next year, you can roll your distributions from a 401(k) etc into a Roth, but i have never had anyone ask me the opposite.

i want to say the answer is no to this bizare question. Thoughts?

what are an employer's disclosure responsibilities if an they would like to give a different matching contribution to different employee classifications? can they just continue to say the matching contribution is discretionary?

Under a non-qualified 401(k) excess plan, an executive made an election in December of 2004 to defer 10% of his compensation. Because the Company's qualified 401(k) plan uses the prior plan year testing method, in February of 2005, the executive is told that he can contribute 5% of his compensation to the qualified 401(k) plan. Accordingly, an amount is transferred from the non-qualified 401(k) excess plan to the qualified 401(k) plan. Given the existence of the PLR that indicates that such a tranfer is not a distribution, is this arrangement still permitted under Code Section 409A? Thanks in advance. Ed

I have found no direct guidance on the proper reporting of HSA contribuitons an employee makes through a cafeterial plan. It appears the Form 8889 (HSA tax form) only makes sense of this type of contribuiton if it is treated as an employer contributon. This also seems to make sense given the fact that cafeteria plan contribuiton of other types are generally treated as employer contribuitons and funds are returned to the employer if not used. Does any one have a different optinino. Thanks for your help.

Dean Huber

I have found no direct guidance on the proper reporting of HSA contribuitons an employee makes through a cafeterial plan. It appears the Form 8889 (HSA tax form) only makes sense of this type of contribuiton if it is treated as an employer contributon. This also seems to make sense given the fact that cafeteria plan contribuiton of other types are generally treated as employer contribuitons and funds are returned to the employer if not used. Does any one have a different optinino. Thanks for your help.

Dean Huber

A terminated participant in a profit sharing plan received a distribution in 2004 of substantially all of her benefit. She then died. Her account was then credited with about $12 of interest which was then paid to her surviving spouse.

The spouse has moved out of state and no one knows how to get in touch with him. Unfortunately, no one has his SSN either.

My question-how to report the distribution on the 1099-R? Could we include it on the participant's 1099 since the amount is so small? I'd like to do the right thing, but can't see doing a 1099 without a SSN and without a current address.

I'd appreciate any suggestions anyone has. Thanks.

Assume IRS has imposed excise tax on fiduciary of plan for prohibited transaction. Can plan sponsor that is exempt org. pay taxes to IRS on behalf of the fiduciary?

Can a new plan provide for full vesting on a change in control?

I work for a church, they have been having financial difficulties for about a year and a half. I have recently found out through another employee and verified it for myself, that they have not made a contribution since December 2003 and have not informed the employees that they are not contributing. The thing is they are still including the amount that the contributions should be on our yearly salary breakdown that we receive in January adding this amount as part of our salary.

A participant files for bankruptcy and has a 401k loan. Are loan repayments disallowed in the bankruptcy and loan is defaulted - deemed distributed (taxable as income and penalty) or something other than the above?

The sponsor of a 401K Profit Sharing Plan with a 12/31/04 plan year end would now like to act on a proposal I did in November 2004 to change the profit sharing allocation method from non-integrated to cross-tested. Is it too late to amend the Plan to have a cross-tested allocation, or any other different allocation method, for 2004? Thanx.

I am aware of the DOL rulings that say if an EAP provides any counselling it is an ERISA plan. I am also aware that many employers do not treat their EAPs as ERISA plans. Does anyone have any other straight-face arguments for not treating an EAP as an ERISA plan (e.g., not maintained by employer, not providing ERISA benefits).

Unfortunately this one provides some counselling and is 100% employer paid by insurance through APS healthcare.

If a nonworking spouse is over 50 and the working spouse is not yet 50, can they make the $500 catchup contribution to the spousal IRA?

Company stock was distriubted to a terminated participant by the ESOP in 2004. The ESOP is repurchasing the stock from the participant over a 3 year period, with interest. Is the total distribution taxable to the participant in 2004 or taxable over the 3 year period as installment payments are received?

An employee became disabled in March, 2003. While

not entitled to Social Security disability, he can no

longer work as a pipefitter.

The Plan has extended health coverage at no cost

to the employee for the past 22 months. This ends

in March, 2005.

My question is whether this employee would have COBRA

election rights in March? He was never given an

election form in 2003, but the plan has covered him

longer than the 18 month continuation period.

Thanks for the input.

I'm preparing letters to locate missing participants in a terminated plan using the IRS Program for 49 individuals or fewer. I was not provided the last known address, but it asks for it on the program instructions.

Does anyone know if this is a required component of your letter? It seems like a moot point to me since the address of record is incorrect.....

Thanks!

Vicki