The beneficiary lives in England and doesn't have a US tax ID number. Cigna won't do anything without a tax id number and the beneficiary says she doesn't want to go through the trouble of getting one for the amount (which is $190). What do we do to close out this account?

Thanks

Can anyone tell me what a RMD formula might look like for a participant with a TEFRA 242(b) election? Could the participant choose whatever formulat they wanted at the time of the election?

For example, 2004 distribution amount is based on 1/2 of the balance as of 12/31/02. Could that be possible?

Notice 98-52, Section VIII.F seems to require continued current year ACP testing for any after tax contributions made to a safe harbor 401(k) Plan. Is this correct ?

The plan will use the basic matching contribution formula to pass the safe harbor. I have never dealt with a safe harbor 401(k) plan with A T $ and just found this requirement to be odd.

Any comments are appreciated.

Thanks.

Controlled group has 3 plans, each of which contains the following vesting schedules:

Plan A - 3 year cliff

Plan B - 3 year graded - Year 1 - 33% - Year 2 - 66% - Year 3 - 100%

Plan C - 3 year graded - Year 2 - 25% - Year 2 - 50% - Year 3 - 100%

Since all employees fully vest after 3 years of service, does anyone see any problems with keeping these schedules? If one of the plans had a 6 year graded schedule (e.g. -2/20), would this make a difference, and if so, would you be testing how many participants would have the right to fully vest after 6 years?

My thinking has always been to look at the maximum time period someone can become fully vested, in determining whether there would be a potential for discrimination.

Thanks for any reply.

An employer purchased a security for $100,000 with corporate money and now wants to transfer this security into their pension plan to meet the minimum funding requirement of $100,000.

My understanding is that cash must be used to meet the minimum funding and that the above is a prohibited transaction.

Does anyone have concrete evidence on the above issue?

Thanks.

GAry

What distributions are required to be made under a tax-qualified plan (DC) during the determination letter process for a terminated plan. How long can an employer wait to receive a letter from the Service before being required to distribute all of the terminated plan assets?

I have a technical question that I have received mixed information from other practitioners and lawyers. I would like to contact the IRS directly to ask for an interpretation.

Unfortunately, trying to get through the maze of automated operators and finding someone knowledgeable enough to assist is proving futile. Does anyone have a number for specific departments or divisions of the IRS to ask a fairly technical employee benefit plan related question (or any other suggestions)?

Is plan amendment bringing in the affected ee's under 2003-44 the only remedy?

Could you take the position, for example, that plan def. of comp is from date of participation and this ee does not have a DOP so does not have elig comp so he/she has a 415 excess and therefore the plan returns the deferrals? It is a corbel prototype doc and i didn't see this addressed.

I have been asked to run a DB proposal for the following situation:

Husband and wife partners in an LLC. Husband K-1 at 200K, wife K-1 at 50K. No employees.

Husband also receives other consulting income, directors fees, and non-qualified stock options that his CPA has been showing as "Other Income" on line 21 of the 1040.

My question: Can the "Other Income" be used for pension purposes and how? Is it necessary to start another business to accept those various sources of other income and have both companies adopt the plan? Is it possible to use the "Other Income based on how they report it now (I don't see how but I am not sure). Any other thoughts?

Let's just say for this discussion that all of the sources of income can be used for comp per 3401(a). In other words, none of it is rent from rental properties, etc.

Any help or input is appreciated.

We have a client who does COBRA administration for themselves. They are about 130 employees and this is how she is doing it:

Employee terminates, HR Mgr. has the employee complete a COBRA election form at the exit interview, if there's a spouse or dependents she DOES NOT send a seperate one, then only gives the QB 30 days to pay the first premium and if she doesn't receive it in 30 days she terminates the employee for non-payment of premium and sends a letter to him stating so.

There are so many COBRA rules broken here but I cannot convince her of that. I have given her written information on several occasions, time-frame charts, notice listings, etc. My hope is that someone will reply for me and I can print this out and send it to her!

Please help!

I believe if a plan offers a lump sum distribution option before retirement age (e.g., upon termination of employment), and the lump sum amount is over $5,000, then an immediate J&S annuity must be determined/offered at the current age.

If the lump sum is base upon GATT (plan provides for lump sum equal to greater value of (a) actuarial equiv or (b) Gatt mortality/rates) does the GATT PVAB at the current age get divided by an immediate annuity factor based on plan's normal actuarial equivalence (used for alternative forms of annuity distributions) - OR - by an immediate GATT annuity factor using the Gatt table/required interest rate ?

Thanks !

Treasury and IRS Propose Retirement Annuity Regulations

http://www.treas.gov/press/releases/js2099.htm

Who do my husband and I talk to about his pension benefits. We are in New Jersey.

Does anyone happen to be familiar with the program ACT? I am currently using version 6.0 and I have to sychronize a database and am having trouble. I have called tech support and no can cen seem to help. I know this is a random question to throw out, but I am desperate for assistance. Thanks!

A bank client's owner died. He left a large account balance. His beneficiaries are non-spousal. The beneficiaries are younger and wish to be paid on a life expectancy basis. The plan allows investment in insurance products, so is there any reason why an annuity couldn't be purchased as a mechanism for the plan to make these payments?

Thanks,

Dan

I want to see if I've got this right - without going blind figuring out original case, vacated decisions, remands, etc... maybe some of you legal types are more conversant with it.

With the latest decision, are we now, for the moment at least, at the stage where vested participants are counted? Have I got that right?

Would it be possible for an employer to use an HRA to fund the gap between the HSA balance and the catastrophic deductible?

Assume an employer believes that 7% of his employees will exceed their deductibles.

A group HRA is set up to fund this gap, which could be easily determined once a year.

Reinsurance is bought to fund the gaps in years which exceed this 7% estimate.

Also, for COBRA purposes, could the former employee continue to self fund his HRA?

If so, how would that amount be determined?

Don Levit

A defined benefit pension plan covers a controlled group consisting of a sole-proprietor and a C corporation. Is it correct, based on the wording in 404(g)(2), that the corporation can make and deduct the entire required contribution, including any portion attributable to the sole-proprietor's Schedule C income?

If so, is it also possible to split the contribution and deduction between the sole-proprietor and the corporation in any arbitrary fashion?

Client plan & fiscal years end 12/31/2003

They wish to make a profit sharing contribution in Feb '04 based on 12/31/2003 comp, but have it credited as a 2004 annual addition.

I believe the contribution is deemed to be an annual addition for 2003 because it is being allocated as of 12/31/2003. Does anyone see anything which would contradict this conclusion?

thanks

Last month we contacted a very impressive candidate whom we extended an offer to. At the interview, we offered her the job on the spot. We told her she was our top pick of candidates and that she could start working the following Monday. I gave her the Benefits package and was excited about her starting.

Weeks went by pending a start date for this candidate from the Accounting Dept Manager. I found out from the Accounting Department that the Hiring Manager who wanted this candidate had changed his mind about the position altogether. I feel bad because the candidate passed up job some job opportunities to accept the job that we verbally expressed and had sent emails to stating our interest, pending a start date.

The candidate has been calling and emailing expressing her opinions about what happened with the position and that she missed out on another job waiting on us. We feel so stuck that we haven’t called, emailed, or communicated with the candidate or even the fact that the job is no longer needed. Honestly, we are hoping that she would just go away. We are wondering, can she legally pursue us for putting our ‘foots in our mouths’ about this position? She does have my communication, HR, in several emails stating that we wanted her to work for us and we were just pending a date.

Don’t know what to do… Please advise

CD