A plan sponsor offers its employees the option to participate in multiple group health plans. Can its COBRA notices apply to all the group health plans? Of course we will specifically identify the plans. For example, can one general COBRA notice be used for the health and dental plans, the vision plan, the FSA, and the EAP? We simply want to minimize the number of forms that employees receive. Thanks in advance for any suggestions.

Does anyone know of a compilation or source showing the best performing Mutual Funds which are popular in the 403(b) arena?

Section 409A now requires that participants in bonus deferral ararngements make an election to defer their bonus at least six months prior to the end of the applicable performance period. Most commentators are expecting Treasury to provide an exception for 2004 bonus payments paid out in 2005 because 409A was enacted into law so late in the year. Has anyone heard anything more specific?

Two questions about 401(k) Catch-up Contributions and cross-testing.

#1: Assuming there are no problems with passing the ADP, for the various crosstest cacluatlions I undertake, I can ignore all catch-up contributions. Correct?

#2: This question assumes the answer to #1 is that I can ignore the catch-up contributions. But what if the ADP test fails? For example, Participant A deferred $14,500. For the initial ADP test, I assumed deferrals of $13,000 and $1,500 of catch-up. My ADP correction calcs results in a refund of $3,300 for a net 401(k) contribution of $11,200, $3,000 of which deferrals were reclassified as catchup contributions.

When I run the crosstest, do I include only $8,200 in deferrals ($11,200 minus $3,000)? Or do I assume $11,200?

Thanks.

Due to a few mess ups, I have over-contributed to my Roth IRA, and not by a tiny bit. Instead of 3000 for 2004, I have put in 5000. 3000 is my legal limit. What can I do now?

A few logistical issues that I am curious as to how other small plan practitioners cope with.

1. 412©(8) - A client is preparing to file their corporate tax return say 8 months after the fiscal (and plan) year. They want to amend pension to meet their goals. How are people handling this? Of course you can't retroactively reduce benefits accrued prior to the date of adoption of an amendment (in addition to proper 204(h) notification, if applicable).

2. Employer wants to convert DBPP to say MPPP as opposed to DBPP termination and MPPP implementation. It appears that a such an amendment may be reasonable assuming all accrued benefits and payment options associated with such accrued benefits are 411(d)(6) protected. And then perhaps continued 5500 filing but now based on MPPP. Any practical thoughts on this?

3. MPPP to DBPP perhaps same as 2. above, but now the Schedule B discloses plan amendment details.

4. Traditional DBPP to 412(i) DBPP. It seems that the 412(i) plan must use insurance products that can fund up to the 415 offset by the estimated benefit funded from the traditional plan's trust assets.

Curious to hear some practical feedback if anyone has such to share.

Thanks.

Gary

Client is amending a profit-sharing 401(k) plan for cross tested allocations. He has some money burning a hole in his pocket, so wants to make a contribution before year end.

I've told him that we need an allocation letter before the money goes into the trust, and that he should wait. This isn't sitting well with him.

Any reason not to draft an allocation letter saying "This $XXX is to be allocated to the Partners on a salary ratio"? Later, we'll allocate money to the rank and file, and perhaps more to the partners as well.

If not can you direct me to a cite or reg that supports this?

Thanks

Why

A former employee left the company, and left a balance in his Dependent Care FSA. He did not incur claims prior to his termination date, so his balance is forfeited.

He is asking where in the Section 125 guidelines does it state that claims are not eligible after an employee's termination date.

Would anyone know where I could find some reference to how the plan participation rules work?

Thanks.

Does anyone use etrade for their roth ira account ? If so I wanted to know if we could purchase stocks/mutual funds and other types of money funds for the roth ira account ? I hear that you need to leave the money for 5 years in order to take the money out to buy a home ? I am fairly new and need some guidance. Thanks.

ken

Our cafeteria plan has a health FSA. What are the impacts on the FSA if an employee's spouse has a HSA? Are there any impacts on the spouse's HSA?

I assume that an eligible expense cannot be paid by both the FSA and HSA.

I have seen information regarding a change in the code for corrective distributions. According to the information I have read, uder the corrected instructions, the plan would use code 2 for a corrective distribution. Does this seem correct? How would you indicate in which year the corrective distribution was taxable? I would appreciate any comments from individuals that have seen/heard any information regarding the corrected instructions.

Thank you.

Are ERISA 403(b) plan subject to the full content requirements of summary annual reports?

Is a Non-ERISA 403(b) church plan subject to ACP testing?

Local Government has a money purchase plan and a 457 plan. The money purchase plan provides a fixed % of pay for only grandfathered employees and a match for only new employees. The match formula is based on deferrals in the 457.

Does this sound ok? It doesn't seem like a money purchase plan should have a match.

I'm considering opening a Roth IRA sometime in the next few months and so I've been doing quite a bit of homework on it. I've never invested in anything other than my savings account so I'm pretty "green." One thing that I haven't really been able to find out is what exactly is an IRA invested in? Is it the stock market? I'm not at the point where I feel I could successfully juggle my own portfolio if such is the case. I've heard it's good to get a ROTH IRA from a discount brokerage firm. Do they handle the IRA and where the money is invested or do you? Thanks for any help you can offer.

Hi, I'm new here. I'm 18 and thinking of making a small investment sometime in the near future. It seems to me that time is one of your best friends in saving. Anyway, I just wanted to get something started because I will probably go to grad school as well and want to get an early start. I was thinking about Roth IRA's in particular. What is the minimum to open one? I wouldn't have much trouble adding to it, but because of my age and earning level it is somewhat hard to come up with a very large amount at once. Thanks.

I am embarking on a research project and need to acquire (hopefully in tabular form) a schedule of mid-term and long-term applicable federal rates for the periods December, 1993 and earlier. Does anyone have this or a link to where I might find them?

Regards

William J. Stecker

wjstecker@wispertel.net

I am embarking on a research project and need to acquire (hopefully in tabular form) a schedule of mid-term and long-term applicable federal rates for the periods December, 1993 and earlier. Does anyone have this or a link to where I might find them?

Regards

William J. Stecker

wjstecker@wispertel.net

An employer is adopting an existing plan as an Adopting Employer. His plan will have the same name as the Plan/Trust he is adopting. In completing the SS4 to apply for the EIN for his pension trust, will it be a problem if he reflects the name of the Plan/Trust he is adopting (which already has its EIN)?