do you withhold for distributions made to a trust when trust is beneficiary and participant died before RBD? i know you dont withhold the 20% but what about the 10% for non periodic payments.

We have a situation involving multiple employers that do NOT constitute a controlled group. However, it has been determined that several groups are affiliated service groups. For instance, Employer A and Employer B are an affiliated service group. Also, Employer B and Employer C are an affiliated service group.

Would then, A B and C constitute an affiliated service group? Our situation extends beyond three employers, but this is the basic question we face.

Any thoughts?

Hello;

I hope someone can give me an answer (the LTCI companies will not give me a "ballpark" answer to my question). My question is: What is the difference(percentage) a premium goes up for each passing year a person puts off buying LTCI? For instance, at age 60 with a premium of $2000, how much more will it be at age 65? I know there are other factors and health may change but is there a safe "factor" percentage the premium goes up? (It does not have to be exact as there are many companies offering LTCI)

Thank you for any help.

Because "disability" is defined in the AJCA as 1) or 2), is this something that should be chosen in the adoption agreement, as in The employer choses 2) as the definition it will use to define "disability" in the plan?

Company A acquires company B effective 06/30/04. Both entities maintained 401(k) plans and continue to operate these plans. How long before the plans have to be merged(they want to merge) and how long can seperate plans be maintained?

The client is concerned about action that may be required prior to year end.

can anyone tell me where I can find any regs regarding final plan year (short plan year) where the assets are distributed; the form has a short plan year (date of distrib) but someone at my firm wants proof of no requirement to amend the plan for this final year.

thanks!

I am preparing a new DB plan for a client that had a prior SEP. Does anyone know if I should use plan number 001 or 002 for the DB plan?

Did anyone else find this odd? While it displays an unexpected level of flexibility and generosity by the Service, it does seem like a great departure from prior practice to allow the spouse of the deceased to exercise a rollover in the name of the deceased. I wonder if this will remain as quasi-official IRS thinking or if it will be changed in a future letter or ruling. Maybe the application is narrow enough so they didn't see it as a big deal?

what IRS forms are necessary to close down DC money Purchase plan.

5500EZ ??? 5500? any others??

Funds will be rolled over into IRA accounts

Husband and Wife only participants

On the Formula Change Date 01/01/XX -

Old Formula : (2%)(FAE)(Years of Benefit Service)

New Formula : (1%)(Career Avg. Pay)(Years of Benefit Service), to be applied Without Wearaway.

Given the above which , if any, of the following would define the Projected Benefit under the New Formula for participant A ?

1. (Accrued Benefit on Change Date) + (1%)(Average Pay Over Future Years in Career)(Years of Benefit Service After the Change Date)

OR

2. (Accrued Benefit on Change Date) + (1%)(Average Pay Over All Years in Career) ( Years of Benefit Service After the Change Date)

I have a 401(k) plan with a match. The plan is top-heavy. It also has a new comparability feature. The plan has an end-of-year psp requirement. I have 3 ee's who terminated, two deferred and received a match contribution- they are not eligible to get the TH contribution. Are they required to get a gateway contribution since they are benefiting by receiving the match? Can anyone point me in the right direction to finding this somewhere in regs? Thanks

I just want to make sure I understand how to apply the 415 limits to a non-calendar year plan. If the limitation/plan year ends June 30, 2005, is the limit $42,000?

Would anyone recommend this fund for a Roth IRA in comparison to another of this type? I understand it is a lower risk with a potential of high returns.

New TPA for 401(k) profit sharing plan discovers that the plan failed to make top heavy contributions for previous years. Sponsor is willing to correct now and in the future but does not want to (cannot afford to) file a voluntary corrrection with the IRS and pay the user fee and back contributions. Does the TPA have any liability for refusal or should it resign?

Is there a Statute of Limitations when it comes to the Trustee collecting overpayment of DB to participants?

Per Rev. Proc. 2004-22, prescription drug plans are "grandfathered" so they can be offered w/HSA plans through 2005.

How are insurers handling non-calendar-year prescription drug plans that would run 2005-2006 & HSAs?

Only thoughts I have are

1. make short plan years terminating on 12/31/05.

2. not offer them at all after the plan year ending in 2005.

3. let them be and tell those taking it that they won't be HSA eligible as of 1/1/06.

Anyone know what insurers are doing in practice or have other ideas?

Hi, I have someone asking me the following:

Do Voluntary Life/AD&D Programs need to have a 5500 filed?

It is an optional employee-paid benefit.

Can anyone help me?

Is there a Statute of Limitations when it comes to the Trustee collecting overpayment of DB to participants?

We have a client who wants to set up a plan (employer contributions only) effective as of the beginning of the year. We proposed standard eligibility requirements of 1 year of service and age 21 with an eligibility requirement waiver for anyone actively employed as of the effective date of the plan. The individual preparing the document says that we have a problem due to the "dual eligibility" provisions of 1.401(b)-6(b)(2). On pages 2.6 and 8.97 of the ERISA Outline Book, Sal Tripodi indicates that such waivers can potentially cause coverage problems, but does not provide a clear explanation as to how. I point out that such eligibility waivers are included in standardized prototype plans, which are supposedly designed to always pass coverage. Any ideas?

If an employer decides mid-year to pay the entire cost of a certain class of employees health insurance, can they? What if they call the 'reason' for the 100% contribution due to a promotion? To us there is no qualifying event to allow the change from a pre-tax deduction to no deduction at all, midyear. The other question is, could the employer set it up at the beginning of the year to pay 100% of a certain class?