After reading Grey Book 2004 #27 it's evident that if the measurement period is "current and all prior" for all the plans being tested under the ABPT then for a "frozen plan" it's appropriate to use testing service as of the freeze date but current average compensation in the development of accrual rates - and that seems logical also.

But if the measurement period is the "current plan year" for all plans being tested then it seems that Andy's response to my earlier question would be correct - i.e. the accrual rate would be 0/(current average comp) or 0 .

Does everyone agree ?

We have a client that excludes terminated employees in the year end cross tested profit sharing allocation. They do however receive the 3% safe harbor (401k cross tested plan) since it is funded each pay and there are no restrictions.

If we pass the 410b coverage tests with these employees excluded, do we have to bring them back in when testing for 401a4 for the cross tested?

With a volume submitter or M&P plan, can a successor employer that adopts the plan of its predecessor continue to rely upon the favorable letter for the plan? (no material modifications and all of predecessor's employees continue to participate in plan.) I cannot find a citation that addresses this issue in the Rev Procs.

Any thoughts would be greatly appreciated.

I am looking for survey information related to investment mix of defined benefit plans. Any suggestions or links? Thanks.

As Power of Attorney for My grandfather I used the Illinois Statutory Short Form for POA to remove the name of my deceased grandmother as beneficiary and named myself as the beneficiary and younger sister as contingent.

My POA Specifically states, "You have the power to name or change beneficiaries or joint tenants, and revoke and amend any trust"

When my grandfather died I submitted a claim for the burial insurance. The administrator of the ERISA Plan denied my claim citing that Illinois State Law forbid me to name myself as beneficiary.

Administrator QUOTE the authority to name yourself, as the beneficiary of life insurance is not specifically stated. Administrator Unquote

They accepted the beneficiary change form and entered it into the record now (in response to my claim) they are saying that they are willing to pay the contingent.....providing I drop my claim / appeal.

If specific reference to the plan is need why was any change honored when the plan itself is never mentioned????

Hi guys, just quick question. Based on long-term performance (not-recent obviously) how do Vanguard and American Funds compare?

Both are very respectable companies, offer great returns for Roth IRAs. The question is: is there a better one of the two?

Vanguard only charges a $10 a year custodial fee.

American Funds charges some commission percentages( 5.75% initial, .75% yearly).

Vanguard can handle Roth IRAs directly and easily through their web site.

American Funds looks like it can only be invested through third-party (i.e. brokerage, or online investor, Ameritrade etc...)

Lastly, does anybody know of any good mutual fund comparison sites, that I can use to determine the strength, value, etc... of funds within a family over the past few years.

I look forward to your replies. Thank you

Where can I find the rules for

early retirement

Spousal

Minor Children

benefits

i.e. the Hubby wirks and based on his wage history

his wife and children are entitled

to benefits

I'm having a tough time finding information on how to calssify employees that are a part of a non-qualified stock option plan.

A closely held corporation implemented a stock option plan during 2003 in which 40% of the company was optioned out to 4 employees. The shares are vested over a 5 year period and no more than 20% may be excercised each year.

The only real bit of info I have found is one line in the control group section (subheading of constructive receipt) of a pension resource book we have that says:

"An option to acquire stock causes the option holder to be treated as owning the stock."

If this is true to determine highly compensated or not for 2003, then the 4 employees are considered highly compensated for 2003 because they were all given at least 5% of the overall company. If I apply the vesting schedule to the amount of shares though, a couple of them are not vested in 5% of the overall value of the company. 3 of the 4 employees would not be considered highly compensated based on their annual salary.

Anyone have any thoughts on this? It of course makes a big difference in the testing of their profit sharing plan.

I'm not clear about the new HSA guidance. Can a person have HDHP coverage as an employee, and still be an "eligible individual" for an HSA if also covered as a dependent under their spouse's HDHP? Thanks for any clarification you can give.

Just wondering if anyone knows how an employee benefit percentage on a benefits basis would be determined for a participant in a frozen DB plan ?

Can you use the "accrued to date" over comp for this plan and "the annual change in accrued" over comp for other plans in the testing group ? If so, this would answer the question !!

thanks all in advance for your time !!

In the plan document we use the definition of Non-Key Employee is: any Employee or former Employee (and such Employee's or former Employee's Beneficiaries) who is not, and has never been, a Key Employee.

This may seem overly simplistic but in following the plan document definition does this mean that a participant who is former Key will never be required to receive a 3% minimum contribution?

A client is employed by a university where his salary is $203,000. He is covered by the university's 403(b) plan (contribution of 7% compensation).

This client also earns $50,000 as a member of a Bank's board of directors. The Bank and university are not related in any manner. The client would like to establish a DB plan with the comp he earns from the Bank.

I don't think that the benefits from each of the plans would have to be aggregated for the purposes of the 415 limits.

Also, I do not think that the 403(b) plan has any effect on the new DB plan in any manner at all... contributions, benefits, etc.

Am I wrong about this?

You have a conventional IRA and a Roth IRA. You are over age 59.5. All of your income is from withdrawals from your trad IRA. You also want to convert part of your traditional IRA to a roth IRA each year.

Problem: In a given year, you have high expenses and need to withdraw an amount from your traditional IRA such that you go over the $100K MAGI limit for conversion to a Roth. You will not be able to do any conversion that year.

Potential solution: Withdraw some of your living expenses from your existing Roth so that your MAGI stays under $100K. Then covert the amount you withdrew from the Roth, plus more, from your trad IRA to your roth.

Will this strategy work? It seems like anyone with an existing Roth could get around the $100K MAGI limit using this strategy.

Has anyone looked into the issue of whether the PBGC can reach the assets of a foreign subsidiary to satisfy the liability of the U.S. contributing sponsor of a single employer DBP that is terminating? I have not yet found anything that limits the PBGC's reach to U.S. based controlled group members.

I'd appreciate any thoughts and/or cites.

Thanks.

I have an individual who is currently contributing the maximum to a 401(k) plan through the his employer (a University). This individual is also employed by a local college that offers both a 403(b) and a 457(b) plan.

Here's the question: Can an individual who is working for two separate employers (receiving two W-2's) participate in both of their retirement plans i.e. 401(k) with the University and a 403(b) and/or a 457(b) plan with the college? If so, can he max out all of these plans (i.e. $13,000 to the 401(k), 403(b) and 457(b) plan?)?

We would like to provide employees with the opportunity to participate in a smoking cessation program. Our plan is to charge employees $50 for the course. If the employee attends all meetings - the employee does not have to quit smoking - the employee will receive his/her $50 back. Any problems? For those who receive their $50 back, I assume the value of the program is a nontaxable benefit? Any authority for this? Any guidance would be appreciated!

Thanks!

We would like to provide employees with the opportunity to participate in a smoking cessation program. Our plan is to charge employees $50 for the course. If the employee attends all meetings - the employee does not have to quit smoking - the employee will receive his/her $50 back. Any problems? For those who receive their $50 back, I assume the value of the program is a nontaxable benefit? Any authority for this? Any guidance would be appreciated!

Thanks!

You've all heard the expression, "If you can read this, thank a teacher." Here is another one: "If you have (or can look forward to) a pension, thank an actuary!"

This was my own creation. - Carol Caruthers

Our ERISA plan numbers for our health and welfare plans have always been 601, 602, etc.

I have been told by a consultant that the Plan numbers must begin with a 5 for health and welfare plans.

Is this the case? We have never had any problems with the plan numbers being as they are for years.

Thanks.

Anyone have experience upgrading to 9.1? Having an issue where the web returns the message

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