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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Facts:

One Participant

Prior Plan existed in 1985-1990-5 Years of Participation

Received distribution payable at 65 in the amount of $3000 per month

New Plan set up in 2003 at age 60 with NRA age 65

Compensation has always been in excess of 200,000

What is maximum benefit permitted at age 65 in new Plan?

1. 160,000-36000 - he gets credit for all participation in prior plan and therefore can accrue 24,800 each of next five years; or

2. 80,000 - can only accrue up to 1/10 of dollar limit (160,000) each of the next five years.

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. 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.

Does ERISA preempt state law in this case?

Under ERISA can I name myself as beneficiary?

Please help, need answer asap...

I am fully retired from local gov. civil service, and have full access to my 457(b) plan. Will the IRS allow me to "directly rollover" all or part of my 457 funds for the purchase of a life insurance annuity without the exchange being treated as a taxable event ? Isn't an annuity purchase/ exchange via 457 funds considered a lateral transfer to a qualified retirement plan? I would appreciate any help here. Thanks.

One of our church staff members have money deducted from their paycheck to be used toward Health premium. The church pays a portion, they pay a portion. Can anyone confirm that this deduction is not subject to FICA or social security. Thanks.

I have been looking into investing in a few companies that pay dividends and also offer a dividend reinvestment plan. This investment will be in my Roth IRA account. My question is about whether or not these reinvested dividends will be considered a contribution. For example, if I have $500 of reinvested dividends, how will this affect my contribution limit? Will I still be able to make a full contribution, or will my limit be $500 lower. Thank you for any help.

missing the ESOP Association plugs every now and then!

Does anyone have a copy of T-10 table (Crocker, Sarason)?? (that they would be willing to share)

Thanks in advance.

A retirement plan permits retirees to take distributions immediately after retirement rather than waiting for the next valuation date. We usually recommend that less than 100% of the balance based on the prior valuation be distributed just in case there are losses. However, this client permitted 100% of the balance to be distributed based on the prior valuation. Now the next valuation has been completed and they discovered that there was a substantial loss. Naturally, the participant is not going to return the money. Is the employer obligated to make the plan whole?

please explain cost basis on an inkind distribution