I am no CPA... do not handle IRAs.... I do know there is a difference between a ROTH and a traditional IRA. My question is .... can a participant roll assets out of a qualified plan into a ROTH? Advantages.. disadvantages?

Thanks!

I have a client with a Section 132 Parking Plan through which all employees can pay for parking (or other transit) on a pre-tax basis. Due to differences in affordability, the execs are parking in a safe, well-lit, covered structure and the lower paid rank-and-file park a few blocks away. Recently, crime has escalated around the corporate HQ (downtown Oakland, CA - several muggings/stabbings/shootings within a block of client's HQ during broad daylight) creating a situation where the rank-and-file are more at risk walking to/from the building from the far away lots.

Has anyone had success in putting in a subsidized parking program based on a sliding salary scale? Since the Section 132 is already in place, do corporate parking subsidies happen entirely outside of the 132 plan? Is there any tax benefit to the employer? Any insight would be greatly appreciated.

Thanks!

Can an employer set up a flex plan so that employees can contribute their annual bonus in one lump sum AND still elect a weekly contribution amounts?

As long as the Plan Doc and enrollment form reflect this set-up... would it fly?

I am curious about whether or not an Employer can allow new hires 31 days for enrollment for those employees who are eligible on the date of hire; and, allowing 91 days for enrollment for those employees who are subject to a 60 day waiting period.

Has anyone ever seen this practice before? If applicable, please cite the 125 regulation or ERISA regulation that would make this discriminatory or unacceptable.

Thanks!

I have a U.S. plan that has a foreign company as part of their controlled group. The plan does not exclude foreign individuals as a class. If a foreign national from the foreign company transfers to the U.S. company, do you need to count the service with the foreign company for eligibility and vesting.

Example: Foreign individual worked for foreign company for 6 years and transfers to the U.S. company for 3 years. The plan has a 5-year vesting schedule. Do you count the 3 years service in the U.S. or 9 years combined U.S. and foreign service for vesting?

It appears you would count the foreign service according to Labor reg. 2530.210(d) & IRC 1563(a) [1563(b) carves out foreign nationals; 1563(a) does not].

Additionally, if a U.S. individual transfers to the foreign company, can you count the foreign service for benefit accruals under the U.S. plan?

I appreciate your thoughts. Thanks.

Have reviewed most of the prior posts in this section, but did not come accross exactly my situation. If addressed previously, just point me to the post.

Have a 401(k) sponsored by an LLC (taxed as a partnership). The partners (6 of them) would like more flexibility in designating the amount of their individual "profit sharing" contribution amounts - i.e., some would prefer nothing, others the maximum available, still others somewhere in between. Sound familiar?!

Can this be accomplished via "class allocation", with each participant constituting his/her own class? Or, since the amount of a partner's profit sharing contribution directly affects his/her "compensation", would such profit sharing contributions for the partners be "deemed deferrals"?

Also, even though the "employer" would technically be designating the individual profit sharing contribution amount for each partner, we all know that, in reality, each partner is making the call.

The plan is already a 401(k), so the "deemed CODA" aspect didn't seem to be an issue, but since the common law employee participants do not have the same ability to designate the amount of their profit sharing contribution, I suspect there might be other issues with which to contend.

Thanks for any any all comments.

A plan has eligible employees, still on payroll, but worked no hours and earned no compensation for the 2003 plan year.

Question - are these people counted on 7a of Form 5500 as "active participants"? For 2003, it won't affect the filing of Sch H vs. Sch I, but may have an effect in the future.

Opinions?

Can a Governmental 457 plan set up a mandatory contribution period even after retirement? I've looked through the code but could not find anything applicable to this. The client would like to stop making contributions to the plan and roll the money over to an IRA in her name. Again, the client is 52 years old and retired.

If a new 401(k) plan is established 7/1/04, can you still use the first year plan adp non-highly compensated 3% deferral rate for testing? Would it need to be pro-rated down to 1.5%?? Would we need to make the plan effective 1/1/04 to use the 3% rule?

Any thoughts would be appreciated.

Can I interpret Rev Rul 2003-102 to allow reimbursement under a medical FSA of over the counter remedies use to alleviate or treat dental injuries or illnesses, such as a numbing agent?

I have a prospective client that has two HCE non-resident aliens with U.S. income that they want to benefit. Does anyone know of any problems or situations I should be aware of in regards to non-resident aliens?

Can anyone help me locate the thread I'm sure I saw on the topic of records retention for ERISA plans? I believe it cited something in ERISA on this topic. Cite from IRS?

In reviewing old files, I'm finding our organization has records that date back well over 20 years and I'd like to document that it's okay to shred them now.

Somehow keeping records for the current year plus 10 prior comes to mind?

Thanks for any help you can offer. What does your organization do about retention of old allocations, documents, distribution forms, etc.

Does anyone know whether an SPD for a self-funded plan is required to have HIPAA language?

Is there any maximum time once notice has been given?

I've been asked to administer an existing plan of an S-Corp. Here's the rub: its a rock and roll band. The CPA has been treating the band members as Independent Contractors.

I've been mulling this over and more and more am coming to his way of thinking. Looking for any input.

What obligation is imposed on the plan sponsor to notify terminated vested individuals that they are entitled to a distribution from the plan? I realize that the overriding 70 1/2 distribution rules are out there, but what is the plan sponsor's obligation to an individual prior to turning age 70 1/2 but after the individual has terminated to inform him/her of the benefit due him/her and the availability to receive a distribution of such amount?

Thanks,

What obligation is imposed on the plan sponsor of a church plan to notify terminated vested individuals that they are entitled to a distribution from the plan? I realize that the overriding 70 1/2 distribution rules are out there, but what is the plan sponsor's obligation to an individual prior to turning age 70 1/2 but after the individual has terminated to inform him/her of the benefit due him/her and the availability to receive a distribution of such amount?

Thanks,

We have a participant who has submitted a request to us to determie the eligibility of a portable 'whirl pool' bath for Plantar Safciitis. We think a foot bath could possibly pass, but believe he is attempting to get a hot tub passed by us. He does have a doctors note saying that the purchase of a 'whirl pool' is medically necessary to treat his condition. NO other details. Anyone want to comment??

Can anyone help or refer me to the proper sources for the following:

We are a company of 130 employees and we have a self funded plan.

Due to costs, we are looking at different plans of action relating to dependent coverage.

Can we terminate the spouse of an active employee when they reach age 65?

Plan is top heavy for 2003. Eligibility for 401k is immediate but a two year wait for PS.

Top heavy was given to all ee's who were eligible for 401k. This resulted in minimum gateway allocations above the 3% top heavy minimum. Can a plan at this point carve out the otherwise statutorily exclused ee's (i.e.-age 21 and 1 yos) and only provide minimum gateway increases to those who would have met the 1 year and age 21 during the plan year? If so, does the plan document need to contain language to limit top heavy minimums to only those who meet IRC 410(a)(1)?