Anyone have an example of a One Page Summary to give to the EEs for an upcoming meeting? One page, not the SPD. Something to quickly outline the plans provisions... Vesting, cont formula, eligibility

Thanks!

A client recently had an employee terminate because he was an illegal immigrant. That employee has profit sharing and deferral amounts in the plan, fully vested. What happens to the terminated illegal immigrant's retirement money?

I have a company that terminated an employee over two months ago. On the date to termination they completed a distribution request form, Sponsor and Participant. To date the company has not sent the distribution request form to the Custodian. Is there a statutory requirement that the Sponsor must submit the form to the Custodian by? Is there a statutory requirement as to the latest date the Participant must receive their distribution by? Is there penalties and/or can the Sponsor be liable for losses incurred if they do not request the distribution in a timely manner? Thanks for your time and have a great day!

Closely-held ESOP makes annual stock contribution. Year-end annual valuation cannot be completed before April 15 of next year. What amount is properly deductible? Assume filing an extention in order to allow more time to complete the valuation is not an option and that completing the valuation by April 15 is not an option. Must the 12-31 valuation for the applicable plan year be used or can the prior plan year's valuation be used since the applicable plan year's valuation cannot be completed in time for tax filing? Employer really does not want to use the prior year valuation (even if this is ok). What are the options?

I believe it is common that valuations for closely-held ESOPs are not completed until 5-6 months into the next calendar year, so this question must come up fairly often for employers making stock contributions to closely-held ESOPs.

Any help would greatly be appreciated!

A 100% owner of a company - his wife who has an account balance under the plan died over a year ago, and the owner rolls over his spouse's account balance into a segregated account under his name in the plan - would this be considered an "unrelated" rollover and therefore not counted in the top-heavy test?

Could somebody please shed some light on the differences between the two types of plans?

It is my understanding that 403(a) plans are "qualified" plans funded through annuity contracts purchased by the employer for the employees, and that 403(b) plans are not considered "qualified," can only be sponsored by an eligible employer (i.e., 501©(3)) and can fund the plan through custodial accounts or annuity contracts.

I'm not finding any detailed information providing me with the major differences. Thank you in advance.

The employer wishes to make a 25% contribution to his Profit Sharing Plan.

There are 8 participants, 2 of whom have $200,000 in compensation. Because they are limited to a $40,000 contribution for 2003, or 20% of compensation, does this mean that in order to have a uniform allocation all participants must then be limited to receiving a 20% contribution?

Two of the other participants are HCEs by the way, but the 25% limit would not affect them.

Is the adoption of a new plan considered a plan amendment for purposes of the 2-year restriction on deducting the unfunded CL for HCE's, or can a plan deduct up to the total unfunded CL in its first plan year?

Thanks for all of your help!

participant in directed 401(k) account locks himself out from access to misplacing of security password. Upon contacting investment firm and Hr dept he is told that new password will be issued in two days via mail. No other method of transfering funds is given to participants.

Is this covered by Sarbanes Oxley act? Participant will be locked out of hte market for at least four days.

I have medical coverage through my spouse's employer - the carrier is CIGNA. I tried to log on to their MyCigna.com website using my identifying information and was unable to get any information about my claims, etc.. When I called for tech support, I was told to have my spouse register for the site, and then he would have access to my information.

My understanding is that since I am an adult, he can not have access to that information with my authorization. I believe that he should have access to our child's information as his dependent.

Am I mistaken?

If a nonqualified plan offers several distribution options, how far in advance of a distributable event is the participant required to make the election as to distribution option? And where can I find guidance on this?

Thanks.

3% QNEC to NHCE used to pass ADP. However, plan is top heavy and there are 2 non-key HCE's who must receive the 3% minimum top heavy contribution. The QNEC can be used to satisfy the top heavy contribution. Does the top heavy contribution to the 2 HCE's have to satisfy 401(a)(4) by excluding the QNEC to the NHCE's?

I have a client that is considering adding a match and vesting to their non - ERISA 403b or converting to a 401k. They have 250 employees and no HCEs.

Either plan would need a document and discrimination testing etc. The difference, as I see it, would be that the 401k would need a full 5500 and plan audit where the 403b would have the short form 5500 and no plan audit. Am I missing something?

I have a client that has a retired participant who refuses to cash her pension checks. She thinks someone will steal her money and doesn't trust anyone, including her family members. She has no bank accounts so direct deposit is not an option.

Her family has not been successful in establishing a power of attorney.

However, we were informed that her son was recently assigned Representative

Payee by Social Security.

I ran this past several attorneys but none of them were familier with the term "Representative Payee" or their authority.

Can the Representative Payee cash the pension checks? What would happen to the uncashed checks if/when she dies? Has the Plan met it's obligation? Could/should they give her cash?

Can an individual with more than one employer, with each employer offering a 401(k) plan to their employees, contribute the maximium to each plan? Employers and plans are non-affiliated. Does the IRS have an aggregate maximium contribution to 401(k) plans in any given year?

Coming soon to a Transfer Agent, Clearing Broker, or Fund Complex near you, restrictions on accounts with short term trading fees.

At least one fund complex and one clearing broker will be shutting off trading ability unless TPA's with omnibus accounts certify that they can track, collect, and remit short term trading fees. Latest date I've heard is end of the year but it could be sooner for some Fund complexes

I define omnibus accounts as one account/plan or one account for the business as opposed to individual accounts for each participant.

What I have not heard is when the major vendors of recordkeeping systems plan to deliver functionality for short term redemption fees. I'm interested in hearing from people working on the Schwab RT, OmniPlan, Wystar, and Relius platforms. Have you heard anything from your vendor?

Calendar year plan

For the current 2004 plan year, the current definition of compensation is total compensation.

however, earlier in 2004, the employer gave out bonus checks, but did not take deferrals from the bonus checks, and according to the definition of compensation, they should have.

Can the plan sponsor retroactively amend the plan to 1/1/04 to not include bonus in the definition of compensation?

If not, how do they correct the fact that they did not do deferrals off of bonus?

I have a client who would like to freeze their DB plan; but prior to the freeze they want to amend the plan to provide 3 additional years of service for any participants with combined age plus service in excess of 80.

Are there any potential non-discrimination issues here ?

Can anyone think of any problems of any nature with this prposal ??

I have a client who is evaluating their DB plan that provides a low level integrated formula. Can anyone direct me to such a survey? I see lots of 401(k) plan surveys, but not many like this on DB plans. The client is anxious for the information so any help will be much appreciated.

Can an ERISA argument be brought into a state court or are they all remanded to the Federal Court System? Question in mind is a prohibited transaction: loan to prohibited party. Argument is valid, but plaintiff is trying to coerce client with holding up a summary of judgement in a state court with this "threat". I would think the state court would at worst hold over the summary of judgement until the ERISA suit is heard.

Am I right?