Does anybody know of, and have experience with, a computer "translator" program that they would trust to translate a SPD from English to Spanish? If so, how much is it? I fiddled with various free programs from the internet, and while they work well for simple sentences, they aren't very good for long or complex documents. My inclination is to refer the client to an attorney who prepares them in Spanish, but thought I'd check with you folks first to see if you have any great ideas. Thanks.

We have a client who currently has a Profit Sharing plan with Post tax ee contributions only. The plan runs on a calendar year basis. The sponsor wants to add the 401(k) feature with safe harbor matching. The question I have is, when changing a plan like this are there any loops holes that would allow them to circumvent the advance notice to employees? Will they have to wait until next year to benefit from the safe harbor status?

Any help would be appreciated.

A DB plan has been started for a husband and wife. They are 50/50 owners in 3 businesses and each business adopted the plan. One business is an S-Corp and they take a wage of $80,000 each, another is an LLC with income of $375,000 and the third is a partnership with income of $70,000.

I have never had this type of situation and I'm looking for some help/input here. My initial thought was to combine the incomes from the three businesses to use in determining the DB contribution and then the CPA can determine how to divide the deduction between the businesses. Any responses are greatly appreciated (including what questions I should be asking that I have not even considered).

Facts: Employee turns 65 in January (2003) and enrolls in Medicare A & B. Employee is actively working in January, with a single health policy in force under an experienced rated plan. Employee terminates from the employer in June (2003). Employer has published rates from the insurance carrier for active employees (single & family) and rates for individuals not working, over 65 (single over 65, 2-person medicare primary, 1 on medicare/1 off medicare and family medicare). The insurance company, by contract, is charging the over 65 rate (which is significantly higher than the active employee rate), which the former employee disputes. Does similarly situated mean that if that person satisfies the criteria for a particular rate (i.e., over 65 and not working) that it can be charged? Also, can the qualifying event be considered the fact that medicare is now primary? We are trying to justify the premium we should charge (the active single rate, which is lower or the higher medicare primary rate)?

Does anyone know if 403(b) plans subject to ERISA are subject to the 15% prohibited transaction excise tax reported on Form 5330? I appreciate any help.

Is a grant of stock subject to repurchase at cost if a certain employment period is not completed a sufficient forfeiture condition to qualify as restricted stock? The stock is nontransferable until the employment period is complete.

My client is an S-corp. It would like to establish a medical reimbursement plan for only 2% shareholders (all employees are 2% shareholders). What are its options, if any?

Is it possible for the S-corp. to establish a medical reimbursement plan that is not part of a Sec. 125 plan and not an HRA or health FSA, that can provide medical reimbursement benefits to the employees?

Thanks in advance for your comments.

What proof is required before a claim for a baby sitter is processed. It is my understanding you need a federal ID numberand a paid reciept for a Day Care. I am not clear the rules for a baby sitter

Insurance products have surrender penalties and mutual funds have redemption charges.

Mutual funds' account statements don't show redemption charges, if any, (at least, I don't remember seeing them) but insurance products' statements generally do.

Generally (from what I have seen) , current market value of ins products = Cash surrender value. Yet, the value of mutual fund's units are not reduced by redemption charges (I have not, yet, seen it done).

Any thoughts on this.

Reason for the question:

I am looking at a statement of variable annuity which is invested in mutual funds. The statement shows a current surrender penality, which is about 5% of the mutual funds' value. The variable annuity is the plan's only asset.

What is plan's assets market value for funding - surrender value or the accumulated value?

Does anyone know of any guidance on what fees on investments would be permissible in HSAs? Could a broker act as an intermidiary agent, sigining individuals up for HSAs and registering trade, but using a 3rd party bank or other financial institution to make the trade? If so, would fee splitting be permitted?

If an ADP test fails and refunds are due even after the recharacterization of the HCE contributions for participants who did not defer the maximum, how are QNECs calculated to prevent refunds?

It seems that any recharacterized catch up contributions are disregarded and the QNEC to non-HCEs is the total amount that would be needed if there were no catch up provision. Is this correct?

Thanks!

Participants in a plan are permitted to invest only their vested account balances. The employer invests the non-vested dollars. Now the employer is adding a safe harbor contribution to the mix, which must be 100% vested.

Must the employer set up a separate account for the safe harbor dollars (so they can be tracked), or can they be commingled with the account that holds the vested dollars as long as the employer adds another line item to the employee statements showing the safe harbor deposit?

we have a client who is a self employed dentist with a profit sharing plan. there are also 3 eligible employees in the plan. can anyone suggest an easy way to calculate ideal salary for owner? I am going in circles....

A beneficiary is being paid the proceeds of a life insurance policy that was held in the spouse's qualified plan. The taxable amount on the 1099R will be different that the amount of the total distribution since only the cash surrender amount is taxable. I'm wondering if there needs to be an explanation about why the 2 amounts are different, such as a code indicating a distribution of life insurance proceeds. I'm not seeing anything in the 1099R instructions that mentions a code for life insurance.

What forms(roll over, etc.) need to be completed prior to a QDRO distribution to a non participating ex-spouse. Where can I find an example of these forms?

From 1/1 to 7/31/2003, I had two employers who were part of the same plan.

Employer A sold Employer B and as of 7/31/2003 considered all the employees (participants) of B as terminated. Employer B then set up its own plan.

I tested Employer A and included the salaries & deferrals of Employer B thru 7/31/2003 in the year end testing.

I then tested Employer B using the salary and deferrals from 8/1 thru 12/31. Is this methodology correct? If so, what should I use in testing ADP , Prior or current year.

Plan A used prior year percentages and passed.

In tryng to use current year percentages Plan B does not pass for the short plan year.

Hope I haven't confused too much

We have a Client (LLC) who manages several properties. The first property is family owned of which the client individually owns 8%. He receives 72% of the management income from this property. He also owns 8% of the other properties (collectively owned through LPs). He receives the rest of the income from these.

In addition, he owns 48% of a Bldg supply business which is housed in some of the properties that are mentioned above.

The bldg supply business has a qualified plan; the others do not. From reading Derrin Watson's book, it does appear that the management function exists. However, the LLC should still be able to set up a SEP or individual 401k plan. Are we interpreting this correctly?

We are involved with a Fund that has been

in a struggle with a delinquent employer over the

last several months. The employer generally runs

2-4 months behind, but eventually pays the contributions,

and assessments.

This employer is now a full 6 months behind and there

is some concern he could be heading to bankruptcy

court. The Trustees have requested the business manager

remove all manpower to put pressure on the employer

and to limit liability.

Given the poor employment prospects in the area,

the BM is hesitant to pull the members. Thus, a rift

is developing between the Trustees and the Union.

What options does the Board have to limit its exposure?

Does a health plan have more options than a DB plan?

We have a situation wherein a tax-exempt employer sponsors a church plan. The church plan is underfunded and the employer would like to contribute a promissory note to the church plan in the amount of the underfunding.. problems?

If anyone can help me with this it would be great!! If an employee is enrolled in the Health FSA and terminates mid-year, if they take the remainder left to deduct for their account out of their final paychecks, can they submit expenses incurred after their termination date?

Also, can anyone point me to a good reference for a COBRA letter for health FSA's?

Thanks!!