We have a participant that rolled her IRA into a qualified 401(k) account. The investment company who held the IRA said that they do not code their IRA's as conduit and therefore use the premature distribution code 1 on all 1099R's. This obviously was not a premature distribution. Does anyone have advice on how to inform the IRS that it was not taken in cash and was not premature?? Thank You!

I'm wondering if anyone has developed a sample test to be used in connection with interviewing potential candidates for a plan drafting position.

If so, would you like to share it?

I have a 401(k) plan that needs a QNEC. The Adoption Agreement states that Forfeitures are to be used to reduce any Employer Contribution. Can the forfeiture be used towards the QNEC? Any reason why not? Thanks for any guidance on this.

Dad owns 75% in A, minor son owns 0% and outsider owns 25%. Minor son owns 75% in B, Dad owns 0% and different outsider owns 25%. With attribution, minor son owns 75% in A, and Dad owns 75% in B. Because a different third party owns the 25% in B, it would seem we do not meet the 80% test. But do we add 75% for both Minor and Dad (= 150%) to determine if 80% of interests owned by same 5 or fewer persons? It would seem not because we would be counting the same interest twice.

How do I code the specs in Relius to exclude service before age 18 for vesting? I can't seem to find it.

A 401(k) plan terminates by resolution on January 31, 2004. Are the compensation limits of $205,000 and the deferral limits of $13,000 for the full year prorated to just one month? Or, in other words, does a resolution to terminate the plan create a short limitation year? Section 1.415-2(b)(4) indicates that if you have an ongoing plan and changed limitation years, the limits would be prorated?

We have a self-insured medical plan. Currently we have an exclusion in the plan that states that if the injury/illness is due to a work related injury and can (or should be) paid through workers' comp that the health plan will not reimburse the expenses. The provision also excludes reimbursement for any injury incurred while receiving wages or profit.

We're trying to determine if this exclusion is standard, or, what other companies are doing with regard to work related injuries. The reason we're looking into this is because we have many employee spouses enrolled in our plan that are self-employed, i.e. farmers, plumbers, etc. Many of these folks, especially the farmers, are telling us that they cannot get coverage. We don't want to be bad guys but we don't want to be spending money unnecessarily. So we're trying to determine what is the most common practice in this area.

I am very new to government benefit plans. While I have a fair amount of experience with employee benefit plans, they are all ERISA plans in private industry. Obviously, this is not much help to me in my position with the government.

One of our state agencies would like to start a retention program for key executive employees. Initially the agency would purchase some financial instruments (likely a number of mutual funds). The plan would require the employee to meet certain goals set out by the agency. If the goals were met, the employee would be given the option to buy the financial interment anytime during the following 10 years. The purchase price for the mutual fund would be the fair market value price on the day of the initial offer, and that price would be held firm for 10 years, or until the employee elects to purchase the mutual fund. If the employee were to leave the employment of the agency within one year of purchasing the financial instruments, any gains realized would be repaid to the agency.

From a brief reading of the IRS website and a few federal regs, if appears that what they need is an unqualified plan under 457(f). Would you agree? If so, do you know of any guides regarding setting this up? (E.g. 457 Plans for Dummies). I am assuming that there are requirements similar to ERISA that would require a plan document, and possibly many other requirements. If I am off track in assuming this should be an unqualified plan under 457(f), could you set me on the right track?

Any information you could provide would be greatly appreciated.

After calculating the one to one correction (for late ACP refunds), the allocation for each eligible participant is less than $10 (some much less), and some don't even have accounts set up (they do not defer). Is there any de minimis ruling for such small corrections?

Suppose someone terminates employment in 2001. They were key in the year of termination due to ownership.

Are they considered key forever for top heavy testing purposes?

Any reg site?

I have a SIMPLE IRA accountholder who received a direct rollover from his employer's pension plan into his SIMPLE IRA. I haven't been able to find any guidance on how to correct non-SIMPLE IRA monies in a SIMPLE IRA. Should this be treated as an excess contribution? Should the SIMPLE IRA plan sponsor go through EPCRS? Any insight would be greatly appreciated. Thanks.

If we complete the 401(k) and 401(m) Non-Discrimination tests by disaggregating the 1 year age 21 participants do we have to do the same for the 401(a)(4) test?

Does anyone have any creative ideas on what to do with the ERISA Outline Book (EOB) once the new edition arrives each year? We order new sets every year and have a nice backlog of older editions sitting around. They really take up too much room to hold onto "just in case", and yet it seems really wasteful to just toss them into the dumpster once January arrives. I guess this applies to all annually updated reference material, but the EOB is so big that space is the biggest problem with older editions. I was curious as to what everyone else does?

Both Code sections 403(b)(3) and 415©(3)(D)(ii) add back section 125, 132(f), and 457 deferrals into compensation. The language contained in the statutes is pretty broad. Section 415 says "The term 'participant's compensation' shall include... any amount which is contributed or deferred by the employer at the election of the employee and which is not includible in the gross income of the employee by reason of section 125, 132(f)(4), or 457."

Neither the statutes, nor the Committee Reports to SBJPA and TRA 97, distinguish between deferrals under Code sections 457(b) and (f), and I haven't been able to find any official guidance from the Service.

Does anyone know of any informal guidance on this?

Thanks.

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I have a pooled profit sharing plan that has > 50% of their plan assets in a Money Market Account (I'm not sure who the investment advisor is). Line 4i asks if more than 20% of the assets are in a single security, debt, mortgage, parcel of real estate, or joint/venture interest. We generally do not count Mutual Funds as a "single issue" since they are invested in many other stocks when answering this question but are unsure about Money Market accounts.

Can the employer change designated financial institutions during the year or must the employer wait until January 1st to make the change?

If we have a DB & DC plan that is aggregated for 410(b)/401(a)(4) and general tested together for (a)(4) discrimination, do the 401(k) deferrals get reflected in the DB's MVAR at all ? I believe the deferrals are included in the NAR for ABT (unless there some disaggregation option available ??) Thanks for any input.

A health FSA has 47 participants and the employer is the named plan administrator. Employer processes the payroll and the salary reductions, but the reimbursements are made by submitting the reimbursement form to an outside company who cuts the reimbursement checks. (This outside company is in the business of selling insurance and performing limited benefit services such as this.)

I know that the HIPPA privacy rules exempt health FSAs with less than 50 if they are self-administered. I hope this plan qualifies for the exemption--any thoughts???

I have just heard a contention that HIPAA does not allow an employer to destroy medical records and reports of an employee. The employer contends that, under HIPAA, the company is obligated to maintain such records and reports indefinitely. My reaction is that such employment records (as opposed to medical records) are not subject to HIPAA and the treatment of such records is an appropriate subject for bargaining between the employees and the company. I'd appreciate hearing another opinion.

I have a takeover plan which previously used a DATAIR Volume Submitter Document. There are no age or service requirements. The Entry Date is defined as "The first day of the Plan Year coincident with or next following the date the eligiblity requirements are satisfied, but in no event later than six (6) months after satisfying the eligibilty requirements." What does this mean? When would an employee hired between January 1st and July 1st enter the plan?

Thanks a ton to anyone who can help.