I think I've gathered the answer to this question from previous posts, but would very much appreciate the group's wisdom on the following scenario:

An employee on LTD applies for and receives a premium waiver under the group-term life insurance policy. While the employee is still on LTD, the employer switches group-term life insurance carriers.

It's my understanding the the carrier which granted the premium waiver ("old carrier") remains responsible for this employee's coverage. Is that correct?

I'm in the process of getting a copy of the contract with the old carrier to confirm, but can anyone confirm that this is generally how it works?

Many, many thanks and happy holidays,

Julie

Besides the SSA, what other methods are available to find missing participants?

how is one allowed to calculate whether a plan provides a meaningful benefit?

looking at a cash balance plan that uses the GATT rate in the calculation to avoid the whipshaw effect at payout time.

when determining if participants receive at least .5% does one also use the same assumptions (e.g. the GAR mortality at the GATT interest) or is one allowed to use any standard mortality table and interest rate?

I have had a Roth IRA sitting in a bank CD account and it is coming due and I want to move it somewhere else where I have the chance of making better interest in the long term (I'm 37). My CD is coming due at the end of december and they say they have a 10 day grace period before it automatically renews.

Can I just contact another firm to have them setup an account, and have them transfer it after the day it is due? or do I have to go to the bank and get a check and mail it to another firm? how much time does the IRS give you to do this before they start saying PENALTY?!?

Thanks.

I work with a school district that has a section 125 POP plan. The 125 administrator is asking them to complete a detailed xcell worksheet in order to do the compliance testing. I think its unnecessary as they meet the eligibility rule (ie. all employees are eligible - whoever participates in the benefit program) and since they are a public employer they do not have any key employees and will automatically pass the "benefits" test. The administrator insists they do the test anyway or they will not be in compliance with IRS (DOL?) regulations. Do the regs require all employers perform the test or simply be in compliance with the non-discrimination rules? Any comments / concerns?

Are there specific guidelines to follow when a company files bankruptcy and there is a 401k plan. Who pays out the participants, submits final deferrals, etc if there is no trustee? Or is the trustee obligated to retain his trustee status until the plan is paid out. What if there is no one in the company to sign for the final 5500? What responsibility, if any, does a TPA firm have to finalize, process paper work, etc? So many questions!!!

Have a client who has had Schwab keogh prototypes (money purchase/profit sharing) since early 1990's. Self-employed,sole participant. Never filed 5500EZ and should have for past 8 years.

In addition to that, he recently (finally) signed (mid-November) adoption agreements to amend through GUST. Because he's a late-amender, does he HAVE to file a 5307 before January 31, 2004 (and pay the additional fee)? Can't get answers from anyone at Schwab. I just can't believe we'd need to get a determination letter for the Schwab prototypes...?

I have a MPP that wants to pay out participants as soon as possible. Most if not all of them are NHCs. The client wants to allocate the 5.7% MPPP contribution if they terminate and submit distribution forms. There is a 1000 hour requirement, no last day provision. This would eliminate having to pay the distribution and then paying a another distribution when the allocation for all other participants is completed after the end of the PY. Please identify a site if you can. Plan doc states time of ER contribution to be "may be paid to the TTEE/Custod in one sum of in several installments on any date or dates. Is there is reg against this? I know it's not conventional, but alleviates participant waiting until after PYE for distribution and also have 2nd distribution to completed.

Please help!

Business owner has multiple IRA's and a profit sharing plan. Her accountant is telling her she does not have to take from the profit sharing as long as her RMD is "covered" with the IRA's. What is the regulation so I can prove to the accountant this is not correct.

I just read in the October issue of the 401(k) Advisor in the article titled "Last opportunity to change 401(k) testing," that "Beginning in years after the date when the GUST remedial amendment period ends, plans are now required to identify the testing period prior to the start of the plan year."

I was under the impression no guidance was issued in the proposed 401(k) regs regarding the timing of the amendment (or in Notice 98-1).

Also, if I remember correctly, it was mentioned at the October ASPA conference, the IRS commented at the summer conference it would be appropriate to amend the testing method by the end of the plan year in which the change would be effective.

Does anyone know if there is anything written which would support either the position in the 401(k) Advisor or the IRS comments at the ASPA summer conference?

Profit Sharing Plan, participant is 100% vested and Age 57. He is no longer an employee and is on disability......does he get special tax treatment because of disability. He will be taking a lump sum distribuiton....is he still penalized 20%??

Thanks!

I have a prospective client I am working with. I've heard from them that the National PEO association is trying to get REV Proc 2002-21 reversed. Have any of you heard about this and if so what the status is?

I'm just curious.

Thanks in advance for any feedback.

Mutual funds are implementing redemption fees (in itself, a HUGE recordkeeping problem). Assume the plan is subject to Reg Z and in order to fund a participant's $50k loan, mutual fund shares are liquidated w/ a resulting $500 redemption fee. Is that redemption fee a cost of the loan requiring Reg Z disclosure? And would you (a) gross up the loan amount (if possible) or (b) net down the actual loan disbursement by the amount of the RedFee or © handle it separate from the loan transaction?? Obviously some MFs and all MMFs will not have RedFees, so the RedFee amount will be unique to each partcipant and each loan.

THANKS for your comments.

I have one employee, I am starting a SEP for 2003.

1. Do I have to open the account by either 12/31/2003 or 3/15/2004.

2. Can i fund account at any time prior to filing of my corp. return

3. My employee would like to have his account at Schwab, I prefer Vanguard can this be accomplished.

Thanx

Are these restricted to NHCEs or can they be made for HCEs too?

Does anyone recall what year the law changed regarding the deposit of after tax contributions in a retirement plan? There were no limits before if I remember correctly.

A cross tested profit sharing plan has a last day requirement to receive an allocation. Based on a couple of participants terminated during the year, cross testing does not work. Can the plan be amended for 2003 only to remove the last day requirement?? or does it have be removed permantly if it is removed?? Thanks.

For 2002, do you not have to file 5500s for cafeteria plan?

Is a church sponsored 403(b) plan with a match exempt from discrimination testing (ACP), as well as 5500 filing requirements?

I read some where that there were new rules for loans effective 1/1/04. I have not seen or heard of anything more about this.

Do you know where I could find out about these changes?