If an individually designed plan were amended for GUST by December 31, 2001, is there a deadline to submit to the IRS? Or does the plan have to be submitted?

If a new individually designed plan was established in 2001 (in compliance with GUST), does that plan have to be submitted?

A participant has elected to have state taxes withheld from his distribution. What is the procedure for this? I know how to handle withholding of federal taxes but not state. 1) Where should the funds be deposited? 2) What form(s) should be used with the deposit? 3) How and when does the employer report state withholding taxes?

Any advice is greatly appreciated.

Is there a legal rule for the period in which expenses can be submitted for reimbursement from our health flex plan after an employee terminates (ignoring COBRA)? The expenses were incurred during employment. If there is no law, is there a certain period that is typical?

I have a client that is offering an additional discount program to their employees that if they choose to get the additional life insurance they can receive these benefits free, but if they choose not to they have to pay a regular amount weekly for the program. They want to know if they can run this through the premium portion of their flex fund.

Have any of you come across this one. The program also allows for a discounted legal service. Didn't know if this could be allowed either?

Thanks for your input!

msfixit29

Under the new EGTRRA definition of a key employee, is it a 5% shareholder or a MORE THAN 5% shareholder?

Participant earns $65,000/year from a plan sponsor. Participant makes elective deferrals of $12,000 into his SARSEP plus an additional $2,000 in catch-up deferrals since he is over age 50. For purposes of determining the ER's maximum deductible contribution, I'm hopelessly confused between IRC Sections 402, 404, 414, and 415. For purposes of the 25% limit under 402(h), is the EE's compensation based on $65,000, $53,000, or $51,000 and are the elective deferrals (including the catch-ups) excluded from the 25% limit? Any insight would be greatly appreciated.

I left my position voluntarily 3 years ago at a large company in Georgia. I was an independant consultant during that time. They have always wanted me to return, and I'm now considering it. What benefits are required to be reinstated, and which are negotiable. I'm specifically wondering about affect/reinstatement to pension funding and time worked calculation (a guaranteed benefit plan based on last 5 years salary.....but how does that work with two employment periods of 15 years and x years and when does 100% vesting now occur), vacation time, time wait to be enrolled in 401k and health plans etc. What else should I consider?

Company A has profit sharing plan A and Company B has profit sharing plan B. The companies merged together (Company C) from Feb 1, 2003 to August 2003 and then split again into Company A and Company B.

Company C never maintained a retirement plan. Company B is now asking how do they fund their individual plan? The employees actually have 600 hours with Company B (rest of time and compensation is with Company C). Company B's plan has 1000 hour / last day rule. Company A has the same issue.

If a participant, who receives pay in the form of commissions only, is unable to contribute the amount elected, how do you handle this situtation? My guess is that you reimburse him only for the amount he has contributed.

Thanks, Joe

I currently have a Roth IRA, but I would like to know if a single person and/or a married couple can have more than one Roth IRA. For instance, can I open up a Vangaurd Roth account and then open up another Roth IRA account with another company?

Are there any yearly deductions(reductions in balance), taken from an existing Roth IRA account for those at age 72+ ?

My clients have $400,000 real estate in their Keogh. Now it's retirement time. They wanted to distribute the land to themselves next year until I told them the tax consequences. Now they would like to do partial distributions every year; impossible with their real estate. Any ideas or suggestions? I've thought of mortgaging the property for cash flow but then they wouldn't have monies to pay the mortgage payments. Is there any wriggle room for distributing land out of a Keogh? Thanks.

We just aquired a new company, and I'm trying to find out what, if anything, we need to do with their COBRA participants. They didn't file bancruptcy. Do I have to enroll them on our plan?

Any help would be greatly appreciated.

My local government (City of Los Angeles) does not allow buy-back of retirement service for serious disability such as stroke, cancer, etc. Why is this? I was disabled in 1993 - 1995 for a severe stroke that caused paralysis on one side of my body. I have since fully recovered and have worked from 1995 - 2003 without any absences. I have worked for the City of Los Angeles for 25 years, and will retire in 5 more years.

The two years lost for disability will greatly affect my pension. Our retirement plan allows for buy back of uncompensated maternity leave; it seems like penalizing members who get cancer, stroke, kidney disease or similar serious disabilities, yet who go on to recover and retire from the City are being treated unfairly for something totally out of their control. Could this be an ADA issue?

Company A sells one of its divisions on 4/1/2003. A new entity is established with the stock of the division. The new entity wants to establish a 401(k) plan effective January 1, 2004. However, the employees of the division, now the new entity, are continuing to defer into Company A's 401(k) plan. Is there a one year "grace period" that these employees can still participate in Company A's plan without making the plan a multiple employer plan?

How would testing be performed?

Or are there problems with the employees of the new entity participating in Company A's 401(k) plan?

I have an Employer with a 401(k) Plan without a separate Trust EIN #. Earlier in the year (calendar year plan) the Employer processed a direct payment distribution with the appropriate withholding under the Company EIN #. The Employer applied for & received and EIN for the Trust around mid-year. Once they received the Trust EIN, they had another distribution requiring withholding. They withheld and deposited using the new Truste EIN number. What will I use on the 1099-R forms? Should I do 2 different forms using the different numbers? What about the #945 form in January? Also 2 filings? I'm thinking that for the IRS to reconcile the deposits made, separate forms will need to be filed for 2003. Any comments/suggestions appreciated! (P.S. I did not know the client had done this, or I would have had them continue to use the Employer EIN for the balance of 2003 and the Trust EIN for 2004 going forward!!!!)

I was wondering if anyone has a Roth IRA with Vanguard. Im only 22yrs old and would like to get more information, So far I have put in $1,000 and was wondering if I picked the right fund.

VQNPX - Vanguard Growth and Income Fund Investor

Client has not historically recognized the current year's liability gain/loss to determine the amortizable amount in the NPPC. For example:

- The Fiscal year is calendar year

- 12/31/02 disclosed PBO = $100 (based on 1/1/02 census)

- 1/1/03 PBO = $110 (based on 1/1/03 census)

- Therefore, liability loss = $10

Assuming PBO exceeds MRV, the corridor the client currently uses is: $10. I would argue that it's more appropriate to use $11. Valuation software supports my approach.

Questions: Is the current approach even acceptable under GAAP? Is changing to my preferred method a change in accounting method I need to have approved by the auditors? Note that in my specific situation, by making the change I'm reducing the expense since I'm creating a larger corridor and deferring more of the outstanding loss.

I'm not sure if these even has any impact on your opinion, but the interest cost is determined using the $110 PBO, ie. the new census is reflected in the service cost and the interest cost.

Let me know your thoughts. Thanks.

If your document supports it, can you use a different 414(s) definitions for ADP, ACP, and 401(a)(4) testing? The regulation quoted below seems to indicate that consistency is only required in satsifying the "applicable provision" and you would seem to have different "applicable provisions" under 401(a)(4), 401(k) and 401(m) However, I suppose that someone could make an argument that the ADP and ACP tests are really “part” of 401(a)(4) under 1.401(a)(4)-1(b)(2)(B).

(2) Consistency rule.--(i) General rule. A definition of compensation selected by an employer for use in satisfying an applicable provision must be used consistently to define the compensation of all employees taken into account in satisfying the requirements of the applicable provision for the determination period. For example, although any definition of compensation that satisfies section 414(s) may be used for section 401(a)(4) purposes, the same definition of compensation generally must be used consistently to define the compensation of all employees taken into account in determining whether a plan satisfies section 401(a)(4). Furthermore, a different definition of compensation that satisfies section 414(s) is permitted to be used to determine whether another plan maintained by the same employer separately satisfies the requirements of section 401(a)(4). Although a definition of compensation must be used consistently, an employer may change its definition of compensation for a subsequent determination period with respect to the applicable provision. Rules provided under any applicable provision may modify the consistency requirements of this paragraph (b)(2).

I administer a Cafeteria Plan that allows employees to be reimbursed for outside

health insurance premiums. Is Medicare paid through Social Security a reimbursable health insurance premium if the employee is legally blind and

that is the reason he is on Medicare? This person is also covered under his

employer's group health insurance plan, Medicare is his secondary insurance.