NOTICE

Version 2003.5 of QP-SEP Illustrator software was mailed to all registered users on 11/14/03. Speed issues regarding the solve-for and optimize funtions have been significantly improved. The optimize function can now find the most effective integration level to the nearest doller. A new Tutorial is included. File extraction to a 123 compatable file is now available.

For more information on QP-SEP Illustrator see: QP-SEP Illustrator Information

MSAs require that you be "self-employed" to use them, but what does that mean? If you work for a company or university as your job, and are also self-employed in a second occupation, are you "self-employed" and elegible for an MSA?

Is it possible to incorporate your own investment/brokerage company, in which you would open a Roth IRA account?

We have a new 401k plan that was set up by a broker and determined that the client also had a MPP that had never filed a form 5500. During several discussions, it has been determined that they may be a govt entity. Here are the facts as we know them.

Client had MPP for 5 years (no filings)

401(k) set up this year with PSP and MPP terminated

Client is administration staff for a govt funded DB firefighters pension plan. They are employees of the large DB plan (4 employees) and are paid from the large pension plan. The large pension plan does not require 5500s and does not report anywhere the contributions for the administration staff.

From the information we gathered, the client is not required to file any 5500s and may not be allowed to have set up a 401k plan. Any guidance would be appreciated as this was all set up before the "govt entity" issue was addressed. Can anyone with govt entity experience advise what type of retirement vehicle is appropriate for this administration group? Thanks.

The owner/only employee of a sole proprietor business died with $200,000 in his Profit Sharing plan. His son is the sole beneficiary of the account. The plan document allows nonspouse beneficiaries to spread the payments over the life of the beneficiary. However, since the owner/plan sponsor is deceased does the plan have to now be terminated and the assets from the Profit Sharing account paid out to the son immediately?

Did anyone see a recent article in Money magazine stating that long term care insurance, was not only tax deductible but reimbursable under a medical FSA? Did I miss something in the OTC translation??

I tend to take a fairly paternalistic approach to DROs that do not specify whether or not the alternate payee is designated as the surviving spouse with regard to a plan's QPSA provisions. Although I do not use it as a criteron to qualify the DRO, I usually point out that a failure to designate the alternate payee as the surviving spouse may leave the alternate payee without a benefit if the participant dies before benefit commencement. What is everyone else doing out there?

Background: I'm over age 59.5, my AGI is less than 100K, married filing jointly.

I want to roll over a portion of my regular IRA to a Roth IRA. I need to pay taxes from funds in the IRA. If I withdraw funds from the regular IRA to pay the taxes (or have taxes withheld from the conversion) I will exceed the AGI limit and will not be eligible to convert to a Roth.

My solution is to withdraw the funds to pay taxes from the Roth right after the conversion. Since I am over 59.5, there should be no penalty on withdrawing. Does anyone see any problem with this strategy? It somehow seems too simple.

Dick

Is it in option to show receivables on form 5500 if the plan is daily val?

Client amended 401(k) plan to eliminate installment payments and annuities effective for distributions after 12/31/2001 and did not provide a summary of the amendment to participants. EGTRRA added §411(d)(6)(E) for years beginning after 12/31/2001 to provide for the elimination of optional forms of distribution without any notice requirements...but includes the language "Except to the extent provided in regulations..." Since final regulations eliminating the notice requirement have not yet been published (that I'm aware of), I'm of the opinion that the client messed up. Any thoughts? The only correction that I can think of is to go back to distributees and offer all of the optional forms previously eliminated, adopt another prospective amendment eliminating the optionals forms, and follow the notice requirements. SCP? VCP?

Client has a cash balance plan that provides for immediate distribution upon termination provided the terminated participant makes the distribution election within 6 months of termination. If election is not timely made, participant must wait until earnly retirement date. Any thoughts about significant detriment issues?

Participant (age 65) would like to change installment amount from $300 to $600 monthly. current balance is $14,000. Can the payments be considered installment payments (0% tax withheld) after the change in $ amount, or are they now taxable as "eligble for rollover" (20% mandatory withholding). I think I found in my reading that the new payment amount must qualify as an installment (life of participant or 10 years) ignoring all previous payments. In this case, the payments would not extend 10 years, and the participant is only age 65. Or, is there something I am missing because the participant is over the age of 59 1/2?

Thanks!!

I understand that MSAs are available to small employers (fewer than 50 employees) and self-employed persons (including partners in a partnership) if they participate in a high-deductible plan. It is also my understanding that a larger partnership, with several hundred partners and even more common law employees, could make a high deductible health plan available to all partners and common law employees as a group plan. Then the individual partners could go out and set up an MSA - even though they are in a "Group" health plan and that plan covers more than 50 employees because each partner is considered a separate self-employed individual.

Can anyone confirm or deny my understanding? Is anyone familiar with any vendors and/or large partnerships that may be doing this? Thanks.

Plan was restated for GUST in 2003.

2002 the plan did prior year testing.

If we switch to current for 2003 is that a switch that locks the plan into current for 5 years or was that the last of the "free" switches that would allow the plan to use prior in 2004?

Thanks.

Not plan related but anybody have a link on the web to a formula for computing the risk premium for a self-cancelling installment note, i.e., premium based on probability of seller not surviving the note term and thus collecting all payments, etc....? Thanks in advance.

The DOL's instructions to send in loan payments timely notwithstanding, we are having a split decision here on how a loan should be set up on the recordkeeping system. Should the loans be set up bi-weekly--as the money is taken out of the pay check? Or monthly, how it's remitted?

I am looking for info regarding integrated allocations. Samples of how the actual allocation would change????

Any help would be great!

Is there a threshold on how high a minimum loan amount can be? I thought it was $1000, but we have a plan that has $2500. So how high can a plan go for its minimum?

Medical plan provides for 100% waiver of premium (all coverage levels) if an EE is on LTD. Question is, if the LTD EE is covering a Domestic Partner, what happens to the imputed income, if anything? Does the EE still have to pay the imputed income portion?

Thanks!

DB Plan will terminate and employer intends to make the necessary distributions following termination. Can participants who are currently employedreceive a distribution without violating the prohibition on in-service distributions. Ibelieve the answer is yes, but cannot locate any specific authority. Diane Bennett cites an undated 1993 letter from John Riddle which acknowledged a distribution pursuant to a "plan termination", but a wanted something that I can actually stick in the file. Any thoughts?

Thanks.