Is anyone aware of any guidance from the Service regarding the duty of an IRA owner to diversify his/her investments in a self-directed IRA? As an IRA custodian, we receive many requests from IRA owners to direct nearly 100% of the IRA's cash into one investment. Any insight would be greatly appreciated.

Plan Year and fiscal years are calendar years. Plan is amended for EGTRRA as of 9/30/2003, the extension deadline for prototypes. Do you need to recognize the increase in the comp limit in determining the 2003 pension expense? What if you don't know how the amendment will be written (retrospective or prospective)?

Also, I believe there is a materiality argument as to whether this recognition need be via the prior service cost or gain/loss, correct?

If these savings vehicles become as popular as they are predicted to be, it would be nice to have some clue as to documentation requirements.

I don't know how the HSAs will be documented themselves but I would expect that ERISA would require at minimum a "wrap" summary plan description outlining the high-deductible plan that is linked with the HSA, and the HSA features.

Any comments/suggestions.......?

We have a Flex participant that is turning in a claim for New Balance Shoes. This person's doctor wrote a letter telling us the diagnosis and recommended "shoes with a good arch support." We have had claims submitted for orthopedic inserts and orthopedic shoes purchased at an orthopedic store but we have never had anyone submit shoes purchased from a regular shoe store with a note from the participant that these are supposed to have the best support. The doctor's letter does not specify this brand.

Would you reimburse this expense?

I have a client that is a single member LLC. For tax purposes he files a schedule C. He also files a schedule F for a farm he owns. His farm income offsets all income earned through the sch C so total income is zero. My question is, can he still take a deduction on the sch C for profit sharing contributions or does the loss from the sch F eliminate this deduction?

I can't seem to find anything that says that 2 unrelated employers can't adopt the same prototype. But we're getting close to year end and I would like the thougths of some of you experts before I let these folks proceed with that plan of action.

If a person is over age 70 1/2 and is required to take minimum distributions from the profit sharing plan that they are a participant in, AND they also have an IRA - can this person take the aggregate amount of the required minimum distributions from the plan's asset account?

We go out of our way not to handle 403(b) plans, but I'm trying to advise a prospect as a favor. Client is a non-profit and has a 403(b) with a discretionary employer contribution and the new HR person has discovered that no 5500 has ever been filed. At this point, I tried hanging up, but she called back before I could have our number changed. My question is whether or not to suggest DFVCP. At a Corbel seminar a while ago, one of the pension attorneys suggested instead writing an excuse letter to go along with the late forms. Has anyone had experience with this?

thanks,

mr

I have a client that is paying for individual health insurance premiums for her daughter who is away at college. She wants to run the premiums through her cafeteria plan. Does this qualify?

I have found several publications that designate a spouses ind prem, but not a college student. Any ideas?

For an employer that sponsors a defined benefit plan (or another plan where age plays a factor in allocations):

Is it reasonable for the employer to consider the larger benefits provided under the plan to older employees when negotiating salary or would this be considered age-discrimination?

Would the answer depend on the similarity in job positions between two individuals? In other words, two employees with the same job decription would receive different salary amounts if their ages were substantially different.

Is the situation different when considering existing employees versus potential employees?

Would the scenario change if it is an existing retirement plan as opposed to a potential plan?

Thanks for your opinions and insight.

My client reaches his NRD on 1/1/04. He has a BOY calendar year DB plan. He will be age 67 at 1/1/04. He is considering working another three years. I remember reading something saying NRD could not be projected beyond one year, but I'm not totally sure. Can i fund for his benefit with an NRA of 1/1/07 (age 70)?? Thanks.

A retailer has multiple locations around the country. The headquarters office established an arrangement allowing transit passes to be purchased pursuant to a compensation reduction agreement, as permitted by the Code and Regs. This arrangement is available to any employee anywhere in the country.

At the same time, some of the satellite locations have been handing out transit pass vouchers to employees in their local office.

Anything preventing an employee from receiving a voucher directly from the employer and also being eligible to purchase vouchers through compensation reduction? The only issue that I see as a direct problem is that having both increases the possibility that the $100 per month limit will be exceeded, resulting in some taxable income to an employee. Anyone see any problems in addition to that?

Patient is travelling for medical care which require lodging & meals.

Question: Are gratuities (tips) eligible for reimbursement?

Instinct says no...

I have a profit sharing plan, and for 2001 it looks like the contribution was allocated incorrectly, based on erraneous information on someone's date of birth...its an age-weighted plan. This person was given $2500 too much, therefore everyone else was shorted that amount as a total. What can I do to correct this? Can I take that money away from that participant and reallocate it correctly? Or does the employer have to deposit the additional amounts everyone else was shorted because of the allocation error?

Thank you!!!

ICMA-RC has a Retirement Health Savings Plan that allows deposits while employed and withdrawals when retired, tax-free, for medical expenses. Sounds great except pre-tax contributions are irrevocable once elected. I am reluctant to commit any amount that cannot be changed over future years of employment. The plan is based on Treasury Regulation sec. 301.7701-3(a)(3) and a Private Letter ruling. Why is this election irrevocable instead of adjustable like a cafeteria plan? Anyone have any experience with this type plan?

Are we required to have every employee sign a Cafeteria Plan Enrollment Agreement on an annual basis. Or, is it sufficient to have an agreement signed upon enrollment and leave it open ended?

My plan sponsor informed me that the loan interest rate is prime rate plus one percent. Where can I find the prime rate on the internet? Also, how is the prime rate determined? Thank you

hey im new to this whole thing. im 19 and set up my roth, and am not fully sure about it. So $3,000 a year, but when is the deadline. how is the time frame based. I just opened a roth, so when can i add more money to it?

Does a trustee have any obligation to provide old Schedule P's and/or old plan income statements? Is there a legal obligation to provide the two simultaneously, or could each be sent independently of the other?

Edited to add: This is for small plans, (usually single-employee), where the plan administrator is not the trustee.

Is anyone else having trouble with the invoices/receipts that doctor's offices are now providing? Most don't give the date of service any more, just an invoice date, which they will say is always the date of service. And many are now just getting a check, having it paid electronically and giving the check back as the receipt! How is everyone setting the standards for what they will accept and what they won't? We're getting a lot of pressure from participants because the doctors just don't give the standard information any more.