I am sitting for the exam Dec 12th an am trying to find some more practice questions to work before taking the exam. Any help would be appreciated.

Thanks,

Carson

the sponsor got an independent appraisal last year and the value of the stock was 0. they are not doing any transactions ie. buying or selling stock. are they required to obtain a valuation each year. i don't see a valuation requirement in erisa unless you are buying or selling the stock.

I received from MHM Resources today their latest flex flash listing indexed figures for 2004. The 3rd paragraph states: "The exclusion from income provided through an employer or a Section 125 Cafeteria Plan also has a $10,390 limit for the 2004 taxable year."

I have been administering flex plans for over 5 years and have never heard of this one. Did I miss the boat completely or is this something new?

A Union Health Fund currently offers supplemental life insurance to the participants of contributing employers. The union now wishes to obtain this supplemental life insurance through another fund however, the initial health fund will still be collecting the contributions from the employer.

Does there need to be some agreement, like a participation agreement between the health fund collecting the contributions and the employers addressing the fact that the health fund will be collecting the contributions and turning them over to the other fund for insurance?

Any help is appreciated. Thanks

Just to confirm, an employer cannot maintain a SARSEP and 401(k) plan at the same time? The employer would have to term the SARSEP and start a new 401(k) plan?

Thanks.

An employer sponsors a profit sharing plan and a money purchase pension plan, both of which have plan years beginning May 1 and ending April 30. The employer merged the money purchase pension plan into the profit sharing plan on September 30, 2003 and amended and restated the surviving profit sharing plan as of the same date. The question is, what is the effective date of the amendment and restatement? Can it be effective beginning May 1, 2003? My understanding is that, because there was a money purchase pension plan involved, the effective date cannot be retroactive. If this is the case, the amended and restated profit sharing plan would be effective as of September 30, 2003 and the employer would file a final 5500 for the plan year ending April 1, 2004. Depending on the Plan language, the Employer might also need to make a contribution to its employee under the terms of the money purchase plan, too.

would an amendment removing the deferral feature from a 401(k) be an impermissable cutback of benefits?

Under USERRA does an employee continue to accrue vacation and sick time while that employee is out on military duty? Can you point me to some authority on this issue? The CBA does not address this issue.

Thank you in advance for your help.

Under USERRA does an employee continue to accrue vacation and sick time while that person is not working due to their military duties? The CBA does not address this issue. Can you point me to some authority on this issue?

Thank you in advance for your help.

Assume a plan has received a QDRO which directs the distribution of $10,000 to the alternate payee. The participant has an outstanding participant loan. There is sufficient cash in the account balance to make the distribution. However, the distribution of $10,000 to the alternate payee would cause the participant's loan to exceed 50% of his remaining account balance, which would be a violation of the plan's loan policy.

Any thoughts?

I see that ERISA Opinion Letter 94-28A (7/21/94) permits a loan from the participant to the plan in this circumstance so that the payment to the alternate payee can be done, but what if the participant won't agree?

Is there a deadline to establish a SIMPLE 401(k) for the current year, like there was on SIMPLE IRA (Oct. 1st)?

I thought I'd read somewhere that annual trustee directed 401(k) plans that only provided an annual statement to participants would have to begin sending statements to participants at least quarterly. Does anyone know if this is true or not?

Does anyone have any introduction material to cash balance plans? stuff like governement regulations, testing, limits and so on.

Thanks, Andrew

This may be simple, but let me know if I am not handling this correctly:

An LLC1 owns 100% of Corp A - and Corp A owns 100% of LLC B.

Also, LLC1 owns 100% of Corp C - and Corp C owns 100% of LLC D.

Also, LLC1 is owned 50% by Corp. X and 50% by Corp. Y.

LLC B and LLC D each sponsor 401(k) plans - no other entity sponsors a 401(k) plan. This is a controlled group of corporations-right? So-if the 401(k) plans sponsored by LLC B and LLC D are both standardized - we have a problem (because standardized plans must cover all employees of the controlled group) unless the 410(b)(6)© grace period (due to a transaction-per Rev Proc 2000-20) applies? Honestly, the LLC v. Corp distinction is confusing me as well as whether this is a Parent-Subsidiary or a brother/sister issue. Please help!

Would the answer be different if LLC1 was owned 42% by Corp W-and Corp W was owned 50% by Corp. X and 50% by Corp. Y?

Can non-deductible contributions in a QP be rolled over to an IRA account?

I am getting really confused. If I convert traditional IRA to a Roth, can I withdraw the contributions penalty and tax free before the Roth has been opened 5 years if I am over the age of 59.5?

It's not a "qualified distribution", but since I am over 59.5 it should not matter. Is this correct?

I am an American living abroad. I have two questions.

First: I understand that I cannot use any untaxed income to set up a Roth IRA. With my income being below the $80k foreign earned income exculsion for the forseeable future that means I cannot use it to set up a Roth IRA. However, before leaving the states I had money in a savings account. I would like to use this to set up an account.

It, however, gets a bit murky because when I initially went abroad I took more money than I ended up needing to get settled. That was then eventually sent back to the states and deposited in my account. I have also deposited savings earned abroad into the account.

Can I use my savings and if so how do I establish the amount of savings which was earned in the US and the amount that was earned abroad?

Second: My wife is not an American citizen. Can she set up a Roth if she has income earned and taxed in the US? If she can't set up her own, is there any way we could set up an account together so that I could contribute an additional $3000 per year?

Do these fall under Section 125 ?

Do they require a plan document? Anyone know where I can find a generic plan document for a reasonable price that can be modified to my company's specifics? We don't need third party administration because the business is very small at this time.

Thanks. If I've posted this in the wrong area, please let me know. I couldn't any posts relating to this subject.

Lisa-Beth

C corp currently pays 50% of health ins. premium for all e/ee's. Any discriminatin issue if corp pays 100% for a separate class of e/ee's, e.g., officers? Keep in mind that the officers are all >5% shareholders. Also, corp considering adopting a mandatory retirement age of 65, however, corp wants to continue funding the health insurance for one e/ee who is older than 65 and who also happens to be one of the principal shareholders. Same question as above... The health plan is not "self-insured" for Sec 105 purposes. I see less of a problem with the first scenario than with the second... Thanks for any comments, suggestions....

I can't find any information on the Social Security Administration Employer Reporting Service (I have Rev Proc 94-22). Anybody have information on the SSA Employer Reporting Service or know where I can find it? (Can't find it on the SSA website at this point)

We'd like to avail ourselves of the protection under Rev Proc 2003-44, which provides this concerning missing participants:

(d) Locating lost participants. Reasonable actions must be taken to find all current and former participants and beneficiaries to whom additional benefits are due, but who have not been located after a mailing to the last known address. In general, such actions include use of the Internal Revenue Service Letter Forwarding Program (see Rev. Proc. 94-22, 1994-1 C.B. 608) or the Social Security Administration Employer Reporting Service. A plan will not be considered to have failed to correct a failure due to the inability to locate an individual if either of these programs is used; provided that, if the individual is later located, the additional benefits must be provided to the individual [*46] at that time.