With all of the recent (and pending) increases on contribution limits, I'm looking for information on how much people actually contribute to 401(k) and 403(b) plans. Does anyone know of reliable sources for this data?

Thanks,

Rob Ring

What is the maximum salary deferral limit to a 401(k) plan?

I am being told that if a plan allows for after-tax contributions, the salary deferral amount can be more than $12,000. I though that the deferral was capped at $12,000 ( for age under 50), regardless of whether the amount is pre-tax or post-tax.

Thanks in advance for your help.

Jane

If an individual completes a rollover of employer stocks from one qualified plan to another qualified plan of a different employer, how does that affect the NUA? I read somewhere that this can be done for plans belonging to the same employer and the NUA is not lost then. But I cannot find anything about rolling the assets between different employer’s plans.

Thanks in advance

Is anyone aware of a cite in the regs that deals with in-service distributions from a DB or money purchase pension plan. 1.401-1(b) is all I've been able to find so far. Most people I've spoken to say no in-service withdrawals are permitted and others say participants may be permitted to withdraw after-tax contributions. Thanks in advance.

The much anticipated final regs. are out, with a 09.17.03 effective date and maintaining the 12.31.03 sunset transition date.

Quoting the release: "The regulations provide tax rules that reflect the underlying economics of split-dollar life insurance arrangements,” stated Treasury Assistant Secretary for Tax Pam Olson. “Under these rules, companies cannot use split-dollar life insurance arrangements to provide tax-free compensation to their executives. By insuring that split-dollar arrangements are appropriately taxed, the regulations curb a backdoor form of executive compensation and promote greater transparency.”

Link:

http://www.ustreas.gov/press/releases/js726.htm

Hi,

I have read the threads regarding the reporting of the cash surrender value of life insurance contracts on the Form 5500. We generally report them especially if it is a takeover situation in which they have been reported in the past.

Question. A participant took a loan out against the policy, presumably to pay the large $20k a year premium required on the policy. The cash surrender value went down considerably, I presume because of this loan.

Would it be appropriate to include the loan form the policy as a plan asset as well?

If anyone has any thoughts, please let me know.

Thanks!!

An annual small plan filer delayed getting data necessary to file and administer their 12/31/2002 plan year until one week prior to september 15 filing deadine (corp. ext.)

The admin, testing and 5500 were still prepared to be filed on time, HOWEVER, the plan year data showed beginning plan year participants at 149 as opposed to 80-90 in all prior years, THUS now requiring large plan filing status.

PROBLEM: no time now for audit to be completed by Monday 9/15.

Any suggestions as to how plan sponsor might want to handle this?

This has probably been covered before but I couldn't find it.

Our benefit plan has a 30 day notification requirement for status changes.

Our plan operates on a calendar year basis.

Our employee has a support agreement (Dated 1/03) requiring her ex-spouse to cover their child and states that father must provide proof of this coverage, but he has not done so until now. She claims to have attempted to get proof for 9 months by email, letters, and even involved her attorney. She now has a copy of the insurance card that states the child was enrolled 1/15/03 under the father's plan.

Now she wants to drop coverage for her son retroactive to January (and get a refund of premiums paid). I can't find any discussion of time limits in the regs, probably since this is an optional provision left up to the plan administrator. Is it permissible to 1.) allow a retroactive change in these circumstances since she just received proof of this coverage after months of trying; OR 2.) allow a prospective change from the date she received proof of coverage; OR 3.) She's stuck until 2004?

Any opinions or citations appreciated!

I just learned that one of our plans with a plan year end of 3/31 was changed in 2002 to a plan year end of 12/31.

necessitating a short plan year 5500 filing.

Can someone tell me what the guidelines are for the filing deadline for the short plan year.

We are a self-funded ERISA plan. We are contemplating a change to our enrollment and eligibility rules that would require a spouse who has health coverage available through an employer to take coverage with his/her employer as a condition of enrolling in our plan. We would not place any restrictions on children, only a spouse with an employer sponsored health plan.

Has anyone had experience with this approach? Are there any legal problems with it that are not obvious?

This has probably been covered before but I couldn't find it.

Our benefit plan has a 30 day notification requirement for status changes.

Our plan operates on a calendar year basis.

Our employee has a support agreement (Dated 1/03) requiring her ex-spouse to cover their child and states that father must provide proof of this coverage, but he has not done so until now. She claims to have attempted to get proof for 9 months by email, letters, and even involved her attorney. She now has a copy of the insurance card that states the child was enrolled 1/15/03 under the father's plan.

Now she wants to drop coverage for her son retroactive to January (and get a refund of premiums paid). I can't find any discussion of time limits in the regs, probably since this is an optional provision left up to the plan administrator. Is it permissible to 1.) allow a retroactive change in these circumstances since she just received proof of this coverage after months of trying; OR 2.) allow a prospective change from the date she received proof of coverage; OR 3.) She's stuck until 2004?

Any opinions or citations appreciated!

A client is a real estate agent and sponsors his own one man DB plan. He has the opportunity to loan a developer money from the plan as an investment. Once the developer builds on the land the real estate agent will have the opportunity to rent/lease/sell space and receive normal commissions on such rentals/leases/sales. Would this be considered a prohibitive transaction? Thanks.

Although I know that state law is pre-empted when dealing with ERISA plans and subrogation issues, a defendant in a case seeking a constructive trust over a member's recovery from a third party for personal injuries is claiming that because the member paid "premiums" reimbursing the Fund would be unjust enrichment. The Defendant's attorney is confusing premiums and employer contributions. (The defendant is the employer).

Under these circumstances, if state law did apply, would premiums and contributions be treated differently?

Any information would be helfpul.

Do amounts contributed as catch up contributions to a SIMPLE IRA affect the ability to make catch up contributions to the plan of another employer such as a 401(k) or 403(b)?

my understanding is you return the 402(g) excess and issue a 1099. also you include the excess for HCE's but not for NHCE's. is this in in the regs and do they permit other methods of returning the excess such as returning the money through payroll?

I normally live in the cyber world of investors using a variety of channels/sites to communicate with analysts, brokers, hedge fund mgrs and investors. Many of my business associates lost friends two years ago on September 11. A few firms located in the WTC, above where the planes struck, were decimated that day.

Yesterday, one of the analysts I admire said he kept his kids home from school. They went out an bought a range of foods and took packages down to their local police and fire stations. I thought this was a great idea. Although I live far from NYC, and I first read about this in the afternoon, I did some fast shopping for a few cheesecakes and at dusk dropped them off with a simple expression of thanks for the public services.

I regret that my kids are off at college and could not participate today. Perhaps we will make this a family tradition in the future.

Thanks for you patience as I digress from the technical questions about IRAs and Roths.

Never used a message board before so hopefully I'm doing it correctly. I've been trying to find information about in service non-hardship withdrawals which I understand allow certain employees to take withdrawals from their 401(k)'s & 403(b)'s to roll over to a self-directed IRA while still employed without penalty or taxes. The purpose is to reduce fiduciary liability on the part of the employer and was initiated by the Enron problem.

I understand it involves irs sect 402 and treasury reg 401-1(b)(1)(iii) and have searched irs.gov to no avail. Can anyone direct me to resources to find out more about it?

we are a new s-corp and as such started a 401k. s-corp started 9-1-03 as did the 401k. We have 12/31 year end on both.

we're facing a short plan year for the first year of operation. where do I find all pertinent information regarding a short plan year.... I realize some things need to be prorated, whereas others may not.... I really need to find all research on this to move ahead.

Company stock was an investment option under the 401k plan. The employer removed the stock as an investment option under the plan and liquidated the fund so all assets are in cash. Sufficient notice was provided to affected plan participants. Each "stock account" was mapped to a guaranteed account. Each affected participant's account absorbed the stock liquidation transaction fees.

My question is - should the client reimburse the affected accounts for the fees--implying that this should have been a settlor expense ? Is this a fiduciary breach? Thanks.

Hello,

I’m working on starting a career in HR after several years as an executive assistant and office manager. I’d like to start learning as much as possible about HR duties and functions, and especially about how to use any special software or computer tools, since those worry me the most.

What online learning resources (hopefully free!) do/did you use the most and find the most useful? I’m not sure if I’d benefit most from tutorials, simple how-tos, or advice columns. I’d like to know what’s helped other people.

Thanks SO MUCH for any recommendations! Wish me luck.

Yours truly,

Barb