Can anyone provide a good reference for Master Trust filing instructions?

X corp is owned equally by 25 shareholders. Y LLC is owned equally by the same 25 shareholders. The way I read the regs this is not a controlled group. However, if X owned 100% of y, it would be a controlled group. Am I missing something? I would like for the first example to be a controlled group so I can file a 5307 instead of a 5300. If I get a letter for both companies, the user fee is $700 for the 5300 as compared to $125 for the 5307. Any thoughts?

Does anyone know what the process and tax results would be if a VEBA becomes disqualified ? Would the employer receive back any money from the VEBA or would VEBA proceeds be distributed to the actual participants. What would be the tax results (if any) ?

Client sponsors a cafeteria plan under which health insurance premiums are covered. The insurance company raised its rates last year. Employer did not increase the amount of salary reduction to reflect the increase in premium. Therefore, the employee had to pay approximately $1,100 after taxes. Can the employee write a check to the employer for the $1,100 for the increase and still have it considered as "before taxes". (I would think not.)

Should the employer just increase the amount of current salary reduction to cover the amount of the difference for the rest of this year?

I'm hoping someone can help me. I'm brand new to the DB world and have a tax question:

Is the lump sum portion earned after January 1, 1994 of a distribution subject to Social Security and Medicare taxes?

I know the answer is here somewhere--I just can't find it!

Thanks in advance!

I could use some help with this one.....

Company A is owned 100% by Husband. Wife and son both work there. Husband get a divorce from wife and she continues working at Company A (why, I do not know) with son and ex-husband. Is she a highly comp employee after the divorce???

Any help would be appreciated.....

Carson

Here are the questions I have regarding assumptions used by multiemployer pension plans when they determine employer withdrawal liability.

1. How are the interest and mortality assumptions chosen? Is the interest rate generally tied to some index so that it "floats" as interest rates float? Or are interest rates fixed and changed periodically to reflect the current interest climate? I would suspect that the mortality table is fixed and changed periodically as needed, but would like imput on that also. Are the assumptions used to determine withdrawal liability typically put in the plan document?

2. What value of assets is typically used to determine the value of unfunded vested benefits? Market value or the actuarial value used to fund the plan?

Thanks for any help you can offer!

I have a participant that received a hardship distribution for the purchase of primary residence. The financing of the home fell through. Is the participant required to return the money? If so, how is this accomplished (specifically, how are the tax withholdings handled?) If not required, is it an option for the participant to return the money if they would like? Again, if so, how is this accomplished?

Facts: Check has been cashed. 10% was withheld.

Can someone point me in the direction to find information on non-discrimination requirements for Health plans? I handle compliance for my employer's Profit Sharing and 401(k) Plans but know little about the requirements for Health plan.

I am specifically looking for information on the ability to exclude certain groups of employees from coverage or the ability to charge different premiums to different groups.

ERISA §§ 515 & 502(g)(2) cover collection, attorney's fees, etc. for multiemployer plans. Is there a similar provision for a MEWA? It is my understanding that becuase the MEWA is not Union, it is not a multiemployer plan and therefore 515 would not apply. Am I correct?

i moved to the US in Sept 2002 and am now living and working in the US and planning to take citizenship and stay here.

I am 46 and have work and contributed to a pension fund whilst in the UK. I have a transferable sum of about $80,000.

1. can i trasnfer this into a roth ira and then use a portion of it as a downpayment on a house?

2. do i have other options?

I am married to a US citizen and we both work. I have a 401K with my employer here which started in april.

I'll throw out a recommendation for those who rely on Internet Explorer. You should really take a look at this free download which runs on top of IE

SliimBrowser

The advantages are great. Instead of multiple instances of pages across your taskbar, everything is tabbed to switch among pages (and it may be my imagination, but pages seem to load faster). Also, a builtin popup ad blocker.

Give it a try and let me know what you think.

I am currently working with a school that operates within an indian reservation. Currently the teachers in that school are participating in the Tribes 401(k) plan. The school board wants begin a new and separate retirement plan for the teachers, a 403(b) contributory plan. Basically the employer will contribute 7.75% of salary if the employee does the same. The 401(k) guy is running interference by telling the tribal council that they will have to file a determination letter because of "multiple employer plans" according to IRC 7.11.1.2.1. Is there any truth to this, or is he just grabbing at straws? He also states that without IRS approval the tax exemption status of the Tribal 401(k) will be jeopardized. I also was wondering if the the school with have to file form 5500. I need some help to put the fires out.

My client is a calendar year corporation and the sponsor a Profit Sharing/401(k) Plan. They will be depositing $100,000, by their 9/15/03 corp filing deadline, representing a discretionary match on the employees 2002 401(k) deferrals. Can they deduct, if they so choose the $100,000 on their 2003 corporate return (vs their 2002 corp return) , even though it relates to the 2002 plan year? Assume the $100,000 is below 25% of eligible comp for 2002 and 2003.

Before I get into trouble for mis- advising the client, I thought I will check my opinion.

I am looking at a DB plan sponsored by a pet hospital (a corp. by Veterinarians) - I think they are a "Professional Service Employer"?

Veterinarians are not listed in ERISA 4021©(2)(B) - hence the question. Do they qualify as licensed practitioners of the healing arts?

Assuming they are a "Professional Service Employer".

The # of participants in the DB plan just went above 25. Now the plan is definitely a PBGC covered plan?

The reason for the caution: Once the plan is PBGC covered it will remain covered even if the # of participants is 25 or less and will have to go through the PBGC termination process when the time comes (unless the only reamining participants are "substantial owners).

TIA.

The two owners of a real estate investment banking firm have been investing their self-directed plan assets in real estate limited partnerships underwritten by their company. The investment opportunity is not available to other participants as they are not yet "accredited investors".

1. In this case it it OK for them to do this given that other employees do not currently have access? and

2. Are their any other issues of which the plan sponsor should be aware?

Thanks.

Here are the questions I have regarding assumptions used by multiemployer pension plans when they determine employer withdrawal liability.

1. How are the interest and mortality assumptions chosen? Is the interest rate generally tied to some index so that it "floats" as interest rates float? Or are interest rates fixed and changed periodically to reflect the current interest climate? I would suspect that the mortality table is fixed and changed periodically as needed, but would like imput on that also. Are the assumptions used to determine withdrawal liability typically put in the plan document?

2. What value of assets is typically used to determine the value of unfunded vested benefits? Market value or the actuarial value used to fund the plan?

Thanks for any help you can offer!

I am beginning to work on testing for a company with multiple divisions, each with their own ps contribution rate. There are also a couple of controlled group companies that I need to include.

Does this set up need to be cross tested or can I test the different ps rates in a different manner?

Thanks

A client is in Chapter 11. The buyer is going to assume COBRA liability. Is the buyer obligated under COBRA regs to maintain the same benefit plan design for COBRA beneficiaries or can they move COBRA beneficiaries to the new plan that will be offered? Can they modify COBRA rates under these circumstances even if it has been less than a year since the last premium change for COBRA beneficiaries?

I've got a Parent/subsidiary controlled group. Two employers A & B; each maintain its own Plan. B can't pass coverage on its own, so we aggregate. Now here is my problem, since I aggregate for coverage, I've got to aggregate for ADP/ACP. A uses current year testing; B uses prior year testing. Can B retroactively be amended to use current year?