Had this sent to me by email:

"After every flight, pilots complete a gripe sheet which conveys to the mechanics problems encountered with the aircraft during the flight that need repair or correction. The form is a piece of paper that the pilot completes, and then the mechanics read and correct the problem. They then respond by writing on the lower half of the form what remedial action was taken and the pilot reviews the gripe sheets before the next flight. Here are some actual logged maintenance complaints and problems, as submitted by Qantas Pilots, and the solution recorded by maintenance engineers. By the way, Qantas is the only major airline that has never had an accident.

P = The problem logged by the pilot

S = The solution and action taken by the engineers

----------

P: Left inside main tire almost needs replacement.

S: Almost replaced left inside main tire.

P: Test flight OK, except autoland very rough.

S: Autoland not installed on this aircraft.

P: Something loose in cockpit.

S: Something tightened in cockpit.

P: Dead bugs on windshield.

S: Live bugs on backorder.

P: Autopilot in altitude-hold mode produces a 200 FPM descent.

S: Cannot reproduce problem on ground.

P: Evidence of leak on right main landing gear.

S: Evidence removed.

P: DME volume unbelievably loud.

S: DME volume set to more believable level.

P: Friction locks cause throttle levers to stick.

S: That's what they're there for.

P: IFF inoperative.

S: IFF always inoperative in OFF mode.

P: Suspected crack in windshield.

S: Suspect you're right.

P: Number 3 engine missing.

S: Engine found on right wing after brief search.

P: Aircraft handles funny.

S: Aircraft warned to straighten up, fly right, and be serious.

P: Target radar hums.

S: Reprogrammed target radar with words.

P: Mouse in cockpit.

S: Cat installed."

I am a self-employed individual (with no other employees). My company is organized as a sub-chapter S corporation. I have established an SEP-IRA on my behalf into which my company places contributions.

If I were to become an employee of another company (of which I am not an owner) with a 401k plan (in which I would be an active participant immediately) during the middle of my fiscal (calendar) year, can my sub-S company still contribute to my SEP-IRA up to the maximum of 25% of my W-2 income (from my sub-S corporation)/$40,000?

If so, do the contributions have to be made prior to my new employment or do I have until my sub-S taxes are filed for 2003?

For example, if I were to have $100,000 of W-2 income from my sub-S corporation in 2003, could I contribute $25,000 to my SEP-IRA in 2003 even though I also had $20,000 of W-2 (2003) income from my new employer (that had a 401k plan)?

Thanks.

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 (I posted this message at the 401(k) board also)

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?