401K Plan is amending for GUST/EGTRRA and no longer wishes to offer loans to it's participants. Would this be an anticutback violation? It seems as if it would not be since benefits are not being lowered.

Thanks,

Ronnie

We currently are engaged to perform a certified audit for a non-profit organization who sponsors a 401(k) plan. The client has inquired as to whether it would make sense to terminate the 401(k) plan and roll it into a client sponsored 403(b) plan, which is not subject to audit (the investments are in an annuity product, thus allowing limited reporting)

Obviously the audit would have to be performed on the 401(k) plan for the year in which it transfers to the 403(b) plan. Other than that, are there any potential pitfalls?

Thanks for any replies.

Situation : 204(h) notices are sent timely last December (12/13) announcing a proposed plan termination effective 12/31/2002 but the plan is not amended to freeze accruals as of 12/31/31; the 204(h) is also used as the 60 day NOIT with a proposed termination date of 2/15/2003; a Board resolution is also signed on 12/13/2002 resolving to terminate the plan effective 12/31/2002.

The plan is insufficient & I contend that a 1/1/03 valuation needs to be performed w/ costs pro-rated for the period from 1/1 to 2/15.

The consultant for the termination work asserts that the 204(h) and the Board resolution are sufficient to end my company's work as of 12/31/2002.

Who is right ??

Does a plan sponosr have any duty to find a lost spouse for purposes of waiver of a Qualified Joint Survivor Annuity?

I heard there is a minor exception to the anti-alienation protection. Discretionary contributions (i.e., discretionary profit sharing contributions) which have been made to the plan within 90 days of the employer filing bankruptcy may be undone by a bankruptcy court if they deem it to have been made as preferential treatment to a creditor.

Does anyone know where I can find this exception n the Code or ERISA.

Thanks!

I have a top heavy plan for the 2002 plan year. The employer is using matching contributions to offset top heavy. There are a few participants that do not defer. The eligibility rules are 3 months and quarterly entry dates.

Can I use statutory exclusions (21, 1 yos) to exclude some participants from the top heavy minimum? The document has all participants employed on the last day. I don't think I can, but...

Has anyone heard of a regulation where IRS plan agents have to conduct plan audits at a client site rather than at a TPA's office? One of the IRS agents that recently conducted an audit at our office states that in the future, IRS plan audits will have be be conducted at the client's office.

I have a 401(k) Plan that has been updated and is running on a prototype document. They are going to remove one of the trustees and add a new one.

Do we have to ammend the entire adoption agreement or simply change the trustee pages with new signatures?

Do we have to give all participants new SPD's or just the pages pertaining to the trustee info - or nothing at all??

Is there anything else that needs to be done with the documents for the Plan?

Thanks for your help!

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When a DC plan terminates, can the balance of the balance of the forfeitures revert to the sponsor/company?

Participant takes out a loan @ 5.75% interest. Participant then takes a bona fide Leave of Absence. During the LOA, the Plan's loan document is amended. Participant returns to work, loan is remortized. If this was a new loan interest would 6.25%. Recordkeeper reamortizes at 6.25%. Shouldn't the interest rate still be 5.75%? We don't have a new loan, just a resumption of the old one. Document is silent on this issue.

Thanks for any guidance.

Client is adopting safe harbor 401k using the basic match. As per EGTRRA, the match now satisfies the top heavy contribution.

Question - if this plan is top heavy and is using the basic match and one of the eligible participants decides not to defer and thus does not get a match, does the employer then have to make a 3% non elective to this participant if the plan is top-heavy, or does this plan pass the top heavy simply due to the fact that it is using the basic match?

Thanks.

Ronnie

in practice, how are you answering this question? what cutoff date are you using??? 3 days, 15 days, ??? we know the rules, but in practice how do you know when the employer could have reasonably segregated the assets?? this seems to be a question that a tpa is really not qualified to answer??? do you leave it up to the employer to decide after we have explained the rules to them?? if so, are you getting the employer to sign a statement saying that they are in compliance?? is this necessary?

I have a plan which allows multiple loans.. Participants vested account balance is in excess of $100,000.00. Participant on June 3, 2003 has requested an additional loan.. Therefore, in order not to exceed the $50,000.00 maximum, the highest outstanding balances will they apply as of June 2, 2002?????? If so, loan# 1 was taken as of December 21, 2001 and the outstanding loan balance as of June 2, 2002 was $16,000.00. The second loan# 2 was taken on June 19, 2002 for the amount of $29,300.00.

Since Loan# 2 was taken on June 19th, will I have to include this in the calculation for the new amount available???? As of June 2003, Loan# 2 is the only loan outstanding.

Please let me know as soon as possible... Thanks.....

Employer X is adopting a medical examination program for its top execs that is intended to be diagnostic procedures within the meaning of Reg. Sec. 1.105-11(g). Query: does COBRA, HIPAA, Privacy and other mandated health rules apply?

I have a question I hope someone can help me with. I currently have an IRA with Scwhab. Every time I make a trade it cost me a lot. How do I or can I put this money into my own IRA so I can make trades without a third party getting a cut????

thanks for any help with this.

Frank

My employer recently discovered that one of their employees was using a fraudulent green card and SS#. The employee was recently deported. The employee had an employer profit sharing balance in the company 401(k) plan.

Can I assume the balance is forfeited and the illegal employee is not entitled to this amount.

If an employee rolls over their IRA into their company 401(k) plan is it protected from creditors when it is in the 401(k) plan?

What are the penalties if a plan administrator does not withhold the mandatory 20% on an eligible rollover distribution?

What are the penalties if a plan administrator does not withhold the mandatory 20% on an eligible rollover distribution?