On Line 1 do I include distributions in-kind of mutual fund rollovers? i.e. Aim Mutual Funds rolled over from employer's profit sharing plan to terminated participant's IRA? The form instructions refer to not reporting "marketable securities" as defined by Section 731©(2). .??

Do 2 different companies with common ownership HAVE to have the same benefit plan available.

Company A is own by 6 people and Company B is owned by 4 people (all who have ownership in Company A). Company A is a larger company and has a 401(k) Plan that does not currently have a match. Company B has the same plan, but is a smaller company that has not been doing to well and would like to terminate the Plan - because of the common ownership can they do that?

Thank you.

If an individual has three traditional IRAs with different custodians, is it possible to aggregate the values for the purpose of establishing substantially equal periodic payments? Can the individual then withdraw the required funds on a monthly basis from only two of the three IRAs as long as they meet the computed amount on an annualized basis?

Is the amount of the catch up contribution determined from hitting the ADP limit equal to the amount of refund (up to $1,000) that the catch-up eligible HCE would receive?

Suppose that a catch-up eligible HCE defers $5,000 and the plan passes the ADP test, but if he defers $6,000, the plan fails the ADP test. However, since he does not defer the most, others are required to get the refund and he does not have a catch-up contribution. Is that correct?

For purposes of determining if a 5500 is required for a cafeteria plan that includes a health FSA, has anyone seen information on how are participants are counted to determine its status as a small or large plan?

Is it anyone eligible to be in the cafeteria plan/health FSA? Or, is it more like the former Schedule F instructions which I believe referenced a participant as one who had deferred at least $1? The employer I am working with has over 100 employees eligible to participate in the health FSA, but only about 45 have been deferring. Thank you for any advice you might have!

Is there any recourse when 401k funds are distributed to the participant after a Final Decree of Divorce is entered giving the participant's wife a portion of the 401kfunds? The funds were distributed prior to the time the QDRO was prepared and entered with the Court.

I have a client that has a Profit Sharing Plan with a 401(k) option. They have informed me that they want to ‘terminate’ the Profit Sharing portion of the plan and keep only the 401(k) option. I did not think that would be a problem as we could make the Profit Sharing contribution discretionary, but they informed me that they want to ‘terminate’ the Profit Sharing so that they can distribute it to the participants. Any idea of how/if this can be accomplished?

I am sending several 5558's to the IRS via Ariborne Express. The instructions to the 5558 do not give a street address, they only give the city and state (Ogden, UT).

Has anybody had any problems with the deilvery of the forms without the street address? Does anybody have the street address?

Thank you.

Husband’s IRA is a significant part of his estate. It has been suggested that upon his death his trust should be the beneficiary of the IRA, with the trustee being given the ability to assign the IRA to either the marital trust or the credit shelter trust. Is this common or does the IRA have to be directly assigned to one of his trusts? Is is correct that required minimum distributions would be made over his spouse’s life expectancy (assuming the kids are the remainder beneficiaries) and if she has remining life expectancy at her death, over her remaining life expectancy to the kids?

If we do not have any employees eligible for Trade Assistance, are we still required to add that provision to the COBRA section in our SPD?

thx

Can a DB plan in a floor/offset arrangement test for discrimination based on contributions instead of benefits? I've read some posts in different parts of this forum that seem to conflict on this matter.

US citizens abroad may be able to convert regular IRAs into ROTH's without paying any tax upon conversion, especially with the advent of the child tax credit !!!

Think of that, the benefits of a ROTH conversion without paying any tax up front !

Does anyone know of any IRS case law for a business-owner/parent putting their young child on the books to legimately earn income for the purpose of starting a Roth IRA. What's the youngest age the child can be? Exclude the model/actor child.

I have a plan that has accounts with Ohio National Life Insurance Company... they provide a "Schedule D Attachment", which just seems to list their investments w/EIN & plan #. How am I supposed to figure out which are actually to be reported on my plan's Sch. D? Does anyone else have to deal with this company? Their "Schedule A Attachment" is just as worthless. All other insurance companies I work with clearly provide the information and where it should go on the schedules.

The plan has one account which is a guaranteed interest fixed account. Is this the only one that has to be reported? Or if any of the other accounts show up on the "Sch D Attachment" list- does that mean they are supposed to be reported? Of course their "support" is already closed for the day too.... how convenient.

Thanks in advance if anyone can help me. Luckily it's almost time to go enjoy the weekend.

Rachel

Just wondering if, and to what extent, plan trustees/administrators are maintaining a "before-the-fact" roster of parties in interest. That is, do you create and update a census of the business interests of the committee members and/or officers & directors of the Plan sponsor in order to avoid inadvertently entering into a prohibited transaction?? Or does everyone perform an ad hoc review only when the Plan incurs an expense?? If the former, I'd like to learn how deep and how often is the information.

THANKS

Can someone briefly explain the three-year testing cycle for sch. T. Do many people use it?

When a participant is paid his/her entire vested balance during the plan year and has been reported on sch. SSA in prior years, is that person reported again with a code D once they have been paid?

Are they are regulations out there that limit an Employer's policy of Waiving coverage? I do not think there are, but cannot find one way or the other.

The employer currently does not have an employee contribution to their self-insured PPO plan and their waive option can only be taken upon proof of other group coverage. For 2004, they want to place an employee contribution (pre-tax) to the self-insured PPO plan and leave the Waiver policy as is requiring proof of other group coverage.

I have only seen a waiver with proof of other coverage, group or individual in other plans. Their goal is to keep as many young, healthy workers on the plan to help offset the "sicker" members and ones who cannot get coverage elsewhere. I know this logic is not sound, but ...

What are your thoughts? I am fairly certain they can do what they want with their Waive policy requirements, but cannot find any documentation either way.

A plan sponsor submits a VCP application under EPCRS because it failed to timely amend its plan for GUST and pays the stated fee.

What if the same plan sponsor has two plans that were not timely restated? I read section 12 regarding VCP fees and it does not appear crystal clear (although I admit its Friday and I want out of this office so I read it quickly) as to whether a plan sponsor can submit both plans on one application and pay one fee or if a plan sponsor is on the hook for two applications and two fees.

Any opinions are appreciated.

Tx.

In completing the 5500, I realized that a plan should have been filing a Schedule A... however, it has been missed since 2000. It was filed in 1999 but we haven't received any DOL letters/requests for it yet. Do I go back and amend 2000 and 2001? I have never received any information from the insurance company (and the info I did receive this year isn't complete- they only provide Part I data). Will they be able to come up with the past data? Or is there an entry I can put in that they did not provide it?

Advice or suggestions?