Please help - need some clarification here:

Younger spouse "A" had an IRA and and died in 1997 at the age of 63. Surviving spouse "B" ( who was 71 at the time) was advised at the time not to take over the IRA in his own name as that would trigger minimum required distributions based upon his life expectancy. Instead he was told to keep the IRA in "A"s name and start minimum distributions based on her life expectancy starting in the year that she would have attained 70 1/2.

Is this correct?

How do after tax 401(k) contributions work w/ regard to 402(g) and 415 limits?

If I understand it correctly, the 402(g) limit (12K in 2003) refers only to pre-tax contributions.

However, the total of pre-tax,post-tax, match and profit sharing cannot exceed lesser of 100% pay or 40K (in 2003)? Other than that, there is no other limit on the after-tax contribution.

Is my understanding correct?

Also, where is a good source of information on after tax 401(k) contributions?

Thanks,

Al

"General Motors' Destruction of California Transit Systems" is at

http://www.trainweb.org/mts/ctc/ctc06.html

Consider an employer that has only HCEs. What is the general consensus "out there" about defining in the plan document each participant to be his/her own individual rate group. It's certainly permissible under the IRS Field Directive for a rate group to have only one participant. I will appreciate your thoughts. Thanks.

What information must be reported on a summary annual report for a 403(b) Plan subject to ERISA?

It is clear that such a plan must file a Form 5500 and it is also clear to me that all ERISA plans must distribute a summary annual report.

The required information on a 403(b) Form 5500 is very limited (basic plan information; no financial or participant data). Based on the 5500, a SAR for a 403(b) wouldn't tell the participants much of anything.

Any help is appreciated.

I've obtained my APA through NIPA and have thought about becoming a member of ASPA. I've also considered taking the exams for the QKA & QPA designations but am questioning if it is needed. Does the retirement plan industry look at the QPA and APA as being equal? Knowledge is power so I’m not out anything for going ahead with the additional courses.

Any feedback on the APA and QPA designation would be appreciated...

Was wondering if anyone knows where a cash-balance sample document (single or occasional use) could be purchased. I have checked with some of the more popular providers and can't find one. Only PenDoc said they would have one available, but late Summer at the earliest. Client does not want to use an attorney. I would prepare the benefit and actuarial related sections with the usual caveats about seeking legal counsel. Seems like one could convert a regular DB document to a cash balance without too much modifications, but not having done it I may be oversimplifying.

Self employed deposits $8,500 as "elective deferral" during 2002. CPA gets creative post year end with deductions and reduced net earned income (prior to pension deduction) to $2,500. How is the $6,000 excess in the plan as of 12/31/02 categorized? The 402(g) limit seems to be a dollar cap only - no correlation to compensation. Plus, I'm inclined to think that it cannot be an excess deferral because it's not an elective deferral in the first place. How can one defer income that one does not have? If it's not a deferral, would it just be deemed an employer contribution and then subject to the non-deductible penalty?

We have just discovered that we failed to notify 15 people that they have account balances in their FSA for 2002.

How do we rectify this? Can we notify them now and give them until the end of April to request a reimbursement.

Help!

In a non-qualified deferred compensation plan, can the cost of legal review and establishing an account for an Alternate Payee in a domestic relations order be passed along to the employee/alternate payee? How about ongoing administration costs that are typcially payed for by the employer - i.e the company pays $300 a year for each account in the plan.

If a participant is terminated as part of a possible partial plan termination, then rehired without loss of any vesting or plan benefits (other than failure to make salary deferrals during absence), can that person be disregarded for purposes of counting those affected by the partial termination?

Would answer be different if person lost eligibility for employer matching contribution due to failure to defer during absence?

One of our multiemployer health plans has always had language in the

SPD about the ability of the Administrator to offset future benefits

against monies owed to the plan as a result of erroneous payments, subrogation situations, etc. Since [/i]Knudson the Plan has begun

to more actively use the offset provisions to collect monies due the Fund.

Recently a participant submitted a complaint to the DOL/EBSA. After collecting

the documents, the office decided to take no action, but also would

not explicitly "bless" the offset. The participant was given a 502 letter.

My first question then, is whether anyone knows of guidance by the DOL

regarding equitable offset by a health plan?

Also, this plan is considering changing its "Dollar Bank" rules to

compel participants to quickly pay any debts to the plan. The Dollar Bank is a non vested account from which the Plan withdraws the monthly cost of the health premium. Once the changes are approved, the participant who refuses to repay the Plan will not be able to "bank" his excess work hours, nor will he be able to use the Dollar Bank to continue eligibility once he is laid off. Essentially, his continued coverage will depend on the prior month's work hours.

Does this raise any red flags to anyone? My research has yielded very little.

SHOULD I ROLL MY PFG STOCK INTO AN IRA?......IM REALY GREEN ON THIS.......THANKS IN ADVANCE

Does anybody have information on the funded status of the Central States Teamsters Plan as of 12/31/02?

Can anyone tell me what the 20-30 largest 401k providers are in the US or tell me a web site which lists the major 401k providers in the US? I'm currently looking for jobs in the 401k sales industry but would like to get an idea of who is out there for companies before I begin my search. I know Fidelity is a large one....thanks so much.

I have a group of churches (diocese) who has adopted a 401(k) plan that we are now the TPA for. Under their old 403(b) plan, they had a church plan election. I'm not sure if something special needs to be done to have the church plan election or do they automatically have it (ie. do we need a private letter ruling?)? It appears as though Forms 5500 have been filed for the last two years. What do I do about that? Any help would be greatly appreciated!!

I have a client who has been out on short term disability. When he returns can he change his annual election? or Does he just have to make up deductions from while he was gone for the annual amount he had originally elected at the enrollment? He is wondering if he can increase his amount.

I am reviewing a participant's distribution.

He received an early out window lump sum.

I disagree with two items of lump sum calculation.

1) interest rate

2) age used to determine lump sum factor.

1) Interest Rate - section 5.22 includes "rate shall be App Int Rate ... 417(e) for the month of December preceding the first day of the Plan Year in which the distribution occurs ..."

This is a Plan amended for GATT (i.e. 30 year Treasury) with a calendar plan year.

What 30 year rate do you interpret this plan provision to mean?

2) Age - The window amendment provided for 5 additional years for purposes of the early ret factor and for additional credited service. Say a person is age 55 and the lump sum was based on the immediate annuity due him. Would you then compute the lump sum based on his age 55 or would you use age 60 (55+5) and use an immediate annuity factor based on that age?

Look forward to other observations.

Gary

Small company, 1 owner (100%) 4 employees. The 4 employees are excluded because they do not meet the age/service requirements.

Can this plan file a 5500-EZ? Is this plan subject to ERISA's fiduciary bond requirements?

Thanks!

I am trying to get a sense of whether state university medical systems (to the extent they sponsor retirement plans of their own) typically seek and obtain status as governmental employers under Code Section 414(d). I understand that in each case, it will depend on how a system is organized under state law, but am interested in any actual experiences anyone has had with this.

If you have any experience or insight into this, I would greatly appreciate hearing from you.

Thanks!