We are looking for an easy to use software product that will produce COBRA invoices, required notices, receipt reports, etc? We currently are using just excel and word and relying on paper files to remember notice and termination dates. If anyone knows of anything short of a full blown payroll / HR system, I would appreciate some suggestions.

Thanks.

Company A becomes a company in 2002. Also in 2002, Company A buys Company B. Company B has an existing 401(k) plan. Company A assumes sponsorship of Company B's plan. The plan is amended and the name and tax i.d. number of the plan changes.

I was going to file a final 5500 for Company B's plan for 2002 showing the assets transferring to the newly named Company A's plan. However, when I go to prepare the 5500 for the newly named (but not new) plan, I am perplexed as to whether to mark the box titled, "the first return/report filed for the plan" because according to the plan document, the effective date of the plan is in 1989. And, the beginning plan assets will equal zero.

So, now I am confused. If I just change the name and tax i.d. on the form 5500 and file it as a continuation of Company B's plan, I assume the EBSA will wonder what happened to the plan with the old name and tax i.d. number. If I file a final 5500 under the old name and start a new 5500 with the new name, can I say it is the first return and still show an effective date of 1989?

I'm sure I am missing something major here, but I have searched the boards and my reference materials and I just don't know what to do.

We are a TPA for many retirement plans (mostly 401k). Many of the mutual funds we use pay revenue sharing. For plans which we receive large amounts of revenue sharing, we like to offer incentives to clients. Currently, we offer them reductions in our fees.

We have had clients ask about the possibility of allocating some of the revenue sharing to the plan and distributing it among participants. Someone once told me that it was not legal to allocate any of the revenue sharing to the plan, trust, or participants. They said that using to offset administrative expenses was the only way to offer anything back.

I have searched the internet in hopes of finding some sort of article discussing the restrictions on how revenue sharing may be used/allocated. I have found many articles which discuss what revenue sharing is, but none that discuss the legal restrictions on them. Can anyone help me?

Thanks.

Without getting into the Deemed IRA stuff (eeckkk), is it possible to roll an IRA with aftertax contributions to a profit sharing plan under 401(a). Assuming that the recordkeeper will track any basis that exists prior to rollover and assuming that the recordkeeper will track the rollover money separate from profit sharing money. Also assuming no future contributions to IRA will take place.

I seem to be reading that it's not allowed and that EGTRRA asection 643 only applies to non-taxable portions of a former 401(a) account being able to be rolled over??

Help!

Thanks

If you have a participant directed plan that has 100% its assets in qualifying assets and quarterly statements are issued by the TPA, is additional disclosure required? Since the statements are not provided to the participant by a regulated financial institution do you need to list the Financial Institution and asset values in the SAR?

A participant takes out a loan at age 53 with a 5 year repayment option. The participant terminates employment at age 56. How should the loan be handled if the participant takes a lump sum distribution? Since the participant separated from service after age 55, would she qualify for the 10% penalty exemption?

I am filing a Form 5500 for a discretionary severance plan (that is a welfare benefit plan). No employees received severance benefits in 2002. For the 5500, is the number of participants (1) the number of employees employed by the employer (even though no employee received any benefits from the plan) or (2) the number of employees who received severance benefits for the year.

Can anyone offer suggestions as to the following:

A company has liquidated in bankruptcy and is in the process of winding up its business. It wishes to terminate its 401(k) plan but cannot locate some participants (most participants have already withdrawn their account balances). I am aware of the IRS' humane locator program which will attempt to notify missing participants. What if after using this program, some participants still cannot be located? What should be done with the remaining account balances?

Thank you for any suggestions.

There is a company that has been engaged by a large number of California public schools to act as third party administrator for the schools' 403(b) plans. In order for the investment product provider (insurance company) to offer its products to these schools, the TPA is requiring that the provider pay the TPA a monthly participant fee. Is the payment of this fee a "rebate" in violation of state law or ERISA? Basically, you have to pay to play. Thanks for any input on this issue.

I have recently learned, when running an age weighted plan in Relius, that the allocation shedule in the Corbel document is not the same as the schedule that Relius Admin. uses to calculate points. I would think that you should have the same factors when you use the same interest assumptions and mortality table. Has anyone else ran into this issue?

Are employees of an LLC treated differently or are they restricted in some way regarding executive non-qualified deferred compensation plans? If the answer is yes, could you point to the relevant articles, letters, regulations, etc. Thank you.

Facts: W is a former partner of a professional service firm "XX" that operated as an LLP. The firm recently "disolved" due to litigation and government inditement and all former partners have left to practice elsewhere. The partner has substantial retirement assest invested in a Keogh plan. She would prefer to roll the Keogh assets into an IRA, but also has her new firms 401K plan available if necessary.

Question: Considering the possibility of potential lawsuits down the road impacting former XX partner personal assets; are there any risks involved to the plan assets if the partner rolls her Keogh assets into an IRA? What are they? Are there in recommended steps to avoid? Is the 401K preferable to the IRA? Why?

We have a self funded medical and dental plan and need to know if we have to provide participants with a Summary Annual Report. We are required to file form 5500. Any input is appreciated.

May an IRA sponsor require that all distributions to beneficiaries be paid out in a lump sum rather than over the beneficiary's life expectancy?

A DB plan acquires qualifying employer securities, and immediately after the acquisition the FMV of the securities does not exceed 10% of the FMV of the assets of the plan. Over time, the securities appreciate and the other plan assets depreciate, so that now the FMV of the securities exceeds 10% of plan assets. Must the plan divest itself of enough of the securities to get back below the 10% threshold?

A 401(k) plan provides for a discretionary matching contribution to be made as deferrals are made. The plan sponsor determines the rate of match before the plan year begins for that plan year. In the middle of the plan year the employer wants to either change the rate or stop the match for the rest of the plan year. Can an employer change the rate of a discretionary match during the plan year without amending the plan by simply giving a notice to employees? To stop a discretionary match during the plan year, must he amend the plan to remove the matching contribution? Or, can he stop the match after notifying employees?

Does anyone know of any sources (i.e., Corbel, McKay Hochman, Datair) for plan documents for a defined benefit, non-electing church plan. I will be restating a church plan and would like to see some model documents. Thanks.

Just when I thought it was completely understood<GGGG>.

The ARA reduces the PVB for certain funding methods when determining normal costs under 412. This adjustment is for methods which produce bases to maintain the equation of balance.

Is the ARA recognized at all in the determination of the Additional Funding Charge? There is no equation of balance (per se), although there may be amortization bases, and therefore I would think it would be ignored.

Thanks for any and all commentary.

P.S. I tried to anticipate Mike Preston and look back at my old actuarial meeting stuff back to 1994 but did not find anything specifically stating to use or ignore the ARA.<GGGGG>.

A Son-In-Law to the owner is employed, he makes approx. $60,000 annually. Is he considered to be highly compensated because he is now related to the owner due to marriage?

I have an employer who would like to implement a Safe Harbor Match Plan. The characteristics of the employer are that most of the employees are very young or very old (e.g. fast food type of restaurant). The owner feels that no one (very minimal) will participate.

I plan on getting every eligible participant signature electing not to defer. Not only on the vendor enrollment but a customized one I will design detailing the plan. What else should I be concerned with the possibility of 2 HCE's and 2 NHCE's that will participate and about 25 that will have no interest?

Comments/Suggestions?