I've got a plan that transferred investments mid-year to Nationwide. I cannot figure out how to zero out the transfers, because the transactions manually entered to this point include all five of the funds that transferred into NW, and the downloaded info from NW also includes the transfered amounts. How do I zero out the transfered investments in Relius?

Company sponsors a cafeteria plan for its employees. Company discovers that it has a large amount booked to an insurance reserve for one of the plan's qualified benefits. Company would like to have a premium holiday for the participants currently participating in the coverage. Assuming the plan authorizes election changes for such an event, does the qualified change in status event for automatic election changes dur to cost increases or decreases permit Company to prospectively reduce the pre-tax premium payments that the employees are contributing? The reason I have concerns is that the ability to do this is dependent upon the cost of the "qualified benefit." In this case, the insurer is not reducing the cost of the qualified benefit. I would appreciate your thoughts on this.

I have been approached about a 403(b) plan in existence for a governmental agency that is not allowed to sponsor a plan of this type. The sponsor is neither a public educational institution and/or a certain nonprofit organization.

The sponsor is part of the U.S. Department of Housing and Urban Development that administers Federal aid to local housing agencies that manage the housing for low-income residents at rents they can afford.

Normally we see these type of sponsors in a Money Purchase plan since most (if not all) of the contributions are strictly employer related and we would utilize a 457 for any employee looking to subsidize their retirement further on a pretax basis.

I think the former administrator has even filed 5500's.

What would be the best mode of operation?

Should the plan be entered into some type Voluntary Correction Program to move the 403(b) into a 401(a)?

There is NO question they qualify as a governmental entity, should an application for a formal confirm still be filed with the DOL?

Thank you in advance for any feedback...

If ER has 2 seperate plans and covers different ee's in each. If they combine for coverage to pass, do they need to combine for top heavy determination also? please cite a reg.

thanks

Decedent died in 2001. Trust with separate accounts for each beneficiary was the designated beneficiary. The IRA was divided into these separate accounts in 2002. I had always thought that as long as separate accounts were established before 12/31 of the year after the year of the decedent's death each beneficiary could use their own life expectancy but am advised that this only applies in the years after the separate accounts are established, in this case 2003. That result appears odd but is consistent with the language of Treas. Regs. 1.401(a)(9)-8(A)(2). I have thought of claiming that the accounts were established when the owner died, not when they were physically separated. Any other ideas?

I have a safe harbor 401(k) with the basic match (100% match up to 3%, 50% up to 5%) to only those who defer. For my new comparability profit sharing allocation, say I want to make a contribution to all eligible NHCE's of 5%. Does that mean I give 5% to all NHCE's and end up with the ee's that get a safe harbor match getting a higher % of compensation, or do I just need to allocate the amount needed to get those ee's that get a safe harbor match up to 5% of compensation so that everyone ends up with the same % of compensation? this might sound like a dumb question but it's my first plan not using the nonelective match for safe harbor.

thanks for any help.

I have several small business owners that do no have work comp. (not mandatory in Texas) due to cost. As an alternative I offer them occ. acc. but it does not have the law suit protection that comp. has.

I would like to know if a binding arbitration agreement between the employer and employees has to be part of an erisa document if all they have are voluntary benefits or can it be a stand alone agreement.

If it must be part of an erisa document the name of a company that can prepare such a document that only adresses the arbitration issue since the only benefits available are voluntary.

Thanks,

Paul

Appreciate insight on the following:

Plan requires employee to contribution between 2% to 12% of compensation as after tax contribution to become a Participant in the Plan. However after 3 consecutive years of participation employee no longer required contribute.

Employer provides a contribution to all Participants allocated by Compensation.

We are to doing the coverage and non-discrimination testing.

It seems to me that the Employer Contribution would be considered a 401(m) matching contribution for the first 3 years of Participation. After 3 years of Participation it becomes a Profit Sharing Contribution?

I have already filed my taxes for 2002 and received my refund. Can I open a Roth IRA and place 2002 money in it before 4-15-2003? If I can, do I have to report it to the IRS with an amended tax return? Also, my wife and I each had earnings in 2002 and our combined was less than than $150,000.00. Can we each open a Roth IRA and put in $3,000.00(total of $6,000.00) or do we have to open a joint Roth with a total of $3,000.00.

May one ERISA fiduciary indemnify another ERISA fiduciary?

The case at hand involves a hold harmless and indemnification agreement under which one fiduciary agrees to act upon the others direction while being held harmless for any negative consequences or liability that result from acting upon such direction.

ERISA Section 410 appears to prevent this, but I was hoping for any insight anyone could provide. Thank you.

I have had a SIMPLE IRA for 3+ years and want to (a) convert some or all of the current balance to a Roth IRA and (B) continue making annual contributions to my SIMPLE IRA.

Can I do both? Are there particular issues that I should be aware of? Thanks.

Neilcap

Folks, eflexgroup is a national TPA for Pre-Tax Employee benefits and COBRA administration. We are web based and very tech orientated. We are searching for a COO that has strong operations, process, and customer service orientation. This person must have very strong communication, writing and compliance back ground. They must promote the values of the company with internal and external customers and demonstrate strong leadership skills. MBA, JD, CEBS equivalent or education background that lends itself to COO and or experience preferred. Salary commensurate with experience and education. Possible ownership oportunities.

(sorry I don't have a spell checker)

Any interested parties may contact Susan Haine, CPA, COO QTI

Human Resources 608-258-5525 for more information.

This message posted by Ric Joyner, CFCI.

I work for a city who has its own retirement plan but I cant seem to get any info about it. I'm vested now and I found out others I work with that have the same job title have a larger accural rate than I. Is this allowed? And what about equallity! Since this is a goverment workplace isn't this disciminating? And what body oversees these local goverment retirement plans?

thanks tim

Does anyone know of any ESOP software to use to evaluate how an ESOP will work for a particular company? IE incorporate tax consequences of use by an S corp? We could build a template but if someone else has done it and we could buy it that would save us some time.

I'm working a prototype plan that provides that forfeitures of matching contributions are used to reduce employer matching contributions. Employer matching contributions are discretionary. As a result, there are unallocated forfeitures just sitting there.

Questions: What are the non-discrimination testing issues related to this suspense account? Are there any limitations on how long the funds may remain in suspense. Does any formal guidance exist concerning treatment of suspense accounts for matching contributions?

The concern, of course, is that the longer these sit there, the more likely they will end up being allocated to HCE's and owners, resulting in discriminatory operation of the plan. TIA for any thoughts.

A pension plan administrator recently discovered that, as a result of the administrator's miscalculation, an alternate payee received a lump sum payment which was greatly in excess of the correct amount to which the AP was entitled. This payment was made almost five years ago. Here are my questions:

1. Is this a case in which the administrator can bring an action for equitable relief under a constructive trust or other equitable theory? Is it necessary to trace the funds to a rollover institution to succeed under a constructive trust theory (i.e., what if the funds have all been spent)?

2. What are the available forums--the beneficiary received the payment in Hawaii, the administrator made the miscalculation in California (but has subsequently moved its offices to Texas), and the trust fund is located in Illinois.

3. What statute of limitations applies?

Thank you for any helpful thoughts and advice.

Hi all - need your expert opinions on this one. Came accross plan that uses 3% non-elec safe harbor contribution to avoind ADP testing. (so far so good)

Plan design is as follows:

People hired as "full time" employees are eligible to join plan on 31st day of employment.

People hired as "part time" are eligible to join after completion of one year service (with the requisite 1,000 hours).

Problem is some part time employees are those who work 30 hours a week, and some full time people work 30 hours per week.

At first I rationalized this as being dual elibility that could be explained as being certain job classes are part time and some are full time. This is not the case -for example - order entry takers are both full and part time and all work 30 hours per week. Now this raises other questions and problems

Now full time receive safe harbor at the 30 day point. Part timers who get the 1,000 hours in the year join on first anniversary and at that point start receiving safe harbor.

My gut feeling is the part timers who had the 1,000 hours should get the safe harbor for first year - just like full timers.

Have feeling this is bad plan design but can't place my finger on code cite to prove it. Can anyone give me hard and fast cite? Any help would be appreciated.

I just picked up a new client. I looked at the document and the document which was signed 9/01 and defines comp as w-2. The only problem is that the owners don't get w-2s, its a partnership. All income is reported on the K-1.

The other issue is that the eligibility period for the 401(k) is 21 and 1 yr. In order to get a ps contribution there is a 2 year wait and secretaries are excluded. The problem, over half the ees are secretaries. I doubt it will pass the 410(B) coverage test.

The profit sharing contribution is cross tested. The plan doc, calls for a 3% contribution for all ee's in Class II. The partners in Class I get whatever % will pass the test. The plan as written doesn't pass the allocation gateway test. The plan may be a GUST I, but EGGTRA was not done.

Can this be self corrected or do they have to go to the IRS?

:confused:

In December we started a voluntary disability program for employees, through Baltimore Life. I am not real familiar with ERISA at this point (I am working on it!) but what I read in a mini ERISA book I have is that this would only be non-ERISA if we did not in any way sponsor or endorse the product. I think we very much are endorsing it, it's not like we are just letting a salesperson come in and sell it, we send out the enrollment info, I have sent claim forms to people, etc. Am I correct in my thinking? We do not have a plan document, so I asked if we would be receiving one, and they replied that since it is a voluntary product, that ERISA doesn't apply.