Does anyone know if the IRS maintains a list of the names of plans that were formally terminated via a 5310? And if so, where can that list could be found?

I met somebody who states they were a participant in a plan (they have no idea what type of plan it was) in 89' and never received their balance. Plan sponsor was sold in an asset sale. He has no idea what happened to the plan and now neither company involved in that deal is around.

Scrambling for suggestions. No luck on the PBGC site. Tx. for any insight.

Looking for guidance on valuing current liability under a cash balance plan. Does anyone know of any official guidance? If not, what have people been doing?--Annuitizing the projected AB? Anything else?

Thanks

We filed our SIMPLE IRA prototype with the IRS and are waiting for the results of their review.

Can we use the prototype documents for new business while we are waiting, or must we use old documents until approval is finalized?

Also - in regards to the Disclosure Agreement - I was informed that in the IRS' review, they do not comment on the Dislcosure Agreement. They only comment on the prototype itself. Thus, if we are required to wait until we receive approval on the prototype before implementing it for new business, does this principle apply to the Disclosure Agreement as well?

(In framing my question, I have made the assumption that "IRA prototype documents" do not include Disclosure Agreements as part of the whole document. Please feel free to correct me if this understanding is incorrect.)

I have a client with 2 401(k) Plans, one for their collectively bargained employees and one for their non-collectively bargained employees.

The non-collectively bargained plan has been updated for GUST & has received a favorable determination letter from the IRS in 2002.

The collectively bargained plan is currently under review by the IRS for a favorable determination letter. The IRS has requested copies of 1991 amendments for UCA & OBRA, as part of the FDL process. My client cannot locate a copy of the amendment. They do have a copy of a prior FDL, dated 10.28.92. They also DO have a copy of the required amendment for their non-collectively bargained plan.

They have had three-fold changes in bundled TPAs, due to acquisition (banks). They fear that the amendment may never have been done, as a result, especially if they (possibly) might have been advised to wait until labor contract negotiations were to take place (to prepare any amendments)...but they don't know for sure. Turnover is an issue at the client as well.

Any options/ideas for this client re: tracking the amendment & furnishing something to the IRS? They fear that they risk qualification status if they can't produce a signed amendment...but with the change in TPAs, they don't know how to track one down (or confirmation that one was never done.)

I have a 401(k) safe harbor plan where the Employer chose the 3% to all eligibles. I have a participant who terminated in February with 280 hours. Do I have to give him the safe harbor $? Can you restrict the 3% to those over 500 hours who terminate? I know this should be fairly simple, but I haven't been able to find anything... Everything I find says you cannot have a 1000 hour or last day rule for safe harbor, but does not specifically say if I can exclude terminees with <500 hours. Any input is appreciated.

Now that the 175% Federal mid-term rate (7.29% at November 2001) is lower than my plan's funding rate (8.00%), how do I calculate late quarterly interest penalty for the 2001 funding standard account?

Under Cal. H&S Code 1366.29, employers must provide notice to employees of their option to receive Cal-Cobra coverage for up 36 mos. following a qualifying event, should COBRA coverage end earlier. The statute indicates that the notice should be incorporated into the federally-mandated notice of pending termination of COBRA coverage. Yet, my understanding is that COBRA does not require such notice to be given. Has anyone dealt with the Cal-COBRA notice and, if so, which notice did you tack it onto -- Notice of right to elect COBRA coverage?

Thanks --

The topic of the day is plan loans.

I am working with a plan sponsor that sits at the top of a controlled group. The plan sponsor maintains a 401(k) plan in which some of the group members participate. Other group members (particularly those with a majority union workforce) maintain their own 401(k) plans.

From time to time, an employee will move from a non-union group member to a union group member (and vice-versa) after having accrued a sizable account balance. These employees obviously start from scratch in the union plan once they have transferred.

The issue that has come up is whether these transferred employees (who have not experienced a "severance from employment" and who cannot therefore receive distributions from the non-union plan) can be allowed to receive a loan from the non-union plan.

It appears to me that so long as the loan otherwise complies with the 72(p) requirements, the fact that it is made to a former participant is not problematic (at least not from a qualification standpoint--administration of this is a whole other kettle of fish).

All of the group members have a common payroll that is administered by the sponsor of the non-union plan. This should make administering these loans a good bit easier.

Leaving aside the issue of whether sane people would want to do such a thing, does anyone see any problems with this proposal?

Thanks!

A nonpprofit wants to allow the ee's that have health ins through spouses etc. and that don't take advantage of the fully paid individual coverage to contribute those dollars to a 403(B). (They currently require proof of coverage elsewhere to not be covered by the np's health plan.)

Since they can't use Benefit Dollars under the Section 125 plan and allow the unused dollars to be directed to the 403(B) plan, the option most employees would prefer, what options are available that would allow the funds to be contributed to the 403(B) pre-tax?

They could offer cash in the amount of the premium, but if the ee takes the cash, the ER is on the hook for the FICA /Medicare and so it costs them more for those not electing health ins or 403(B).

Can you offer either health insurance or 403(B), and if neither are elected, a cash amount less than the premium amount?

What about automatically enrolling all eligible ee's in the 403(B) for the amount of the individual premium, allowing those wanting the health ins to waive participation in the 403(B) and use the dollars to purchase health insurance?

Any suggestions would be appreciated.

Here is the question.

A person terms 9/2002. According to the client after 3 months their 2 loans are in default. The person is not taking a final distribution at this time but leaving the money in the plan.

Is it correct to process the loan defaults now and issue a 1099r. (Just a note, the account balances are reduced by the loan amounts at the time they are issued.) Then when they get their next statement of account the loans will show as a 0.00 balance. Then at some point in the future they can take their final distribution whenever they want and the loans will not show or be taxed later.

My problem is I have someone telling me that the new regs state that " even if you default the loan now the balance remains as part of the assets until such time as the particiapnt is terminated. In addition if the participant decides that he/she would like to pay the loan off at a later date he must be given the opportunity to do so. If the participant decides to take out another loan at a later date then this loan must be staisfied before doing so and must be considered as part of the highest outstanding loan balance in the last 12 months."

How can you give participants an indefinite time to pay off a defaulted loan.

Lastly, when do the new regs go into effect.

Thanks

Employee works part-time, is over age 65.

Employer sponsors cafeteria plan. Cafeteria plan requires 30 hours per week for eligibility. This employee works more than 30 hours per week.

Any reason why this employee cannot participate in the cafeteria plan? Any Medicare implications?

I know nothing about Section 125 plan rules so ANY insight is helpful to me.

Thank you!

Person A owns 33% of Company XYZ. He is a participant in XYZ's qualified plan. The Plan allows participant's to self-direct investments. Person A wants to invest in an L.L.C. in which he is a 5% owner. All participants would be given the opportunity to invest in the L.L.C.

The sources & cases I have read indicate that it may be an issue depending on the degree of ownership. Is 5% enough to make this a prohibited transaction?

Any other issues I am missing?

Thanks in advance for any guidance.

Does anyone know if a special test, etc. would be required for a plan with the following eligibility requirements:

Exempt ee's - 3 months of svc / entry on 1st of mo following

Non-Exempt ee's - 6 months of svc / entry on 1st of mo following

I can't find anything specifically talking about this and maybe nothing additional is required. It just seems a little odd to me.

Thanks

my client is a sole proprietor attorney operating in a law firm with another atty. the two used to have a partnership, but have since split into two sole proprietorships. the old partnership still has an EIN, and the two atty's contribute to it to pay each's secretary's comp and benefits. each atty covers his secretary in his db plan. is this ok since both secretaries are covered by a db plan even though the atty's are not paying them directly through the sole prop EIN? thanks

I made a mistake in my previous question. Is the spouse of a participant in a 401(k) plan that provides for a QJSA required to consent to a loan to the participant spouse in front of a notary or a plan representative?

Is the spouse of a participant in a 401(k) plan that provides for QJSA required to execute a consent in front of a notary public or a plan representative?

The Soldiers' and Sailors' Civil Relief Act requires that 401(k) loans of participants who are activated have an interest rate that is no more than 6% while they are on active duty. I read some articles that say an interest rate in excess of 6% is ok if the participant's military service does not "materially affect" the participants ability to pay the higher interest rate.

The PWBA website says in order to apply the higher interest rate, a plan fiduciary has to petition the court. I've talked to a few friends at other companies and they are letting the participant decide whether to have the 6% rate or the current rate apply while they are on active duty. They are not petitioning the court.

Is anyone else just letting participants choose? Has anyone petitioned the court for permission to use a higher interest rate

A defined benefit pension plan has been assessed an excise tax for making its required contribution late. Is there any way to appeal or get an abatement of this assessment?

IS there a place where I can pull a sample participant loan program. For example, a separate written loan program is required in addition to the Plan Document in a Plan I am working with. Can someone recommend a site where such a document can be located?

I found this one on reish.com. Any comments?

http://www.reish.com/publications/pdf/loan...rogpolicies.pdf

If the SPD describes the loan program, do we still need a separate written statement?

Looking at the 2002 ERISA Outline Book (page 14.10), it seems as though all of the information I would need is already included.

Are there any guidelines on terminating a postretirement benefit plan? Are there regulations similar to a qualified plan such as 204(h) notices?