I have a health plan funded by a VEBA

Is Sch P of Form 5500 needed to start statute of limitations?

Chart in Form 5500 instructions only shows the P necessary for pension plans

I have a health plan that is funded through a 501©(9) trust

Is a Schedule P needed to start the statute of limitations?

Form 5500 instructiosn show a chart that Sch P is only needed for pension plans

Is the Schedule F truly gone?

Can I as a sole proprieter cotnribute fully to my SEP-IRA (25% of the net income) and draw salary for myself and spouse upto 12K and move most of it to the non-integrated 401(K) - assuming 11K 401K limit max for 2002.

Thanks

I am sorry, I know this is a really dumb question, but I am having a hard time figuring this out. The regs say Health Plans - does that mean (medical, dental and vision) plans altogether or does it refer to just medical. Employee gets married, has medical coverage currently - due to marriage wants to add spouse to medical(that is easy), but now he wants to add vision coverage even though he did not have it before. Do we have to let him add the coverage? Does it fall under the topic of health plans. I know that under HIPAA with the change in rules 4/14/03 Health plans include medical, dental vision and fsas.

Any asssistance would be appreciated.:confused:

A plan allows for a discretionary match and does not begin contributing matching contributions until the middle of the plan year. Should the ACP test be calculated using compensation for the last half of the plan year? Or should full year compensation be used?

I've been trying to find information regarding whether a company can adopt a db plan with a retroactive effective date. For example, could a company as of January 2003 adopt a calendar year db plan with a retroactive effective date of January 2002?

I have been unable to find any direct information on this matter. I would think that the company could do this provided that they make the necessary minimum contribution for the 2002 calendar year before before the minimum contribution amounts become due ( I think they have up to 8 1/2 months after the end of the plan year? ).

Any ideas, and/or suggestions? Thanks for any assistance!

What is an SEC audit? Had DOL audits, had IRS audits but this is a new one. They've only given one week to pull together what they want to see.

A DC plan termed last year & we forced paid out a bunch of people whose balances were under 5k. Just this week 2 folks sent back their checks with VOID written across them & signed distribution paperwork to do rollovers. We had given these people numerous chances to respond, and I'd like not to have to re-issue checks at this point unless we have to. If we do reissue as rollovers do we treat the distribution as occurring in 2003 rather than 2002. In that case there is no 1099-R for 2002, correct?

I am restating an established plan for GUST. Old document calls for the allocation of match forfeitures (which of course sets up all those little accounts for elig. participants who are not participating). Can I change this provision in the restated document so that forfeitures, as a result of match, can be used to reduce match instead of being reallocated without having to go through the "notify participants", "board resolution", "separate amendment" thing? I don't think I am violating any anti-cutback rules. I will not be altering any accounts that have already been established, I will just be altering how the forfeitures are dealt with in the future.

I have recently been put in charge of filing the 5500's for our clients and need clarification on a couple of things. I appreciate any help you can provide!

First, when a plan terminates and all money is distributed, when does the final 5500 need to be filed? Does the clock start ticking from the day the last dollar was distributed or do you have until the end of the regular plan year?

My second question depends somewhat on the answer to the first (if it the 5500 needs to be filed based on the date the last dollar left the plan), what do I do about our software for printing 5500's not being released until February-March? For example, the plans funds are out be May 1- the 5500 should be filed within 7 1/2 months- so by December 15th. Do I file a 2001 5500 and cross out and put 2002 or how should I do this?

Thanks in advance for you insight.

Rachel

If a plan document limits loans for purposes other then the acquisition of the participant's principal residence to 5 years, can the plan employ a rule of convenience in determining when to default the loan? For example, assume a participant takes out a loan on April 15, 1998. Dur to the failure to timely start the loan repayments, the participant is still making repayments on April 16, 2003. Can the plan look at all particiapnts who have exceeded the 5-year limit as of the first day of the following month? (May 1, 2003 in this case). Why or why not?

Forgive me if this is too basic, but I am new to all this.

The company I just joined offers employees a choice of taking health insurance (a qualified benefit) or taking 1/2 the amount that the premiums would have cost as taxable compensation.

To me this meets the definition in IRC 125 of a cafeteria plan (a choice between cash and qualified benefits). However, all the sources I read only refer to premium conversion arrangements (salary reduced - which is kind of the case, but there is no salary reduction agreement), health FSAs and full-flex credit plans.

They have no documentation calling this a 125 arrangement (as a PD or in the ee handbook) and it has never filed a Form 5000 (which is not an issue anymore).

What do you think?

Two questions:

1. I did not attend the ASPA IRS Q&A session and would appreciate it if someone would explain the IRS position on entry dates.

2. Do we still have the option to test separately?

Thanks.

I represent a municipal general employees' DB pension plan. The city intends to take over the water service division of a private utility which also has a qualified plan. All water service employees will become city employees and, therefore , will become members of the city's plan. The city wants to give the 10 new employees full service credit for vesting and benefit calculation for their private sector service. Several of the water employees are vested in the private plan, the others are not. What would be the best method to accomplish the city's goal?

PC sponsors a DB plan which has been overfunded for years. He reached age 70 1/2 and was advised to take out as much as he possibly could in order to bring the overfunding down.

Principal recently died after having taken a few distributions from the plan.

The plan is overfunded on the GATT rates. What lump sum do we quote for the value of his portion of the pension plan as of his date of death for the estate tax return?? His share of the assets (it's only him and his wife in the plan) on the plan rates or the GATT rates?

What happens to the overfunded piece- is it just gone to taxes?

How does the excess tax get calculated?

Thanks.

pensiondoc

If a company has a fiscal year end of 12/31/02 what would the corporate tax deadline be? Thx.

if an employer had a simple IRA for 2002 does and wants to start up a safe harbor 3% for 2003, does the simple kill the deal because it is considered a 401k? or are we ok to go ahead with a sh?

Is there any reason why a Non-Qualified Deferred Compensation Plan can not provide to the participant's beneficiary a pre-retirement death benefit defined as:

COLI death proceeds, less

Cumulative Employer Costs (lost tax-deductions from EE deferrals)

For example ER receives $500,000 death benefit, recovers its own "plan cost" of say $50,000, then pays $450,000 to the beneficiary. The $450k would be taxable to the beneficiary as ordinary income and tax-deductible to the Company.

Comments?

Here's the situation. An unmarried 401(k) plan participant designates his mother as his beneficiary. He subsequently marries, but never changes his designation. He then dies. The plan provides that the beneficiary of the death benefit shall be a participant's spouse unless the participant is not married or the spouse consents to designation of someone else.

Am I correct that, despite the prior designation of the mother, the surviving spouse is entitled to the death benefit?