For a local government plan with a local govt. plan sponsor that meets continuously (rather than in legislative session), what is/was the deadline for GUST updates?

Thanks.

I am thinking about investing for the first time in a ROTH IRA, with the possible maximum of $3,000 for myself, and possibly another $3,000 for my wife. I assume that I would need to do this sometime this month, in order to get in a contribution in for the year 2002, then I could even repeat this next month for the year 2003? Over the last 1-2 years, what has been the average rate of return (or loss) on these investments?

I am really wondering if this would be an investment that would be worthwhile for my particular situation. I am 36 years old, and currently own and operate two small businesses, which I have done for the last 10 years. My adjusted gross income usually runs in the 90k bracket, but has gone well over 100k for several years. I presently own around 350k in commercial real estate, which is 100% debt free, 200k+ in inventory, along with collectables investments of 150k+.

I recently sold off a piece of commercial real estate and made a pretty hefty profit. I used this profit to pay off my only existing debt...my house, which added another 300k to my assets. After this was done, I was still left with 175k cash. I plunked all this money into a monthly renewable bank CD, and after 7 months (at 2.35%) I am still wondering if this was a wise move. I like the security of knowing the money won't lose any principle, but I do hate the low rate of return it is bringing!

I am very conservative in nature, and do feel safe with my present situation. I was thinking though, that a ROTH IRA might be a "plan C," if you may, in providing another alternative source of income, if my assets every got lost/taken, or if I ever decide to sell the businesses and real estate in later life.

My old college buddies, whom invested in stocks and mutual funds, over the past 10 years, are now crying the blues. I feel I took the right path over them, by investing in real estate. Also, while they were leisurely playing many games of golf and trying to keep up with the Jones by acquiring the latest stock market offerings, I was steadily and methodically devoting my time & energy to my businesses. Oh no, I am talking myself out of this IRA again! Am I beyond financial help?

Thank you for any suggestions to my original questions.

general partner makes a capital contribution to the partnership pursuant to a promissory note (this contribution amounts to compensation for the GP's management of the investments associated w/ the partnership). Pension Fund wants to invest in the partnership, but there is a concern that the loan to the GP will qualify as a prohibited transaction (the partnership's assets in this scenario will qualify as plan assets). Is anyone aware of either a DOL class transaction exemption or individual transaction exemption covering this arrangement (i.e. the loan to a party in interst)?

Thank you in advance ...

Does Section 401(a)(28)'s diversification requirement apply to former employees who are still participants in an ESOP or does it apply only to active employees who are participants?

Thanks in advance for any responses.

CRS

Looking for clarification - I understand that if an employee was eligible for coverage but declined coverage, a change in status will qualify that employee to enroll for group health coverage mid-year. But if the employee was not enrolled in any of the plans offered, does a mid-year status change also qualify that employee to enroll in non-health plans (i.e., dependent care plan)? The regulations for change in status make reference to "enrollment" in 1.125-4(B) and "election" in 1.125-4© so it appears that it looks like an allowable change in election may not include enrollment (except in group health plans). Also, if the only enrollment is for group health plans, does that include medical reimbursement plans or only health insurance plans? Thanks in advance for any help on this.

401(k) safe harbor plan has 2/28 plan year end. Employer today (12/2) states they want to switch to 12/31 year end for corporate and plan year purposes.

Assuming the written consents and other corporate documents are not completed until 12/4 or 12/5, is that too late for the notice period requirement. Normally, for a safe harbor plan, we would have given the notice by 12/1.

30 days is "deemed" to be reasonable notice, but is a 26 day period reasonable under these "relevant facts and circumstances?"

I have a client who had a defined benefit plan that terminated in 1987. The owner and a few other employees rolled their money into the companys new target benefit plan. Is it possible to start up another db plan and if so, do I have to offset my benefit by the amount of benefit they accrued as of the date of termination.

I am playing Sherlock Holmes at the moment, but I am coming up with nada. Hopefully, one of you with better memory than mine will know the answer to this one.

I am helping a client with an EPCRS fix on a 401(k) plan. The problem goes way back and includes a TPA change in the middle. We have records from the current TPA but the old stuff is a bit spotty. I am hoping (I'm an optimist) that the old TPA still has enough info to fill in the blanks if only we can find them.

The old TPA was U.S. Pension Services. I have a vague recollection that they got bought out by a larger vendor (PFPC, BISYS, somebdy) but I can't remember who.

Can anyone help me out?

With the DOL's deadline for adopting new claims procedures quckly approaching, I was wondering what is happening in the market place with self-insured plans. Have your clients been appointing their TPA's as fiduciaries with authority to make final benefit appeal decisions under a self-insured plan, or are they authorizing the TPA's to make the initial determination, and maybe a first level appeal decision, but retaining final appeal responsibility? Have the TPA's agreed to be the fiduciary?

I know that Blue Cross/ Blue Shield will take responsibility for all levels of the appeal, but what if the TPA is not BC/BS? Any sense of what is happening?

Does anyone know if the rep is required to send duplicate statement to his broker dealer in a qualified plan?

An unmarried participant in a SEP designates his mother as beneficiary. He subsequently marries, but does not change the beneficiary designation. He then dies. Does the mother get the benefit, or is a SEP subject to the rule for qualified plans that the surviving spouse gets the death benefit unless the spouse consents to another beneficiary?

More and more we see the DOL requesting that missing contributions and lost earnings be taken from the owner's or trustee's account. As a service provider, we are not sure if this is considered a withdrawal from the owner's/trustee's account and if a 1099R should be issued. We asked at a recent conference and the IRS seemed shocked to find out that this practice was happening and did not answer. Anybody have any thoughts?

We are discontinuing benefits for a segment of our employees. We want to offer them the opportunity to purchase a health and/or dental plan from an outside provider where we are only taking the deduction. No fees for the employer and no administration costs.

Similar to AFLAC but I'm looking for other vendors out there. The majority of the employees are in FL, but we have some in GA, TX and NC. Can you recommend anyone?

There was an extended discussion of this back in March, but I want to make sure I understand the how pro-rating works.

Situation:

- medical practice established 12/01/02

- owner wants to set up 401(k) plan for 2002

- plan effective date: 1/1/02

- limitation year: calendar year

- deferrals begin 12/1/02

Here's my take on the various limits:

40k 415 limit is not pro-rated

200k comp limit is not pro-rated

402(g) limit is not pro-rated

SSWB is pro-rated (integrated profit sharing formula)

I found something going to the IRS Q&A session (Q 11) at the 1996 APSA conference re: using a full limitation year for a corporation established mid-year, but I'm having trouble accepting that most of the limits are NOT pro-rated for a firm & plan that have only been existence for 1 month.

Comments appreciated. Thanks.

I realize this may not be the most appropriate place to post this query - but it seems that y'all come from such diverse backgrounds - I figure someone could point me in the right direction!

We are a TPA offering multi-lines of coverage to public schools.

We are looking for software which will enable us to build a database of all of our clients. We would like to be able not only keep their names, addresses, phone, fax & email data - but also have the ability to check off which line(s) they are enrolled in, head counts and especially a diary or note system.

We already have separate systems for billing etc....We are just looking for a database where we can integrate our members from the various lines into one.

Names of software companies, prices, experience....anything you can advise would be appreciated. Can you think of another board where I could also place this query?

Thanks in advance!

What is Maryland state law concerning the availability of short-term disability and/or unpaid leave if an employee has been employed less than 90 days? If there is a pre-existing condition, what rights does the employee have, and can the employer fire the employee even if they know about the need for short-term leave before hand (i.e. pregnancy....FMLA would not be applicable given the lack of compliance with employment requirements in this case)?

Thanks!

I am still floundering! I have received several opinions on my dilemma, but no citations or authority. What is needed, of course, is a Code Section, Reg, RR or case–but something.

Here is the fact pattern. Sole practitioner has retired so little or no income is generated on Sched C. The DB plan is underfunded just before termination, so $80,000 is required to be funded but is not deductible under 404(a)(8)© because of the income limitation. The $80,000 represents the final contribution under the minimum funding standards of 412 for the year of termination. The Code and the Regs specify what cannot be deducted, but not what happens to the amounts that are required but not deductible.

Is the non-deductible amount carried forward, or does it become a basis in the assets in the trust, or is it lost forever?

I haven't been able to find any information on this subject at all - I'm assuming that a letter from the doctor stating that the breast reduction operation is medically necessary due to ..... would be all we need to reimburse from the participant's FSA medical. Does anyone know any different?

Many thanks!

Carolynn

regarding the "reasonable classification" test, do all classifications have to be "reasonable" as they relate to one another or just plain "reasonable?"

for example, can i have the following classes:

1). majority owners & spouses

2). minority owners & spouses

3). associate dentists

4). full time staff

5). part time staff

these are all "reasonable" classifications, as a matter of the business' practice, but they are not, obviously, all consistent with each other. So my question is, do i have coordinate the classifications? for example, if i have "majority owners & spouses" does my other category have to be "non-majority owners & spouses" so that the classes are consistently coordinated?

this is probably a stupid question but i just want to make sure i properly understand the application of "reasonable classification" among the entire group.

appreciate ANY help that anyone can give!

Outside of a safe harbor design, hardship withdrawals of matching contributions and discretionary employer contributions may include earnings on the contributions. Matching contributions or nonelective employer contributions (as applicable) must be subject to the in-service withdrawal restrictions that apply to elective deferrals in order to qualify for the safe harbor. Notice 98-52 specifies that Treas. Reg. section 1.401(k)-1(d) must be observed, which appears to restrict earnings on matching contributions and nonelective contributions from hardship withdrawals. Any authority, rumors or thoughts to the contrary?