I think I'm pretty clear on how to reduce the pool of possible beneficiaries after the participant's death and prior to the September 30 deadline, what I'm not clear on, is how to determine the pool in the first place.

Example: A participant has died and has named his spouse as primary beneficiary and their children as contingent beneficiaries. Are the children in the pool or not? If the spouse completes a proper disclaimer, will the children or the estate then be the beneficiary?

What if the Grandchildren are named as remaindermen beneficiaries?

Let's say the participant married again to a much younger spouse, who is actually younger than the children of the participant. In the above scenario, if no one disclaims or is paid out prior to September 30, will the age of the spouse be used since he/she is primary beneficiary or will the ages of the children be used since they are older? Same question pre-death for determination of the participant's minimum distribution?

Thanks so much!

Carolyn

Hi -- We have an employee who has unwittingly elected COBRA for himself *and* spouse due to job loss. The spouse was entitled to Medicare prior to the COBRA election, under age 65 due to disability. We are unsure as to the correct order of benefits.

NAIC rulings do not appear to be specific enough in this area, more than likely because people who become entitled to Medicare typically want to drop COBRA as opposed to what these individuals have elected.

Any direction as to determination sources?

Thanks in advance!

The topic of the day is: improper exclusion of leased employees.

I have a client who recently discovered a *minor* compliance issue with its 401(k) plan. In a nutshell, it had a fairly sizable group of union employees who were magically transformed into leased employees a couple of years ago. Because union employees were always excluded from the plan, they continued to be excluded after they became leased employees, natch. Unfortunately, no one remembered to check the plan doc to see if leased employees were actually excluded. Not that it would've mattered anyway: the plan would've flunked 410(B) unless most of these folks were allowed to participate. The employees at issue are all pretty much similarly-situated, so there does not appear to be a good way to include only part of the group based on their job functions (or otherwise, really).

I know that there are standard fixes for this sort of thing. I am hoping that someone out there in TV land has tried something more creative (and less expensive) than the standard fixes. Client is not averse to using VCP rather than SCP, provided we can come up with a proposed correction that is cheaper than the Service is likely to require.

Anyone have any brilliant ideas or are we stuck with QNECs?

In New York and New Jersey, can a health plan intervene in a tort action against a third party to protect its right of subrogation for reimbursement of medical bills it paid out on behalf of an injured plaintiff?

Do NY and NJ have anti-subrogation laws which create problems?

Is intervening the best method to protect the self insured health plan's rights?

Any and all help is appreciated.

If you haven't seen this already, check out this web site:

http://www.vicefund.com/

I would appreciate a discussion on how everyone out there is handling the following.

1. When determining the year end plan balance on an IRA annuity that has not annuitized for purposes of calculating a required minimun distribution, what "value" do you use......e.g. the surrender value, do you add in the amount of any supplemental death benefit, do you add in any addtional increase in value for a positive market rate adjustment ( if the contract has such a feature) ?

2. For an annuity contract that has annuitized how is everyone calculating the year end value for 5498 reporting ?

I appreciate and input or discussion of these two items.

I would appreciate any feedback on how everyone is handling the following:

1. With annuity investments that have not annuitized, how do you calculate the "plan balance" for determining a required minimun distribution at 70 1/2 ? For example, do you use the surrender value of the contract, do you add in any supplemental death benefit values, do you add in any increase in value if the contract has an additional positive market rate adjustment value ?

2. When the participant has annuitized the contract how is everyone calculating the year end value of the contract for purposes of 5498 reporting if the annuity contract is an IRA annuity?

Any input is greatly appreciated !!

I know the schedule p is not a required filing. But, if you have one coming to you in the mail but, obviously, it's not getting here prior to October 15 and you want to include it...what do you do? File without, then file an amended return? Obviously, the fiduciary is on the hook, but in the interest of client relations we want to limit liability. Any suggestions?

Where can I find info on how qualified retirement plans are treated under a stock sale vs. a an asset sale?

An insured loses coverage in mid-October. She is able to enroll under her husband's plan due to loss of coverage. Husbands plan effective date is November 1. She then elects COBRA on 11/15 retro back to the qualifying event. Can she elect COBRA since she has coverage under her spouse?

Can someone point me to the place in the regs where it says that each trust should have it's own Trust Identification Number (that gets entered on the Schedule P)?

Any help is appreciated.

I realize that many of us are busy restating plan documents right now. I am curious as to what TPA's are planning on doing between 10/15/03 and 1/15/04. How do you make money (other than 1099's and 125 admin) during this season? Do you worry about people having little to do?

David

In my corbel sponsored 401(k) prototype adoption agreement there exists a distribution option "substantially equal installments."

I was wondering what this meant and how it works.

How does an employer go about paying a 401(k) distribution in equal installments should a participant choose such an option?

Do they set up an annuity?

Who chooses the length of the installments, the employer or the participant?

I've never seen this chosen by a participant but it is an option and I was wondering the mechanics of who does what for whom should the participant elect such an option.

Okay, so October 15th is a little late to be asking this question, but everybody in my office seems to have a different opinion.

What order should the attachments to a 5500 be in when the returned is filed?

Some people argue alphabetically. Some argue that the Schedule P is last because it is not required. Some don't ever pay any attention.

Any comments would be great.

Distribution check was issued in 2001 as a direct rollover, Code H. Check was never cashed. Contacted individual, said the company receiving the rollover went out of business & wants new check issued to him. Is it best to have the replacement issued as a rollover (Code G or H) so we don't need to do a corrected 1099-R?

I am in the process of filing for a letter of determ. for a multiple employer plan. I am using a Corbel drafted prototype (their determ. letter, not mine). Is it mandatory that I file a 5300 when no changes were made to their language and the participating employers don't want their own letters of determ. on the plan? It appears that I have the availability of just filing a 5307 and thereby eliminating any filing fees or sched. attachments.

I am new to flex administration so please bear with me. If the Key Man test fails, and a HCE contributes to both an FSA and DCAP, are all monies salary reduced through these benefits taxable?

This Plan has a 7/30 year end. As of 7/30/01, the Plan is determined to be top heavy for the Plan Year ending 7/30/02. One of the Key EEs as of 7/30/01 is no longer key as of 7/30/02, because of the new definition (she is an officer with less than $130,000 in comp). In this Plan, key EEs do not get a share of the 3% Top Heavy contribution. For purposes of allocating the top heavy contribution for PYE 7/30/02, is this particular EE considered key or not key?

Is it allowable for a sole proprietor to have a non qualified plan? Is there a site that would state this. We have an attorney who likes everything in writing.

Thanks.

Trying to file a 5500-EZ today for a sole proprietorship. We just found out that the employer does not have a federal ID number. The 5500 clearly states "Do not enter your social security number", and we cannot get a number assigned today.

Anybody have any suggestions?