I am concerned about offering QDP coverage in retiree benefits. Currently, an employee can transition into retiree benefits if they meet years of service and age requirements. Specifically, under QDP there is an imputed income - how would it work and can it work,as a dependent of a retiree (QDP)?

robkt

Does Rev. Proc. 2002-21 apply to nonqualified deferred compensation plans, and if so, how? We have a PEO which maintains a nonqualified deferred compensation plan and would like to know if Rev. Proc. 2002-21 is applicable.

I am interested in knowing if your benefit plans allow applying medical and prescription co-payments to the annual deductible. Thanks!

What are acceptable methods of calculating interest on late contributions? Rate of the best performing fund? or the plan as a whole? Treasury Rate?

I know that excess annual additions that are returned to a participant are not taken into account for purposes of ADP and ACP under 1.415-6(B)(6)(iv). However, that regulation specifically applies to the return of excess annual additions attributable to employee contributions. I can't find a similar provision for employer contributions (like a match). Does that mean that any excess annual addtions attributable to a match is to be taken into account for purposes of ACP?

Please help!

Is it typical (or even possible) for a plan to require eligible employees to participate in a plan "as a condition of employment"? I'm looking at a proposal requiring eligible employees to enroll at a minimum 2% employee contribution by the end of the second year of employment, and 5% by the 5th anniversary of the employee's employment. I can understand a minimum contribution to participate, but I cannot see how participation in the plan, at any minimum contribution, can be a condition of employment. Or am I just making a rookie mistake in my research and not finding a standard provision?

What is required in the way of reporting re a life insurance policy held in the plan? Thanks for your help.

Can an IRA invest in a family limited partnership that purchases a life insurance policy on the life of the IRA owner?

I am nearing retirement and have read in 2 different resources that the limits of modified taxable income for married ccouples is $150,000 and single is $100,000. I also read in other resources very emphatically that the limits of the MTI is $100,000 for both married and single. Which is right?

OK - Here's my situation. I have a 401(k) plan where the Employer splits the money up among the plan funds and sends the $ directly to the funding house. I receive monthly spreadsheets with the splits by individual and investment. Isn't there a way for me to import this information into Relius? I tried setting up a DER with SS# and each account (there are 3 deferral accounts and 3 match accounts). However, when I import, it doesn't ask me for a date (story of my life ). In any event, I want to import these monthly splits and then run monthly transactions. Can anybody help? Thanks in advance.

If anyone could provide insight with the following situation, I would greatly appreciate it.

I have a client who currently sponsors two 401(k) plans (Plan A and Plan b). At the beginning of this year, all participant/employees in Plan A changed over and began participating in Plan B, although their account balances in Plan A remain in that plan. The plan sponsor would now like to transfer the balances of the active employees from Plan A over to Plan B, and then terminate Plan A and pay-out the terminated employees who had vested interests in Plan A. Of course, Reg 1.401(k)-1(d)(3) doesn't allow distribution of 401(k) contributions if there is a successor plan (which there is in this case). However, as the terminated employees could have received their distributions upon their severance from employment, can the plan sponsor now force those terminated employees to receive their distributions, without violating the successor plan rule, while at the same time transferring the accounts of the active employees to Plan B? Thanks.

We don't handle section 125 plans, but a client asked us some questions and we would like to also know the answers.

1) Are there any special rules for shareholders of a S Corp that participate in a Section 125 plan?

2) Does the rule that more than 2% shareholders are taxed on their fringe benefits apply to 125 plans?

Thanks

I'm currently doing a research project for my firm, and I have not been able to come up with any answers for this situation.

We have a client who last year we performed a full scope benefit plan audit. During the current year, their custodian from January 1 to July 31 was the same as last year, an unqualified custodian, therefore we performed full-scope procedures on the net assets. But, on July 31, the plan switched to a qualified custodian who then issued us certified statements, and therefore we performed limited-scope procedures for the plan for the last 5 months of the year.

What I cannot find the answer to is, what type of opinion do we issue? I did find a past client who was a reverse situation, where they were with a qualified custodian for the first 4 months of the year, and we obtained certified statements, but then for the last 8 months of the year they switched to a non-qualified custodian, and because of this we issued a full-scope opinion.

But in my current situation, the majority of the year is a full-scope situation, but the final months of the year are a limited-scope situation.

I have researched the AICPA Benefit Plan audit guide with no luck, and also the PPC Audits of Employee Benefit Plans without finding a good example/description of this situation.

If anyone has any ideas, input would be helpful.

-Ryan

Hi-

I am doing the first valuation 3/31/02 for a takeover plan utilizing Relius 7.0. The entry requirements are age 21, 1 year of service (1000 hours), with monthly entry dates. There is also immediate entry if employeed by 1/1/00. Relius is calculating an entry date of 1/1/02 for everyone. We do not recieve hours until the end of the plan year. How can I get Relius to calculate correct entry dates such as 1/1/00?

Thank You

I have a client who, due to a corporate merger that occured during 2001, merged their pension plans, effective 1/1/02.

The question now being asked is "Is a Form 5500 due for 2002?" And if so, is there any way to avoid the associated audit of the plan as the number of paricipants at the beginning of the plan year was more than 100 participants (prior Form 5500 filed as a large plan).

My reply to them thus far is yes, a 2002 Form is required as the Form 5500 instructions indicate that a final return/report should be filed for the plan year that ends when all plan assets were legally transferred to the control of another plan. As the merger of the plans was not effective until 1/1/02, a 2002 Form 5500 is required.

I also cannot locate any support for the non-requirement of an audit for a situation such as this. Any one have any thoughts?

I need to know if a decedent/inherited IRA (non-spousal beneficiary) can have its own beneficary.

In other words, Joe Smith dies and leaves his IRA to his daughter Mary Jones.

Can Mary now name a beneficiary on the IRA she has inherited from her father? Does it matter if distributions have begun or not?

Is that what is meant by a "stretch IRA"? Did the new regs change the rules?

Thanks for your help!

Has anyone else been having trouble with freeERISA. Saying you can't log in because you were recently logged in?

I have a plan with a valuation date of 2/28/2002 (an end of year valuation). What 415 $ limit would I use for this plan, the 2001 = $140,000 or the 2002 $160,000?

ok, a humble attempt at providing another report.

since you are allowed to produce a computer generated report for the SSA, this is one such attempt.

I suppose non calender year plans won't always work.

This (hopefully) will produce a list of all terms who termed 1 year ago (e.g. plan year end - term year end = 1) and code them as an A

and a list of all paid out ees in which plan year end - term year end >1 and code them as a D

I never offer any guarantees, but it looks like it is working.

If nothing else, maybe it will give you a good working list to put on the SSA

Does anyone have any recommendations where education/communication pieces can obtained - particularly free material via the web?