Our firm generally does not provide SEP consulting. We are preparing an illustration comparing SEP/PS/UNIK limits for owner and spouse. Post EGTRRA, we are showing a PS $60,000 contribution allocated $40/$20 between owner ($200K comp) an spouse ($40K comp).

SEPs have the same 415 deduction limits. Do we have the same allocation abilities as the profit sharing plan ~ can spouse receive over 25% of compensation?

I am restating a Cross-Tested profit sharing plan to a Safe Harbor 401(k) plan with a cross-tested component on a Corbel Volume Submitter document. I know that I must submit Form 5307, but do I also need Schedule Q, and if so, must I attach Dem 4 and 6? The IRS instructions for Schedule Q seem very broad, so I'm not sure if it's necessary.

Small employer adopts a new comparability profit sharing plan, effective 01/01/01. Its a Corbel volume submitter, so we are filing a 5307. Generally we don't recommend that the Plan Sponsor pay the extra money for a determination on the average benefits test. However, it seems to me that this Plan qualifies for a waiver of the user fee. I assume that the waiver applies to the extra the average benefits test too. Is that assumption correct?

If it the waiver does apply to the average benefits test, is there any reason not to request the determination letter?

A widowed friend made a claim for a death benefit with the State of California Her deceased husband had worked for the State of California for over 24 years.

Approximately 12 years ago, they took out a loan on the Plan to purchase a first home. Thereafter the husband worked for the State of California for 12 more years. He was terminated and then passed away 6 months later.

My widowed friend with two children is trying to make a claim. The agency has been very unhelpful in responding to her.

They only sent her a letter stating the loan caused her husband to move to a 2nd tier in the Plan and because he passed away greater than 4 months to this termination. there is no monies to distribute from his account. This does not sound accurate!!

The State refuses to gives us any plan information or details on how or why this happened. I would appreciate any help or information anyone could give me on the State of California pension plans(CALPERS) or any appeal process. Thank you!

We have a partially self-funded health plan, with the administrative fees paid directly out of general assets. Are we required to file a Schedule C with the 5500?

I have been told (third hand) that testing for Schedule T only needs to be done every third year.

Anyone have any thoughts or documentation?

Is anyone aware of an IRS ruling or other pronouncement on whether or not a hospital's 403(B) plan may exclude medical residents from participation, as a class of employees?

The residents are W-2 employees, work well in excess of 20 hours per week, and earn well under the HCE threshhold.

I would like to purchase stock and designate it as my Roth IRA. The broker I've spoken with told me that in addition to the initial purchase fee for buying stock, there is a yearly maintenance fee for the Roth IRA. What kind of fee is common for this type of account? This is my first Roth IRA and I would appreciate any comments.

What are the specific consequences if an employee is reimbursed from a medical flexible spending account for an unqualified expense such as vitamins? Will it affect the entire cafeteria plan? Will the employee have to pay taxes on the amounts, or will the employer be liable? Will there be penalties for failing to withhold taxes? What will the employer's liability be to the employee? Will the employer be able to reimburse the employee for contributions to the plan if the employee was lead to believe that the unqualified expenses were qualified?

Years ago, we used to request copies of determination letters from the IRS if client could not produce one and didn't know whether they had one, etc. Seems there was a "local" address here in L.A. for such requests back when we submitted applications to Monterey Park. Now that the submissions are all going to Cincinnati, can anyone give me an address or contact person at the IRS that would be able to provide a copy of the TRA 86 d.l. (or confirm that one was never issued?).

HR.3762 S.1991 S.1992

anyone have an explanation, interpretation or summary of how these will effect bank trust departments who act as trustees of erisa funds?

thanks

We are a 401k administration firm taking over a 401(k) plan from another administration firm. The previous firm is refusing to do a valuation at the time of transfer, saying that they only do valuations at the end of the year.

I have never run into another admin. firm that flat out refuses to do the valuation. Any insights on where to go? Would the DOL have a problem with this?

We are a small TPA firm (6 employees) and our group medical insurance seems way to expensive.

Does anyone know if any professional organizations (such as ASPA or NIPA) offers group insurance for its members.

I have a profit sharing plan where the participant died, with no beneficiary form. He has no spouse and no children. His parents are all he has. Do the funds get dispersed to his estate or directly to the parents? What if there is no estate?

I would like to get some feedback on software for third party administrators of cafeteria plans. Can anyone recommend a software package from a company that offers good customer support? We are just starting a TPA company and we are not sure if we are satisfied with the software we are using. Any suggestions would be helpful. Thanks!

Trying to determine if any plans or providers actually have imposed a participant limit (percentage or dollar) for investments in Company Stock. I see significant issues with 'Hard Caps' (liquidating stocks as participant breaches the set limit) in a long-term rising market, particularly with regard to possibly causing the plan to become employer-directed [my worst case scenario is that a participant is above a mandated cap, the plan determines which investments each contribution should be invested in, 10 years go by, and the participant claims that the plan is liable for the underperformance of his account...mainly since he hasn't been allowed to select the allocation of each contribution because the plan had some arbitrary 20% cap on Company Stock]. Would love to hear about any providers andy what they've developed to support plan provisions.

Can you get rid of optional forms of distributions (leaving just lump-sum option) in a 403(B) Plan (ERISA) like you can with most qualified plans?

The definition of a stock bonus plan is a defined contribution plan under which benefits are distributable in employer stock. Treas. Reg. -(B)(iii)1. An ESOP may be a stock bonus plan, or a stock bonus plan and money purchase plan. See IRC §4975(e)(7).

My question is are S corp ESOPs and C corp ESOPs that do not distribute in stock due to bylaw restrictions still considered "stock bonus plans"?

It is necessary to know when preparing the 5500, and the actual definition of a stock bonus plan seems to be contrary to these type of ESOPs.

Thanks.

What is the procedure for changing from a single employer defined benefit plan to a multiemployer plan? What statutes or regulations apply; do you have to terminate the original plan?

If an employer implements a premium discount program for non-smokers that meets all of the requirements of a "bona fide wellness program" as set forth in the most recent HIPAA regulations, and an employee who is a smoker decides to participate in the smoking cessation program mid-year, does the employer have to rebate the additional premiums that such employee paid prior to participating in the program? (or does the reward--the lower premium--only apply to the time after participation?)