Once again, the question has popped up in our office as to whether or not include cash surrender values from life insurance policies on the Schedule I or Schedule H?

The 5500 Preparer's Manual states (referencing a Schedule I)that "All plan values should be shown on this summary, with the exception of insurance contracts (e.g., 412(i) contracts) that guarantee the payment of specific benefits at a future date and participant loans......"

I am personally under the impression that since the CSV is being reported and not the death benefit, it should be included. That being said, it wouldn't be the first time I was wrong.

Any thoughts would be appreciated.

Jill

[edited to note that this is specifically pertaining to DC plans]

Does a LTD carrier have a right to receive reimbursement out of an auto accident settlement? It is an ERISA plan.

John A. Wolkowski, Esquire

I have an employer that sponsor a voluntary welfare program that allows employees to purchase a disability income benefit with post-tax dollars. The employer picked and limited the benefit to be purchase from one vender. If the employer meets all the safe harbor rules, would the plan be subject to ERISA to too much employer involvement (i.e., would be considered endorsement under ERISA 2510.3-1(j)(3)? I assume .. Yes, but you know what assuming does.

Would the same hold true if the employer elected a few vendors for the employees to choose from?

We terminated a Life VEBA 8 years ago

It has employee contribution monies in it plus interest over the years

Quite a few of the employees have terminated since then

It was a legacy VEBA that we took over when we acquired the Company

I have been asked now what we can do with the money?

My initial response is to distribute it plus interest to the employees based on

their contributed amounts plus interest. It is my understanding that noone has been tracking this by employee for the last 8 years

Another alternative is to provide addiitonal life, sickness, accident or other benefits to employees as long as not disproportionate benefits to officers,shareholders or highly compensated employees.

In the 2nd alternative, must the employees we provide additional benefits to be

the same employees who contributed? I would assume so

VEBA's are not my area of expertise.

For anyone who has ever terminated a VEBA provide any insight. What did you do with the money?

I am a TPA who handles retirement plans. One of my other responsibilities is the annual tax filing for about 8 cafeteria plans, all of which have less than 50 participants.

I understand that POP only plans do not have to file.

What about a plan with a POP and Health FSA or DCAP?

The more I read, the more confused I become.

Please help.:confused:

Relius 7.1 - I have a plan with no eligibility requirements. I have "0" coded in the Plan Entry Requirements Specs for hours, no years or months of service, no age, etc. I do, however, have 1000 hours in the "vesting" hours fields. Under entry dates, I have "date of event" coded. I ran elig as of 01/01/02 and 06/30/02 (semi-annual val dates). I have an employee hired 01/02/02 and after I run elig and transactions, it says that she is ineligible. When I check the employee census data, it says "fails service requirement". Am I crazy? I thought I saw prior threads saying that I shouldn't have to enter elig transactions for each entry date and, in this case, I couldn't feasibly enter 183 entry dates anyway! Any guidance is appreciated.

Is life insurance subject to HIPAA's Special Enrollment & Nondiscrimination requirements? I find that HIPAA applies to group health plans (defined as a plan that pays the cost of medical care) and exempts accident, disability, liability and workers comp insurance. Based on the definition of group health plans, I was not going to include the Special Enrollment & Nondiscrimination language in the life insurance section of our SPD, but it seems strange that it wouldn't have been listed as a specific exemption.

This may be a simple question, but I've had difficulty finding an answer for it.

Our institution established an employer-pay-all group term life insurance plan in 1963. My understanding is that a change in vendors will not constitute a change in plan year. Therefore, I am wondering what would cause a change in the plan year.

Thanks to all who respond.

Pardon my 403(B) ignorance - this is my first.

We have a client that put a 403(B) in place in December 2001. We have been asked to complete their 2001 5500, and I understand 403(B)s just don't fall under the same complex rules that ERISA plans do.

Do we need to complete a Schedule P?

Do we need to complete a Schedule T?

Do we care about bonding?

What do we care about in the filing? What don't we care about?

Thanks.

I just started my Roth this year in a large growth mut fund. It is now worth less than I started with. I'm 52. Not knowing if lge growth will be good any time soon, is it possible to transfer that fund to a Roth (TIPS) fund? Are there tax implications or since it's going from one retirement fund to another it doesn't matter?

Also can you have as many Roths as you want? If so, is the $3000 max in each account or divided up among all the Roths?

Thanks,

Dave

Hello,

I live and work in Japan, and would like to put earned money from here into a Roth IRA. However, are there U.S. income/tax requirements that I must meet? I make no money in the U.S., and the money I do make here is not taxed in the U.S.

Does anone know the guidelines/regulations?

Thank you for your time and help

I did a Roth Conversion in Dec 2001 while I was with Broker ABC (consisting of 6 mutual funds + $200 in Money Market Fund).

In Feb 2002, I put in $2K for 2001 Roth contribution (in Money Market Fund) -- in the same Roth account.

Then I transfer the entire Roth account to Broker XYZ (trustee-to-trustee).

I file my 2001 tax return in 4/2002 with no extension. Now I would like to recharacterize both the 2001 Roth Conversion ($10K value at time of conversion) and 2001 Contribution ($2K). The current market value is $8K.

What number do I put down on Line 1 of Form 1040X -- minus $12K ?? And what details do I need to put in "Explanation of Changes to Income"?

Smit

Hello all,

I am new to all of this and if someone could answer a couple simple questions, it would be much appreciated. OK, first off, I am 19-years-old and I live in Pennsylvania. I work two jobs, one of them is cleaning cars and the other is cleaning office buildings for a cleaning company. I first heard about the Roth IRA in a USA Today newspaper a couple days ago and I thought I'd get on here and see what the uproar was all about.

My annual income may not be such a great figure due to the poor economy around this area, but I would still like to start early so I have a nice amount to fall back on when I decide to retire. My father had almost nothing to fall back on and I wouldn't like to see myself end up where he is now so I started to look into something to set myself up with.

My questions are...first, what are basic requirements for setting up a Roth IRA? Second, if I made deposits of $2000 after taxes every year, by the time I turn 50, what would that figure come out to and would there be any interest?

I appreciate anyone that read this message and hope that someone will answer my questions.

Thanks,

Robert

Can a not-for-profit employee who is a participant in his 457 plan and who maintains a private part-time business establish a SEP plan as well?

This is a 2-part question.

If a sponsor intends to increase benefits for an HCE just prior to his retirement on, say Aug 1, 2002, then what would the appropriate test date be for nondiscrimination testing to demonstrate that the increased benefit is nondiscriminatory? Would one say that the test year is 2002 and perform testing as of 12/31/2002, using the best data available (typically 1/1/2002 for a calendar year plan).

If a test was performed prior to 8/1/2002 demonstrating that the amended plan would pass using approximate data, MUST one have to test again using actual data received after 12/31/2002 or can we say the testing for 2002 was already completed (using approx data)? One reason this is important is that a profit sharing plan is permissively aggregated with the DB plan in question to help pass general testing. We will not know the actual PS contrib for 2002 until after 12/31/2002 and the amendment and retirement is to occur 8/1. The 2002 PS contrib is to be estimated based on 2001 amounts. What may one do in this case?

In 1998 and 1999, the company used prior-year ACP and ADP testing. In all other years (before and after 1998 and 1999) it used current-year. The plan (401 (k) Savings and Investment IDP) was amended prior to the GUST Feb 2002 deadline to say "Such testing shall utitilize the current year testing method as such term is defined in IRS Notice 98-1." The tricky part is that the fact that the company used prior year testing for 1998 and 1999 (we had assumed they had used current-year) was not discovered until recently, after the final GUST deadline.

What procedure should be used to correct this problem (i.e. include the fact that the plan used prior-year in 1998 and 1999)? Is there a remedy under Rev Proc. 2001-17? What would be the remedy under Rev. Proc. 2002-47? It is very important that we get this resolved before July 21st, as that is when Rev. Proc. 2002-47 goes into effect and possible remedies under 2001-17 could be altered, although even the matter most likely will not be resolved until after July 21st. We greatly appreciate your help with this matter!

If a corporation is a fiduciary to an ERISA plan by reason of being the plan administrator, is another corporation that is under common control with that corporation considered to be a fiduciary as well as a result of that relationship? If so, based on what authority.

What type of discrimination testing must be conducted on a Premium Only Plan?

We have a leveraged ESOP in which the loan is still being repaid. I'm trying to determine whether the restriction in Code section 409(o)(1)(B) is permissive or mandatory. In other words, may the shares in a terminated participant's account that were acquired with the proceeds of an exempt loan be distributed before the loan has been repaid in full?

What is the effect fo the top-paid group electionon the determination of who is a restricted employee? I have a plan the uses the top-paid group election which results in Employees #1-8 being HCEs.Employee #9 would be an HCE but for the election,and she's the one who's leaving. The plan will not meet any of the exceptions of 1.401(a)(4)-5(B)(3)(iv).Is she restricted or not?I think not. Am I right?