a participant gets divorced and a determination of the value of the non-qualified benefit is required.

It is no problem to compute the present value of the accd ben.

the couple is considering to just treat the non-qual. plan as an asset.

the pvab = 100,000.

however, the participant is not vested for another 8 years.

it seems as if the pvab s/b payable at the time the benefits vest and not now, since participant may never vest.

any thoughts on this?

Non-qual plan does not address division of pensions due to divorce.

thanks.

gary

Has anyone had experience with Sagamore Health Network. I am on a city council who has just experienced a huge increase in premiums. The council budget 1mil last year for our fiscal year 02 as told by our agent of record, and just a few weeks ago found out from our agent of record that we are going to need an additional 1.2mil:confused:

When we enrolled in the Dependant Care plan my wife was enrolled as a full-time student during the day. Not soon after was she forced to drop and wait expectantly for an immediate opening, forcing us to have our children within the care provider - or loose the spots for the year, which would not allow her to resume college as needed.

Recently she received noticed that she would be accepted back as a full-time student, but in the evenings, meaning she is able to care for the children.

The qualifying event occured some time ago, however we are only able to exercise this option now. Are we able to request to drop the plan as of today, irrespective of the physical date of the possible qualifying event? In otherwords, is there a restriction stating that we had to claim the event in X-period of time from the event date, or are we able to exercise the event when or if needed?

The second trick question is: What in the world would be needed to support the qualifying event? We can easily provide the documentation supporting going BACK to college in a couple months, however the inverse I am completely unaware of what is needed. Can you please help me?

An employer calculates a discretionary profit sharing contribution for 2001 after the end of this year and prints participant statements that include this amount. The employer has not yet filed there corp. tax return. They decide that they can not afford the P/S contribution. Can they elect not to make the P/S and change the statements to reflect this since they have not filed their corp tax return? Or would this be taking an accrued benefit away from the participants and they are commited to make this contribution?

My understanding of the new rules for plan years beginning in 2002 is:

1 - Now small plans (100 or less participants) can deduct up to the unfunded current liability, without regard to plan amendments made within the last 2 years for HCE's.

2 - Terminating plans can deduct up to the amount needed to make the plan sufficient for all benefits, not just guaranteed benefits.

Is this correct?

Now back to #1; my software references amendments made to professional service organizations as playing a role. I cannot find any information on how this relates. Any ideas?

The CO has decided to change PEO's. Unfortunately, the Participation Agreement that was signed for the 1st PEO's 401K plan states that upon termination of contract with the PEO its deemed plan also terminates. It also states that the CO must take care of notifying "all of its employees of such plan termination if and when it occurs".

Now my question(s) are can or must the CO require and resolve through corporate resolution a trust to trust transfer of the funds in the 1st PEO to the new PEO's plan? Does this violate the successor plan rule? Can we ignore the specific language that deems us terminated and simply spin off to the new plan? Does this violate the employee rights to elect to have the money transferred to an IRA or disbursed in some other form?

If a 50 year old person works for two unrelated employers where one employer has a 401(k) and the other employer has a SIMPLE IRA, can the employee take advantage of both catch-ups? As an example, could he defer $7,000 plus $500 into the SIMPLE IRA and $4,000 plus $1,000 into the 401(k)?

Client wants to limit loans to deferral source only. I think that this is a fairly common practice. Some NHCEs are not deferring, and would therfore not be able to get a loan. Does the availablity of loans need to be tested for non-discrimination under these circumstances? If availability of loans must be tested, can the plan be disaggregated for testing? Test deferral, match, nonelective sepearately?

Employer has a funded self-insured medical plan for its employees. Each employee has $40 withheld from their monthy paychecks (on a pretax basis) which helps provide the employer with funds to pay the participants medical claims.

It appears to me that there two catergories of monies in this:

1. Pretax withholdings from employees ($40 each month)

2. $Amount of claims that employer pays to medical providers.

__________________________

So, now it comes time to do the Sec 125 "nondiscrimination" BENEFITS and CONTRIBUTION and CONCENTRATION testing.

My Question:

a) What does benefits mean ? (It's got to be either 1 or 2 above).

b) What does contribution mean ? (It's got to be either 1 or 2 above).

I'm confused as heck. I wonder why Sec 125 does not define the words "benefits" or "contributions" when it discusses nondiscrimination testing for cafeteria plans ?

Can anyone direct me to an article that summarizes how the changeover to the GATT assumptions works? I am pulling my hair out trying to understand this stuff! We have a DB plan that was submitted for a determination letter in February and the IRS has responded with a number of requests for revision concerning the implementation of 417(e)(3), but I just do not understand what they are asking for. If anyone knows of a plain-English explanation, please let me know! Thanks.

Does anyone know what type of plan/arrangment this is and how it works or refer me to a link that has further details?

Thanks!!

What is the best guidance for Welfare Plans? ERISA Section 3(1)? In general, what is the major difference between a Welfare Benfit Plan and a Premium-only Cafeteria Plan? (I'm clear on the 5500 filing requirements). Is it that pre-tax withholdings on part of the employee comprise the POP funding?

Can an S Corp shareholder, parner or sole proprietor participate in a flex plan or premium only plan on a POST tax basis?

Management company, owned by 2 individuals, operates two businesses. Mgt co. employees are salaried and are 2 HCEs and 15 NHCEs. The two business it controls are staffed by approximately 50 NHCE hourly employees at a different location.

Can the mgt co. have a 401(k) plan without offering a 401(K) plan to the employees of the two businesses?

Hi everyone. i have several ?'s

IM 32 yrs old I contribute to an teacher's retirement. Have been doing so for 9yrs. Iam in Dallas,Texas.

Im wanting to start saving for retirement a little more.

Should I open a traditional or Roth Ira? How do I get started in doing that? I know the max for 2002 & 2003 is 3000.00 for me.

So I want to start putting 250.00 a month into it starting 1-03

So i guess I will be funding it myself. So what do i look for as for as interest rate etc?companies? Im clueless to this....

with a Roth if im contributing 250.00 a month and lets say 1-06

I wanted to get money out could I get the whole 9000.00 without being penalized? Sorry I have so many questions thanks in advance...

Does an employer with less than 100 participants have to file a Form 5500 if they make employer contributions to the employee's medical flex spending account?

Qualified monies rolled into Traditional IRA (post & Pre tax).

Client wants to take a distribution of the post tax monies as they did not want this portion rolled into an IRA. Will this be taxed under ordinary income again? Or is there a special way for either the client or the custodian to report this?

THank you

Client has provided copy of seminar materials that state that an employer cannot use Form 5305-SEP if it has ever maintained a defined benefit plan (even if it has been terminated). The current Form 5305-SEP instructions and Pub 560 state that an employer cannot use the Form if it currently maintains any 401(a) qualified plan. However, I have not been able to find any authority for the statement that maintaining a DBP in the past disqualifies the employer from using Form 5305-SEP.

Am I missing something? Cites, please.

Thanks for any help.

I am in the process of preparing for 2003 HMO renewals for our company. This includes over 20 HMOs throughout the country. The RFP is almost complete, but before I send it I wanted to see if anyone as any input on a "must have" to be included in this process. With all of the current issues in health care, rising costs, etc.. I want to make sure to ask all of the right questions.

I have just finished the merger of a money purchase plan into a profit sharing 401(k) and am working on the GUST document on the 401(k). The pension plan had a 2/20 vesting schedule which the client wants to keep. I know that there is no requirement to 100% vest the pension money in a merger. However, the 401(k) plan has an immediate vesting on all contributions (profit sharing and match). The client would like to keep this. Does anyone see a problem with the employer profit sharing portion being 100% vested and the merged money purchase being subject to 2/20 vesting (outside of the obvious document problems that such an arrangement would create)?

Thanks,

Tim