Reading the finalized regs it seems to me that the estate of a spousal beneficiary could be in a worse position than non-spousal beneficiary in the event that the spouse beneficiary dies prior to the September 30th following the date of the death of the IRA owner.

As I read the regs for a non-spouse beneficiary you would simply use the deceased beneficiary's life expectancy(assuming that he or she had not died) for any distributions to the estate.

However for spouse beneficiaries you would use the life expectancy of the spouse's beneficiary desgnation. In situations where the spouse's death occured so soon after that of the IRA owner, it is unlikley that the spouse will have designated a beneficiary. Therefore you do not get the spouse's life expecantcy (based on the assumption that he or she did not die) but would be stuck with the 5 year rule.

Am I reading this correctly?

I recently attended a Real Estate seminar where a Roth IRA was discussed as

a tax shelter for real estate earnings. In short....here is what was

suggested

1. Buy the real estate using a Land Trust contract naming the Roth IRA as

the trustee.

2. When selling same property.....have the check at the closing made out to

the Roth IRA (trustee).

These earning would then be considered non taxable because the transaction

was done as the IRA being the purchaser and seller of the property.

Is this possible? Do you have any details of such a transaction?

Sue Byrne

An employer has a self-funded medical plan, self-funded dental, self-funded short term disability, vision, group legal, group life and voluntary life. In drafting the SPD we referenced that the plan intends to qualify as a Sec 125 Cafeteria Plan. We used one wrap document with an adoption agreement. An attorney reviewing the SPD says it is not a Cafeteria Plan. Pre-tax salary reduction enrollment agreements are used for employee contributions. I am at a loss. The attorney wants wording for the Cafeteria Plan (client's attorney) and now I realize I've been operating on the premise that the plan is a cafeteria plan. I have reviewed EBIA's manuals and still don't know what to do. Can someone provide some guidance please!!

Hello My name is Leo and I have a ROTH IRA with FIDELITY'S DESTINY I FUND. The ROTH fund hasn't been performing very well and I have had this fund now for about five years. This ROTH fund get's worse every year. Can I change from one Roth fund to another one? And if so how do I do this? Can Anyone recommend a very good ROTH fund for me to switch over to. Can anyone look at the fund that I am in and recommend if I should stick it out or stay in? I need all the help I can get please.

THANKS

Mr. Leo Bersamina:confused: :confused: :confused:

We have a client who turned 59 June 5 of 2001 and then December 4 of 2001 he took a distribution. We coded the 1099-R a 1, and his accountant claims it should be a 7. His accountant claims the six months is counted in days, and not the date of the month.

We advised the client that if the accountant wants to change the code, file 5329, but we would not change it. Does anyone know if there is a statuatory or regulatory definition of age 59.5, and if so can you give me a reference?

Also, are there any PLR's that might shed some light?

We are in the process of amending a defined benefit plan formula.

Anyone with a sample 204(h) notice?

Is a single participant plan required to provide a SPD?

Has anyone used or know of any vendors of 401(a) plans in the Midwest?

How is COBRA effected in this situation? An employee is laid off and is to receive severence starting 1 month after the last day worked. The severence will pick up COBRA coverage for the duration of the severence. Now the company files bankruptcy between the time the employee is laid off and the severence begins. How does this effect the COBRA coverage, if at all?

Are participant plan loans dischargeable in bankruptcy? If not, what is the authority? Is it because they are not technically "debts"? Or is it because they are considered plan assets and qualified plan assets are excludable from the bankruptcy estate?

A 401(k) plan has employer stock as a frozen investment option. This stock is not publically traded. Therefore, the company has an appraisal performed. Only a portion of the plan participants have money invested in the stock.

Is the cost of the appraisal a legitimate plan expense? If so, should it only be paid from the accounts attributable to those holding stock- or from all participants pro-rata?

Are after-tax contributions that are in a 457 plan "Eligible Rollover Distributions"? Cites would be helpful.

I am advising a governmental entity (state or local type) regarding providing deferred compensation for certain executives. Since the nondiscrimination rules no longer apply to these plans, it seems that this could be accomplished through either the DB plan or the 401(a) plan. My question is whether an additional benefit could added to the DB plan that would work like a cash balance plan (obviously the DC would already be max'd out), while the participant still accrues his normal benefit under the DB plan. The problem with using the normal DB piece is that the client wants more flexibility than could be acheived using it. In essence, the employer would make a contribution each year to the plan that would be credited solely to the cash balance piece of the plan.

Is anyone familiar with the ERISA Data for Qualified Plans reports that is furnished by TIAA-CREF for Form 5500 reporting? I'm having trouble determining what the end of the year plan liabilities are based on the data provided. I'm not sure which portion of the report would provide me with those figures. There is nothing clear cut. They provide a Filing Summary for Schedule I, but this information is not contained in the summary.

Any help would be greatly appreciated. Thanks.

Question deals with inputing information via the internet that leads to an ACH out of sponsor's banking instituion for contributions.

Does this pose any sort of fiduciary liability? And if so, is there a way to have them "sign off" or any other way to reduce this liability?

Thanks,

Ronnie

I pose my question generally to everyone, but more specifically to independent TPAs administering self-funded ERISA plans or employers who use independent TPAs for claims administration of their self-funded ERISA plans.

Under the new DOL Claims Regulations, it sets forth how appeals are to be handled.

In Section 2560.503-1(h)(1) of the Regulation, it states, "(h) Appeal of adverse benefit determinations. (1) In general. Every employee benefit plan shall establish and maintain a procedure by which a claimant shall have a reasonable opportunity to appeal an adverse benefit determination to an appropriate named fiduciary of the plan, and under which there will be a full and fair review of the claim and the adverse benefit determination."

The key phrase I am focusing on is "an appropriate named fiduciary of the plan."

Here is the question: Are TPAs out there assuming the role of "named fiduciary" when it comes to making appeals determinations?

I know that most employers have hired the TPA to "take care of the plan" and make decisions for them with final consult occurring with the plan administrator ONLY if a big issue comes up about a claim.

However, under a strict reading of the Regulations, it is the named fiduciary who is ultimately responsible for making ALL appeal determinations; not just the final and binding decision. I received non-binding comments from the DOL that that is how they view it as well.

I understand that most big insurance companies can and do assume a fiduciary role with their clients' plans. What about the smaller, independent TPAs out there? Can they or will they be willing to assume that fiduciary role for the clients? Will their E&O policy allow for it?

If the TPA will NOT assume the fiduciary role, what are they telling their clients? What is the reaction?

Any insight anyone might be able to provide would be most helpful.

Thanks!

I have a plan that is merging their single employer 401(k) Plan into a mulit-employer plan. The final 5500 for the plan needs to be filed, but I am not sure what the time frame for filing this form is. any help would be appreciated.

Thanks,

Amy

Currently I have a QRP Money Purchase Plan with a brokerage firm. They tell me I need to Amend and Restate it by year end. In addition, I want to change to a QRP Profit Sharing Plan for 2002. They tell me I can do this in one of two ways. First, convert (merge) or second, terminate the Money Purchase Plan. If I choose the former, they say I will need to file a form 5500 with the IRS. They also say the proceeds from the MMP will continue to follow the distribution rules of the MMP and in 20 years when I retire, I will need to waive the Joint servival annunity every time I take a distribution. This seems like a nightmare and will require me to maintain good records separating the proceeds that originally came from the MPP from the PSP. If I terminate the MMP they say I need to file forms 5500 and 5310. Since I am the only one in the QRP and do not see that changing, it would appear the best route to go would be to terminate the MPP. Suggestions whivh way to go would greatly be appreciated.

I can't seem to find a required format to notify participants of the propsed merger of the money purchase plan into the profit sharing plan. Is there a required format and if so where can I find it? :confused:

We have a large corporate client who is considering an ESOP refinancing. In light of the no-ruling stance taken by the IRS on ESOP refinancings and the lack of guidance from both the IRS and the DOL, what are other companies doing in terms of handling such refinancings? Specifically, are companies offering a benefit in exchange for the "right" that is given up in the refinancing (the right to the contributions to repay the loan under its old terms)? If so, how is this benefit determined? For example, are companies determining the benefit by calculating the present value of the difference in dividend payments that would result from the share allocations under the terms of the old loan versus the share allocations under the terms of the refinanced loan? Additionally, are there other constraints companies have faced in structuring recent refinancings? Are any companies being audited by the DOL or the IRS as the result of an ESOP refinancing? Any other thoughts or issues of which we should be aware?