Can anyone refer me to websites that have information on ESOPS, Restricted Stock & Stock Options (i.e. Black - Scholes)

How they work, definitions, administration, etc.

I'm looking to expand my knowledge base in the area. Thanks.

A 401k plan was restated during the 1999 plan year. The plan was effective prior to 1997. Looking through the notes, it appears the takeover TPA put the plan on their prototype as well as made a change to a plan provision (entry date). For the GUST restatement, how would you handle the effective date? Since some of the technical language is not identical between the 1996 prototype and the 1999 prototype used as well as the entry date provisions amendment, would you use 1-1-99 as the effective date as opposed to the 1-1-97 that is typically used? Or is there a better way to handle this situation? Thanks in advance...

I have been searching the web for a recent statistic showing an average percentage that fringe benefits are of overall salary. A common percentage used to be 28%, but I'm having a hard time finding info anywhere. Any ideas?

Plan is a 401(k) PSP, with elective deferrals, profit sharing contributions, and rollover contributions. Participants direct investments of all contributions choosing from a mutual fund menu. Consideration is being given to adding a participant directed brokerage window for rollover contributions only. Consideration is also being given to requiring use of the brokerage window for large rollover contributions because of fiduciary concerns (and not providing access to the mutual fund menu). Raises some questions:

1. Is the participant directed brokerage window a separate benefit right or feature?

2. Is a participant directed brokerage window provided only for the rollover contribution accounts a discriminatory benefit right or feature if only HCEs have made a rollover contribution? Can testing be limited to rollover accounts, or must it consider all accounts? Can the brokerage window BRF be aggregated with the mutual fund menu BRF?

3. Is providing the participant directed brokerage window to rollover contribution accounts in excess of $500,000 a discriminatory benefit right or feature if only HCEs have accounts in excess of $500,000? Can the dollar limit be justified on fiduciary grounds?

Are dependent care expenses incurred during the period an employee is not eligible for participation in their companies 125 plan eligible for reimbursement??

Employer's plan has a 30 day waiting period.

We are getting ready to administer COBRA for one of our clients. As part of the agreement, we will accept the COBRA premium payments and deposit them into a checking account. At the end of each month, using reports generated from our COBRA Admin system we will cut the employer group a check equal to the amount of COBRA premium payments received.

My question.... are there any regulations/laws that require these funds to be deposited into a special type of checking account? Also, if we continue to add clients to our COBRA Admin Department, do we have to establish a separate checking account for all clients (or can the funds be co-mingled)? Thanks

Is it possible/legal to run prepaid legal service thru employee's payroll on a pretax basis?

Thanks in advance for your help.

Carolynn

Scenario:

Company A - is a karate studio owned 100% by Owner 1. Has 15 separate locations which are owned 51% - Owner 1 and 49% by an employee of the individual location. No one employee owns any other studio. I don't believe that there is a stock purchase agreement for the ee owners to buy any direct stock in Company A or any other buy sell agreement for them to be able to buy Owner 1's interest over a period of time.

Company A provides payroll & HR services, along with other management functions for every studio that is established. I don't know what fees/income is received by Company A from any of the studios, but I would assume that something is paid to them for the aforementioned services.

Company A does not own directly any stock in any of the 15 locations.

Question:

I don't believe I have a controlled group, since there isn't any effective controlling interest with Owner 1 and any of the other studios (owns less than 80%). Could this be considered a Management Function Group under the ASG rules? If so, how?

If I need to provide any other information, please let me know.

We would like to merge a nonelecting church's profit sharing plan into their defined benefit plan. The profit sharing plan has a lump sum distribution option upon termination of employment, whereas the defined benefit plan does not.

We would like to eliminate the option after the merger. It is our understanding that 411(d)(6) does not apply to nonelecting church plans, but despite this, the IRS has informally suggested that they are not so sure we can eliminate the option.

If anyone has an opinion on this, would appreciate your comments.

A plan has been in effect since 1982. All divisions file as single employers! In 2001, a division has adopted the plan and will be filing its first return.

What is the effective plan date for the 5500? 1982 when the plan was begun or 2001 when it was adopted?

Many thanks!

Sun American and AIM are touting this new offering. One thing I found funny was the mention of bankruptcy protection under ERISA. I thought one man plans (without any employees other than a spouse) were not subject to Title I only to Title II.

Ergo, is this a misinterpretation by two vendors? Has anything changed regarding Title I bankruptcy issues for either sole propreitorships, one-man corporative entities OR is this a change if we have a one man 401(k)

Any sites would be greatly appreciated! Thanks!

I understand the penalties for defaulting on an ERISA 403(B) loan. What is the penalty for non-ERISA 403(B) arrangements for PUBLIC vs. non-PUBLIC schools?

Addl query: Will the participant's ENTIRE annuity be deemed defaulted if a loan default is experienced.

Any sites would be greatly appreciated. Thanks in advance...

The new rules on top heavy tests for cal year plans say that we can use them for 12/31/01 determination dates. Let's say you have a terminee from 1999 who does not take distribution until the 2001 plan year. Terminee has 0 hours service in 2001. Is his account balance included in the top heavy fractions because it was a distribution during the 2001 plan year (1 year look back for distributions) OR is it excluded because of failure to work 1 hour in 2001 (exclusion of previously terminated with balances). I have opted to exclude it based on the lack of an hour in 2001. I'm curious if any others have a different interpretation and their thought process.

Publicly traded company sponsors ESOP. The company wants to facilitate diversification of the accounts. Therefore, participants will be allowed to diversify the portion of their accounts currently invested in company stock. To accomplish this, the company wants to make an exempt loan to the ESOP adequate to cover the diversification so that the trustee will not have to sell company stock. The loan will be secured only by the company stock. Is this an impermissible use of exempt loan proceeds, since the trustee already owns the company stock?

I have a plan who wishes to terminate and they do not want to pay any restatement fees.

This client is in the middle of their plan year ending 10/31/02 - do they have to go through restatement if they are terming their plan now?

There is a Money Purchase Pension Plan which is intending to become a frozen plan.

There is contemplation to merge it to the 401(k) plan after consideration of all the potential issues that might be caused and the downside to the 401(k) plan features.

One dilemma is whether either or both of the scenarios is a legal option under the MPPP.

1. Can loan repayments be accepted back into the MPPP while frozen?

2. If the plan is merged, can loan repayments continue to the 401(k) plan, being paid to the MPPP source on-going, since it the source the loan was borrowed from?

Any insight will be appreciated. I find nothing regulatory-wise that supports an answer either way.

Thanks in advance.

andmik

I am drafting up worksheets for a plan I have with the following seniaro:

Plan's $$$ are still with the same investment carrier, but during the 2001 plan year they changed contract types (from unallocated to allocated). Their contract number changed, and I am thinking that I need to submit two Sch. A - one for the old contract and one for the new one. When drafting the Sch. A for the old contract, the only problem I am having is where to place the liquidation amount. I would not pick 6e(1) Benefits Paid, as the $ was not paid out to the participants. I was considering line 6e(3), as this $ was transferred, but now I am not so sure. The participants were given new enrollment forms to fill out when this contract change was done, and their investment choices went from like 5 to 55 funds, so I am sure some of the money that left this GIC fund in the old contract went ot other funds in the new one. Where would you sugest I place this transfer? Thanks for the help!

Where can I get a copy of historic Moody's Aa rates? I already have historic Aaa rates. I'm looking for on or about 12/31 rates for 1992 through 2001.

Thanks in advance.

A former employee has terminated and is currently receiving his installment payments with several more to go until final payout. He is now rehired. There is no issue of sham seperation of service, so I assume that continued payout of the installments would be appropriate even though the individual is now employed. Any thoughts?