My ex-husband did not declare his 401k plan at the time of our Uk divorce and my attorney did not bother to pursue it. I have now had to take out a negligence suit against my attorney and I am trying to clean up the mess myself. Can you make a retrospective application for a QDRO in PA? Four days after the divorce he had already named another beneficiary. Any advice appreciated. No US asset/insurance other than a variable annuity were declared. He also did not provide official proof of income and was claiming marital status on his IRS form-and it wasn't on his marriage to me.He's a UK citizen with Us residency status.

An employer has an employee that opted out of their POP 125 plan. Unfortunately, when the employee was entered into the payroll, they were entered as "pre-tax" instead of "after-tax". They've discovered their error at the end of the plan year. If the employee raises a stink about this, how can the employer correct their mistake? We're talking about $400 of insurnace premium..

Where can I find, in writing, concrete information regarding an employer's liability for dependent care in a FSA? We are planning to set our maximum dollar amount at $5,000 per year for dependent care. Is this too high?

Large roll-up company, has small subsidiaries all over the country. Has 5 or 6 prevailing wage plans for various employee groups, various part of the country.

Are there some general (ie, obvious) reasons why these plans could not be combined into one plan?

Trying to clarify 1099R codes (Box 7) for Lump Sum payment from DB plan. Following are some scenarios and what I think are the codes for each. Feedback, please.

Ex. 1: Employee terminates in Jan., turns 54 in Feb., takes distribution in Mar. Code = 1 (Early distribution, no exception)

Ex. 2: Employee terms in Jan., turns 55 in Feb, takes distribution in Mar. Code = 2 (Early distribution, exception applies)

Ex. 3: Employee terms in Jan., turns 50 in Feb., takes distribution in Mar. Check is sent to participant but made out to financial institution (e.g., Fidelity) Code = G (Direct Rollover)

A participant had deferrals deducted from the paycheck for around 2 years.

Unlike all other particpants, this money never made it to the IRA, no one knows for sure what happened, possibly the $ ended back into the company itself.

Granted it is not a qualified plan, what is the correction?

Do you simply deposit the amount that was deducted (it is known from the W-2s), plus the match and put it in a SIMPLE IRA.

How would you calculate earnings?

Penalty for failure to timely deposit the deferred amounts?

thanks!

Do you have a "lifetime" cap on your medical insurance and if so, how much?

Is your Plan insured, self-insured or a combination of both?

Plan Info –

Pooled P/S

Balance Forward

Annual Valuation

10/31 year-end

Distribution Info –

Pay as soon as administratively feasible using prior valuation

Situation –

Employee decides he will terminate his employment effective Friday to receive a distribution from the plan knowing the amount will be more than that on the next valuation. Once the employee requests the distribution he will then have the company hire him back. Yes, unfortunately they will.

Is this OK? Any thoughts?

My wife works for a local company in which she participates in their 401(k) plan, and has done so for 2 years now. The problem is that they only offer Fidelity Funds, and we want to switch. A friend of ours that does financial planning stated that 401(k) participants are allowed a ONE-TIME withdrawl from their 401(k) and may roll-it into self-directed IRA without any penalties or owing any tax. Is she allowed to do this?

Michael

I cannot find anything that requires the filing by an individual of a 5500 or any other form for their IRAs. This is counterintuitive. Has anyone got the citations of the Code or ERISA for this question?

I'm administering a traditional balance forward 401(k) plan with employer stock as an investment option. The client called me with questions regarding the Form 4 filing. The Form 4 reports to the SEC and transactions of employer stock by the directors.

Apparently there is a new requirement by the SEC that this form be filed within 2 days of the transaction.

How is it possible to obtain this information timely enough to file the Form 4? Have any others come across this? Would transactions in a qualified plan be exempt from this filing?

Are there any special rules for updating SPDs for GUST? Is the timing basically subject to the SMM requirements (210 days)? Do they have to be restated for GUST?

What fiduciary duties, if any, does a union have with respect to reporting to its members about the fund's investments. This is a Taft-Hartley fund.

Any help would be appreciated.

We have a medical practice with a PS plan which uses a 6 year vesting schedule. Two doctors recently terminated their employment and are 60% vested. Without going through us, the owner/doctor instructed the broker to rollover 100% of these terminated doctors' PS assets to their respective IRAs.

If the owner/doctor does not want to retrieve the 40% forfeited amount from the IRAs, will this result in all participants becoming 100% vested?

As many know from prior posts, I really like the concept of "Employer-Funded" FSA's as an offset for using higher deductibles and replacing dental and other upfront benefits. I have proposed this concept many times recently and employers are really responding in a positive way and the numbers really seem to make sense. I had a question for this board and hopefully someone will know the answer:

It was mentioned to me that FSA plans can be subject to HIPAA requirements if the employer puts more than $500 into everyones account. First question, is this a fact? Then, if so, with the exception of providing the Credible Coverage letter after the employee terminates, is there anything else I'm forgetting that would present a problem?

In the past few proposal examples we have been able to raise deductibles and eliminate many upfront coverages and come up with savings figures that are much more than $500 per employee that the employer can use to contribute to the employee's FSA accounts.

Every employer I've talked to recently about this idea likes the idea of getting the forfeitures back for unused FSA dollars. I've told them abou the new HRA but they like the old rules better. Thanks for any replys!

I have a client that has a 125 plan providing for purchase of benefits through employer provided credits and pre-tax salary reduction by employees.

The client wants to increase employer provided credits under the plan but to default unused credits into elections under a 401(k) plan or health care reimbursement plan. The effect, in other words, would be to take cash out of the choices.

Is there anything that would prevent this (considering the matter primarily from the 125 angle)?

If the matter were just one of an employee's making choices among employer provided, nontaxable benefits, I don't know that there would be. My main concern, I guess, is whether pre-tax contributions by employees would be permitted to such a plan.

May cash be taken out of the options under a 125 plan? Would such a plan, though not a 125 plan, be permissible? Anyone have any thoughts?

Thank you, John.

Hello, everyone...

Here's a subscriber to Mutual Funds Magazine who wrote in with a dicey question:

"Other than the three methods approved by the IRS for retirees under age 59 1/2, if you need much more than the amounts those three methods produced, can you withdraw the amount you need as long as you recieve that amount over the longer of five years or the attainment of age 59 1/2? For example, the 3 methods in my case only produce an annual amount of $8,000, $12,000, and $17,000.

I need $42,000 annually and would take that amount for five years or until reaching age 59 1/2, whichever is longer.

The amount is not based on life expectancies or assumed rates of interest, but simply on my living needs."

Name withheld.

What would you say to such a person if she came through your doors?

Unfortunately, I do not know if she is expecting money from other sources, such as a pension or inheritance, on which to get by once she turns 59 1/2, nore do I know if she has a health concern which might reduce her life expectancy. She hasn't responded to return e-mails, so I'm looking at answering the question under both scenarios: either she MUST rely on this money lasting throughout her (normal) lifespan, or she can safely take it out in 5 years and rely on other sources. Which takes us to the question: what does the law allow?

I'd like to do a first-class job answering her question--she's under a lot of stress, and this probably means a lot to her.

Jason Van Steenwyk

Reporter,

Mutual Funds Magazine

954-229-6907

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Company X is family owned by Mother (23.14%), Father (26.98%) and Daughter (49.88%). Company Y is owned by Father (36.61%), same Daughter (13.716%), Brother #1 (35.5%) and Brother #2 (13.72%), mother owns 0%. Do I have a controled group of corporations?

Profit Sharing Plan - 11/1 - 10/31 plan year. Recently (in 2002) the client decided to terminate this plan. The contributions are discretionary and they will not make a contribution for the 11/1/01 to 10/31/02 plan year. Can they back date the termination date to 11/1/01?