Is there any statutory authority for a statement by a well known brokerage house that a sole proprietor or partnership cannot sponsor a SIMPLE? In this particular case, there are two owner-employees only, no common law employees. Thanks.

Client is age 58 and wants to take $2,000 per month out of one of his IRAs beginning in 2002. In order to avoid the 10% penalty he will have to take distributions that are part of a "series of substantially equal periodic payments" based on his life expectancy.....AND has to continue to receive these payments for at least five years, right? Okay....

Question 1: Can we use old life expectancy tables or must we use new tables?

Question 2: Trying to determine which of his IRAs to take distribution from. His values change daily...so what date do I use to determine the value?

Example: $24,000 x 25.9 (old table) = $621,000 is how much he would need in his IRA to get him the $2,000 per month. Do I use values af of 12/31/01 or "current" value?

Any input is GREATLY appreciated.

We filed a DB plan termination that involves a reversion to the employer with the IRS for a determination letter. The IRS is now saying that any portion of the reversion that is due to using GATT rates (rather than the PBGC rates which were in the pre-GATT plan) is not due to "erroneous actuarial computation" and therefore cannot be part of the reversion. Apparently the only authority for this is an internal IRS memo from 1995. (The employer is a tax-exempt organization, so the excise tax is irrelevant.)

Has anyone else came accross this? Help!

(P.S. I posted this same question on the plan termination board.)

We filed a DB plan termination that involves a reversion to the employer with the IRS for a determination letter. The IRS is now saying that any portion of the reversion that is due to using GATT rates (rather than the PBGC rates which were in the pre-GATT plan) is not due to "erroneous actuarial computation" and therefore cannot rbe part of the reversion. Apparently the only authority for this is an internal IRS memo from 1995. (The employer is a tax-exempt organization, so the excise tax is irrelevant.)

Has anyone else came accross this? Help!

MY FIRM CONDUCTS IN HOUSE SEMINARS IN ORDER TO HELP SATISFY CONTINUING EDUCATION REQUIREMENTS OF THEIR CPAS. IN EFFORTS TO KEEP THE CPE INTERESTING, WE DECIDED THAT A GAME FORMAT WOULD BE FUN. WE DECIDED TO USE A FAMILY FEUD FORMAT. I WAS HOPING THAT I GET MANY RESPONSES TO THIS POLL. I AM ALSO HOPING TO START OTHER POLLS.

MY QUESTION IS:

NAME A CHANGE MADE TO THE 2001 FORM 5500.

JUST ANSWER THE FIRST THING THAT COMES TO MIND.

THANK YOU FOR YOUR PARTICIPATION.

MY FIRM CONDUCTS IN HOUSE SEMINARS IN ORDER TO SATISFY THE CONTINUING EDUCATION REQUIREMENTS. IN OUR EFFORTS TO TRY AND KEEP THIS INTERESTING, WE DECIDED TO SET UP A GAME SHOW FORMAT WHERE WE ASK A QUESTION IN A FAMILY FEUD KIND OF FORMAT. WHEN CORRECT ANSWERS ARE GIVEN, WE EXPLAIN THE ANSWER IN DETAIL TO OUR STAFF. SINCE WE PREPARE 5500'S, I BELIEVE THIS WOULD BE A GOOD TOPIC.

MY POLL QUESTION FOR ALL OF YOU IS:

NAME ANY CHANGE THAT WAS MADE TO THE 2001 FORM 5500?

SINCE THIS IS A FAMILY FEUD SETTING, ANSWERS CAN BE REPEATED. YOU CAN JUST ANSWER THE FIRST CHANGE THAT COMES TO YOU MIND PLEASE.

THANK YOU VERY MUCH. I AM HOPING THAT THE RESPONSE RATE WILL BE HIGH SO I CAN SET UP MORE POLLS.

Is an accrued benefit statement required upon a complete freeze of benefits under a DB Plan?

If an accrued benefit statement is not a requirement what is?

Can we still use 15 day notice requirement rather than 45 day new proposed regs since recent regs on notice requirements are only proposed regs?

Would the 403(B) (with discretionary employer contributions) of a church run school be exempt from ERISA?

We are majorly redesigning our group health plan

It is my understanding under an interim DOl reg that a summary of material reduction must be given 60 days after changes adopted

What is adoption date? Effective date of change?

We are working with several CBA's (i.e. collective bargaining units) to negotiate these changes. Would date union ratified chnages be the adoption date?

In a retirement plan it is much easier, adoption date is date plan amendment signed

Any input would be appreciated

Thanks

We are considering the following for a client- feedback or more information is welcome.

The company wants to give more to employees to enable them to pay medical costs upon retirement. The company does not want the expense of setting up a defined benefit plan and using 401(h).

The company already has a 401(k)/PS Plan. The current thinking is to:

1) make an additional employer PS contribution- age-weighted

2) designate that as a "retiree medical contribution"

However, insurance would not be purchased with this contribution- it would be invested per participant elections in mutual funds. Upon distribution, a participant would be free to spend the money as they choose.

Any thoughts on restricting distribution from that source until NRA for those that terminate prior to NRA- but allow them to take the 401(k) and other ER contributions upon termination?

We are considering the following for a client- feedback or more information is welcome.

The company wants to give more to employees to enable them to pay medical costs upon retirement. The company does not want the expense of setting up a defined benefit plan and using 401(h).

The company already has a 401(k)/PS Plan. The current thinking is to:

1) make an additional employer PS contribution- age-weighted

2) designate that as a "retiree medical contribution"

However, insurance would not be purchased with this contribution- it would be invested per participant elections in mutual funds. Upon distribution, a participant would be free to spend the money as they choose.

Any thoughts on restricting distribution from that source until NRA for those that terminate prior to NRA- but allow them to take the 401(k) and other ER contributions upon termination?

Do the ERISA spousal consent rules apply to loans by a contributory 403(B) plan? I would appreciate reference to concrete resources if available. Thank you.

do pension funds of puerto rican government entities not file 5500s?

do they have EIN/TINs?

I have an employer (public school) who will not, with out documentation, take 403(B) salary reductions from the final pay check of an employee. Their claim is that since the person is not employed anymore than they can not contribute. My understanding is that contributions must be made in a "reasonable time." The situation is this: A teacher is retiring June 1, 2002. Their next (and Last) pay check she is going to get is around June 30, 2002 for her services performed before her retirement. She wants to defer from that pay check. The school payroll will not take deferrals out because she is not employed anymore. Does anyone know where I can get something to show there people? Thanks for any info!

Loans from a 401(k) plan were provided to participants in accordance with proper documentation. Plan Administrator (employer) forgot for over a year to commence loan repayments from the participant's salary. Is this an operational error that can be corrected under one of the alphahbet soup correction programs? The employer screwed up but did so as the employer and not as the plan administrator. But the plan administrator should have noticed that loan repayments were not being made (evidently the participants did not). If it is an operational error, how do you correct? I know you can reamortize the loan (not more than over five years from the original term) with interest accruing from the date of the original loan, but is there anyway around defaulting the loan and taxing the participants on the amount of the loan? If not, why get relief at all?

I understand that EGTRAA changed the involuntary cash-out rules to require a default option of a direct rollover to an employer established IRA for distributions exceeding $1,000.

However, I have been advised that the effective date for this change has been delayed from 1/1/2002 until the point that the IRS provides additional guidance on this.

Does that mean that we can continue to process involuntary distributions for $1,000 + to $5,000 as usual until we hear from the IRS on this? If so, where can I find documentation on this?

Thanks for any input!

Consider a small, single employer sponsored Defined Benefit Plan that was frozen a number of years ago. The Plan is subject to PBGC. The Plan is substantially underfunded due to terrible investment return. PBGC premiums have increased to a significant level for a small employer:

Termination Basis

PVAB

Substantial Owner 1,100,000

10 other participants 700,000

Total 1,800,000

Current assets are 700,000.

What are some potential pitfalls with the following idea:

Spin-off the 10 other participants into a new plan and transfer the 700,000 in assets to this new Plan. This Plan could then terminate under Standard Termination.

The only participant in the remaining plan would be the Substantial Owner. The Plan would remain frozen so 401(a)(26), 401(a)(4), and 410(B) should not be ongoing concerns. The Plan would no longer be covered by PBGC and as such would not have the significant PBGC premiums. The company could then fund the Substantial Owner’s benefit and then terminate this Plan when sufficiently funded.

Where in the code does it allow for rollover of 401K money due to disability? Does it explicitly allow for it, or is it under the part where it says that "any distribution from a qualified plan are eligible for rollover except..."? We are having a minor disagreement here at work. Thanks for the help!

If our small business (4-7 people) has no group health plan, and the employees select their own private health plans, can the employers re-imburse the employees for part or all of the cost if the employee submits receipts?

Thanks!

I have a plan that was deemed Top Heavy for the 2002 Plan Year and has requested to terminate their plan in Feb. 2002. Will they still be required to make their Top Heavy Contribution prior to distributing the plan assets?

Thanks

PM