I am working on a plan which uses forfeitures to reduce future employer contributions. The document does not state when the forfeitures should be used, just that they shall reduce FUTURE employer contributions. The ER has indicated to me that they have no plans for the next 1-2 years to use the forfeitures currently in a forfeiture holding acccount My initial response was that forfeitures should not be held in suspense that long. However, the document does not specifically say when the foreitures are to be used.

Any insight?

say a plan changes from pbgc to gatt.

and that the spd stated that lump sums were based on pbgc.

my feeling is that a SMM s/b provided as a result of this change.

my question is say the company does not provide a SMM. would they be liable to pay max of pbgc or gatt basis? i.e. would that be the remedy to a participant seeking damages?

for eg. if a 204(h) notice is not provided, the plan must continue accruing benefits under the old provisions.

gary

Is anyone aware of a current bill in Congress that may allow up to $500 rollover in a Health FSA? Do you happen to know the bill number? Thanks.

If non-qualifying plan assets exceed $500,000 must I purchase a bond for the total amount or does the cap still apply?

What are some of the Audit Requirements (Measures) prior to terminating a frozen SIMPLE IRA?

I have a Roth IRA. I purchase IPOs in mutual savings banks. Sometimes I am allocated shares. Investment banks do not charge commissions on purchasing shares in the IPO. I was charged a $25 purchase fee from my brokerage house in a recent IPO in which I received no shares. I was aware of this fee, as the brokerage house is paid for sending in the order form with a check to the issuing firm. The funds were returned with interest since I was not allocated shares -- that is a known risk.

However, I claim this is a Trustee Administrative Fee, and can be paid seperatly by my personal funds and deducted as an itemized deduction pursuant to Publication 529 (Miscellaneous Deductions). I had 2 of thes fees last year and anticipate incurring these fees over the next 20 years, so they will add up. Can someone provide a definition of Trustee Administrative Fees and a reference. Thank you.

I administer a 403(B) plan that has an employer matching contribution, as well as an employer discretionary contribution feature. The investment product is a group annuity contract. I have been filing 5500's for this plan because of the employer contribution aspect. The eligibility for 403(B) deferrals is immediate, while for the employer contributions it is age 21 with one year of service. Because of the immediate eligibility, my beginning of the year participant count is 108, so I get a pass on large plan reporting (Schedule H). However, if I added 13 eligible participants on 1/1/02, is a certified audit (albeit a limited scope audit) required? I have no idea, and thought the client should be warned if an audit is needed for 2002.

Any replies would be helpful. Thanks.

An Employer adopted a safe harbor 401k plan last year. Employer is currently going through some financial problems in which Employer is having a hard time funding the employer match.. Employer does not want to terminate plan. They only want to suspend all contributions for about 6 months to 1 year...

Can this be done for this period of time without having to amend or terminate the plan?????? If so, would the employer have to send a notice to interested parties other than the plan participants????

Please let me know if there is anything else I should know about, regarding notifications or any compliance issues.....

Deferrals were for pay period ending 12/29/01 paid on 1/3/02. Are they included in the 401(k) plan for 2001 or 2002?

Is FICA withholding due on a nonqualified stock option which is exercised 5 years after the optionee's termination of employment with his employer (who issued the options)?

I know the general rule is that FICA is due upon exercise of a nonqualified stock option, but in this case, the employee is no longer working for the employer and five years have passed - does any of this make a difference?

Greetings all!

To stay competative in todays health insurance market, my employer is looking to introduce a "105 reimbursement plan" to our membership. Many of us are having a difficult time discerning the difference between 105, 125, FSA's etc.

Any advice or references on this would be much appreciated.

TIA

Is an employer required by law to allow an employee to rollover his/her 403(B) at age 59 1/2? This is assuming the employee still works for the entity.

A participant would like to take a hardship distr for primary residence purchase (plan allows hardships). May the participant take the amount needed to purchase residence plus tax that will be paid on distribution or are they only allowed to take the amount needed to purchase residence??? Thanks.

I have a small plan where a participant went over the $10,500 limit and the plan limit (of 15%) for plan year ended 12/31/2001. The participant terminated and rolled their money to an IRA before the 2001 testing was completed. Do I need to do anything or can I do anything where the money has 'left the plan?'

We have a plan with four classes of employees. Class 1 gets 25% contribution, class 2 gets 20% contribution, class 3 gets 15% and class 4 gets 5%. The plan is top heavy and has last day and 1000 hour requirement. We have an employee in class 3 that worked 900 hours, so we need to give them top heavy minimum. If we give them 3% we fail the gateway. Do we need to give this employee 5% or because she is in class 3 a 15% contribution?

thanks.

Can you provide the EGTRAA tax ramifications pertaining to 457 plan installments of less than and more than ten years? What, if any, changes do the new laws produce in the eyes of the IRS?

An employee elected to defer 5% pre tax. The employer actually withheld it on an after tax basis. This has been going on since 1/1/2001. Can it be corrected for 2001? What about for 2002? Or can it only be corrected from this point forward?

Can a Roth IRA be funded if the only "earned income" is non-taxable disability income? Can a spousal Roth IRA be funded if tax return filed married filing separately? What is the limit on a spousal Roth IRA for 2002?

FYI!

A new message board under Continuing Professional Education has been added to respond to queries about continuing education programs specific to the 457(B) and 403(B) market segment. It appears under "National Tax Sheltered Accounts Association" where questions can be posed about the accreditation program (CRS/MCRS), and educational symposiums.

New Message Board under Continuing Professional Education.

For queries about professional education in the 403(B) and related markets, a new message board "National Tax Sheltered Accounts Association" has been added. There, we will respond to queries about the CRS/MCRS accreditation program, as well as the Educational Symposiums offered through the NTSAA. The new Board responds to interest expressed in educational programs specific to this market segment.

FYI!