I understand some of the issues that arise with participants in Puerto Rico. Does anyone know what issues are presented by participants who are US Virgin Island residents?

I need help. We are a company of approximately 120 full-time employees. We currently accrue sick, personal, holiday and vacation time separately. We are looking to create a PTO bank and are thinking of including all the accruals in one bank. My only concern is if an employee leaves do we have to pay out all the time in the bank or can we pay out only a percentage based on the percentage of vacation time that is part of the PTO bank. Also, what time frame is appropriate in order for the employee to use the time accrued, and if it is not used can they loose the time, place it in a separate short term disability bank or pay out for the time not used? Help!!

I have a client who is deathly afraid of being named as a trustee of his company's 401(k) plan. Can the company be named as trustee? Are there any laws preventing it? He is willing to sign as an officer of the company, just not as trustee.

I have a client who is deathly afraid of being named as a trustee of his company's 401(k) plan. Can the company be named as trustee? Are there any laws preventing it? He is willing to sign as an officer of the company, just not as trustee. Thanks in advance.

Our plan allows lump sum payouts for top 25 employees, even when funding of current liabilities is at a less-than-110% level. However, we are finding that bonding companies are not eager to write a bond for the purpose of satisfying the restriction for an individual. Some few surety companies remember writing these bonds a decade ago, but they seem to be only half-heartedly attempting to resurrect products to meet this need.

Likewise, IRA custodians seem wholly unfamiliar with the notion of a "restricted IRA."

Does anyone know of any surety company that will issue bonds for this purpose?

In addition, has anyone found an IRA custodian who will accept a restricted IRA?

This is my first posting, so excuse me if I mess it up. My client has an old DB plan funded by a group annuity through MetLife. The plan was frozen in the early 90's and finally officially terminated on 7/16/01. There are still 2 participants to be paid out, since, as it turned out, the plan was slightly underfunded, and the client was going to contribute the difference of about $15,000. In January, the client learned from MetLife that it is going to receive 5000+ shares of MetLife...about $160,000. Although the client just learned of this, Met's actual demutualization date was 9/28/99. I don't think there is any question that these are plan assets, although the shares will be issued in the name of the client, as it owned the annuity. In fact, DOL has already told the client that it needs to get them into the plan name ( DOL subpoenaed Met's records). Since I represent the client (not IRS), does anyone know of any way I can avoid the excise tax? It strikes me that this type of situation falls outside the original purpose of the statute, which, if I recall correctly, was to stop plan sponsers from terminating plans to get at the reversion. At the time of termination, the client didn't know there was a reversion. However, I don't believe IRS will buy into this. Does anyone have any ideas?

I have a plan that has a deceased participant - age 66. Her husband is sole beneficiary of her account and plans to roll over the balance into an IRA.

Question is: husband is age 70.5 - will he have to take a MRD this year from this money?

There is case law to suggest that if an employee pays for his disability premiums and the employer "grosses-up" the employee's salary to cover the amount of the disability insurance payments, the disability benefits are still taxable to the employee.

Any tax experts out there? Why are the benefits taxed. Is this an imputed income situation?

Or can the employee, legally, receive the benefits tax-free?

Would a top-hat plan, or a different plan design be an alternative?

Any help would be appreciated

Hello All,

I am 21, confused about what to invest in, and I need to get some type of investing program started for retirement. So here are my questions:

If I start investing in a Roth IRA this year (2002), (all payments will be made January of every year in full) and invest the maximum amount of money each year, Can I take all the money out at one time when I am 46? If so, what is the penalty I will be charged?

Someone please help me

:confused:

Sincerely,

Marisa

We are currently terminating an underfunded DB plan; as part of the termination, the Owners have signed Substantial Owner Waivers so that all other participants will be paid in full and the two owners will split remaining assets.

Plan is terminating as part of sale of company. Lawyers for new owners are a little concerned about Substantial Owner Waivers. I recall back in time (late 80's-90's maybe) that IRS looked askance at the waivers, although PBGC had no problems with waivers. IRS subsequently went along with PBGC and haven't had any problems or discussions with IRS in quite some time on this issue. Does anyone recall anything specifically issued by the IRS on the waiver issue that would satisfy the concerns of the law firm?

I did go through the Super Grey Book and found #21 from the 1994 Book, which posed the question of which benefit to use for 415(e) purposes (and IRS raised no beef as to validity of waiver), but would like if possible some formal cite for validity.

Thanks for any help in advance.

I have a client whose Dr. is claiming he is disabled. When he went to SSA, they asked him if he had a 401(k) plan. When he answered yes, they told him that he was ineligible for SSA disability b/c he had more than $3,000 in his plan.

I know this isn't the best forum for this discussion, but I have looked all over for the determinative reasons for disability, and nowhere can I find anything pointing to a 401(k) plan having any affect on it. Any help would be much appreciated.

Thanks!

Can a qualified Profit Sharing Plan currently maintained through a Domestic Trust have its assets transferred to a Foreign Situs Trust and still receive tax exempt status and favorable tax treatment for contributions and distributions?

If you establish a "mirror 401k" plan i.e. nonqualified deferred compensation plan, that looks like a 401k using mutual funds and you provide employees with the ability to direct the investment of their account just like a 401k plan do you run afoul of an ERISA rules or regulations? if so, which ones and why? Thanks David Witz

May 401(a) hospital match contributions that otherwise would fail annual discrimination testing be , instead, deposited into a 457 plan over the course of the year as a means to prevent the potential discrimination test failure?

If so, what is the total annual maximum employee deferral and match that can be made to the 457 plan assuming the employee is less than 50 ?

Doug P.

Hi-

I have received conflicting information regarding when an employer contribution is due for a 12/31/01 plan year end with a fiscal year end of 3/31. I have been told (a) September 15, 2002 and (B) whenever the corporate tax is filed. Does anyone know which is the correct answer?

Is there any CLEAR authority on this ??? NQDC Participant (significant balance in rabbi trust) is getting divorced? Part wishes to divide NQDC benefits w/ spouse in same fashion as qualified plan benefits under QDRO. Appears to be some dissension as to whether QDRO applies to NQDC and, more importantly, whether the division of the NQDC can effectively transfer the income tax liability on NQDC distribution to the soon-to-be ex-spouse (e.g. LTR 9340032). Any help greatly apprectiated. THANKS

Is there any CLEAR authority on this ??? NQDC Participant (significant balance in rabbi trust) is getting divorced? Part wishes to divide NQDC benefits w/ spouse in same fashion as qualified plan benefits under QDRO. Appears to be some dissension as to whether QDRO applies to NQDC and, more importantly, whether the division of the NQDC can effectively transfer the income tax liability on NQDC distribution to the soon-to-be ex-spouse (e.g. LTR 9340032). Any help greatly apprectiated. THANKS

What is the authority of union contracts versus the plan document? Is there ever a situation where union contracts control the way the plan is administered rather than the plan document? To avoid having to amend each time a new contract is negotiated, can you incorporate the contract into the plan document by reference by inserting language like "the contribution percentage set forth in the current collective bargaining agreement between X and Y"?

Is it possible to have a freeze date later than 12/31/99??? Thanks.

i need a copy of i believe rev rul 84-45. the one that required that the discount for past earnings when computing a soc. sec benefit as part of an accd benefit, must be at least 6%.

thanks,

gary