Happy Holidays to all. little help please . . .is a Rabbi Trust a DB or a DC type plan, and why?

Happy Holidays to all. little help please . . .is a Rabbi Trust a DB or a DC type plan, and why?

i know its non qualified, but trying to learn a bit more how it works. thanks.

If someone forgets to open an IRA account for the past few years, is it possible to make up the contributions in one year? Or at least make up for one year?

thanks

If a group health plan provides that coverage ends when lifetime maximum is reached does this mean that the 63-day break in coverage period begins at that time. Even if the participant continues to work for the plan sponsor? Doesn't this result force the participant to find a new job before the 63 days are up?

If an employee drops his or her health coverage under a group plan before taking a FMLA leave of absence, the regulatory requirement--that the employee be covered on the day before the first day of FMLA leave--is not satisfied, and there is no qualifying event (QE) for FMLA purposes (assuming the employee does not become covered during the leave; if such coverage occurs, there is a QE).

My question: if a covered employee drops his or her coverage before taking a FMLA leave of absence, does the reduction in hours of his or her employment, that occurs when the leave is taken, cause a QE under COBRA? While in this case there is a reduction in hours of employment, the reduction in hours does not cause the loss of coverage. Rather, the loss of coverage was caused by the employee's voluntary act, and not by one of the statutorily designated events.

Is severance (from which tax/deductions were taken out) which was paid in a lump sum Jan. 31, 2002 after a job loss which occurred Dec. 1, 2001, considered "compensation" for purposes of Roth IRA -- i.e., can $2000 of that severance pay be contributed into a Roth IRA for the year 2002? Also -- assuming not, can $2000 be contributed now to the Roth IRA in 2002 on the assumption that I will have earned at least $2000 by the end of 2002? (Note that W-2 statement for 2001 does not include the severance payment; pay stub issued Jan. 31, 2002 indicates the severance amount as "severance" in the earnings column.)

What are the requirements for governmental plans for amendments for EGTRRA - deadlines & provisions? Interested in how other governmental plans are going through the amendment process. Is there a good resource that can help guide through this process?

First, know that I and my family support this Nation's police officers and appreciate the job they do in both serving and protecting us all! This story is in no way meant to be negative regarding the police. Just struck us all as funny.

My sister, upon attempting to move her rear wheel drive 318 V-8 car from a stop across a snow covered road inadvertently spun her drive wheel. It was early morning and the only other car on the road, moving in the opposite direction as her, was a police officer.

Her first thought was that she was going to be pulled over. When they did not turn around to pull her over she was pleasantly surprised - and felt slightly guilty for jumping to such a conclusion.

Upon traveling the 3-5 miles towards home however, she quickly had the feeling that her initial thought was correct. Waiting for her at the city line was another officer who, while they had the right of way at the stop sign, would not budge. When she finally did the officer fell in directly behind her. Approximately 1 mile went by before the officer hit his lights to pull her over. Less than thrilled, and noting the irony that she was less than two blocks from home (something the officer undoubtedly knew) her mood began to deteriorate.

Upon approaching the car, the officer gave her some lame story about why he pulled her over. She challenged him on this and said "you pulled me over because the other officer called ahead and told you I was spinning my tires when I was only trying to get moving on an icy road." The officer did not deny this.

After the expected questions:

Where are you coming from?

Where are you going to?

and of course, the ever popular radio license check, the officer returned. With nothing to make an issue of, the officer simply handed back her license and said:

"Be careful, this road is dangerous"

To that she replied:

"Dangerous? I've seen only two cars my entire trip and they were both cops. This is the SAFEST road in America!"

The officer may not have been ammused, but I was.

FYI

When the DOL started the DFVC for delinquent filers of Form 5500, the IRS declined to join the program, although it generally did not assess penalties for the late filings of plan sponsors who entered DFVC. In releasing Notice 2002-23, the IRS has joined forces with the DOL and officially agrees to waive its penalty provisions for employers who use the DFVC program.

When the DOL established VFC, it allowed correction of prohibited transactions, but did not provide for waiver of the IRS penalties under Code section 4975. This leaves plan sponsors still exposed to the collection of Code section 4975 penalties for the prohibited transactions reported in their VFC filings. The DOL is working on a prohibited transaction class exemption that would eliminate this problem, but class exemptions take time. In Announcement 2002-31, the IRS states it will essentially waive its prohibited transaction excise tax for plan sponsors who satisfy the proposed exemption's conditions (one of which is successful completion of VFC).

Notice 2002-23 and Announcement 2002-31 are scheduled to appear in Internal Revenue Bulletin 2002-15, dated April 15, 2002.

Is a governmental plan required to amend their plan for GATT?

we have a client that had a traditional ira at bank #1. he then wanted to roll it into bank #2 that had a better interest rate. bank #1 made the check payable to him and he deposited it into bank #2 which put it into a regular savings account in his name instead of an ira account. this happened during 2001 and he just now realized the error. any suggestions as to a correction to this error? obviously he doesn't want to take it as taxable income (it's a substantial amount) and both banks refuse to help....

In 2002, a client sponsors top heavy DB and K plans and froze the DB accruals. Aggregated plans are still top heavy.

1. Is a top heavy minimum of 3% or 5% required in the k plan?

2. If the k plan adds a 3% safe harbor nonelective contribution, does this satisfy the top heavy minimum for both plans?

3. Somebody in my office thinks there's a glitch in EGTRRA pertaining to a DB frozen plan, whereby top heavy service is frozen but not the determination of average comp for purposes of the top heavy accrual. Anybody noticed this?

I just want to make sure there is no 5500 filing requirement for a 457(B) Plan for a tax exempt employer?:eek:

Does anyone have any suggestions of where to get information regarding managed care benefits? Basically, I would like to know what can be offered, how they can be offered, rules/regulations that apply to such programs, etc.

One of our clients is looking for other options to offer their employees (aside from their self-funded health plan) in order to control costs better.

Any information, websites, resources that anyone knows of would be most helpful.

Thanks!

Does anyone have any insight into the following:

Employer that sponsors a 401(k) receives a tax levy for an employee that recently separated from service. The employee has requested a distribution from the plan. Does the levy on the employer apply to the distribution when the plan was not named in the levy? If not, does the employer have exposure to the employee if it honors the levy?

Additional Info: The employer is designated as the plan administrator, but a trust company holds the assets. The plan has a separate tax ID No.

I am curious as to what cicumstances a 403(B) TSA would be subject to ERISA and when it wouldn't be. And were can I get more information about this matter?

Plan previously stated that the RBD was 4/1 following the year in which the participant attains age 70 and 1/2 for all participants. Plan was amended in 2001 to provide that for participants who attain age 70 and 1/2 as of the beginning of the 2002 plan year, for non-5% owners, RBD is the later of 70 and 1/2 or retirement. The amendment complies with the Q/A 10 of 411(d)(6) regulations.

Question: Some participants are in pay status and are still employed. Must those participants continue to receive distributions? Must they be given the option to stop distributions? Can distributions be stopped without their consent?

Thanks.

Is there anything (besides a plan term) to prevent a highly compensated employee from maxing-out the 402(g) limit in his/her first month of employment?

Looking for guidance on pre-paid premiums account for corporate sponsored life insurance. Of particular interest.

- has anyone had any experience in setting up these accounts?

- can the corporation to request repayment of the premiums?

- are these premiums considered part of the policy and subject to the conditions of an underlying collateral assignment?

- is the pre-paid premium an expense item? If so, can the corporation claim an asset to offset this expense?

- Anything else would be helpful

Thanks.

i've recently graduated college and ready to start investing. i have been researching investing options but still am indecisive on how to invest my money within a roth(?). i understand i can still invest 2000 dollars by april 15th for 2001, so my time is limited. i am willing to take some risks, but i don't know what exactly would be too risky. any advice on getting a good start with this will be greatly appreciated.