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.

Are lump sum distributions allowed to roll-over into an IRA? It is a Defined Benefit, using prototype language, and been set up for the region's Catholic church. It has never been filed to the IRS and no 5500's have ever been filed.

Every book I look in refers back to 403(B) plans, is there a Church Plan answer book out there?!!:confused: Any help would be appreciated!

This is a weird one but let me know if anyone has had a similar situation.

I have a participant who had a stroke and is mentally incapacitated - to what extent I am unsure. He is living in a nursing home and his spouse wants his money from the Plan to pay the nursing home. Here are the facts:

1. There is no beneficiary form on record.

2. This spouse is spouse number 2.

3. Apparently they were married after the stroke - somehow. How this is possible if he is "brain dead" as it was described to me by the client -I do not know.

4. He has a former spouse and children by his first marriage who think they might be entitled to the money.

5. The current spouse does not have Power of Attorney and does not want to obtain POA.

The participant has obviously been terminated and is eligible for a distribution. What happens if he is unable to request the payment himself and what rights does the current spouse have?

Isn't there some rule about having to be married at least a year to be a legal beneficiary (assuming no form so it automatically goes to the surviving spouse not withstanding anything to the contrary)?

Who should this money be paid to and how do they go about getting the ball rolling?

Any advice would be greatly appreciated.

Thanks.

we are a small company and we want to implement a plan to reward employees who receive advanced education and certificates in the form of an "extra" day off. Does anyone have such a plan that they are willing to share and what types of concerns besides, exempt/non-exempt issues to we need to be aware of in implementing such a plan?

I have a retiree who elected a 5-year Certain & Continous annuity option when he retired in late 1997. He was not married at the time he retired and he named his son the sole beneficiary for all benefits owed (pension & life.)

The retiree is now terminally ill and has called in to check the status of his benefits and has asked for a confirmation of his named beneficiaries. Typically we send beneficiary change forms along with the beneficiary confirmation because that is often the next request.

In the course of conversation with this employee, I discovered that he is now married. The change of beneficiary form I use for the pension plan includes the spousal consent section should the retiree not name his wife his beneficiary.

My question is this: Is the spousal waiver required now should the retiree choose to name someone else? Say a daughter? I think his intention is to name his wife, but the form I am using brought up the question.

Happy Holidays to all.

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

I just received a question from a client who maintains a Profit Sharing Plan with the 401(k) Option. They wanted to know if an outstanding loan can be rolled over to another qualified plan along with the vested benefit once an employee is terminated.

My initial though was that it would depend on if the receiving plan accepts such a rollover. But the more that I think on it and look through this client's Individually Designed Plan Document and loan policy, I am thinking that thay would also have to amend their loan policy to accomplish this. So now I have really confused myself.

Has anyone come across a situation like this? Is there any specific loan guidance on something like this or do practicioners prepare amendments to get the desired results? Any thoughts that you may have would be greatly appreciated.

Employee never enrolled in employer's group health plan for economic reasons.

Employee experienced serious medical problems.

Employee applied for and eventually obtained catastrophic-only coverage from a state program available to otherwise uninsurable persons.

Employer paid for employee's premiums under the state coverage scheme.

Employee went on Family and Medical Leave.

Twelve-week maximum leave period expired, triggering COBRA obligation.

But, is there a COBRA obligation?

Even though there is no group health coverage, does employer's payment of premiums for individual policy create an expectation or entitlement to COBRA (presuming employer did not expressly state that it was not bound by COBRA in subsidizing the coverage while the individual was actively employed)?

Employee Bob participated 1971 to 1982 in a defined benefit pension plan that offered no death benefits. Bob has been a terminee with vested benefits, waiting until attainment of normal retirement age (to be attained in 2010) to commence payment of his benefit. Bob died in January 2002. Of course, the plan was amended for REA many years ago, but the plan terms under which Bob participated gave no survivor benefit.

Question: Is Bob's widow entitled to minimum survivor benefits under REA?

Thanks.

Can defined contribuiton plan documents provide that a layoff is a distributable event? Or does a layoff have to be considered a termination of employment for a laid off participant to receive a distribution?

Excerpt from 1.401-1 (B)(1)(ii):

(ii) A profit-sharing plan is a plan established and maintained by an employer to provide for the participation in his profits by his employees or their beneficiaries. The plan must provide a definite predetermined formula for allocating the contributions made to the plan among the participants and for distributing the funds accumulated under the plan after a fixed number of years, the attainment of a stated age, or upon the prior occurrence of some event such as layoff, illness, disability, retirement, death, or severance of employment.

What is the proper method of correction if a company fails to offer the election to qualifying participants? In some instances, the qualifying election period has already passed.