This may be a stupid question, but does the mandatory 20%withholding apply to a required minimum distribution due to attaining age 70 1/2? Thanks for any help!

Are there any privacy issues for a multiemployer collectively bargained pension plan in Texas which discusses disability claims at its meetings? Trustees, consultant, TPA, and attorney are present at the meetings. Final HIPAA regs apply to health plans, clearinghouses, and providers.

What happens if a corporation sends their TPA a matching contribution before march 15th, and the TPA forgets to deposit the money into the account? The corporation filed their tax return on the March 15th deadline. Would there be additonal penalties other than the corporation losing the deductibility of the money in the 2001 calendar year? The corporation could deduct the amount in 2002, couldn't they?

I would appreciate any feedback you may have on this topic.

Is a fee for service dental plan a benefit that employees could pre-tax under Section 125? It is not an insurance product. The members of the plan must use certain providers and pay a fixed fee for most dental procedures and receive a negotiated discount for other procedures.

This plan also has discounted vision,chiropractic,and some discounted prescriptions as long as they use providers that are members . Any help would be appreciated.

Paul

Are there any laws or codes governing the arbitrary offering of health Insurance benefits to employees as well as arbitrary waiting periods for each employee of the same company. Once an employee is given Insurance benefits is the employer committed to offer the other employees in his company the same benefits.

I am a U.S. Citizen who lives in Japan. I am currently unemployed and may choose to stay that way. My wife and I recently had a large windfall and want to invest it in bond funds for income preferrably in a tax deferred investment account.

Is is possible to open a Roth IRA in my situation?

We have 2 LTD plans that cover collectively bargainned unions.

As long as their is a claims review process in place spelled out in combination

of agreement/plan document, are these LTd plans exempr from the new claims

rules?

Any insight would be appreciated

We have a client that has two plans with different year ends. Top heavy testing aggregates those plans ending within the same calendar year. Under what rules would we test as of 2001 for 2002? The July 31 plan year ends 2001, so it doesn't seem logically to merit testing under the new rules. But the 401(k) plan ending 12/31/01 obviously is tested under the new rules. Any ideas?

say a participant has attained age 70 1/2 and began taking MRD from his dc plan in 2000 using the single life table. his beneficiary is his daughter. he dies and the daughter doesn't want to be taxed on the full balance. new MRD rules seem to indicate that she can continue the MRD, but that her life expectancy would be used, not the participant's. this seems available only if the plan utilizes the "alternative rule", rather than the "5-year rule" for purposes of determining when the distribution must be made.

questions are:

1. am i right?

2. if the plan does not currently utilize the alternative rule, can it be amended at this point to do so?

We have a Plan that has informed us considering terminating their 401(k) at the end of this year and doing a SIMPLE-IRA in 2003. They have until 12/31/02 to update their 401(k) document. If they decide to terminate the 401(k) in 2002, do we have to still put them in a new document or can we just use "tack on" amendments, similar to how we have handled it the past few years?

Employee goes on worker's comp. Only full-time employees are eligible for coverage under company's group health plan, so employee could have been dropped due to his reduced hours. However, company does not cut-off group health coverage, but continues to cover the employee on worker's comp just as if he were a "regular" employee. After 25 months, company discovers its error. Of course, company gave no COBRA notice when employee went out on worker's comp.

Is the company still obligated to offer COBRA to this individual or can the company "credit" the 25 months of coverage it provided against the COBRA maximum coverage period?

The regs (54.4980B-7, Q&A7) seem to allow the company to credit the alternative coverage. My concern is whether the failure to provide a COBRA notice is fatal to that position.

Any thoughts?

Question -

A small money purchase pension plan fails to make it's minimum contribution of $30,000 by the deadline of 9/15. The contribution is then made on 9/18.

I understand that the contribution deduction will be dissallowed, but will a 5330 need to be filed and will the excise tax be $3,000 for the 3 days in question?

Thanks,

Ronnie Wasel

Previously asked for experiences/interpretation of a Mandatory Victim Restitution Act garnishment of participant's qualified plan account. In the interest of protecting the Plan and the Trustee, the Trustee contested the garnishment. Federal court has now ordered Plan to pay the garnishment (Court essentially equated the MVRA judgment to an IRS levy.) Now, the questions are:

1. Is distribution exempt from 10% early distribution penalty?

2. Can the attorney fees for contesting the garnishment be paid from the Participant's account (as opposed to a Plan expense)? And, if so, is that a distribution or an expense? THANKS

I have been unable to locate any specific revenue rulings which state whether key-employee insurance is subject to the limitations of the "Incidental Rule" required for life insurance coverage in defined contribution plans. Does anyone have any suggestions? Thanks!

Hello, new to the board as far as posting, not new to the industry. My understanding of allocating forfeitures are they are included in total allocation for the 415 test but they are not shown on the ADP/ACP test as an employer contribution because it is not new money to the plan.

This plan I'm working on says the forfeitures are "added to the employer matching contribution". Specific reg I can refer to would be great!

If a plan terminates, and all assets are distributed, when is the 5500 deadline? 7months from distribution/termination, or 7 months from end of what would have been the plan year?

Thank you for any replies.

Crystal

I administer a plan that clearly had a partial termination in 2001. Therefore, I changed the vesting of all employees who were terminated in 2001 to 100%. Two of the employees have already been rehired in 2002. The question is should the rehires vesting remain at 100% or should their vesting go back to what it would have been had there not been a partial termination?

Can someone please give me a simplistic explanation of what Qualifying Employer Real Property and Qualifying Employer Securities are.

THANKS in advance.

I put in $2000 early this year for my 2001 Roth IRA contribution as I did the year before. But after roughly doing the tax return calculation, I found out the the joint growth income for both me and my husband is over 150K but still below 16K last year, which means I put too much in. What can I do at this point to correct the situation. This is aparently an honest mistake since we just bearly made it there and had no way of knowing it exactly without doing the tax return calculation.

After working for the company for a number of years, an employee quit and was rehired after a year and a half. According to the plan, an employee is eligible for a match after 6 months and then is 100% vested in the match, but the plan is silent on addressing a match after a break in service.

Is there a general rule: does the employee have to rewait the 6 months for a match? Or, is it up to the employer/the plan is controlling (which means the plan must be amended to address this issue)?