Has anyone encountered this question. The final regulations state that the commencement of an unpaid LOA is a change of status. This may be pushing the envelope, but what about an employee's spouse who goes to a partially paid medical LOA where the pay will be equal to 20% of the pre-LOA earnings. Equity dictates that this should be change in status, but the regulations rule. Any thoughts??

I have a client who is in the process of doing a QDRO for one of her employees and the alternate payee is requesting that an account be set up for her and maintained by the plan (she apparently likes the fund selection & performance). The trustee does not want to do this - she wants the alternate payee to take a distribuiton now. Is the company required to set up an account for a non-employee?

Thanks!

Are health insurance premium increases a qualifying event in order to change from your plan to your spouse's? I have a situation where the wife did not take her insurance at open enrollment (March) due to higher costs. However, her spouse's plan will not let her enroll until open enrollment (July).

If this is the case, she would technically need a qualifying event to disenroll from her plan in order to come on her husband's since Section 125 POP plans require a "qualifying" event to change at any other time other than open enrollment.

Any help is greatly appreciated.

Can I contribute to multiple Roth IRAs or is my 2001 tax year contribution limited to one Roth IRA? Please advise.

AJ

A stock bonus plan wants to sell some of the employer stock that it holds to the plan sponsor in exchange for cash and a note. Assume that the cash and note are FMV for the stock. Is the note a separate prohibited transaction? Or, is it fine that part of the value provided in a 408(e) transaction is a note?

A client just informed me that the tax id number that is listed on their Form 5500 is the number for one of the companies that is part of their controlled group, but it is not the tax id number for the company whose name is on the plan. That is, this company is made up of a few companies, but all are a controlled group and all covered by the same 401(k) plan. The name of the plan is ABC 401(k) Plan. The tax id number used on the 5500 belongs to DEF company - one of the companies in this controlled group.

Does this matter?

Thanks for your help.

Is the employer and/or plan administrator required to monitor employment status and level of income of the non-custodial parent when a National Medical Support Notice was determined to be "qualified" but the employee's income was found to be insufficient due to state/federal withholding limitations which prevent the withholding from the employee's income of the amount required to obtain coverage under the terms of the plan? If so, then what is the length of time and frequency required to track the employee's status and income?

What are the requirements for including privacy provisions in a plan document or summary plan description for a self-funded welfare plan? Is there a model notice that can be incorporated into the document?

Do any accounting types out there know what, if any, financial statement disclosure is required for potential withdrawal liability? For example, ABC company contributes to a multiemployer plan and anticipates that it will continue to do so for the foreseeable future. Must ABC show on its balance sheet, footnotes, etc. the withdrawal liability that it would incur if it were to withdraw?

This non-accounting type appreciates any and all responses.

Thanks.

We currently provide a variety of implementation and administration services for our clinets (i.e., section 125, COBRA, Benefit Statements, etc).

We have been asked by an existimg client to provide implementation and administration of a "Davis Bacon" like plan. The employees are non-union, but work on projects that require the employer to pay a prevailing wage. The employer currently pays this out in cash (taxable) and has been convinced that they will save big bucks if the money is used on fringe benefits (specifically medical coverage and pension plan) because of the employer's tax savings. I have lots of questions, but my first and most important is:

1. Does this employer have to implement a Davis Bacon/Prevailing Wage plan if they want to contribute this money to fringe benefits or can it be handled through a Flex Plan in which the employer provides employees with credits to pay for these benefits?

Thanks for your help!

With Respect to SARSEPs, in a plan that makes 5% of salary automatic contributions each year, what is the maximum deferral percentage for an employee under the JCWWA law? Specifically, can an employee who is earning, say $44,000, defer 25% of their pay up to $11,000?

I am trying to find classes and/or seminars on SEC Compliance - specifically Section 16 requriements. I have found that E-Trade offers some seminars, but can't attend that date.

I've spent a lot of time searching on the internet and am not able to find anything else. Does anyone have ideas about where to look for that type of information?

Thanks!

I heard/read somewhere that a dozen or so states, including PA where I live, tax a certain portion of your 401K contributions. Is this true and does anyone know where online I could find more info on this?

Contributions should be pre-tax (unless owner specified) under both Fed and State taxation...correct?

Partnership adopted SIMPLE IRA (prototype) in April, 2001. Effective date of the SIMPLE IRA was January 1, 2001. Deferrals began in April.

Question: With respect to calculating the 3% match, do we use compensation for the whole year or do we use only compensation from April thru December?

Controlled group members 1 and 2 both sponsor Section 401(k) plans. An employee from controlled group member 1 transfers to member 2. What is the best way to transfer the employee's account from member's 1 plan to member's 2 plan? Can I use the new EGTRRA 411(d)(6)(D) plan transfer provision?

How are timely 401(k) refunds treated under the Average Benefits Percentage Test component of the 401(a)(4) test? I have one with refunds under the ADP test and the 402(g) limits. I think the last time I looked this up the answer was "unclear".

Opinions? Thanks.

1st year 401(k) Plan, no NHCEs defer. HCE's defer 5%. Is it ok to use 3% (prior year) to pass ADP & ACP Tests? I can't think of a reason not to.

I talked to John Tolleris shortly before the end of the year regarding such an issue and he said that proposed regulations should be coming out soon. First question is has anyone seen them? Second question is to what extent will such proposed regs be issued now that the limit between 401(k) deferrals and 457 is not tied together going forward?

I'm completely lost on how to find an answer for this one. I've been looking, but I'm at the just ask everyone stage.

What are the citizenship requirements for opening a 529 plan? It seems that even if the beneficiary is a US citizen, a relative outside the US cannot open an account for them without a SS#.

Has anyone encoutered this? Has anyone found a work-around?

HOW DOES THE DEDUCTION LIMIT FOR AGGREGATE PLANS (EMPLOYER MAINTAINS BOTH DC AND DB PLANS)APPLY WHEN NOT ALL PARTICIPANTS IN THE DC PLAN PARTICIPATE IN THE DB PLAN? PLS HELP. THANKS.