Our city has a 457 deferred compensation plan. The approved product providers are Great-West Life, Nationwide, Equitable, and ICMA.

Is there any governmental rules, IRS regulations, or laws, that would restrict an employee or retiree from transferring their account balance to a 457 product provider other than those listed above as approved product providers?

In other words...can a 457 plan participant transfer their account balance to any product provider qualified to accept the transfer...just as a 403(B) participant can do a 90-24 transfer?

Thanx,

James Jackson

Dad (84 years old) died May 2001 before taking his required minimum distribution for tax year 2001 RMD was taken in Dec. 2001 and distributed to the beneficiarys...... I am the executor and one of 2 beneficiaries of the IRA

Just got off the phone with Fidelity. They reported my dad's MRD under his SS number even though the MRD was taken out after he died and the distribution was given to the beneficiaries. I have attempted to get Fidelity to issue a corrected 1099-R for them to report the distribution to myself and my brother--the beneficiaries!!! Fidelity has stated that the distribution (of 20,000.00=MRD) SHOULD go to my father and be reported as income to him!!! Is this correct??!!!Dad had thousands over 35000.00 in medical expenses that can easily be deductible! I cannot claim him as a dependent so therefore eating alot of medical deductions since his only income for 2001 was 6000.00. (This really works in my favor--not to have to report this income as my own but feel that this is wrong advice.)IS IT? After the conversation with Fidelity... I do not think I will be getting a corrected 1099-R and they have me believing that his MRD can be reported as income on HIS tax return. Can I legally report his RMD as his income even though it was recieved after death?

Julie

:confused:

Employer sponsors a money purchase plan and the plan year end is 9/30/01. Employer is having financial hardship and does not think they will be able to deposit the contribution by the filing deadline of their corporate tax return. The are past the 2 1/2 month deadline after the plan year end to apply for a minimum funding waiver. What options are available to the employer, if any.

What governs rounding of the EBAR or Employee Benefit Percentage for Average Benefits testing purposes? Is there a requirement? I haven't found one.

Please advise on a simple eligibility question.

My mother is retired.

For tax year 2001 she drews Social Security and had income from the sale of equities.

Being retired, can she contribute to her IRA and gain the benefit of the tax deduction?

My advice to date is no.

Thanks

Brian

We have a client who paid to the PBGC monies for 3 missing participants out of a terminating DB plan. Is the plan sponsor required to issue Form 1099's for these distributions? If so, to whom? If the participants are missing, can't issue to them.......Would a Form 1099 be issued to the PBGC?

Any thoughts would be appreciated.

Thanks.

Is there anywhere in the code that prohibits an owner of an LLC in a SIMPLE ira to not be able to receive the ER match?

We have just taken over an age weighted plan. We need to get the document amended by 2/28/02. Due to time constraints, we hope to put them in our nonstandard document and attach a resolution to adopt an age weighted formula. Any problems with that? I don't see why we can't, but maybe I am missing something.

Thanks for any help.

Owner A......Owns 80% of Company X other 20% owned by his wife

Owner A...owns 50% of Company Y and 50% owned by Owner B

Company X has 401(k) Plan...Do they have to include Company Y and can they exclude this company since Owner A doesn't have 80% ownership in this company?

Last week, a retired municipal 457 plan employee, age 54, rolled over his 457 plan balance into an IRA...thus becoming subject to the pre age 59 1/2 early withdrawal penalty.

Can this be reversed? Or fixed in any way?

Thanx,

James Jackson

entered into 72-t agreement 2 years ago at age 50. elected the highest amount to withdraw annually till age 59 1/2. based on IRA balance at that time, $400,000 annual payments projected to be approx. 29,000.

funds invested in biotech, which the market has not treated kindly. consequently the funds will run out prior to age 59 1/2 and i am told that the 10 % penalty would be assessed.

questions:

1. the 10 % penalty- will it be assessed on the original amount of 400,000 or on the amount received, say 250,000.

2. the 10 % penalty-will it be assessed in the year that the 72-t ceases to provide the 29,000 or do i have to amend all the prior years that i received withdrawals?

3. knowing that the plan will fail, can i elect out of the 72-t and pay the penalty for years that withdrawals were taken.

4. or, any other suggestions to get me out of this muck!!

many thanx

john

Is a 403(B) plan considered to be a "successor plan" for purposes of the rules applicable to distirbutions from 401(k) plans upon plan termination (Reg 1.401(k)-1(d)(3))?

Our dependent eligibility rules allow for full-time students over the age of 18 but under 23 to be enrolled in our health plans. We have an employee who a student is enrolled in an distance learning program for a vocational certficate as a Veterinary Assistant.

Would you consider this student as a "full-time student" or do they have to be in a "bricks and mortar" school to qualify?

Big Co. owns 65% of JV Co. Big Co. and JV Co. both maintain separate 401(k) plans but both plans participate in a master, group trust sponsored by Big. Co. for its affiliates (including JV Co.) where assets are tracked separately but combined for investment purposes. The master trust is therefore a group trust under Rev. Rul. 80-100. Both 401(k) plans allow participant-directed investments.

Big Co. sells all of its interest in JV Co. in March. Big Co. proposes to amend master trust to allow JV Co. 401(k) plan to stay in trust until December to allow smooth transition to new trustee, etc. JV Co. must leave the master trust by 12/31.

I have heard that this somehow creates problems under the securities laws but nothing specific has been articulated. Has anyone ever looked at something like this -- separate employers (although formerly related), separate plans but a single trust?

We have a client who has a Tandem arrangement between a nonqualified Rabbi Trust & a 401(k) Plan. The HCEs are encouraged to contribute to the Nonqualified plan, then at year end, we transfer the amount allowable under the ADP/ACP test into the 401(k) plan.

This has worked fairly well in past years, but now there are several HCEs who do not contribute to the NonQual plan, but contribute large amounts to the 401(k) plan. If, as in the past, we do our initial ADP/ACP test considering contributions made to both plans, & transfer the passing ADP/ACP amounts into the 401(k), then those who didn't participate in the Rabbi will get refunds (instead of just having some contributions remain in the Rabbi).

I'm wondering if we should only transfer amounts in from the Rabbi to the extent that the 401(k) plan will pass the ADP/ACP without refunds. But if we do that, then the HCEs who declined to participate in the Rabbi end up getting significantly more in the 401(k) than those who participate in the Rabbi. This seems unfair to those who do participate in the Rabbi, since the 401(k) plan is the better place to have your money.

The law seems to state that we can only transfer into the 401(k) amounts that do not "violate the ADP test." Yet the ADP test only establishes an average, not an individual maximum per se. What if the transfer amounts are fine for those who are getting the transfer, but force those who don't participate in the Rabbi to get a refund?

Is the plan able to require that HCEs contribute to the Rabbi? Has anyone else been through this? I don't see any guidence in the regulations. Thanks.

Grant

We have a 401(k) plan that is a multiple-employer plan. Two unrelated employers adopted the plan. Participants may direct investment into a fund consisting of employer securities. There are also other options in the investment menu.

We have Employer A and Employer B.

Is Employer A stock considered Qualifying Employer Securities with respect to employees of Employer B (and vice versa)?

If it makes any difference, Employers A and B were previously in a controlled group but due to ownership changes are no longer members of the controlled group.

Any thoughts?

I have a client who has mailed out the Notice to Interested Parties to all applicable parties, but she has also posted copies on bulletin boards and on their website.

Is there a time requirement of how long the Notice to Interested Parties must be posted?

Neither Rev. Proc. 2001-6, 2001-1 SEC. 18 nor SEC. 17 state how long the Notice should be displayed.

Any guidance would be greatly appreciated.

I always find the possible interrelationships of plan years, limitation years, compensation periods, and deduction periods somewhat challenging. Suppose you have a DB plan, with a calendar plan year 2001. Can they have a limitation year of 1-2-01 to 1-1-02, therefore allowing the higher EGTRRA limits? It seems to me that thay can - if so, what would be the down side, if any? Appreciate any comments.

We have 2 Canadian employees who have been on medical leave for over 3 years.

After 3 years, the collective bargaining contract considers the employee to

be

terminated.

I am unfamilar with Canadian benefits. Does Canadian law require certain benefits

to continue such as medical, LTD, and pension while on a medical leave?

What is a good reference source for Canadian benefits laws?

Thanks

We have 2 Canadian employees who have been on medical leave for over 3 years.

After 3 years, the collective bargaining contract considers the employee to

be

terminated.

I am unfamilar with Canadin benefits. Does Canadian law require certain

benefits

to continue such as medical, LTD, and pension while on a medical leave.

What is a good reference source for Canadian benefits laws?

Thanks