can we try to create a "top ten" list of the risks associated with being a fiduciary of a LESOP or ESOP?

I have a 401(k) plan that was effective 1/1/00, but they made no contributions during this year. They began deferrals as of 1/1/01, and I am working on their testing for plan year ended 12/31/01. Can I use the deemed 3% rule for the NHCEs, even though it technically is not the first year of the plan?

On Sch A there is a question re: basis of premium rates.

We have qualified plans funded w/individual flexible premium annuity contracts. The amounts contributed into these contracts are calculated in accordance w/the formula/allocation outlined in the plan document. The insurance co does not tell the plan the amount to be contributed. Instead the plan directs certain amounts for deposit into these individual contracts.

What information is the IRS looking for in response to this question?

Since this is a qualified retirement plan instead of a welfare benefit plan, would it be appropriate to answer N/A and continue on?

We have an employee who turned in a receipt for a bunch of prescriptions that included shipping charges. Can we reimburse this shipping charge along with the prescriptions as a medical expense? Does anyone have any documentation saying one way or the other? Thanks for your help!

Rachel

When Prudential sent out letters last year to terminated defined beneift plans, I didn't expect them to actually give stock to nonparticipating nonmutual contracts such as group annuities upon a plan termination. Well, now they did. There have been many threads on these boards dancing around the issues involved without clear guidance.

Has anyone received official guidance from the IRS on the various tax issues?

Has anyone received official guidance from anyone on various trust/employer/reporting issues?

I can list more than 40 specific (semi)unanswered questions, but first need to find out if the IRS has given any insight on this (I am not talking about extrapolating general principles from other similar situations - I am looking for concrete info directly on these demutualizations; and the information from Prudential is worthless).

We are a small TPA. Some plans we administer make deposits for claims and expenses directly to a common account that we disburse claims reimbursements from and others have their own account which claims are paid out of. We have a fidelity bond in our name. Does each plan need to be purchasing a bond in the name of their plan? These plans involve only medical and FSA's, no retirement plans.

I was wondering if someone turned in a receipt for a massage for chiropractic treatment that was perscribed by the Doctor is it eligible for reimbursement in his flexible spending account.

Are Hedge Funds an allowable investment within an IRA account. It seems as though they are handled like Private Placements, does anybody know by chance???? There is no reference in any publications that govern IRA's. Anybody????

We are a small TPA. Some plans we administer make deposits for claims and expenses directly to a common account that we disburse claims reimbursements from and others have their own account which claims are paid out of. We have a fidelity bond in our name. Does each plan need to be purchasing a bond in the name of their plan? These plans involve only medical and FSA's, no retirement plans.

Links to new versions:

• Publication 571, Web page version
  
• Publication 571, PDF version
  
• Publication 575, Web page version
  
• Publication 575, PDF version
  

Links to new versions:

• Publication 571, Web page version
  
• Publication 571, PDF version
  
• Publication 575, Web page version
  
• Publication 575, PDF version
  

Could someone please let me know what they give there clients as documentation for a Cash-Opt Out Plan?

Thanks

A widow whose husband was a participant in a profit sharing plan did not request her husband's plan distribution until a year and a half after his death. In the interim the market dropped significantly. The plan states that the amount in a participants plan vests at death and shall be distributed in a reasonable time thereafter. The plan administrator has denied the date of death value. I have been unable to find any guidence in ERISA. I would like to find some statutory law, rather than plan/contract interpretation, but have been unsuccessful. Any thoughts, suggestions?

withdrawals from roth ira IF you take out only what you put in, then how do you explain this to irs? i received a letter from irs because the mf co. simply stated the withdrawal as a pre 59 1/2 withdrawal. the mf co. didn't know nor care what the details were. how can i keep the irs from doing this again. Is there a way to get the mf co. to code it a different way? Don't they know onlt principal was taken out?

Can anyone point me to the place where it says specifically that a GUST determination letter application must be filed no later than February 28, 2002 vs. received by February 28, 2002. I know the answered is filed but I cannot prove it.

Last year, my company was purchased in a stock deal by another organization. My company set up a new 401(k) plan and a DB plan. We are doing coverage testing and are trying to determine who the highly compensated employees are. Do we include compensation paid by the old company -- basically, my question is does the HCE definition require prior employer compensation be considered when determining an HCE if it was stock deal?

Can expatriots participate in a 403(B) plan? If not, the company is interested in providing something to the expatriots to make up for any lost benefits. Any suggestions?

Thanks.

I've run into the situation described below:

Plan document states that ER Match forfeitures are used to reduce the match contribution in the year of the forfeiture. At 12/31/01 there is an $18,000 balance. The match formula is not discretionary and the match was fully funded by 12/31/01. (The forfeitures were not used to reduce the contribution.) In addition, the plan held about $17,000 in forfeitures at 12/31/00. Again they were not used to reduce the match.

I feel this plan was overfunded on 12/31/00 and 12/31/01 and is subject to an excise tax. Also, I would assume the total 12/31/01 match amount deposited is not deductible.

A suggestion was made to cut a check back to the employer for the amount of the forfeiture account. Isn't this a reversion of assets?

Any advice would be greatly appreciated.

Is the IRS still pondering the question of allowing elimination of optional forms of benefit under DB Plans? I remember reading something, somewhere, that they may revisit this issue or maybe even propose some regs in 2003. Has anyone heard this as well?

A calendar year plan currently has the following benefit accrual requirements for sharing in the profit sharing contribution:

1- those participants who are employed on the last day of the year --> shall share in the profit sharing with no hours requirement.

2- those participants who are NOT employed on the last day of the year --> shall only share in the profit sharing if they completed at least 500 hours during the plan year.

The employer wishes to amend the plan to the following benefit accrual requirements:

1- those participants who are employed on the last day of the year --> must complete at least 500 hours during the plan year to share in the profit sharing.

2- those participants who are NOT employed on the last day of the year --> shall NOT share in the profit sharing, regardless of hours worked.

Due to anti-cutback, must the employer wait until the plan year beginning 1/1/2003 to make both of these changes? Or, since it is unlikely that anyone has completed 500 hours of service yet this year, can the second benefit accrual requirement be amended effective this year?

Thanks.