I'm suffering from brain cramp today, and my brains have turned to sand and are running out my ear every time I tilt my head.

Is the Gateway minimum calculated on the cross tested plan alone or does it include the 401(k) contributions?

Example: Highly Compensated employees receive 20% of pay between both plans, but only receive 9% in the cross tested. Is the Gateway minimum 5% or 3%? I think that under 410(B) these are not aggregated, and it is the 3%. Would appreciate any opinions! Thanks.

A client is interested in providing QSERP benefits for former HCEs covered under a nonqualified SERP. There is not too much guidance in the regs regarding coverage and nondiscrimination testing for former employees. It states that many of the tests applicable to actives will apply to former employees. I'm assuming that for the general test, annual accrual rates can be determined by taking accrued or pensions in pay and dividing by credited service and then proceding as usual. Any thoughts or suggestions?

If a Plan Sponsor has an existing SIMPLE IRA Plan in which a contribution was made in 2002, however would now like to discontinue the SIMPLE IRA Plan and begin a Safe Harbor 401(k) Plan - can this be done? And if so, what are the limitations in regards to contributions? Does the Plan Sponsor just need to make sure contributions don't exceed the $11,000 level or is it more complex than that? Thanks.

Is it necessary to prepare an SAR for a 403(B)(1) plan? We have prepared the Form 5500 and need to know if ee's need to receive an SAR. Thx!

I've been responding to the IRS on several individually designed plans and I have gotten a couple of requests to modify the language I use for HCE definition to "affirmatively" elect use of the top-paid group. I have been using language similar to Pamela Perdue's in her volume submitter plan in her treatise, and am not sure what the IRS wants as an affirmative election--do I need to state that the employer affirmatively elects to limit the HCEs to the top paid group? Has anyone else run into this on individually designed (as opposed to prototype with adoption agreement) plans?

Based on the existing plan contribution information, it seems that this plan would be better off to amend the document to add the 3% Employer Non-Elective Safe Harbor Contributions to NHCE's and eliminate the existing match provision of 50% of the percentage deferred up to 10% of compensation(maximum def.%). If plan is amended, should the amendment be effective 3/1/2002 (2/28/ PYE)???????

Also, to maximize the contributions for HCE's amend the maximum deferral percentage from 10% to 15% or 20%..... The 3% Non-Elective Contribution would satisfy the Non-Discrimation Test and the 3% Top Heavy Minimum Contribution.

Please help me on this one............... Also, if anyone has a sample notice to participants regarding the addition of the safe harbor contribution methods if electing the matching or 3% non-elective method.. My email address is rvidovich@nebsonline.com.

Employer health plan currently covers a minor who lives with the employee even if not the employee's child. Employer is amending the health plan to eliminate dependent coverage in this situation. Is the Employer required to offer COBRA to the minors who will lose coverage due to this amendment? Thanks for any input.

rules on what the ssame company that has annunity contract can charge to the annunity 403b from their administered Long-term disability contract.

A friend has a QDRO for her ex-husband's DB plan that says she can start taking distributions when the ex starts taking distributions. (I'm not sure who drafted that). The ex doesn't want to take any distributions just to spite her, even though he's retired. The ex is 65 and she is only 60. Is there a way to amend a QDRO so that she can start taking distributions before her ex starts taking them?

I plan to open a roth IRA stock account under both my wife and I. It is much easier to manage only one account.

Is this allowed? Could we put in totally $6000 for year 2002? What is the difference if each of us open a roth IRA account?

Thanks.

Very small management company with generous 100% employer funded SEP-IRA signed a co-employment contract with firm (to do the health, UC, WC and payroll) which offers 401(k) plan. Can they do both? The SEP-IRA is all er-funded, the 401(k) would be all ee-funded. Limited to combined 25% or 415 limits? Or none of the above?

A plan makes matching contributions on a monthly basis. However, due to an oversight, several employees (but not all) have not yet received their 2001 matching contributions. The terms of the plan document allow the employer to contribute the matching contribution as late as is allowed by law (i.e. the filing of the tax return).

Since most employees received their matching contributions each month, is the sponsor required to provide earnings to the few employees who will receive their match "late" (but within the legal time frame)?

This does not appear to be covered under EPCRS. It's not a failure to follow the plan document, but results in disparate treatment of certain participants.

Thanks in advance for any comments/thoughts.

In a plan which allows after tax voluntary contributions and is thus subject to the 401(m) ACP test, does the plan need to be amended to reflect the repeal of the multiple use test? The plan does not contain employee elective deferral provisions.

Company 1 sponsors a 401(k) plan and elects safe harbor for 2002 plan year. Company 2, an unrelated, non-control group company adopts company 1's plan. Is company 2 bound to operate under the safe harbor election as well?

Hope everyone had a happy and peaceful new years eve'

i would really appreciate any and all responses (CAVEAT: limited to marginally intelligible responses as usual please)

my question - which is time sensitive, is - when is a custodian NOT a fiduciary????

thanks in advance.

I'm a freelance writer in search of sources for a story I'm writing about the leading certification programs for employee benefit administrators in the corporate plan sponsor market who specialize in 401(k)s and other defined contribution plans. Specifically, I'm looking for a contrarian view about the state of all these programs, including CEBS, ASPA, SHRM and WorldatWork. I'm interested only in speaking with someone who's responsible for in-house plan administration, not a consultant or vendor. Candidates may or may not have initials after their name, which isn't as important as their opinions. I'll be glad to protect your anonymity if you're worried about reaction to your comments.

Please e-mail me ASAP at shutan@mindspring.com if you're interested in chatting.

Can a group of entities each able to have a 457 plan use a master trust?

I am working with a Defined Benefit SERP established about 10-15 years ago. The payout formula of 2% of final salary for each year worked for up to 30 years is reduced for early retirement. The reduction results in the individual receiving 75% of the benefit formula if he/she leaves before age 65. Does this sound like a normal preretirement reduction formula? What other preretirement reductions have you see imposed?

We have never filed a Form 5500 for our LTD plan that covers over 100 Directors & Officers

We have been able to get Schedule A data back to 1995 plan year to complete Form 5500's for 1995, 96, 97, 98, 99 & 2000

Using the DOL's DVFC program, we incur $ 25K in late filign fees under DFVC

Is VCP available for late Form 5500 filings?

If so, would it be cheaper to go this route (assume we will prepare the VCP filing inhouse)?

Thanks

A medical group client of mine recently restated to a 401(K) safe harbor plan using the 3% safe harbor. One of their HCE's is the former owner of a business that they bought. In their contract with him, they agree to put $2,250 into the retirement plan for him. His comp is about $180,000. Can a prototype be plan be drafted to limit this one HCE to the contractual amount while the other HCE's receive the 3% safe harbor? Thanks.