Anyone heard when Congress may tackle the “technical corrections” that will make 457(B) deferral limits 100% of earnings instead of a 50% effective percentage (because, unlike the 401(k) and 403(B) 100% limits, the 457 limit is 100% of taxable earnings)?

I am looking for a good article that addresses the inappropriateness of using universal life contracts to fund 412(i) plans. I am trying to convince a 31 year old that he and his wife cannot deduct the $250,000 that his insurance agent and his accountant are telling him that he can. Any help would be appreciated.

When is the last day to establish an IRA in order to make a 2001 contribution?

Does anyone know if there are any IRS rules or publications of what can and cannot be held in an IRA? I.e. real estate, certain collectible coins, private placements etc..... :confused:

Okay - my search is getting frustrating. I'm looking for a link to the Q&A's - specfically #36, which discusses the Notice to Participants upon term when QJSA is a distribution option.

Specifically - is the notice required to calculate the QJSA payments or only required to provide the participant in simple language (HA) the formula and anuity tables used to calculate the benefit from their lump sum amount?

Any help would be greatly appreciated.

Thanks

I converted a Roth IRA in 1998 and spread the payments over 4 years. Now the value of the IRA has dropped about 50% (admittedly due to some poor investing on my part).

While I understand that this was a risk when converting, do I have any options to reduce my tax liability this year? Essentially I am paying taxes on a quarter of the original amount, which has been lost.

Any advice? Can I somehow recharacterize the IRA and bring down to my current value? Or, can I claim losses on the IRA to reduce my income?

I currently have 2 traditional IRA's that are in the same account with my local credit union. One I deducted and one I did not deduct. I'm planning to convert these to a Roth before the end of the year but I don't want to be liable for the taxes on the entire total, only the taxes on the deducted portion. How do I do this? Any help would be much appreciated.

I'm looking for some research on the amount of charge offs/write offs a TPA running daily valuation generates. We are trying to determine how we stand up when it comes to the errors we make and the costs associated with errors.

Any information remotely close to this topic would be appreciated.

Can a safe harbor 401(k) using the basic match use a definition of comepnsation that wouold exclude bonuses?

Plan terminated and distribution paperwork was prepared after 6/30/01 valuation report was prepared. Valuation reports are prepared quarterly. Executed distribution forms were returned from 90% of the participants to the plan administrator by 8/2001, however, the participants did not receive distributions until 11/2001, in which the distribution amounts were based on the 9/30/01 report. Participants are screaming due to lesser distribution amounts. Plan administrator wants TPA to rerun 9/30/01 report and show distributions as a liability but remaining 10% of participants would share in the loss for the third quarter (approximately 77% loss per participant if we show a liability for the third quarter). Are there any options available to the plan administrator to appease the participants that were paid out and the remaining participants?

I have a client who currently sponsors a 4K Safe Harbor Plan for his employees. He recently bought another company, for which he owns a 100%, and would like to set-up a seperate 401(k) Plan for those employees.

I know for testing purposes, both company's will be combined as one employer. However, how would you handle the ADP test since one plan is a 4k Safe Harbor?

I understand the new claims rules apply to health plans. Do these rules apply to other types of plans such as disability, AD&D, life, etc...? Any responses greatly appreciated!

Client wants to terminate his Keogh plan prior to the end of the year and roll all funds into an IRA. He turned 70.5 during 2001 and wants to delay his first required minimum distribution until 2002. Financial institutions are telling him he must take his MRD in 2001 or they cannot accept rollover. Any guidance to support or argue this would be appreciated.

If an employee of a Sub-S who is not a 2% shareholder enrolls in an FSA Plan at the beginning of the year, but then has the opportunity to become a 2% shareholder mid-year, how will this effect his eligibility for the Plan Year?

Hi - I have a plan year-end 9/30. The plan failed the 415 test. Two participants are getting refunds (one participant is getting just employer match money and the other is getting employer match and employee deferral). All of the money will be refunded after the two and half month limit. Does the company owe excise tax on the refunds even though it's the 415 test they failed?

THANK YOU!

In a FSA when employee contributions are forfieted what options does an employer have with respect to such forfietures. I understand such amounts can be allocated to participants (basically pro-rata and not to the participant who forfeited such amounts) or used to pay reasonable administrative expenses. But it appears these forfeitures are plan assets and as such may only be used for the benefit of participants.

An employer has asked if he can set up a "compassionate use" fund to pay expense such as medical travel or wigs for cancer patients for plan participants or all employees and use the forfieture amounts to pay this?

My gut feeling says no but has anybody dealt with this.

I have a client that started a 401(k) plan effective 1/1/2001. In November, they transferred all of their employees to a PEO. The PEO has informed them that they have the option of keeping their current 401(k) program or changing to the 401(k) program of the PEO.

The PEO has assured the client, the TPA for the current plan and I that, even though the employees no longer work for the client, the 401(k) program which was originally set up can continue to be maintained, with the client signing off on forms provided by the PEO.

Is this reasonable (I thought the employees became leased employees at this stage), and if it is, can someone point me to a reference which allows it?

Thanks in advance.

Our current 401(k) document has quarterly entry points. We are considering going to monthly entry points. Has anyone else done this? Glad you did or whish you hadn’t? If anyone has any thoughts, I would love to hear them. Thanks!

Our employee eligibility provision use to state that employees may enroll on the first day of the month following sixty continuous days of being actively at work for the company. Due to HIPAA we changed this to eligible fot enroll on the first day of the month following sixty days of employment. An employee must have actually begun work before coverage may become effective. Is this verbage permissable under HIPAA or does anyone have a good example of how eligibility requirements can be worded in the SPD? We also took out the definition of actively at work?

401(k) plan. employees immediately eligible to make deferrals but must wait a year for profit sharing and match. If the plan is top heavy, does the employer have to provide a top heavy contribution to those who are eligible to defer but ineligible for ps/match?