How do you calculate and distribute a minimum distribution for a participant who has only an outstanding loan balance?

Would this involve a partial deemed distribution on the loan...reported on 1099 for 2001?

Has anyone given much thought to the "relief" from the same desk rule offered by EGTRRA's change in the 401(k) distribution event from a separation from service to a severance from employment? It seems that this change will help in asset sales where there is a change in employer, but not in stock sales. Rather, in cases where a subsidiary is being sold, one still has to rely on 401(k)(10) to make a distribution, which means that there remains a problem if the seller or buyer is a non-corporate entity such as an LLC or a partnership since 401(k)(10) is not available in those situations. In other stock sales where the entire company or group is being sold, Buyer has to deal with either continuing the Seller's 401(k) plan, merging it with Buyer's 401(k) Plan or possibly having the Seller terminate it before closing in order to allow distributions. Anyone with additional or contrary thoughts out there about the repeal of the same desk rule? Thanks.

Please advise sources for administration of a client's Medical Reimbursement Plan Trust. I have a 401(k) client who has had for years an Executive Corporate Medical Reimbursement Plan Trust administered by Lincoln Financial Group. They have received notice that Lincoln will discontinue this product as of 1/1/2002. I have not worked with Executive Medical Reimbursement administration for years and have no sources to recommend. Please advise if you have information on who is still doing this work that I may refer them to.

Where can I get information regarding the non-discrim testing for a self-insured medical and dental plan?

I hope someone can help answer a question for me...

My husband was laid-off in May, and we elected COBRA in order to avoid potential problems with Pre-existing condition issues should his unemployment end up lasting more than the magic 180 days.

Well, thankfully, he found a new job ... but the problem is that when the job offer was made, the company misrepresented the health plan benefits ... and it turns out they are useless to our family. We thought we could just continue on COBRA a while longer until they transfer us to a new state in 4 months or so, where there is a health plan available that meets our needs. But their HR dept says we can't do that and that once we become eligible for benefits (Nov 1) our COBRA will be terminated.

This doesn't seem right. Can't we keep the COBRA somehow?

Can anyone shed some light on this for me?

Thank you,

April and the Zoo

Can someone clarify this rule. Do you use the $170K compensation limit to determine maximum employee contribution allowed or the employer matching contribution. We track the $10,500 employee contribution limit and the employer contribution limit at $5,100. (3% match on a compensation limit of $170K). We have some employees, who may reach the 170K in June, thus they may not shelter the 10,500 max allowable contribution or the company match.

If a plan is top-heavy for the 2001 calendar year (based on a 12/31/00 determination date), and the plan sponsor's fiscal year ends 8/31, when must the top-heavy contribution be made to avoid needing to use the top-heavy correction mentioned in Revenue Procedure 2001-17?

I realize an organization can not establish a SIMPLE IRA if they have any other plan in existence for which contributions are being made, including a 403(B) tax sheltered annuity.

Situation: A person owns a for profit business and has set up a SIMPLE IRA and the spouse also works in this business and receives compensation along with working part-time at a tax-exempt 501©(3) organization that offers a voluntary 403(B) plan.

I realize that generally an employee could participate in both and that the deferral limits must be aggregated. However, my question is whether this spouse (possibly considered an owner and therefore in "control" of both the for-profit and the 403(B) account) can actually participate in both? And, if did participate in the 403(B) only, whether that would have any effect on the for-profit business ability to offer the SIMPLE at all. much less be excluded from participation somehow?

Help! I have never done one of these before. I usually just do the Cafeteria Plan and fully insured group medical plans. There were 117 participants at plan year end. First year of self-funding, and also the last - client hated it. Do I need a schedule H or I? Does the return need an audit? How do I find out exactly what questions to answer?? Any help is greatly appreciated.

When was the term "Minimum Required Distribution" officially changed to "Required Minimum Distribution? Please cite the authority.

Peace,

Joel L. Frank

is it allowable to retroactively amend a plan to change the plan year? i have a plan that is a calendar year end and wants to change their plan year to 9/30. however, they want to make the short plan year from 1/1 - 9/30/2001. thank you.

I'm told my pension (lump sum) is based on the lower of two rates; 30 Yr. T rates and PBGC. I'm not sure how the lump sum is calculated however! :confused:

I meet the age and/or service requirements to be able to retire without any reduction in my pension. My age is 56 for life expectancy purposes.

The "yearly" pension is equal to 1% for every year of service based on the average of the best five year's salary. Example of the "yearly" pension would be: .35 (35yrs) X $100K (Avg.) = $35K Yr.

Can someone please tell me what the formula or methodology is for calculating the "actuarial equivalent" lump sum payment based on my age and the above noted "yearly" pension option?

There must be a simple way to calculate it, right? Or no?

Thanks!

A "self employed" individual wants to establish a qualifed retirement plan. This person currently has a traditional IRA and wants to roll the money into a qualified plan to invest in certain investments which are not a permitted investments in an IRA.

This individual has retired, and while he may do some limited consulting work on a very intermittent basis, he is not actively employed. Therefore, it is possible that in some years he may have income from self employment, but in other years he may not. It is anticipated that no contributions other than the initial rollover will be made to the qualified plan.

Can this person establish a qualified retirement plan?

Is anyone aware of a requirement that a "self-employed" individual must be actively engaged in a trade or business or have income from self employment in order to estabish a plan?

Thanks!

Assume a client has a 401(k) and money purchase plan with both plan years ending 12/31. The money purchase plan has a once a year allocation to participants employed on 12/31. The employer wishes to merge the plans in order to take advantage of the EGTRRA changes which allow increased employer deductions of contributions to a profit sharing plan.

When should the merger be effective? 12/31/01 or 1/1/02? Can the final money purchase plan allocation that is due as of 12/31/01 be made after the effective date of the merger? Any other issues?

is there any reason- regs or otherwise - that prohibit or restrict and employer from having an integrated DB and an integrated DC plan?

We are selling one of our operating units back to the former private owner. The private owner is implementing benefit plans for the employees as of the sale date.

Do we need to offer COBRA?

I earn a small amount for a company that contributes to my sep. My wife is retired and does not earn any money. Can I open a Roth for her and contribute to it? What is the maximum amount I can contribute to her Roth?

It is well defined under 403(B) plans that a parsonage allowance is allowed under withdrawals - 107.

Has the IRS made any opinions available to how this would be treated if a church plan has a 401(k) plan?

Barry

Does anybody have access to a spreadsheet-based enrollment form that I can post on my company's intranet to collect open enrollment information from employees? We have people in multiple locations across the country. I need to quickly collect life, AD&D, health (including HMO's), dental, vision and long-term care enrollment data from all employees.

Thanks for your help.

Would an employer's in-house administration of a medical expense reimbursement component of a Sec. 125 plan be subject to HIPAA privacy regulations, when (and if) they go into effect??