Hi

I have company stocks in my 401k. The company is not public.

I got laid off and I wonder if I am closing my 401k, will I get the cash value of these stocks?

I need to know my rights, as I suspect foul play.

I thought the IRS released some model amendment language for the GUST amendments but now I can't find them. Am I hallucinating?

Can anyone cite to me where in writing it states that retirement plan assets are protected from civil lawsuit settlements (personal participant lawsuits, not plan lawsuits)

This is not a one person plan, or a spouse lawsuit, or a QDRO. The lawsuit is a personal participant lawsuit. If he loses, and is charged and has to pay a civil settlement, I need to know where it says his retirement plan assets can not be touched.

I can find a lot on PLAN lawsuits being protected in certain circumstances, just not personal lawsuits.

Really would appreciate CITES!

Thanks a lot.

I am trying to figure out if an owner of a company sells his interest in that company to start up another company and rolls his qualified retirement balance into the new company's plan, is that rollover considered a related-rollover and would count in the top heavy test.

We have a situation which we are unclear about. An employee terminated in March and had already been a participant in the cafeteria plan but hadn't used up their medical expense account. This employee was rehired in October. The plan document states that they cannot reenter the plan until the next plan year but we are wondering if they can use the money that is still in their medical expense account- for claims after their rehire date? (we do know that they could still use that money for expenses incurred before their term date) Any input would be greatly appreciated!!

Thanks,

Rachel

*** If anyone has any idea, please respond! We need to figure it out ASAP! Thanks!

I know that you cannot take advantage of dependent care FSA plan while you are on a leave of absence (e.g., maternity leave). However, I cannot remember if we are required to continue taking out the deduction, or stopping the deduction.

Seems like I remember some silly rule that said deductions continue during your leave - because you should have planned for the leave.

But, then I remember something about when you go out on leave (FMLA) you can make changes to your elections.

Help.

Can someone help me get a handle on some of the issues regarding IRA (and other tax deferred assets) and estate planning. About 1/2 of my uncle's estate is in IRAs (approx. $2.5 mil.) and from what I read, there are not a alot of good options to achieve the following: 1) pass as much wealth on to his heirs and 2) avoid as much tax as you can (both income and estate tax). These objectives are conflicting and it seems that it is difficult to achieve both was any reasonable amount of success.

I guess he can roll the IRA into his spouse's name where you grow assets tax deferred, but then have to pay higher estate tax while the heirs will inherit an income tax burden.

Or he could roll the IRA into some kind of foundation I guess which would avoid the taxes, but leave the heirs out in the cold.

Or I guess he could begin to tax distributions from the IRA (he is 61) over the next 10 years let's say and take the income tax hit over time and then gift these "after tax" assets to his heirs to remove them from his estate.

What are some of his options here? Thanks in advance for your thoughts.

We have an ESOP that allocated dividends to the participants. These dividends remain in the plan, they were not distributed to the participants. On the Schedule E question 15(e) asks for dividends paid to participants. Do we have any? Or because the money remains in the plan do we not have any?

We have a plan that allocated dividends in the ESOP to the participants. We did not pay these dividends to the participants, they remain in the plan. On the Schedule E of the Form 5500 question 15(e) asks for dividends paid to participants, do we have any to list in 15(e)?

Would there be any "protected benefit" issues in a situation where a "non-ERISA" §403(B)(7) custodial arangement is merged into an "ERISA" §403(B)(7) arrangement?

ERISA rules re: diversification of qualified employer real property held by a plan. 407(d)(4)(A) says a "substantial" number of the parcels which are geographically diverse. I thought the rule was three (3) or more parcels that were geographically diverse? Am i right? Was this contained in a DOL guidance letter or the like?

where can i get a copy of dol advisory 77-1 online?

thanks.

(and of course . . . time is of the essence!)

Line 7(d) on the new Form 5307 reads:

"Are there any 'Other' boxes selected in the adoption agreement?"

This is a new question that wasn't on the older Form 5307. The very brief instructions provided by the IRS say to "Answer this 'Yes' if you have selected any choice labeled 'Other' in the adoption agreement."

OK , so I have an adoption agreement in front of me that has a category "Age Requirement" and option #1 is No age requirement, option #2 is 20 1/2, option #3 is 21, and option #4 is "Other" followed by a describe line. If someone checks option #4, should they check "Yes" on line 7d of the 5307?

Now , I have another adoption agreement that has a category Excluded Categories of Employees. Option #1 is to exclude leased employees. Option #2 doesn't explicitly use the word other, but it says "Named Categories" and has a describe line following it. If someone selects this option #2, should they check "Yes" on line 7d even though the adoption agreement doesn't explicitly use the word "other"?

Any thoughts??

I know of freeerisa.com, but the 5500 or sch b does not necessarily give all data I am looking for.

For eg. I would like to be able to obtain the number of employees who left (during prior year) as a term vested and of those how many received lump sums and how many are deferring benefits. Also I would like to know the number that retired (during prior year) and how many took a lump sum and how many took an annuity. And how many new participants entered the plan during prior year.

Anyone know where this info can be obtained?

A cash balance plan pays the account balance as a lump sum dist. Of course pension law requires the lump sum to be at least the pv of normal ret accd ben.

The plan uses the 30 yr for interest vredits and the 30 yr (as of a different month) to determine lump sums.

If the 30 yr for int credits is greater than 30 yr for lump sums, then could or should minimum lump sum be based on account bal proj to ret by int credit rate and then discounted by lower lump sum int, thus resulting in a lump sum greater than account bal?

In other words no pre ret mortality. Again the plan does not give any specifics for the calc of lump sum other than to say it is the account bal.

Can a spouse's COBRA insurance payment be submitted to a health FSA for reimbursement?

Regarding MRD's from a DC plan;

It looks like 1.401(a)(9)-5 Q&A 4-7 indicate that the factors in 1.401(a)(9)-5 A-4(a)(2) "Table for determining distribution period" only applies to distributins made during a participant's lifetime, including the year of his or her death.

Then if the participant dies after MRD's have begun, the life expectancy of the beneficiary(ies) must be calculated using Tables V and IV of 1.72-9, not the table in 1.401(a)(9)-5 A-4(a)(2). Only if the spouse is the sole beneficiary can his or her life expectancy be recalculated each year.

I have an attorney telling me that the January 2001 proposed 401(a)(9) regulations regarding this situation have been superceeded and that the table in 1.401(a)(9)-5 A-4(a)(2) should be used to calculate the beneficiary's life expectancy.

Has anything changed or is my above analysis correct?

We are merging many money purchase plans into profit sharing/401(k) plans for the 2002 years since both plans aren't needed to maximize deductions in 2002.

Question: If the plans are merged effective 12/31/2001, can we file a final 5500 for the money purchase plan for the year ended 12/31/2001 OR do we need to wait until the assets are physically transferred (re-titled) to the profit sharing/401(k) plan and do a final return with a year beginning 1/1/2002 and ending as of the date of the last asset transfer?

Thanks for your help!

I had a great Cobra notification letter that I used at my last employer, but am having trouble with the disk it was saved on. So, I've been searching the web for hours for a good, up-to-date Cobra Notification Letter, with no luck. Any website suggestions?

could someone with a small income fund for the $160,000 415 limit? for example, could someone start a plan in their 50's who earns $20,000 per year and fund for a $160,000 benefit at retirement (ie a deduction that greatly exceeds their income?

the new literature seem to indicate yes. any thoughts?

I went to Relius Admin training in Jacksonville in August, and in training, we touched on the DCM. I haven't used it yet, because I was too busy finishing up 2000 plans for 10/15/01 filing.

Now I want to use the DCM to obtain information on some plans with PYE 9/30/01. I checked the instructions on Help and it says to create a DCM installation disk for the client, select "Utilities>DCM Installation Disk". I do not have this selection in my Utilities menu.

I would appreciate any insight anyone can provide on the entire DCM process.

Thank you.