We have been contacted by the United States Attorney's Office, N/D of Oklahoma concerning paying out $6,000 of a participant's balance. The participant is in jail. Apparently MVRA does not exempt money belonging to a criminal defendant which is held in an ERISA qualified pendion fund. Is this correct, that we would have to pay out the requested amount to the court?

In testing a tiered allocation in a safe harbor 401(k) plan you cannot impute disparity on the deferrals or the 3% safe harbor contribution, only on the "pure" employer contribution. For a participant whose only employer contribution is the safe harbor (forget the 2002 gateway) when you calculate the adjusted EBARs, his A-rate = 2 x unadjusted EBAR,based on the 3% safe harbor, and his B-rate = unadjusted EBAR + permitted disparity factor. The pdf = 0 so his B- rate = unadjusted EBAR.Or do you pull the safe harbor contribution out entirely which leaves A-rate = B-rate =0 ?

I have an unfortunate set of facts. A long term Post Office employee and his spouse divorced in April, 2000. In the marital settlement agreement (which was incorporated into the final judgment), the parties agreed that "Wife is entitled to one half of Husband's pension from the United States Postal Service. Said pension shall be payable by QUADRO (sic)." I'm sure they meant "QDRO" but they really should of said by "Order Assigning Civil Sservice Retirement Benefit to Former Spouse."

For some reason, the parties waited a year to ask me to draft the "Order." When I asked for information, the former-wife's family lawyer contacted the former husband's family lawyer for the information and was informed that the Post Office employee (the husband) had died several months earlier.

Although the ex-wife was named as the "survivor beneficiary" the Office of Personnel Management said she could not get a survivor benefit because the divorce decree makes no reference to any survivor benefits.

I've also was informed that OPM would not accept the "Order" now because the husband/employee was deceased.

I'm looking for someone with experience with this type of situation specifically or at least a good deal of experience dealing with the OPM and the CFR provisions dealing with former spouse benefits. I'd be more than happy to refer the right person to the lady and her family lawyer.

This is a sad situation for this older lady.

If a particpant in a DB planis in a coma, what is the procedure as far as getting the participant to waive the J&S for distribution purposes?? The spouse would like to roll the money from the plan. Does she need power of atty?? or a court order?? Any help would be appreciated. Thanks.

if a 5500 is filed on time but with a missing scedule (CPA audit report), what are the ramifications? the cpa report will be filed eventually but it is currently not complete. would the DOL consider the 5500 in fact filed or is an incomplete 5500 mean a late 5500? Is there anything that can be done besides filing the CPA report to minimize the damage?

The IRS instructions for filing IRS Form 1099-R states that the box ' Total distributions' must be checked if the distribution closed the IRA.

What happens ( i.e. are there penalties etc.) if the box is not checked?

__________________

WANNABE A RETIREMENT PLAN GURU

The IRS instructions for filing IRS Form 1099-R states that the box ' Total distributions' must be checked if the distribution closed the IRA.

What happens ( i.e. are there penalties etc.) if the box is not checked?

Company is terminating an overfunded DB plan. Plan assets will be used to purchase paid-up annuities for all participants, balance of assets revert to Company. Query: Do all the Prohibited Transaction rules apply to commissions paid on the annuity purchase ?? --- I'm thinking 'the Company is actually paying since the commission merely reduces the reversion amount.' Thanks for any assistance.

If a plan wishes to fall out of the SIMPLE status, do they need to do anything other than the model amendment revocation? This would be effective the next January 1, but is there anything else?

Employer has 3 employees. 1 part-time NHCE, 2 HCEs. NHCE works less than 500 hours per year. Does this plan pass coverage? Is the NHCE counted for purposes of the 410(B)(6)(F)?

After 1/1/02 a SEP distribution can be rolled to a qualified plan (401a). Can someone confirm that this includes a SARSEP distribution? Thank you.

What would be the consequences of the following:

Participant defaults on loan and does not cure within the allowable grace period; TPA does 1099's at the end of the year; prior to 1099 being issued, participant decides to bring the loan current; TPA allows this and does not issue a 1099. Could this cause a problem for the plan or just the participant/Taxpayer if the IRS catches this on audit?

Company just came into existence in June 2001. Want to establish a plan this year (7-1-01). Highly paid employees and don't want to be limited by the pro-ration of compensation for a short plan year (7-1 to 12-31-01)for allocation purposes.

Can the effective date of a plan pre-date the existence of a company? Establish the plan effective 1-1-01 with a full 12 month plan year to avoid pro-rating comp.?

If not, can the plan be effective 7-1-01 but define the compensation period be as the entire calendar year to avoid pro-rating?

Anyone have anything from the IRS re- this?

I have an additional question in regards to EGTRRA changes with 457(B) catch ups.

Does anyone know if the Age 50 Catch up is available for both governmental 457(B) plans AND tax-exempt employers sponsoring 457(B) plans? I have been reading conflicting publications in regards to the ability to offer the Age 50 Catch up provision on tax-exempt employer 457(B) plans, and am curious what is correct.

Thanks for any opinions.

James

Can anyone advise about any defensive tactics one could incorporate into a plan to afford the greatest protection of benefits in the event of merger or acquisition of the employer? Info is needed ASAP and would be gresaly appreciated. Thank you. blackacre

Assume Company A acquires Company B, and both have similar (but not the same) nonqualified plans.

Under both plans, you receive a distribution when you terminate emloyment or retire, and you make an annual election for "how" you want your benefits distributed (this is NOT a class year election, it applies to all of the employee's contributions). There are some subtle differences between the two plans regarding the frequency and period of installment payments available.

I understand that the change of corporate control may "trigger" accelerated benefits, vesting, etc. I also understand that generally, the buyer will decide to either terminate, freeze, or adopt the sellers plan. My question: is it possible to merge the two plans? If possible, what issues should be addressed prior to merger?

Thanks, everyone, for the responses to my questions on moving my 401K to my IRA accounts (can't do it). The gist that I'm getting is that there is a lot less (read: no) flexibility on moving a 401 than there is with IRA's.

The next question is, can I withdraw the money from the 401K, subject to income taxes and penalties such as those imposed on early IRA withdrawals? I'm that fed up with the plan that I (we) have, to the point that I would rather pay any taxes and penalties to get at the money. It's beyond my imagination that the government won't let you have your money, penalty or no penalty.

Carl C

I'm looking for suggestions on how to proceed with a new client who "doesn't know" if their 1999 5500 was filed or not for one of their 401(k) plans.

Their internal staff person, who used to do this plan's 5500s, retired well over a year ago, their previous recordkeeper passed away earlier this year and their auditor insists that they did not do it (the plan is not audited, but the client has other plans that are audited and the auditor does those 5500s. Sadly, the client thought that the auditor filed the 5500!)

For the record, the 5500 in question IS for 1999. Obviously, the 2000 5500 has not been filed and we know this for certain!

I am wondering if I should contact the PWBA and ask for a copy of the most recently filed 5500 for this plan or if I should just proceed as if the 1999 5500 has not been filed and see what happens. Interestingly, they have not received any correspondence, yet, from the DOL indicating that a return was missed. The last 5500 that we have on file is for 1998, which was timely filed.

Any suggestions will be greatly appreciated.

Just a general HR question...for a staff of approximately 100, how many HR people would you suggest a company have, assuming HR functions include benefits, payroll, recruiting, etc. etc.

Is there anything that I need to be concerned with regarding a rollover from a Federal Retirement Thrift Savings Plan into a 401(k) Plan? Is this permissable? How do I account for it? What are some problems that might arrise from this? Any information would be appreciated!

Thanks!