Company has two plans one for Union Employees, one for Nonunion Employees. The Union plan has over 100 participants, the nonunion plan does not. Does the audit have to encompass both plans or just the union plan?

Thanks in advance for any guidance.

We have a defined benefit pension plan that wishes to allow employees who have reached the age of 70.5 to continue working and earn a salary while at the same time begin receiving their pension benefits. How would we amend the plan to allow for this? In particular, how would benefits continue to be accrued while pension payments are being paid?

I was wondering whether someone can clear this up for me:

Pursuant to IRC section 414(s), a plan must have a nondiscriminatory definition of compensation. Therefore, if a 401(k) plan's definition of compensation, for example, counts all pay but not overtime, the plan's definition of compensation must be tested under section 414(s).

My question is this: Does a plan automatically pass 414(s) if it tests ADP/ACP on a safe harbor definition of compensation (like W-2 compensation).

The answer to this question will determine whether a Demo 9 must be submitted for plan that excludes overtime from its definition of compensation.

Thanks in advance.

I read in a brochure that for employer stocks, the following can be done:

Say the basis is $10,000

The value at distribution is $50,000

The $10,000 ( stock) may be rolled to an IRA and

The $40,000 ( NUA) can be held in a regular cash account or in hand.

The $40,000 (stock) will receive the long-term capital gains treatment when sold.

Is this true?

I thought that in order to get the NUA treatment, none of the assets could be rolled to an IRA.

Can an ESOP be the contingent beneficiary of a life insurance policy on the life of one of the owners of the plan sponsor if the ESOP is not the owner of the policy? On the owner's death, if the death benefit is paid into the ESOP, is it treated as an employer contribution? If not, what is it treated as?

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Subject: Convert 403b to 401k

Author: Brad

Date: 10/17/2001 11:18 am PST

I am a third party administrator who is trying to consult a client on the advantages of switching their company's entire retirement plan from a 403(B) structure to a 401(k) structure. I am not dealing with an individual participant who wants to roll their money into a 401(k); I am talking about restating the entire Plan to switch it's structure over to a 401(k).

Do you have any advice or information that would be beneficial to me in this endeavor? What I am really looking for is a precise comparison chart (or something of that sort) that I could use to communicate the advantages or disadvantages of making the switch.

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Convert 403b to 401k

Brad 10/17/2001 11:18 am PST

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For a participant with a spouse more than 10 years younger, the preamble to the 2001 proposed regs says that a participant is "permitted" to use the longer period. The reg itself [1.401(a)(9)-5 Q&A 4(B)] says that a participant will use the longer period.

Does a participant have a choice, as implied by the word "permitted" in the preamble, or must the participant use the longer period, as implied by the reg itself?

I'm looking for regulatory or article references. Any case law references would be ideal.

The basic situation is in an automated system that produces accrued benefit calculations that could be used to initiate actual benefit payments, but without any review by an actuary or his/her designated representative (qualified administrator, etc.). The system is designed to automatically find such benefit calculations according to flags set in the database records for the calculation.

Many thanks,

Franklin

Is there any correction procedure such as EPCRS for 401(a), 403(B) and SEP's for dealing with excess deferrals in a 457 plan? It doesn't appear that EPCRS would apply to a 457 Plan. Is it just a matter of distributing the excess deferrals and adding the amounts to the participants' W-2's? The employer is a non-profit healthcare organization which maintains a 457 and a 401(k). It just recently found out that a number of participants have exceeded the 457(B) limit for a number of years. Is there anything from the plan side with respect to the IRS' overseeing the correction to insure qualification is maintained?

Is there any correction procedure such as EPCRS for 401(a), 403(B) and SEP's for dealing with excess deferrals in a 457 plan? It doesn't appear that EPCRS would apply to a 457 Plan. Is it just a matter of distributing the excess deferrals and adding the amounts to the participants' W-2's? The employer is a non-profit healthcare organization which maintains a 457 and a 401(k). It just recently found out that a number of participants have exceeded the 457(B) limit for a number of years. Is there anything from the plan side with respect to the IRS' overseeing the correction to insure qualification is maintained?

The Truth in Lending Act provides that a lender is subject to Regulation Z if credit is offered or extended to consumers on a regular basis and such credit is subject to a finance charge or repayable in more than four installments. Credit will considered extended on a regular basis if concumer credit has been offered more than 25 times in a calendar year. Does this mean that there must be 25 new loans in a calendar year or is Regulation Z triggered once there are 25 outstanding loans in total?

Thanks in advance for any guidance.

Don't ask me how the SSA makes these projections, but here are the estimates for the next 9 years. (last year's high cost estimate was 80,100 and we ended up at 80,400). The actual wage base for 2002 is usually released in October.

Projected Taxable Wage Bases

Year low cost intermediate high cost

2002 85,200 84,900 84,600

2003 89,100 89,100 87,300

2004 93,600 93,300 90,600

2005 97,200 97,200 96,600

2006 101,100 101,400 100,800

2007 105,000 105,900 105,900

2008 109,200 110,400 112,200

2009 113,400 115,200 117,900

2010 117,600 120,000 123,300

www.ssa.gov/OACT/TR/TR01/V_programatic.html

This is the most recent summary of state tax withholding provisions that I have seen:

http://www.cigna.com/professional/pdf/CPA_iidw0201.PDF

I'm pretty sure some things are out of date. Does anyone have a more up to date / complete list or link?

(Interestingly, if you look for this on the Cigna website, the link is inactive.)

Is there any requirement for a plan sponsor to provide a plan participant with ...

a history of their transactions in the plan?

transaction details?

employee's rate of return on investments?

Or are the ERISA disclosure to participant requirements (SPD, SAR, statement of accrued benefits, etc.) the only ones that apply?

If I am a managing member of an LLC not currently on payroll (my share of net profits reported on K-1) can I participate on the company sponsored 401K plan. Can I participate in the company sponsored health insurance (Cafeteria plan)?

I recently got remarried and went to change my 401K beneficiary form. Because I have a substantial amount of money in this account I want to split my beneficiary to a split between my new wife and my two children. The form that my company supplied me indicates that I can not designate a new primary beneficiary other than my wife unless she gives written consent. This seems like it can not be right since I acquired these assets prior to marriage. If this is the case what law supports this requirement.

What premium do you charge to continuees when the carrier charges you age and gender banded rates as opposed to composite or average rates? The employer charges the active employees based on an average that the employer determines, even though the carrier actually bills the employer based on the actual age and gender of the employee.

Hello, everyone...

Financial journalist checking in, preparing for an upcoming article. This is my first post, but this seems like a great board!

What are the minimum fiduciary responsibilities, if any, a 401(k) sponsor has to plan participants? Have any been successfully sued for, say, allowing a 59 year-old employ to invest most of his plan into a high-tech fund that tanked right before he retired?

What are the minimum standards--either by statute, caselaw, or common practice--of employee education regarding 401(k)s?

Many thanks,

Jason

Ft. Lauderdale, FL

With the new regulations that permit rollovers between 401(k) and 403(B) plans, there is no longer a need for my church client to maintain both types of plans. They would like to merge the two plans together. Anyone who has seen anything commenting about this possibility, I would appreciate the info.

Thanks.

I am interested in finding out what reporting metrics other employers ask of their health plans for HMO, POS, PPO, alternative funding arrangements, etc. (For example do metrics include claims experience, utilization, benchmarks to other like size groups, MLR, etc) Do you have examples of reports you can share? How often do you recieve reports and in what format?

Thanks in Advance!