I know very little about 403(B) plans but can someone explain the reasoning and mechanics of the old 402(g)(8) catch up and how it is effected by EGTRRA if at all.

Anyone seen or drafted a 401(k) enrollment and salary deferral election to include a participant's election for the catch-up? Anyone willing to share samples of language or refer to me something? Any help? Thanks.

An IRA holder has been receiving required minimum distributions for several years. In the year of his death, is the minimum distribution still required? If so, is it based on the deceased age or the beneficiary's age?

I have a 403(B) plan currently sponsored by a 501©(3) organization. If the sponsor changes to a 501©(3) governmental entity will the government status enable the plan to rely on a deemed pass of all group compliance testing? Also the plan will go from ERISA covered to Non-ERISA covered. It is my assumption that the assets in the plan prior to the change in sponsor will continue to be subject to ERISA therefore the funds will have to be accounted for separately. Is that an accurate assumption?

Does anyone have any good references for the laws in each state for STD, i.e. which states have programs and which don't?

If you are part of a multi-state company, do you have insurance for the STD for all states involved?

If an office has an early closing, for example if you close at 1:00 on Christmas Eve, do you charge employees 1/2 day vacation or a full day vacation if they are out that day? We've always done a full day because of the reason most of our employees are exempt, and with exempt employees, we believed it wasn't proper to "hours count". Were we correct? What does your company do?

Looking for some comparisons...does your Tuition Assistance Plan have a waiting period for new employees and if so, how long?

What kind of approval process does one need to go through to have all courses relating to a degree covered under the TAP?

I am trying to find find copies of multi-employer plans on line. Any suggestions?

We are administering an ESOP paired with a 401(k) plan administered by a well known insurance company. I calculated 415 refunds based on their being returned from the 401(k) plan. In several instances involving HCE's the amount of 415 excess causes the employee to be reduced below the matching percentage (50% up to 6%). So I calculated the deferral plus matching percentage that would cause the employees to max out their 415 and suggested the employer return the deferrals with earnings and use the match with earnings to offset future contributions.

However, they propose to return only salary deferrals. My contact at the TPA says their prototype basic savings plan was approved by the IRS and they are following the document.

If the 415 excess is corrected in this manner there are several HCE's who will be receiving a discriminatory matching amount as they will receive more than 50% up to 6%.

I am using The ERISA Outline Book and corresponding IRS code as my source - Chapter 5 Section II D2c (Suspense account method (Method #3) page 5.41, Chapter 5 Section II Part E #5 (amount of excess attributable proportionately to elective deferrals and matching contributions) page 5.45, and Chapter 11 Section XII part E 3 page 11.247.

Additionally, the TPA believes that due to SBJPA deferrals to the non-qualified plan should be included in the Gross Compensation for 415 purposes. I understand SBJPA changed 415 compensation definition to include elective deferrals described in 402(g)(3) (i.e. elective deferrals under a 401(k) plan, 403(B) plan, SIMPLE-IRA, SARSEP, 125 Plan or 457 Plan).(ERISA Outline Book p 1.64 Compensation definition Part A 6) Include deferrals to a non-qualified plan. I think not.

I appreciate your help and input.

What items should I be cautioned with when creating a Safe-Harbor Match plan with a P/S New Comp Plan for our company?

I understand the "free ride" for testing with the safe harbor plan but I am more concerned with the P/S plan beneifiting the HCE level group by no more than 1/3 of the lowest NHCE.

e.g. Group 1 = 6%

Group 2 = 4%

Group 3 = 2%

I am trying to arrive at the owners of the company (Group 1) get most of the "extra" P/S money, if any, at year end.

I understand the guarantee of the 4% total match is close to being the minimum getway allocation of 5% thus just move the entire plan to new comp. Also, it is a small number of employees (10) and I think all would participate and think about the 3% non-elective. At least this way the only guarantee from the employer would be a minimum 3%.

What am I missing with structuring a plan of this type? Am I going about creating this properly?

Thank you for your input.

Are after tax contributions able to be used to pay insurance premiums inside a qualifed plan?

When a sole proprietor dies, who takes over the duties of trusteeship?

Does the plan become and Orphan Plan?

Is the plan required to be terminated immediately since there is no longer anyone to continue the administrative duties?

Thanks

What are the 2002 DB limits?

We have just engaged an outside provider to manager our long term disability program. They will manage the payments, FICA deductions and W2s to those on LTD. How does the employer wind up paying their portion of the FICA? We currently use ADP to manager our payroll.

Does anyone know of good reference material for Prevailing Wage Plans? I have just a limited understanding of such plans and need to learn more.

We have an individual that worked for a state government for much of 2001. He maxed out under the 457 plan. He quits his job with the government and is now self employed. Can he establish a SEP for the self employment during 2001? I don't see why not, but I am not confident with my knowledge about SEP plans.

In 1998 I converted a regular IRA to a Roth IRA and took advantage of the IRS's provision to spread the taxes over four years. This year, 2001, is the last year in which I will pay taxes on my 1998 conversion.

Is the 1998 conversion amount (appearing on line 15b on my 2001 Form-1040) excluded from the $100,000 modified AGI limit test to determine if I am eligible for a 2001 Roth IRA conversion?

I realize a 2001 Roth IRA conversion is excluded from the test, but I was not sure if a 1998 conversion (applicable to this year) was also excluded.

Private not-for-profit employer with a non-ERISA 403(B) arrangement wants to add employer matching and discretionary contributions, and thus needs ERISA plan document.

But, employer wants new contributions to go to existing TDAs. I.e., no group annuity contract or other group investment account for the plan.

Is this kosher? When it comes to defining distribution, loan, and hardship withdrawal terms for the plan, should it not simply defer to the language of the applicable TDA?

And what about Form 5500 reporting? If the employer hires an employee with an existing TDA balance of $30,000 from prior employment, and begins contributing to this TDA under the plan, does the employee's entire balance count for purposes of the plan's Form 5500 reporting, or does the employee get a zero balance upon joining the employer?

Any and all comments are welcome.

Will appreciate any insight! My husband retired, chose prescription under Cobra. I therefore enrolled at my work for medical coverage (which at the time did not have prescription coverage, or so we thought) and the following month (retirement time for my husband) enrolled my husband for medical through my work plan. My work BC/BS representative has now informed us that prescription coverage is mandatory and billed work for such. My question: does my husband have to take the prescription coverage through my work plan, even though it costs 2 1/2 times more plus co-pays are more than double than Cobra? Can't he choose to continue his prescription through Cobra without losing medical coverage at my work? The representative - matter of factly said - if he chooses Cobra for prescription he would have to drop medical from work and pick it up through Cobra (even though the eligible time period has passed) or drop Cobra and take the prescription through work.

A law firm that dissolved years ago continues to maintain a profit sharing plan, primarily because it would be better protected in the event of a malpractice claim. The plan has an active administrative committee that has succeeded to the employer's powers; the trustee is a bank.

The IRS is reputed to believe that such a plan is not qualified, but I am not aware of any published authority on point. Is there any such authority? If not, is it reasonable to expect that an IRS audit could be settled without plan disqualification or serious sanctions?