We currently have been using Corbel as our Volume Submitter Document provider. Recently, we submitted a checklist for a Indian Tribe (governmental entity) for a restatement of a 401(k) plan that we had previously received a determination letter on a few years back. Because of the extent of the additions and deletions of special language for this plan, Corbel has informed us that they will no longer handle Governmental/non-Erisa plans. Does anyone know of a good Volume Submitter document provider that has an easy to use adoption agreement with the ability to add special language for Governmental plans? You're help is extremely appreciated.

I have been told that New Jersey and Pennsylvania subject employee salary deferrals to a flex/cafeteria plan, to state and local taxes.

My cursory research indicates that this is not entirely accurate - any comments from practitioners in those states would be welcome.

My company currently administers our plan in-house but are bringing in a TPA to handle the plan in 2002. It is a privately held company.

The company is also rolling out a co-branded investment product with the same TPA in the coming months. Registered Investment Advisors will be able to sell this co-branded product to 401(k) plans; utilize the services of the TPA and offer our investment product. The investment product will utilize non-proprietary mutual funds, our company will be custodian of the assets and hold them in house accounts at each fund.

The TPA agreed to move custody of their own 401(k) assets to us and we in turn aggreed to move administration of our plan to them. We will maintain custody of our own plan assets. Any sub-TA, sub-accounting, 12b revenue, custodian fees, etc will be shared.

The TPA has waived all plan level fees, but did not waive participant level fees. The company is not going to pursue and outside legal opinion or private letter ruling.

On the surface, does anyone see any issues here? Thanks in advance for any feedback you provide.

What are the requirements for "top-hat" welfare plans? Could be more or less than 100 participants. Initial filing? Annual Reports?

A new client has been filing Form 5500EZ even though plan assets are less than $100,000. We're having a very difficult time getting the 12/31/2000 information, but we're reasonably certain that the assets are still below the threshhold. Anyone see a problem with using the exemption this year even though the forms have been filed in the past?

Have an unfunded insured Welfare Benefit plan. At 12/31/99, there were 97 participants at the beginning of the year and 81 at the end of the year. It's October 10, and the debate rages as to whether we need to file a 5500 by October 15 (plan was extended). I feel that no return is necessary, due to the plan being under 100 participants. My associate has an impression that for welfare plans, once you file as a large plan you always file as a large plan. However, in 1999, we received the 4R filing code, which says that there will be no filing next year, due to the decrease in participants (we did not use this code on the 1999 Form 5500, unfortunately).

My thought is to not file, and if and when the DOL inquires, answer with the decrease under 100 exception. Or, amend the 1999 Form 5500 and include the 4R code.

Any thoughts? Thanks much.

A Money Purchase plan has participant direction with pooled assets. A third party administrator made an error in calculating how much to invest in each fund and gave incorrect instructions to the plan sponsor for transferring assets among funds. Due to the error, the plan assets suffered a much larger loss than they would have if they had been invested correctly. Has anyone had a similar problem? Need suggestions for proper correction, which correction program is applicable, etc.

Does anyone have a problem with a 412i plan funded soley with insurance contracts that have a depressed value and have the clients children buy the policies out of the plan at the depressed cash surrender value after a period of 5 years?

Has anyone looked at using experience gains in a 412i plan to fund a 401h account or are earnings not considered excess pension assets under 420©( 2)

Does the requirement that 457(B) plans of governmental entities be held in a trust or its equivalent prevent governmental entities from establshing "ineligible" 457(f) plans holding assets in a rabbi trust only?

My thinking is the answer is "no," but seeking confirmation

Does anyone have knowledge of case law or any determination on whether an employee diagnosed with Vertigo has any coverage under ADA? It does not seem to be an affliction that "substantially limits" one or more of the major life activities.

If someone wanted an information source for both general and detailed info concerning 457 plans what would that source be?

Also, I have been told that a college, who currently has a 403b7 in place, may also now start a 457 plan. The emloyees of the college are able, under new rules, to fully fund both. Is this correct?

With regards to EGTRRA in 2002, I read an article in a national magazine that said in addition to a $40K profit sharing contribution, it would be possible to also make upwards of $11K as a 401(k) contribution. Add in the catchup contribution for the participant over age 50, and a $52K contribution is possible.

The author made a reference to EGTRRA's change in Section 404 which I had interpreted to state that for the purposes of deduction limits of Section 404, one no longer has to deduct deferrals from comp to determine the Plan's maximum contribution of 25%. But I thought each participant is still restricted by 415© to a total of $40K in 2002.

Can someone clarify this for me?

Thanks.

Have a new client who is using a 52-53 week plan year. The "2002" plan year begins December 30, 2001, (plan year ends the Saturday coinciding with or closest to, whether preceding or following, December 31st of each calendar year, so the 2001 year ends December 29, 2001). How will EGTRRA apply as it relates to plan years beginning after December 31, 2001.

Any comments?

Diane

I inherited an IRA from my 69 year old brother. I know I can take distributions over 5 years, my life expectancy, or lump sum. If I do want to take distributions over my life but want to move the money from the company where it is now (change custodians), what is the best way to do that?

Do I change it to a beneficiary IRA and then do a trustee to trustee transfer or is there a better way? Does it have to be re-titled to a beneficiary IRA?

If so, what is the correct wording for a beneficiary IRA?

How should a client calculate the FICA liability (actually, just the HI portion since the SocSec portion is capped) pursuant to a NQDC Plan which allows the participants to direct their own "investments", similar to a 401(k)? More clearly, since the formal IRS regs now require FICA withholding on the principal amount of deferral plus one year's interest, how can the sponsoring company (and the EE) satisfy its FICA obligation if the amount of the interest can't be determined until the last day of the year? I'm familiar with the lag method and the estimated method. Is that what other companies are doing?

A participant, who is over age 59 1/2, wants to remove her life insurance policy from her 401(k) plan. That is, she wants to keep the policy but wants to own it outside the plan (I don't know why). I believe that she can take possession of the policy outside the plan and that the consequences are that she is liable for income tax on the cash value of the policy when distributed.

Am I correct in this? And, since there will not be any actual cash involved, is there a problem with the mandatory 20% withholding rule?

A 5558 extension was filed with the wrong plan number. How should the 5500 be filed so that it is not considered late?

We called the PWBA and the person at the PWBA said they did not know and gave us a number for the DOL. The person at the DOL said to file the 5500 as an amended return and attach a letter of explanation. It does not make sense to me that we would check the amended return box when the 5500 has never been filed in the past.

Has anyone else had this situation? If so, how did you complete the 5500?

Is it possible to purchase government securities (t-bills, bonds) inside an IRA and have the coupon payments made outside the IRA, without it being considered a (taxable) distribution from the IRA?

Is there a trend developing around the reduction of 401(k) match? Seems I've been reading about a number of large companies reducing their employer 401(k) match. Delphi is one of the companies that has done this. Is this purely a short term cost savings tactic that is preferable to position reductions or other more painful tactics? Or is this something unique to Delphi and others in the automotive industry? I'm very curious about the rationale behind a move like this given it's uneven impact on only those employees enrolled in the plan and because it seems like a pretty unusual step to take. Other's experience and perspective would be greatly appreciated. Maybe this is a much more common practice than I realize.