I have seen this question posted quite frequently on this Website, i.e., can IRA losses be deducted.

This article provides a detailed explanation

See the attached link

http://ira.mpower.com/commentary/feature/feature.xsp

a local school district contributes money into a health plan for employees. They have a 125 plan. They do not allow employees to spend that money on other benefits or take the cash. Is this legal? The benefits book we are using in our class indicates there must be a "cash" option.

Client is privately held company but thinking of starting some type of stock option or stock award plan to allow a broad range of employees (not just top management) to purchase stock shares and be the "owners" of the shares for purposes of receiving dividends and having an interest in any increases in value and even selling the shares (if they could find a buyer) with the company having rights of first refusal. The employees, however, will not otherwise be able to sell the stock back to the company while employed. Upon termination of employment, the company will buy-back the shares at the then "market value" provided the employee has worked a certain number of years, and at a somewhat reduced value if the employee has not yet worked the set number of years. I am concerned that this Plan could be subject to ERISA because there is no realistic opportunity to sell shares and realize any appreciation on the shares until termination of employment. (And concerned because I do not think the Plan will be able to easily meet all ERISA requirements.) Any thoughts as to whether this would be an employee benefit pension plan under ERISA due to deferral of payment for the shares being postponed until termination of employment? Any comments will be greatly appreciated. Thanks.

We are a Home Care Agency. We are in the process of revising our LOA Policy and return to work process. Is it appropriate to ask an employee who takes a loa for medical reasons to submit a medical note that details their functions as a home health aide and not request the same for others who are returning from medical leaves that we determine would not affect their ability to perform their duties. Are there any legal ramifications and how does it apply to ADA.

Scenario:

There are participants in plan who are only eligible to defer and haven't met eligibility requirements for ps contribution. Employer is makeing a ps and I originally only considered participants eligible for the profit sharing portion of plan for the top heavy minimum. Do I have to give participants who have only met eligibility requirements for the deferral portion of plan a th minimum?

An IRA owner ( widower)named his live in girlfriend as the beneficiary of his IRA. Instead of using her last name, he used his last name as hers. Example, he was John Doe and he put her name as Jane Doe. Doe is not her legal name. Her social security number was included on the form.

Now that he is deceased, his children and trying to lay claim to the IRA. They claim she is not the beneficiary and are also using the fact that her correct name was not on the form.

What should the custodian do?

I work for a home care agency. Can we request that an employee returning from certain medical personal or work related disability LOAs have their doctor fill out "our" form that asks if they can perform specific duties related to their functions as a Home Health Aide?

We are a worker owned home care agency. What is an employer required to do when an employee has an untimely death with last paycheck, sick & vacation and worker owner investment if a beneficiary is not designated? Can we use the beneficiary who was designated in the life insurance policy?

Will this plan design be qualified? It has 5 possible sources of contributions.

1 - Safe harbor 401(k) deferrals

2 - 3% nonforfeitable employer contribution to a Profit Sharing A Account

3 - Discretionary employer contribution to Profit Sharing B Account allocated solely on pay

4 - Discretionary employer contribution to Profit Sharing C Account allocated solely on pay but integrated

5 - Discretionary employer contribution to Profit Sharing D Account allocated based on age and pay, not integrated

For each year, the employer might declare contributions to any one or more of Profit Sharing B, C or D Accounts.

Under the EGTERRA changes a design based Safe Harbor Plan that consists of elective deferrals and Safe Harbor match or non-elective contributions only is exempt from the top heavy rules. Does this mean that an existing Plan that has made regular Match or Profit Sharing contributions in the past but is now going to fund only deferrals and Safe Harbor contributions will still have to be tested for top heavy?

[ Yes, see Moderator's comments and discussion later.--gsl ]

At the present time, any SEP participant in year 2002 will only be allowed to EXCLUDE (from his year 2002 taxable income), his year 2002 SEP contribution up to a maximum of 15% of his eligible year 2002 compensation. Reason: Because EGTRRA (the Economic Growth Tax relief Reconciliation Act of 2001) ... never amended IRC 402(h)(2). In other words ... the maximum exclusion is still 15% for year 2002.

EGTRRA did amend IRC 404(h))(1)© and IRC 415©(1)(A), to allow the SEP's employer to deduct 25% for year 2002 (up from 15% for year 2001) .... and .... to allow a SEP participant's year 2002 SEP account to have 25% of his year 2002 eligible compensation put into it.

A lot of people have said that they feel sure that IRC 402(h)(2) will soon be amended to allow exclusion of 25% .... but so far I have seen nothing on this matter by the IRS.

Has the IRS addressed this matter yet ? Where might I read what the IRS has to say about it

I have set up a new 401(k) plan with 3 accounts. 101 is Profit Sharing, 403 is EE Deferrals and 503 is ER Match. There are 3 sources to correspond with this. I have deferral and match transactions for participants already posted, so there are now 403 and 503 balances. When I try to add individual Gain/Loss transactions for participants, the only account selection I get is the Profit Sharing-101. 403 and 503 are not available on the G/L Trans screen.

I have Relius looking into this. Help; what have I done wrong???

Are premiums for Long Term Care reimburseable under a Health FSA? The employer does not offer the LTC plan but an employee wants to have his family's premium on an individual LTC policy reimbursed through the FSA the employer offers. Is this permissable?

Can I roll over a Simple IRA contribution made this year to a 401(k) plan in January 2002 (the employer is contemplating terminating the SIMPLE plan to start a 401(k) plan on 1/1/2002) or does the two year rule on contributions still apply? Does EGTRRA change the rules for rollovers from SIMPLE IRAs? I am getting conflicting advice?

I know Quantech has the DCM, which requires an additional license - we do not have it at this time and the cost seems rather absorbetent. So I am trying to import data from and Excel spreadsheet, but don't know how to save it in Excel in the correct format.

I could use some help from those with experience. Thanks.

Has anyone out there heard of any 401(k) plans that use the safe-harbor definition of a hardship withdrawal that do not require back up documentation for that withdrawal other than the employee's self-certification?

If an employer adopted this approach (no backup) what risks would the plan take? (The employer would make sure that all other provisions of hardship withdrawals were followed, just not requiring documentation.)

Thanks

Is there anything statutorily to prevent an employer who has an ERISA governed Short-term disability welfare plan from offering a difference in plan coverage to employees at one location in comparison to that offered employees in all other locations?

Has the IRS issued an updated explanation since http://www.benefitslink.com/IRS/notice2000-11.shtml?

Going back thru the old files, I discovered several plans that have been terminated (assets = $0) without being amended to pick up GUST provisions, some going back to 1997 and 1998. Is it too late to have the former plan sponsor sign something like the Ohio Key District's GUST wording? I doubt that we'll be able to bill for this work, but I'm just wondering if this is a "better late then never" situation.

Thanks for the help. Tom

I heard in passing today that there changes coming to the 457 plan. Does anyone know what changes to expect in 02?