I have receive numerous answers to how question 4i of the schedule I should be answered. The question: Did the plan at any time hold 20% or more of its assets in any single security, debt, mortgage, parcel of real estate or partnership/joint venture interest?

Seems like this should be a faily easy question, but we have experienced much debate over the correct interpretation on how to answer this question. The Form 5500 instruction book provides little help. The question is: Should Mutual Funds be reported here if the value of any of the funds is 20% or more of the beginning value of total plan assets? My thought and prior instruction have been, No. Only truly, single securities - stocks and bonds for instance. A mutual fund not being defined as a single security, and therefore would have no bearing on this question. Thoughts?

I didn't see this one listed as known problems, but was told it was a bug, so be aware.

If you reverse a transaction (e.g. contribution) in which the allocation was to a particular division, and that division has a space in it, then the system will reset the transaction to ALL.

you have to re enter the division name before reposting.

this is supposed to be fixed with the next service pack.

For large plans early retirement subsidies can be "funded for" utilizing retirement decrements, and for small groups the impact of someone taking the subsidy can get factored into the gain/loss for the year - my question is if you have all inactive terminated vested lives, is there any reason you wouldn't assume everyone takes early retirement when eligible ?

I need to request a private ruling regarding recharacterizing a Roth IRA for 1998. I have been unable to find information regarding the IRS requirements for requesting such a ruling or the address for submitting the request. Any suggestions. Thank you very much

I have a potential client who has numerous former employees with small balances in the 401(k) plan. Generally, the average balance is under $100. Attempts to contact these participants have meet with some success. What is left are the really "lost" participants. How much effort and expense is the company expected to expend to locate these people for the small amounts involved? The balances are costing the company considerable administration expenses. Is it possible to:

1) Forfeit the balances and handle the forfeitures as provided for in the document? If a participant reappears the company would simplely cut him or her a check for the forfeited balance plus earnings. What are the risks of this method?

2) Some consultants have suggested a 100% withholding. I never heard of this. Has anyone used it?

3) Any other ideas?

Thanks.

It is my understanding that Canadian DCPs only allow for very limited deferrals for a temporary period (i.e. can only defer bonus and can only leave funds in the plan for 3 years or so). Has anyone successfully been able to design a more feature-rich DCP for Canadian employers?

Is it legally necessary to have a Plan Document in place for NQDCP Plans?

There seems to be a group of organizations marketing plans euphemistically purporting to be VEBA's, yet leaving the funding in the hands of the Employer. Seems to be happening in the public agency and school world more than elsewhere. I would appreciate any comments about the differences between VEBA's and "Section 115" plans. It appears to me the employers are saying "trust us, we won't spend your money" and further that the possibility of constructive receipt or a "bad" 457(f) scenario looms large. Most labor groups don't seem to be aware of the difference betweens these "look alikes" and a real 501(c ) 9.

Can a plan sponsor elect to increase their plan's compensation limit for testing purposes only? In effect, contributions would be based on $170,000.

What legal requirements are there regarding the confidentiality of the benefits payable under a qualified retirement plan?

I cannot find anything in the plan document.

I am the Benefits Specialist in the HR Dept in a corporation. A manager wants to know what is available now for one of his direct reports in the event of early retirement. We do not furnish that information except to the participant or as required in QDRO situations. However, we cannot find a legal site for that.

There is much protection on health benefits records and some states - such as Alaska - seem to have protection on retirement benefits information. Is there anything under ERISA or elsewhere?

What legal requirements are there regarding the confidentiality of the benefits payable under a qualified retirement plan?

I cannot find anything in the plan document.

I am the Benefits Specialist in the HR Dept in a corporation. A manager wants to know what is available now for one of his direct reports in the event of early retirement. We do not furnish that information except to the participant or as required in QDRO situations. However, we cannot find a legal site for that.

There is much protection on health benefits records and some states - such as Alaska - seem to have protection on retirement benefits information. Is there anything under ERISA or elsewhere?

My firm has just completed a certified audit of a 401(k) plan adopted by 9 employers, who I will call A through I for simplicity sake. Based on ownership percentages, the following controlled groups exist:

Company A: No controlled group

Companies B and C are a controlled group

Companies D,E,F,G, and H are a controlled group

Company I: No controlled group

When we asked the TPA to send us a draft of the Form 5500 for the plan, we received 4 5500's; one for each group described above. Adding up the assets and income of each 5500 equals the amounts on our audit of the plan in whole.

I have never encountered this type of filing. Is it correct? I was expecting one 5500 with a controlled group designation, and am quite confused. The TPA said they filed 4 5500's for 1999, attached the audit to each filing, and did not get the returns rejected by the DOL. Incidently, I called the PWBA helpline and stumped them too!

Any help would be appreciated. Thanks much.

Is it permissible to satisfy a minimum required distribution with an in-kind distribution (e.g., shares of stock)? I was at a seminar last year where the speaker asserted that an in-kind distribution in satisfaction of a MRD was a prohibited transaction. Outside of this one individual, I have not seen any other discussion on this point. Your thoughts would be appreciated.

With the new catch-up contribution rules in 2002, will the employer have to make the mandatory match on the catch-up contribution amount?

I have a situtation where it is not entirely clear to me whether or not the arrangement should be classified as a multiple employer plan.

The employer leases some of its workers to unrelated entities. However, my client treats all of those workers as its employees for all purposes. However, those unrelated employers make "profit sharing" contributions to the plan.

You could argue that it is a single employer plan, because all of the participants are employees of my client. On the other hand, because profit sharing contributions are made to the plan by unrelated employers, you could argue that it is a multiple employer plan.

(The workers are not subject to a collective bargaining agreement.)

Any thoughts?

20% withholding was deducted from lump sum distribution; however, Client inadvertently sent both checks to participant. Somehow the participant cashed the withholding check and attempts by the client to recover the funds have been in vain.

Should Client take the following steps:

1. Carefully document what has occurred,

2. Send written communication to participant explaining their tax liability if the funds are not returned, and

3. Issue the 1099R for 2001 with $0 withholding.

Are there other ramifications that should be considered?

Many thanks!

I have been looking at hiring a entry level pension administrator with less than 2 years experience more than 1, college graduate, passed Pa-1 Aspa course. What would be the salary range to expect? I am in the Washington DC area.

A defined contribution plan in existence since 1993 now needs an audit. We have performed a limited scope audit according to DOL regs so we will be disclaiming an opinion on that basis, but now I am trying to get happy with beginning participant account balances. It seems nearly impossible to recreate participant account balances from inception as PPC suggests. What have others done? The assets have been with the same insurance company since inception, and I was considering requesting SAS 70 reports for as far back as they can provide, hoping that controls over investments, earnings, contributions and distributions were addressed. Any help is appreciated.

I have a great opportunity to but a piece of rental property. My question is I have a roth IRA that I am not using to buy this rental property. If I buy the rental and 5 years from now try to use the money from my IRA to buy a home will That be a non-tax distribution under the 1st time home buyers exception?:confused:

Is it required that a Form 5500 be filed for a medical FSA that is funded by the employer only? Whether Yes or No, what is the reason?