Have been advised by my Sar-Sep agent that I cannot transfer (or roll over) any funds out of the plan into an IRA unless I transfer (or roll over) the full value and that if I did so, I would have to do so into another Sar-Sep if I want to keep the grandfathered rights to future contributions. If this true and if not, please advise why.

Thanx.

I am a plan administrator for my company. We have three 401(k) plans that do not cover union.

I am interested in how the EGTRRA provisions will be adopted by other plans who have ee's over 50. We have a couple of choices:

1. Limit the deferral % under the plan so participants can use the catch up provisions. Plan says limit is 12% - participants do the 12% allowed and use the catch up provisions to max their

contributions.

2. Do not limit the deferrals - let people defer up to 75% of their pay. This cenario would only allow those who defer over the 401(g) to use the catch up.

I would like some feedback on what you think the majority of plans will do.

I understand the USERRA applies to 457 plans. Does that mean that the deferral limits for a returning employee allow him to do "make-up" deferrals for a prior year while still making the maximum deferrals in the current year?

Let's assume:

The employee goes into the military for the entire year of 2002 (when the max deferral limit is $11k/100% of includible compensation).

The employee returns to work for the entire year of 2003 (when the max deferral limit is $12k/100% of includible compensation).

The employee qualifies for coverage under USERRA.

Can the employee then defer a total of $23k/100% of includible compensation* in 2003?

* 100% of 2002/2003, or just 2003 includible compensation?

Does the USERRA require employers to "make up" contributions to 414(h) pick up plans when an employee returns from military service?

If, yes, does the employer make up "employer matching contributions" only, or "employee" non-elective contributions as well (with no reduction in the employee's compensation)?

I'd appreciate any information on what, if anything, other firm's cross tested plan documents will say about the gateway rules.

I'd be interested in any insight into how Corbel's volume plan will deal with this, plus anybody else who sponsor's volume submitter plans.

My company intends to have two versions, one discretionary ala Corbel's volume, plus another with defined allocation factors. But in each case we're trying to figure out whether there should be any 3/1 or 5% language in there as a backstop.

Another issue is what to do if a plan doesn't use 415 comp for allocations. Either they change to 415 pay (my preference but not that of some clients), or have some rules in the plan document requiring either a minimum of 5% of 415 pay or a maximum disparity of 3/1.

Any comments or thoughts would be welcome.

I've got a small firm (2 owners, 1 full time employee, a couple of interns) setting up S/H 401(k) prior to 10/1. Due to time constraints this year they will just do a Std. Prototype. The full time employee was hired in May 2001. Various interns were employed throughout the year. For this year we want the full time employee eligible, but not the interns (future years we will just do 21 & 1 to avoid the intern problem). On July 1, 2001 there were no interns. Could I make the plan effective July 1, 2001 (this would make a short plan year 7/1 - 12/31), define compensation over the full calendar year and then make the entry dates 7/1 and 1/1? This gets me the full time eligible an no interns. Any thoughts?

I am looking for input on types of packages that are available for flexible spending account administration. Please let me know any success and/or horror stories that you may have.

We have a multiple employer plan. The plan in total has over 100 participants, but each participating employer has less than 100 participants. Is an audit required for the Plan or is it exempt since none of the employers in the multiple employer plan has exceeded the 100 participant rule? Any advice is greatly appreciated.

Thanks

I have a plan in which some participants have chosen to purchase variable annuity contracts. My question is are Schedele A's required for variable annuity contracts. It appears that they would be required but we have had a hard time getting insurance companies to provide Schedules A for these contracts. Also they don't seem to fit into any particular section on the Schedule A and we're not sure if we are to complete Section 3 or Section 6. Any thoughts would be greatly appreciated.

EGTRRA repeals the coordination of the 457 plan contribution limit with contributions made to a 401(k) or 403(B) plan . Section 615 of EGTRRA says that this is effective for "years beginning after December 31, 2001" Does "year" refer to calendar year? If so, how does this work for a non 1/1 plan year?

I also posted this question on the non-qualified message board.

EGTRRA repeals the coordination of the 457 plan contribution limit with contributions made to a 401(k) or 403(B) plan . Section 615 of EGTRRA says that this is effective fo "years beginning after December 31, 2001" Does "year" refer to calendar year? If so, how does this work for a non 1/1 plan year?

For purposes of determining whether a self insured health plan passes the coverage requirements, I can exclude employees under Code Sec. 105(h)(3)(B). Can those employees be excluded for purposes of determining whether this plan passes the coverage requirements, even if they are covered under another self insured health plan maintained by the employer?

What should a TPA do about a plan where the company has gone bankrupt, the plan sponsor cannot be located and the Trustee is a financial institution that is a directed trustee? Anyone ever had this situation or a similar one?

Eeeeek

We are fighting an internal political battle over "who" has control over the e-mail/internet monitoring policy. We are a financial institution and have recently added Internet access for all employees.

Our IT VP insists that our Internal Control Department should handle (write and monitor) the policies governing this area. Our (the HR department...here we come to save the day!!!!) feeling is that WE should be the ones in charge, as we have to deal with the "fallout" if there is abuse.

How does your company see this issue? Is it a compliance issue or an HR issue???

Has the deadline for GUST been extended for governmental plans?

Are your small municipal plans restating their documents or adopting documents in place of their ordinances for compliance?

In the ERISA OUtline Book, Tripodi says, "to pass 401(a)(4), every rate group must statisfy the coverage requirements of 410(B). Both the ratio test and the average benefits test are available for this purpose."

But what if there's a Safe Harbor 401k Plan involved? The ratio test and the nondiscriminatory classification tests do not include salary deferrals or the 3% SHNEC. I've calculated scenarios for 401k safe harbor cross-tested plans in which each rate group passes both the ratio test and the nondiscrimantory classification test but the Plan overall fails the average benefits test with a ratio under 70%.

Has such a plan passed?

Is there an industry standard for the number of lives a pension plan analyst/administrator should handle? Or, is there any information on the web regarding work loads for analyst/administrators?

Thanks in advance.

What are some basic things to consider before an employer decides to add an after tax source to a plan? What would restrict HCE's to make after tax contributions. Would it make a difference if the plan was top heavy?

New Pru demutualization questions...

How do you intend to deal with welfare plan demutualization compensation derived from employee contributions? Premium holiday, distribute to employees, enhance benefits, etc?

(The plan I am dealing with is a group life plan.)

Does anyone have any experience implementing a premium holiday in in a group life?

How did you define the eligible group?

How did you treat these premium payments for purposes of the section 79 calculation? (Ie did you treat them as employee contributions which reduce imputed income or as employer contributions?)

Thanks-

card

I have some 2 and 3-participant DC plans and have a real problem with the SAR requirement - especially when the investments are participant-directed.

Obviously, it's fairly easy for employees in such situations to figure out the amount of the business owner's plan account (and, potentially, his/her salary) - information which in definitely not "open to public inspection"!

Has anyone else out there grappled with this "privacy" versus (relatively meaningless) "disclosure" issue? Has anyone ever seen/heard the DOL comment on the issue?

Thanks for any and all input!