Spouse waived benefit (form she filled out is notarized, has an explantion of benefits, etc.) Even so, she claims she didn't understand what she was agreeing to. While she seems basically "up a creek", I did notice one thing:

annuity start date is 2 weeks before date waiver signed.

While that is allowed now, in 94 the "not more then 90 not less then 30" day rule didn't have the "retoractive annuity start date" language.

Is this a "per se" violation? Meaning - is the waiver invalid because she didn't sign it "not less then 30 days" before the annuity start date?

I'm sure this issue has been raised before, but I can't sem to find the thread.

Client has an MP Plan and a 401(k) Plan. Based on the new EGTRRA 404 limits, the MP Plan is no longer necessary.

If we merge the two plans together, does the MP Plan have to provide for 100% vesting (as would be required if we terminated the Plan)?

Any help and/or sites would be appreciated.

Thanks in advance.

May a non-spouse beneficiary of a 403b, roll the distribution over to another 403b and or an IRA? Or is rollover treatment not permitted.

I'm sure this situation isn't unique! A divorced participant died without a designated beneficiary for a defined contribution pension plan. Through the order set forth in the plan, his son (8) is the beneficiary. The ex-wife/mother cannot/will not get the documents showing that she is the legal guardian of the son's estate. The required minimum distribution rules say that for a non-designated beneficiary, pay-out must be by the 5th year after the participant's death. The son will not be 18 for 10 years. Any suggestions? (Remember, the mother won't be named the legal guardian of his estate).

Thanks!

sorry, I am trying to attach a report, but it is not working. I will try later.

this report provides a list of plans that do not have a match = 2/20.

with new rules, all plans in 2002 must have at least a 2/20 vesting schedule.

to run this report:

open report in crystal

goto Report/Select Expert and del plan name in this area (not from the report itself)

Then goto File/Print Preview

You might have to run Refresh Report Data

I am new to the Pension Plan Administration and need a little advice. With the new regs coming about, the profit sharing plan is more beneficial to one of my clients then his current money purchase plan. I want to convert the money purchase plan into a profit sharing plan. With documents needing restated, what is the best way to convert the plan for the 1/1/2002 thru 12/31/02 plan year?

My husband and I were divorced this year. The divorce took place in the Uk .My husband did not declare any of his US pension plans and they were not pursued by my attorney despite repeated requests from me. I was not named as beneficiary on his 401k although we were married at the time the plan was taken out. Is there anything I can do to retrieve the situation. My husband is Director of Human Resources at his firm and was therefore well aware of the implications.

Any help gratefully received:

When a SIMPLE plan is in place, is it possible to put a 412(i) db plan in during the same year --- does it matter whether or not contributions have already been made to the SIMPLE plan this year?

Also, can the SIMPLE plan be immediately terminated and another plan started, or, is there mandatory waiting period - or does it depend on whether contributions have already been made to the plan this year?

We administer a money purchase pension plan with a calendar year end. The employer made the required funding contribution on 9/18/00 (the due date in 2000) for the plan year ending 12/31/99. Consequently, the check that the employer provided the fund company bounced in late September. The employer then made the deposit again on October 4, 2000 after the due date. Questions - Is this contribution considered late and therefore non-deductible? Will there be a need to file a 5330 for the plan year 2000?

Thank you,

Ronnie Wasel

Another third party administrator told me they kept no receipts on medical or Daycare. The client merely calls and tells them what their expenses were and they pay them without receipts. They say you keep your receipts in case you ever get audited. #1 where in the IRS code does it say the employee keeps the receipts without turning them in.#2 is this not the responsibilityof the administrators, talk about opening the door to fraud. Is this legal?

Here is the situation: A plan trustee stole the entire plan's deferral money and ran away. He was later tracked down and forced to pay everything back. The court then made us, the TPA, trustee of the plan. There were 14 people that we have been trying to track down. We used the IRS and they located six of the 14 people we were trying to track down.

Here is the quesiont: What do we do about the remaining 8 or so non locatable ees? Our idea was to set up a Bank a/c in their name in which the money would escheat to the state after a certain number of years. Is this a possibility? A second possibility we came up with was to just leave the plan open, which we don't want to do. Is this a good option for us? Are there any other options out there for us to persue to take care of these employees?

Is there any general guidance out there on how to treat employees on military leave, under a flex plan?

Do we refer to the FMLA/Sec. 125 regulations by analogy?

Does USERRA's "restoration of benefits" requirement apply to participation in a reimbursement scheme (dependent care, medical expense) under a flex plan?

Any pertinent comments welcome.

I am working on a plan that has had problems with late deferrals since its inception in 2000. I understand the calculation for the "amount involved" and the excise tax. My question lies with the completion of the form itself:

1) This company deposited late deferrals multiple times during 2000. Is it necessary for me to list each late deposit on Part VII of the 5330 as a separate Prohibited Transaction?

2) If must list them separately, the form only has 4 lines for entry. The instructions do not state whether to attach another page or include a spreadsheet. Any suggestions?

3) Corrections were completed this month (10/2001) for the late deposits relating to 2000 deferrals, and I realize I must file a 5330 for 2001 also. Can I file this NOW or must I wait until after the end of the taxable year (12/31/2001).

Thanks for your assistance.

KAG

I have two pieces of information on the timing of Sep Contributions, One states it must be made by Year End, the second piece states by the employers tax deadline. Can someone help, if it is by the employers tax deadline, say in October, than how does one deal with the 5498 when they are due before the tax deadline.

Thanks

Admin new to Seps.

I have filed a number of Form 5500s under the VCP and had clients pay the reduced penalties for the late filings. I have heard a number of people have filed the forms late and simply sent a statement explaining why the forms are late. Has anyone heard is the government waiving the penalties? I know it is possible to get the penalties waived for a "fringe benefit plan" but it stikes me as odd if the government is going to waive the late filing penalty for a "welfare benefit" if all you have to do is send in a statement.

In other words, it seems unfair to have the VCP and have people pay a reduced penalty if the government is going to completely waive the penalty if you send a statement.

Is anyone reading Section 4.03 to mean that if the new actuary wants to change funding methods he/she can bypass the 5% test & go right to using the rules of Section 3 ??

Hi all,

This is my first posting here. I have two quick questions.

1. Are Roth contribution limits going up to 5K in 2002?

2. My wife and I have a two year ols son and we are considering alternatives for college planning. We are 34 and 31 respectively and will be able to contribute to Roths for the foreseeable future.

Is using our Roth money for his college needs (in 16 years) the best way to go? Are there any tax problems if we withdraw money for his college education?

Hope someone can help.

cheers,

chris

On the form 5500, page 2, question #6 - asks for the total number of participants at the beginning of the plan year.

Can someone clarify this?

If pulled from the previous plan year, would you use question 7f or 7g?

Through my software, it appears that it pulled 1999's answer for 7g, and populated it in question #6 for 2000.

Is this correct?

Thanks in advance!

A business has a SEP plan which allows employees to contribute through payroll withholdings. The employer's fat bookkeper withheld the proper amounts from employees for a whole year... but she never deposited any of the amounts withheld into the employees' SEP accounts. The employer says that she stole the money and that there is nothing that he can do.

The employees intend to sue the employer in state court for breach of contract .... However ....

.... MY QUESTION: Are there any IRS or ERISA penalties that the employer is subject to, for failure to deposit the withholdings (timely) ?

I realize that a SEP is not a qualified plan under ERISA. If anyone can direct me to any specific IRS or ERISA code sections which explain what the employer penalties (criminal or $monitary) might be regarding a SEP ... I'd appreciate it.

Can you have a cross tested DB Plan with a Simple Plan or must the Simple Plan be terminated?