Per EGTRRA, spousal rollovers to qualified plans will be allowed for distributions after 12/31/01. What procedures should (must?) be followed when a participant and spouse are in the same plan? Can the spouse roll the money over from the plan to the same plan? Does a check have to be cut? If so, does the check have to be made out to the spouse, or can it be made to the plan? Can the money just be transferred without a check being cut as long as the reporting (1099-R) is done correctly?

Does anyone have any experiece getting the web module to work for participants who use AOL as their browser? It worked when we were at 5.0 even though support said the web has never been compatible with AOL.

For the record, I don't use or like AOH*LL but my boss says I can't just tell people to get a real ISP. Yes, I know that it is possible to use a different browser with AOL. And I know that even downloading a browser will be beyond the technological skills of many of our participants.

Any other solutions or insight as to why Relius thought this was a good business move? If we would have known this would be an issue, we would have reconsidered upgrading to 6.0.

Another question for you kind folks:

In regards to Premium Only and Premium with FSA 125 Accounts...

As far as I can tell there is no specific language which DEFINES "significant change" - allowing 125 participants to change/terminate their elections.

At this time our SPD does not have the definition and we would like to incorporate it.

Any input regarding this concern would be appreciated.

Thank you in advance.

why do more firms with cafeteria plans offer core rather than total free choice plans? Anyone?

can't seem to find an answer to what i thought was

an easy question:

earnings distributions from a roth ira, assuming you're

59.5, are entirely tax-free in the USA. but what about

if you're a legal resident overseas, for example, in Australia ?

Will Australia tax these earnings just like they would

the earnings distributions from a regular IRA ?

Hey everybody,

I'm having a hard time finding information on how to convert a Roth IRA from one firm (Morgan Stanley) to another (E*Trade).

How do I do this? Is there some IRS form that allows me to name a new trustee? If so, where do I get the form? Or can I simply withdraw the money from Roth #1 and dump it into a conversion Roth #2?

Totally lost and looking for some guidance. Thanks in advance.

Brian

Must a DC plan that is subject to QJSA rules (such as a money purchase plan) get spousal consent every year a Required Minimum Distribution is paid, or can the spousal consent for the first year cover all subsequent Required Minimum Distriubtions?

A client has recently requested my assistance in terminating a small 401(k) plan for a company that terminated all its employees about 3 years ago. All plan participants became 100% vested in their 401(k) accounts at that time. Participants were sent information about distribution of their account balances. Some employees responded and had their accounts distributed to them. Others did not respond, and were never heard from again. Trustees fees have been routinely charged against the remaining plan assets. By this summer, trustees fees had eaten up any remaining account balances. Board action has been taken terminating the plan and the Form 5310 is being prepared. Reg. 1.7476-1 defines interested parties in this situation to be 1) all present employees with accrued benefits under the plan, 2) all former employees with vested benefits under the plan, and 3) all beneficiaries of deceased former employees currently receiving benefits under the plan. None of those definitions seem to currently apply in this situation. Since the company has no current employees and all account balances are zero, to whom should the required notices regarding the planned filing of the Form 5310 be sent?

Can an Owner (President) of a company participate in the Flexible Spending Account? If they cannot participate in the Unreimbursed Medical account can you please refer me to where I could find information stating that.

Another question-how far back can a participant go for medical expenses for a hardship? If someone has already paid the expense it would not appear to be acceptable. On the other hand you have someone who was in a serious motorcycle accident and has been out for almost two years. He continues to run up medical expenses and has some that are outstanding. Can we cover outstanding legitimate medical expenses going back to the accident occuring?

I should know this because it seems obvious. If you use the safe harbour rules for definition of hardship, is it acceptable to allow people to include in their hardship request the down payment on a prinicpal residence. I have always interpreted this as part of "Costs directly related to the purchase of a principal residence for the employee, excluding mortgage payments." I have seen it in examples in ASPA materials before and know other consultants who also accept it. This is for a large client that has an attorney that tends to challenge everything.

I have a self funded client that has implemented a drug screening process within the work place. Now they want to change the health benefits for Inpatient or Outpatient Substance abuse to 100% coverage if the individual voluntarily seeks medical help and only 50% coverage if the individual is caught in violation of the work place drug screening.

It seems to me that the individual whether voluntary or involuntary is ill and I feel that the client may be at risk for a discrimination argument in the future.

Can anyone advise if this 100 vs 50 would be legitimate or not?

WHAT IS THE TAXABLE WAGE BASE FOR 2002?

THANKS!!!

May an LLC which is taxed as a corporation (they checked the box) grant incentive stock options to its employees?

We are taking over a 401(k)/PSP where certain employees derive a portion of their annual comp. from projects subject to prevailing wage (Davis Bacon - D/b) done by the employer. In 2000, 1 of the D/B EEs was an HCE (6 HCEs total), and 17 of the 30 NHCEs received a contribution under the D/B method.

The employer calculates the contribution required under D/B for the EEs who are affected. The full amount of the contribution (up to 415 limit) is allocated to these EEs as an employer contribution. Other EEs receive an employer discretionary contribution (3% of comp. in 2000) allocated on a comp-to-comp basis to EEs with 1000 hours employed on last day of plan year. In cases where the D/B contribution of an EE was less than 3% he/she received an employer contribution in an amount to make his/her total contribution 3%. This scenario creates different rates of contributions. One resource I contacted said that each contribution rate is subject to 410(B) testing. The prior TPA indicates that the "offset" of the employer contribution with the D/B contributions is acceptable in spite of the varying rates of contribution and has used the ratio percentage test as the 410(B) testing method. The document contains no specific language addressing the D/B allocation method (only the comp-to-comp formula) described or the testing. Would appreciate feedback. Thanks.

I have a client with a SARSEP plan established several years ago. They/I want to keep the SARSEP plan and implement a employer-funded SEP-IRA plan alongside it, but client is not happy with current SARSEP custodian, and investment choices.

Knowing that "new" SARSEP plans are "verboten," is client stuck with current custodian or can the plan and SARSEP-IRA balances be transferred to a new custodian with better/cheaper investment options for future contributions? Schwab or Vanguard is what I have in mind. Thanks for any insights!

I have heard and read conflicting information regarding the inclusion of employer contributions to a cafeteria plan when determing the value to be input on line 5, schedule F. In the packet of instructions for the 2000 year, under "2000 Instructions for Schedule F", specific instructions, Line 5 states "For a Code section 125 cafeteria plan, the amount employees elect to have an employer contribute to provide for the benefits under the plan." This could be interpreted as being the amount the employee elects to have taken as a salary deferral, not including employer contributions. Are there any web sites or publications that provide a definitive answer regarding the inclusion of the employer contributions?

Annual interest credits under a frozen cash balance plan are based on Treasury +1, actuarial equivalence for a non lump sum benefit option is '83 GAM Unisex w/ 7%, and actuarial equivalence for the lump sum option is '83 GAM Unisex w/ interest at the 30 year Treasury rate.

When a participant terminates & elects a lump sum, the account balance is brought forward with Treasury +1; if the 30 year Treasury is >= 7%, he gets his current balance ; if it's < he gets his balance times A/B, where A= a life annuity rate at current age using the lump sum basis & B= a life annuity rate at current age using the non lump sum basis -

A/B is greater than 1 .

Since it's not the typical "whip saw" calculation, I was wondering if anyone has seen this particular methodology for the calculation of lump sums in a cash balance plan ???

Lincoln National Life is exiting from the "insured" medical reimbursement plan marketplace. Is anyone aware of other insurance companies that are currently in that marketplace?

In performing the concentration test, don't I look soley to the salary deferrals under the Section 125 plan? In the instant case, health insurance premiums are split between the employer and employee, with the employee's portion coming from salary deferrals under the plan and the employer's portion paid directly by the employer. The employers controller has taken the position that since the employer must report the total premiums paid by both the plan and the employer on Schedule F of Form 5500. the testing should be calculated on total premiums, not just those paid by the plan. I read IRC Section 125(B)(2) to relate the concentration test to benefits "under the plan".