I know of freeerisa.com, but the 5500 or sch b does not necessarily give all data I am looking for.

For eg. I would like to be able to obtain the number of employees who left (during prior year) as a term vested and of those how many received lump sums and how many are deferring benefits. Also I would like to know the number that retired (during prior year) and how many took a lump sum and how many took an annuity. And how many new participants entered the plan during prior year.

Anyone know where this info can be obtained?

A cash balance plan pays the account balance as a lump sum dist. Of course pension law requires the lump sum to be at least the pv of normal ret accd ben.

The plan uses the 30 yr for interest vredits and the 30 yr (as of a different month) to determine lump sums.

If the 30 yr for int credits is greater than 30 yr for lump sums, then could or should minimum lump sum be based on account bal proj to ret by int credit rate and then discounted by lower lump sum int, thus resulting in a lump sum greater than account bal?

In other words no pre ret mortality. Again the plan does not give any specifics for the calc of lump sum other than to say it is the account bal.

Can a spouse's COBRA insurance payment be submitted to a health FSA for reimbursement?

Regarding MRD's from a DC plan;

It looks like 1.401(a)(9)-5 Q&A 4-7 indicate that the factors in 1.401(a)(9)-5 A-4(a)(2) "Table for determining distribution period" only applies to distributins made during a participant's lifetime, including the year of his or her death.

Then if the participant dies after MRD's have begun, the life expectancy of the beneficiary(ies) must be calculated using Tables V and IV of 1.72-9, not the table in 1.401(a)(9)-5 A-4(a)(2). Only if the spouse is the sole beneficiary can his or her life expectancy be recalculated each year.

I have an attorney telling me that the January 2001 proposed 401(a)(9) regulations regarding this situation have been superceeded and that the table in 1.401(a)(9)-5 A-4(a)(2) should be used to calculate the beneficiary's life expectancy.

Has anything changed or is my above analysis correct?

We are merging many money purchase plans into profit sharing/401(k) plans for the 2002 years since both plans aren't needed to maximize deductions in 2002.

Question: If the plans are merged effective 12/31/2001, can we file a final 5500 for the money purchase plan for the year ended 12/31/2001 OR do we need to wait until the assets are physically transferred (re-titled) to the profit sharing/401(k) plan and do a final return with a year beginning 1/1/2002 and ending as of the date of the last asset transfer?

Thanks for your help!

I had a great Cobra notification letter that I used at my last employer, but am having trouble with the disk it was saved on. So, I've been searching the web for hours for a good, up-to-date Cobra Notification Letter, with no luck. Any website suggestions?

could someone with a small income fund for the $160,000 415 limit? for example, could someone start a plan in their 50's who earns $20,000 per year and fund for a $160,000 benefit at retirement (ie a deduction that greatly exceeds their income?

the new literature seem to indicate yes. any thoughts?

I went to Relius Admin training in Jacksonville in August, and in training, we touched on the DCM. I haven't used it yet, because I was too busy finishing up 2000 plans for 10/15/01 filing.

Now I want to use the DCM to obtain information on some plans with PYE 9/30/01. I checked the instructions on Help and it says to create a DCM installation disk for the client, select "Utilities>DCM Installation Disk". I do not have this selection in my Utilities menu.

I would appreciate any insight anyone can provide on the entire DCM process.

Thank you.

Participant has a 401(k) balance of $2,500. This is $2,000 contributions and $500 earnings. Participant takes a loan for $1,250. Particpant's balance has experienced a loss and the account is now worth $800. Participant wants to take a hardship distribution. Any ideas on how to calculate the eligible hardship amount? Thanks.

Plan document allows for different definitions of compensation for deferrals, match & p/s and has an option for determining whether or not deferrals are taken from bonuses.

Client has elected to allow 401(k) deductions on bonuses but wants to know if they have to match those contributions? Can bonus comp. be included for deferrals but excluded for match and p/s purposes and the plan not run into problems?

At a future date would they be able adopt safe-harbor provisions to avoid ADP/ACP testing if this exclusion were allowable and in place?

In determining who a key employee is, what is the definition of an officer?

If an employer provides long term disability coverage paid 100% by the employer, are the amounts of the premium considered taxable to the employee?

I understand the whole pre and post tax employee contribution tax requirements, but was not sure on the employer provided coverage.

Okay--first plan year is 2000. Employer elected to use the 3% default for ADP testing. Then, in 2001, they amended to use an safe harbor match (notice requirement met). Now, for 2002, they want to know about eliminating the match. I will advise them to simply not provide the annual safe harbor notice and amend the plan to use current year ADP testing, correct? Anyone see any problems or is there anything else we need to do to get "out" of the safe harbor?

I will also advise them that they can wait until sometime during 2002 under Notice 2000-3 guidance, but I think they are looking to get out before.

Thanks!

A SIMPLE plan is terminating and a true up contribution is due to the plan. However, the plan's only 3 participants are the owners. No other employees have chosen to defer and participate in the plan. My feeling is the company would not have to make these true up contributions since it would only be going to the three owners. But I cannot find any cite or reference supporting my logic. Has anyone else run into a situation like this before? What have you done?

A dependent of an active employee is also covered as a COBRA participant under the dependent's former employer. The dependent is also covered under the spouse's plan. Which plan would be primary? The dependent's plan document states that that plan is secondary when a COBRA participant is covered under another plan in which an employee or dependent is active. The employee's plan only states that the plan that pays first is the one that covers you as an employee. This is stated under COB provisions and not mentioned under COBRA.

Do experience gains from a Health FSA have to be "kept within the Plan?" What I mean is that I have gotten conflicting information that on one hand (i.e., DOL information) that excess funds that are forfeited by participants in a plan year for a health FSA can either be used to: 1) defray administrative costs by the employer; 2) be returned to participants uniformly in the form of cash subject to income tax; 3) be used to reduce future premium amounts in the next plan year; or 4) be used to increase the annual maximum for the next plan year. The DOL states that the monies received by the participants are "plan assets," so any excess must be used for the strict use of the Plan and cannot be arbitrarily used by the employer any way they choose. On the other hand, I have been told that the IRS is silent regarding the excess funds, and that since they were forfeited by the participants then those funds are the employers to do whatever they want to. Any help, especially specific IRS or DOL regulation information, would be most appreciated. Thanks!!

It's my understanding that if one plan is properly merged into another before the remedial amendment period expires, only the surviving plan has to be restated,provided that the appropriate language is contained in the restatement. Where can I confirm this? What is the appropriate language?

Can the IRS go back an unlimited number of years to force RMDs? If there is a limit, how many years can they go back?

I've heard that the proposed regs. stating that 5% ownership status never went away, even after divesting oneself of any ownership interest -- were repealed. Therefore, you would only be considered a 5% owner for the next 5 years. Can anyone varify that?

An employer would like to do away with their health insurance and instead put money into the employees' medical spending account so they may purchase their own health insurance. The employees would then be reimbursed for the premiums from the medical reimbursement part of the cafeteria plan. The question the employer has is can an employees' unused employer money be carried over to the next plan year? I know employee money is always "use it or lose it" but what about employer money?