Say a plan invests in variable annuity contracts with an insurance comapny. Is that considered a "pooled separate account" and therefore a Schedule D would be required?

The sponsor of a 457 plan has been approached with a new program that includes a "supplemental disability" element. Essentially, if a participant becomes disabled, he/she receives disability benefits under a group contract offered by the insurance company that is providing the investments for the 457 plan. The employer (i.e., the sponsor of the 457 plan) reports the disability payments on a W-2, as compensation to the disabled employee. And under the disability policy, the insurer pays a certain amount to the 457 plan (pre-tax) on behalf of the disabled employee. It strikes me as suspect, because the 457 plan contributions are tied to a percentage of "includible compensation," and it doesn't seem appropriate ot label the disability insurance proceeds as "includible compensation." Anyone have any experience with this type of arrangement?

My post is not going so well on the distributions board

so I thought I would give this board a shot....

Does anyone know how to fix a 401(k) plan loan that inadvertently did not obtain spousal consent?

In addition, the plan provides for loans only for certain reasons, this participant said he was buying a home, apparantly is not purchasing a home.

Basically the check was sent by mistake before the trustee got the promissory note or the copy of the purchase and sale, which is normal procedure.

The participant refuses to return funds to the plan.

Any cites would be helpful

thanks a lot

When an employer puts in a premium only plan do they need to file plan documents with the IRS and DOL or does the filing of the form 5500 at the end of the plan year suffice? Would the answer be different if other types of benefits were offered in the same plan?

If a participant has a 401k loan and files for personal bankruptcy, is he required to default on that loan rather than be seen to be paying himself for a loan? This is what his atty. has said but it seems wrong to me. If he is getting a paycheck, then shouldn't he continue to pay the loan off? Also isn't bankruptcy somehting that can't touch on your 401k plan, but doe that apply to loans? Thanks for any input.

A client has a Simple 401(k) plan in place. They have choosen to make the matching contribution in order to comply with the Simple 401(k) requirements. However, they have not made the matching contribution for the plan year ending December 31, 2000 and do not have the cash to do so. If they do not ever make the 2000 matching contribution does this disqualify the plan?

What are the correction methods available to them if they are able to come up with the money at a later date and make the contributions?

Can an employer establish a Safe Harbor 401(k) Plan with the required matching contribution of 100% of the first 3% and 50% of the next 2% of salary reductions, and then make additional discretionary profit sharing contributions up to the maximum deductible limit?

401(k) Profit Sharing Plan has loans allowed if for certain reasons...purchase of home is one.

Employee took out loan, did not purchase home. EE signed loan request form which indicated his reason for loan was "purchase of home"

also spousal consent was not received and we just found out that ee is in midst of divorce

can anyone cite the correction for this? ee is refusing to return money to plan, spouse is refusing to sign.

thanks

I need a copy of the 71 TPF&C mortality table. My hard drive crashed and I cannot retrieve my file.

Does anyone know where I can obtain one or can anyone help me with this?

The SOA table manager does not contain this table.

Thank you,

GAry

When a plan sponsor is using an IRS correction program and has filed with the IRS to determine the appropriate correction, how should the 5500 be completed while the appropriate correction is pending? Should the 5500 reflect the expected correction, or should the 5500 be completed ignoring the expected correction? Should the 5500 later be amended once the correction is completed?

Totally made up Scenario - Employee told they could take their retirement at age 55 (reduced). However, when calculation was run it turns out that they can not get it until age 60. Employee notified within a week with correct age. SPD, Plan Doc. and Employee Benefit Summary (given once per year) all state age 60 as earliest date to receive reduced benefit. None the less, Employee was told wrong thing. Any legal implications? Looking for something stating: "The employer will not be held liable if benefit is clearly stated in documentation"!!

Excuse my ingnorance here, but why is an Illinois district court involved in this? Isn't this an issue for federal courts?

http://www.thompson.com/libraries/retireme...s/mend0110.html

Company A bought the stock of Company B in 1994. Pursuant to the stock purchase agreement, Company A agreed to pay for or provide similar medical benefits to Company B's terminating employees until such time as certain promissory notes executed in connection with the acquisition are paid in full by Company A. As a result, Smith, a former employee of Company B, has received medical benefits under Company A's group health plan since 1994. Smith has not performed services for Company A in any capacity. The promissory notes will be paid off soon. Company A needs to know whether it has COBRA obligations to Smith. Leaving aside whether Company A has an obligation to inform the insurer that it has covered an ineligible individual, does anyone have any thoughts on this issue?

Starting in 2002 can an employer, in a safe harbor 401(k) Plan, put in more than 3% as an employer discretionary contribution?? Thanks!

A client of mine has a participant in their Healthcare Reimbursement Plan that stores blood "just in case" his children may need it in the future. Is this considered a reimburseable expense? Thanks.

My wife and I started 2 AMEX Roth IRA accounts at the beginning of the year - and we now question whether AMEX is the best source for these IRAs. We currently have AXP innovations, AXP small cap, and AXP growth dimensions funds. Can anyone shed a little light and let us know of the best (or most reasonable) source for IRAs?::confused:

The COBRA wording states the COBRA will/ may be terminated if the member BECOMES covered under another group insurance plan.

Is the emphasis on becoming covered, or having other group coverage? If the member had secondary coverage through a spouse's group plan prior to and throughout the qualifying event, may COBRA be "denied" due to other existing group coverage: Or, since the member's intent was to have dual coverage, would the member have to BECOME covered under another group plan as a member to be COBRA terminated?

JBaker

An employer has a 401(k) plan with a safe harbor match. Currently, all employees are immediately eligible to make salary reduction contributions and receive the match.

For next year, the employer would like to impose different waiting periods for two groups of employees: A waiting period of 6 months for one group of employees and a waiting period of 1 year for another group of employees. After satisfying the applicable waiting period a new employee will become eligible to make salary reduction contributions and receive the safe harbor match.

Assuming each group of employees satisfies minimum coverage, can this be done and still stay within the safe harbor?

Is the flat benefit safe harbor of 1.401(a)(4)-3(B)(4)(i)©(2) still satisfied if the top heavy minimum accrual is granted to HCEs (assume HCEs=Key Employees)?

My 401(k) plan would like to change how it makes its matching formula from a mandatory match from a discretionary match. It would also like to change the plan year from a fiscal year to a calendar year. It would like to make the amendments effective as of October 1, 2001, though the amendments would not actually be adopted until about 1 month later. During the interim period, participants will receive the current matching contribution even though the match is now discretionary so that participants would not lose any monies (there would be no retroactive take-away). (My 401(k) plan matches as it goes along). Is it a problem to retroactively change a matching contribution as long as participants do not actually lose anything -- is that a 411(d)(6) issue? Also is it a problem to retroactively amend the plan year after the plan year has already started to make a short plan year -- I am desperate for any guidance on this issue.