The IRS Cincinnati office distributed a tack-on GUST amendment for terminating plans, some time back. Is it still an acceptable way to update a plan terminating in 2001? Would the answer be different depending on whether or not the plan intends to file a Form 5310?

I have 4 501©(3) organizations that want to adopt 401(k) plan. How do I determine if they are a control group or if they need to adopt as multiple employer?

Does anyone know if the normal 401(k) restrictions apply to distributions of catch-up contributions? I would think the answer is yes since these are basically additional elective deferrals.

What is everyone doing administratively? Are you creating special codes for catch-up contributions for ADP purposes (since catch-ups are not included in this test)? Since individuals can make catch-up contributions from the beginning of the year, it seems like you would have to create two boxes - one that computes the normal 402(g) (or 100% of comp) limit and one that computes additional catch-up contributions. What then happens if the employee leaves mid-year and the amount in the normal 402(g) box and the catch-up box is LESS than $11,000? Presumably all of this would have to be lumped back into one box and then tested under ADP. Wouldn't this lead to an administrative nightmare? What's the best way to go about doing this?

I'd be interested to know what companies are doing to administer the catch-up rules. Thanks.

I assume that a pick-up contribution in a gov'l plan is not considered a matching contribution, such that a 7-year graded vesting schedule can continue to apply to such contributions on and after 1-1-02(ie, EGTRRA's vesting provisions regarding matching contributions do not apply). (This plan, though gov'l, has applied ERISA's vesting requirements up to this point.) Is this assumption correct?

The plan has a mandatory 5% employee deferral (under 414(h)(2)) and the employer makes a 7% contribution. I see no reason or authority for this being considered a match, but I want to make sure I am not missing something.

I have a prospective client who has leased employees and the client himself is paid by the leasing company. Can an employer be a leased employee and sponsor a plan??

two questions: 1) does the catch up count against the overall 415 limits? i dont think it does but if everything else is designed correctly a partiicipant might be able to get 41,000 for 2002, correct?

2) does the plan have to be amended for EGTRRA at the time of the catch-up or can the amedment be done by the last day of the plan year?

I'm doing research on the use of Variable Forward Contracts when used with Employee Stock Options. There doesn't appear to be a lot of literature explaining the mechanics of these forward contracts. Can someone point me in a useful direction? Specifically, I'm trying to really understand how they work, and how brokers make these contracts worthwhile. Any help anyone can provide would be most appreciated.

Best,

Joel Howe

Can a one life calendar year standardized MP plan terminate currently, adopt a DB plan for 2001 and fund only the DB plan for 2001??? I'm thinking this since a DB plan is considered a greater benefit than a MP plan.

If a company doesn't offer a self-insured Flexible Spending Account (under Code 105(h)), but wants to contribute toward an FSA under Section 125, what non-discrimination testing issues need to be addressed? Do both employee and employer contributions need to be factored in when calculating the 25% Key test? 55% Average benefits test? Help!:confused:

Can an employer charge the COBRA premium +2% for one Qualified Beneficiary, and just the COBRA premium (without the 2%) for another Qualified Beneficiary? Thanks

I am preparing Form 5500 for 3 companies who are all under the same self-insured health plan, but have their own cafeteria plans. I need help deteriming what to report on which Schedule F. I have reported the employee and employer contributions on each of the three companies' separate Forms 5500. Then I reported the re-insurance premiums plus the claims paid on the Form 5500 of the company who is the sponsor of the self-insured plan. Is this correct?

I am attempting to obtain requirements for non-elective contributions to a 403b plan. Time is unfortunately of the essence and I have been unable to locate much authority. Any information is helpful. My personal email is AIsraeltax@earthlink.net. Thank you.

An employer maintains both a 401(k) plan and a recently acquired 403(B) plan (acquired entity). What are the aggregation rules for testing these plans? Mandatory? Permissive? Cites? Thank you very much...

Maxwell

I'm trying to write a brief description of the interplay between the continuation of health coverage under COBRA and USERRA for large employer groups. The 1999 Final COBRA Regulations indicate COBRA's "alternative coverage" rules apply to USERRA continuation coverage. (I assume USERRA should be treated as "identical" alternative coverage. ) However, after reading the COBRA regulations I still find myself confused. At this point, I believe that both USERRA and COBRA must be offered when the military leave begins even though they are basically the same. I also believe the USERRA period runs concurrently with COBRA for the first 18 months. My question is whether COBRA can be obtained for a period of time after the 18 months of USERRA is exhausted. For example, COBRA runs 18, 29 or 36 months under certain circumstances. If a person who elected USERRA later becomes disabled, can he/she elect 11 months of COBRA coverage at the end of the 18 month USERRA period? If the employee dies, are the dependents entitled to elect 36 months of coverage from the date of death? (not the date the military leave began?) Thank you!

Any ideas as to the going rate to amend and restate PSP for GUST/EGTRRA including determination letter filing? Also, any differences between volume submitter and prototype plans???

Hello everyone!! I am new to this forum so please bear with me. I have a question concerning the leaseback provisions in IRC 514©(9)(G)(i)--this section allows a qualified organization to leaseback to a related party if the lease is not more than 25% of the space in the building or "complex of buildings"--is there any guidance on defining "complex of buildings"--i.e. does it include several buildings by the same seller, although not connected?

Thanks.

Is it 12/31/01 (for calendar year plans), or the 2001 tax return deadline for employer sponsoring the plan?

I want to roll over an IRA into I bonds. I need a custodian to maintain the bonds. Is there a list of possible custodians that can hold I bonds or will any brokerage firm work?

Question regarding a partnership's Profit Sharing Plan.

Facts:

a) Only discretionary contributions are made to the PSP.

b) The plan has 8 participants ...(3 are partners & 5 are regular employees).

c) The plan year end is 12/31/00.

d) No contributions are made during year 2000.

e) In January 2001, the contribution $amount for year 2000 is determined ($ 8,500). Also, its allocation among the 8 participants is properly computed ($ 2,000 for each partner and $500 for each regular employee). [3 @ $2000 = $6000 and 5 @ $500 = $2500].

QUESTION (concerning the payment of the contribution).

Can the partnership contribute $2500 to the plan trust in January 2001 for the 5 regular employees .... and then in March 2001 each of the partners write a personal check for $2000 to the plan trust ? (In other words: Can a partner fund his Keogh with a personal check ....or must an employer check be used ?).

Anyone know of a tax code or reg that addresses this issue?

A plan I am working on only allows for a terminated employee to receive a lump sum payout after a break in service has been incurred. This means that some former ee's must wait a lengthy period of time (some more than 1 year) before receiving their final distribution.

My question is whether a terminated participant, who is not yet eligible to withdraw his account because of the break in service rule, may still be eligible to use the hardship withdrawal as a means to get to their money (as long as they qualify on account of immediate and heavy financial need).

I cannot find anywhere in the Plan document that says this is disallowed, however, I was always under the impression that a hardship was only an in-service withdrawal, and that in-service meant the participant was employed. What are your thoughts on this?