I converted my IRA to a RothIRA the year before last, I think. Sorry to be unsure, but I don' t have my paperwork at hand.

My question is, what restrictions are there for contributing on an annual basis? I didn't make a contribution for 2000 because my accountant said our income was too high. I'm really confused about possible restrictions.

If you can't easily explain, could you point me to a place where I can read about it?

Thanks much.

Totally confused...... Susan

Now that delinquent 5500 forms (even for pre-99 years) are filed with the DOL rather than the IRS, what will your procedures be when filing a delinquent 5500 form?

Will you always use the DOL's Delinquent Filers Voluntary Compliance Program (DFVC)? Why or why not?

Will you send a letter of explanation with the delinquent filing?

Will you send a request for waiving fees or penalties with the delinquent filing?

Will your procedures change from whatever delinquent filing procedures you used when filing with the IRS?

Do the answers depend on the reason the filing is delinquent?

As long as a plan does not provide for hardship withdrawals, does not provide for different distribution options depending on source, and the plan accounts for deferrals long enough to do annual testing each year:

Is there any reason a plan has to keep track of how much of a participant's account balance is from deferrals versus how much is from employer contributions? Why?

For determing the safe and unsafe harbor percentages for rate group testing, is it permissible to round the NHCE concentration percentage to the nearest whole percentage?

For example, the NHCE concentration percentage is 74.74%. Should I use the safe and unsafe harbors for 74% or 75%.

Thanks.

I have heard Suze mention on several occasions about a 9% interest rate on IRA's. In one of the books, she speaks of a 8% return rate. Where are these rates found? I have searched banks and other financial institutions on the internet and have only found in the 4-5.6 range.

For those of you who were wondering where the documentation is for the change in the amended or delinquent forms for pre-1999 years, you will find it on page 11 of the "Troubleshooter's Guide to Filing the ERISA Annual Report". It is at the bottom of the page as a Caution. You will find this on the EFAST website.

By the way, this took 3 conversations with the DOL to determine where this was in writing. I had seen it here, but it seemed so casual that I expected a more formal announcement from the PWBA. Apparently not. So now we get to be hypervigilant, too.

I am working on bring to life a basically non-existent education assistance program (tuition reimbursement).

I am building models but the one ingredient I do not have is the percent of employee utilization. We have an education assistance program in place but the way it is written no one uses it or can use it. Over the last 3 years only 9 employees of the 2000+ employees that are eligible for the benefit have used the program.

What is the percent of utilization of the education assistance program at your company? Do you have plan in place that you are proud of and are will to share? I would like to hear from people in the retail industry but any information on utilization, no matter what industry would be helpful.

Thanks

I am working on bring to life a basically non-existent education assistance program (tuition reimbursement).

I am building models but the one ingredient I do not have is the percent of employee utilization. We have an education assistance program in place but the way it is written no one uses it or can use it. Over the last 3 years only 9 employees of the 2000+ employees that are eligible for the benefit have used the program.

What is the percent of utilization of the education assistance program at your company? Do you have plan in place that you are proud of and are will to share? I would like to hear from people in the retail industry but any information on utilization, no matter what industry would be helpful.

Thanks

I am working on bring to life a basically non-existent education assistance program (tuition reimbursement).

I am building models but the one ingredient I do not have is the percent of employee utilization. We have an education assistance program in place but the way it is written no one uses it or can use it. Over the last 3 years only 9 employees of the 2000+ employees that are eligible for the benefit have used the program.

What is the percent of utilization of the education assistance program at your company? Do you have plan in place that you are proud of and are will to share? I would like to hear from people in the retail industry but any information on utilization, no matter what industry would be helpful.

Thanks

One-man Corporation had a DB plan terminated a few years back in which the benefit had been distributed and the employer-owner paid taxes on. Now, he wants to start a new DB. Since he has already paid taxes on the previous DB, can the dollar limit be restarted (instead of being offset by the accrued benefit of the prior DB) as if the previous DB had never existed? Do you have a citation on your answer? Thanks.

Our company has changed health care providers from a regular BCBS to a government BCBS plan. Some of the employees have declined coverage and are being told they have to take the coverage if they are either not insured or have not provided a letter from their current insurance company. I declined and provided a copy of my insurance card and am told this is not sufficient. What is the length of time you should be allowed to review a policy to determine if you want to accept it and can a company deduct payments from your check if you have declined the insurance? Is it legal for the company to require proof in order to decline their coverage?

Thanks

Five or six years ago, at some conference at which the IRS was presenting, a question was asked about whether a frozen profit sharing plan could continue to exist indefinitely. The IRS's response was that without the possibility of future contributions, it could not. Since then, we have been restating our frozen profit sharing plans as 0% money purchase plans, since IRS indicated that this did not present the same problem.

However, we have seen no mention of this position either formally or informally since then. Is anyone familiar with this issue or does anyone have any direct or indirect evidence of the IRS's position? It is a pain in the neck to restate them if we don't need to.

Thanks for any input,

M.

For a number of reasons that I will not go into here (and that I know will not be apparent), I have a client that wants its plan to provide that it will make distributions within five plan years following termination of employment.

As participants terminate, the employer will decide when it wants to offer a distribution. So long as this discretion is not exercised in a discriminatory fashion (ie, in application, does not discriminate in favor of HCEs), can this be done? I realize that this sounds stupid, invites controversy in treating participants differently, and that it "smells bad", but the client is determined to do this if there is no legal impediment to doing so. Is there a statute, regulation, ruling, etc. that would prevent this?

My client maintains an ESOP that requires distributions to be made available to the participant the 6th plan year following termination of employment (with exception for retirement, death, disability). Client wants to amend the plan to say that distributions will be available NO LATER THAN the 6th plan year following termination of employment. The idea is to give the employer discretion as to when to offer a distribution to each participant. With the amendment, the employer could offer a distribution in Year 1 if it felt the stock price was rising, or wait until year 5 if it felt the price was falling. This would only be a right to a distribution as, of course, absent retirement or death, we could not force a distribution. This is an S-corp. ESOP with cash only distributions. The participant's account is not converted to cash until an election is made to take a distribution. ASSUMING this discretion was exercised in a way that does not discriminate in favor of HCEs, can this be done? I assume it may be a benefit,right or feature that would need to be tested separately.

This "smells" bad to me for a number of reasons. I can foresee participants being angry that they were not given the same offers as other participants, etc. I suppose there could be fiduciary issues as well (though it is up to the participant on whether to take the distribution offer). I think this is a bad idea; my client disagrees and wants to do this unless there is a legal impediment to doing so. This could also be a more general question in any qualified plan: can the employer exercise discretion as to the timing of a distribution? I have seen plans that say distributions will be made within one year, but have not seen anything longer than one year and not in the context of an ESOP.

Any thoughts or comments would be greatly appreciated.

Does anyone know what is the time limit, if there is, that plan administrators are given to send out terminated participants' distributions. For example, if a participant terminated in Feb 2001 and requested distribution in July, by when are plan administrators required to complete the distribution.

If possible, please reference the IRS or DOL ruling, whichever applies. Thanks.

I heard recently that the DOL has informally indicated that it believes premium holidays, rebates or waivers for mewas or group health insurance trust would be violation of fiduciary duties because such holidays only benefit the employer. Has anyone else heard that or could they point to the article or something that says that! I would appreciate any help on this urgent matter.

Does anyone have a summary of the impact of each provision of EGTRRA on DC plan administration? For instance the catch-up contribution provision will impact the Admin system, enrollment forms, etc.

Most qualified plans must be amended by 12/31/01 for the changes brought on by the Community Relief Act of 2000 (CRA) to sections 414(s)(2) & 415©(3). The IRS is going to offer 2 model amendments that can be relied upon by plan sponsors, one for the 415©(3) comp. definition & one for 414(s) comp definition.

Will both of these amendments be required for Gov Plans? Is the amendment for 414(s) necessary since that section is of limited applicability to Gov Plans?

All feedback will be appreciated.

Can a plan that has not been terminated, but has no participants and no assets be merged with another plan?

One of our subs has a plan that is separate from the parent’s plan, everyone in the sub has separated from service and will be taking distributions. Only one participant remaining and will be gone soon.

The sub plan was frozen and everyone in the sub plan was eligible under the parent plan. Therefore, the parent plan was a successor plan and, because 100% of the sub plan participants were eligible to participate in the parent plan, the 2% exception did not apply.

Perhaps, I am not applying the successor plan rule and 2% exception correctly. Do you think we can terminate the sub plan?

Thanks for your help.

Can a plan that has not been terminated, but has no participants and no assets be merged with another plan?

One of our subs has a plan that is separate from the parent’s plan, everyone in the sub has separated from service and will be taking distributions. Only one participant remaining and will be gone soon.

The sub plan was frozen and everyone in the sub plan was eligible under the parent plan. Therefore, the parent plan was a successor plan and, because 100% of the sub plan participants were eligible to participate in the parent plan, the 2% exception did not apply.

Thanks for your help.