Are Sec 403(B) plans exempt from providing a fiduciary bond even if the plan is subject to Title I of ERISA?

Situation:

Husband deceased, beneficiary is spouse, spouse wants to do a direct rollover to her 401(k) plan.

I know she can rollover to an IRA, but can she rollover to her K plan? If not, can she roll to an IRA, and then roll the IRA into her K? Were there any changes with the new laws that will take effect soon to allow for other options?

Thanks in advance,

JimJ

What happens when a plan that is not amended for GUST is merged into a plan that has been amended for GUST? I understand the normal merger rules (where I must preserve accrued benefits, optional forms, actuarial factors, etc.) but what about the effective dates? For example, the surviving plan was amended for GUST over a year ago. Therefore, for some provisions, it has an effective date that would be earlier than a plan that was amended for GUST right now (e.g., the "greater of" requirement for GATT changes - determining actuarial equivalence - to comply with 411(d)(6) would end earlier for the plan already amended for GUST). Any ideas? My thought is that the merged plan that does not survive would no longer have a separate existence (of course, it would not be considered terminated, since then I would definitely have to amend), so I shouldn't even worry about this - as long as the effective dates are correct for the surviving plan that has already been amended. However, counsel is telling me that I may have to worry about this. Any thoughts? My feeling is that that would be a terribly onerous administrative nightmare! As always, I greatly appreciate the help I get from everyone on these boards!

What happens when a plan that is not amended for GUST is merged into a plan that has been amended for GUST. I understand the normal merger rules (where I must preserve accrued benefits, optional forms, actuarial factors, etc.) but what about the effective dates? For example, the surviving plan was amended for GUST over a year ago. Therefore, for some provisions, it has an effective date that would be earlier than a plan that was amended for GUST right now (e.g., the "greater of" requirement for GATT changes - determining actuarial equivalence - to comply with 411(d)(6) would end earlier for the plan already amended for GUST). Any ideas? My thought is that the merged plan that does not survive would no longer have a separate existence, so I shouldn't even worry about this - as long as the effective dates are correct for the surviving plan that has already been amended. However, counsel is telling me that I may have to worry about this. Any thoughts? As always, I greatly appreciate the help I get from everyone on these boards!

I also posted this message on the Mergers Board. Thanks.

Is there anything in current (pre EGTRRA)law that prohibits a sole proprietor with no employees from having a 401(k) plan?

I am posting this question to this board because this is where the small plan experts hang out.

A one participant money purchase plan deposits the required plan year 2000 contribution of $30,000 on June 30, 2001. The plan sponsor did not extend his tax return. My understanding is that the contribution can not be counted as an annual addition for the 2000 plan year unless deposited within 30 days after the due date of the employer's 2000 tax return.

If this $30,000 has to be counted as an annual addition for 2001, must the 2001 $30,000 contribution be made late also in order to not have $60,000 in annual additions for the 2001 plan year.

Also my understanding is that there is an exception to the 30 day after the 404(a)(6) period rule if the employer makes a contribution to satisfy an accumulated funding deficiency (1.415-6(B)(7)(ii) ??).

Now if I understand this correctly (unlikely), if the contribution had been made by April 15 (30 days after the due date of the tax return) it would be an annual addition for 2000. Also if the contribution is made after September 15, 2001 (date at which it becomes an accumulated funding deficiency) it would be an annual addition for 2000.

But, if made between April 16, 2001 and September 15, 2001, the contribution will be an annual addition for 2001.

Please tell me I that I am wrong.

I have had to turn to my 401k plan for help. My wife has become disabled causing us to lose income, as well as extra medical bils and housekeeping expense , baby sitting and eating out often. I had to file bankruptcy chap 13 and now I would like to take 401k and pay it off. I have 2 401k loans and ample money in 401k to satisfy those loans and discharge bankruptcy, clear all debt and start over. My automobile just died (a.k.a. work transportation) and I have enough money in 401k to purchase a dependable used one. The trouble is they won't let let me have the money to purchase work transportion, they won't let me pay off the loans which would ease payroll deductions, they won't let me have it to payoff bankruptcy and maybe finance a car, and I can't get financing as long as I am in bankruptcy. The ironic thing is if I am fired for absenteeism(no transportation) , I can cash it (401k) all in and also take my company pension plan in lump sum (worth

thousands) Why does it have to come to this? Any feedback?

PJS

If a plan sponsor reimburses a plan for expenses paid out of the plan, is that payment to the plan considered a contribution?

Here are the facts:

Client sees August 2000 trust statement with investment fees of $1,000 charged to the plan. So, in September 2000, the plan sponsor deposits $1,000 to the trust to reimburse the plan for expenses paid by the plan.

Is this a contribution? If so, here's my problem: The plan is going to be terminated. There is only one participant in the plan (owner of the plan sponsor). He had no compensation in 2000.

What are the rules on being in a 401k and opening a ROTH IRA? Is this allowed?

Can anyone suggest a book or other resource to get a good basic understanding of cross-tested theory as well as some good case study/examples? We work with a lot of doctors in small groups and occasionally partnerships of PCs. We have done a number of "plain vanilla" ctp, but don't know enough to get more sophisticated/aggressive. We need to understand the capabilities of defining different classes to meet different HCE doctor's objectives (old, young, owner,non-owner).

Thanks!

What would you say about this situation:

A participant was paid a distribution in May 2001 based upon valuation dated 12/31/99. Subsequently, the 2000 val was done, and administrator realized that due to losses in 2000, they paid out 50,000 too much.

The distribution was rolled over to an IRA. If the plan documents stated that payouts are based upon "last val date", must the IRA custodian return the overpayment claimed by the plan? Or, can the participant refuse to authorize any give-back, since it was based upon figures prepared by plan administrator?

If the participant is obligated to return the "overpayment", what happens if the funds lost money since they were rolled ino the IRA, and now are worth less than amount received. Does the participant still have to return the entire overpayment, or can it be adjusted for the loss?

If anyone has sources for the answer to this problem, they will be greatly appreciated. Thank you!

What is involved in forming an association 401k plan for the sponsors that are members of the association? The the administrative "nightmare" the 5500s or are they fairly easy?

We have a client with late contributions to their plan. They correctly filed a Form 5330 but did not complete line 26a. We understood that late contributions were considered loans to the Plan Sponsor, but I recently heard from the plan's custodian that they were considered loans only of the plan sponsor's bank account went below the amount of the contribution. Is this so? What is your definition of discrete v. other?

Also, the plan's third party administrator believes that you only have to make a plan whole with regards to late contributions if the participants were hurt by the late contributions. I.e. if the market went down during the time the company held the participants' money, the participants were not hurt; therefore, the plan sponsor would only contribute the withholdings and not additional "lost" earnings. We understood that you must make the plan whole regardless of the market and pay the participants the going federal rate.

Any comments would be appreciated.

If an employer establishes a self-insured plan to reimburse former executives and their spouses for medical expenses, is there any way around the Section 105(h) discrimination problem, other than to make the plan available to all former employees?

Or, if the employer simply treats the reimbursement amounts as taxable income to the former employee, would this avoid the Section 105(h) problem entirely?

Are there any situations where a plan does not need to have a sponsor?? Thanks.

I am seeing a wide variety of charges for the GUST Restatement.

Does 1000.00 for a standard document and $2000.00 for a non standard document sound right?

A c-corp with a 401(k) is terminating to create an s-corp. Can the 401(k) be amended or must it be termed and a new plan created?

A corporation sponsors a money purchase plan as well as a 401(k) plan. Both run on a 10/1-9/30 year.The corporation's fiscal year is also 10/1-9/30. Normally the increased EGTRRA contribution and deduction limits would not apply until the year ending 9/30/03.Can the plan/fiscal years be amended to accelerate the application of the EGTRRA limits,and therefore the elimination of the MP plan by merging it into the 401(k) plan?

Does anyone out there have experience with the Relius "user-defined" fields? I have a plan where I have data in the user defined fields 1-10 and am trying to create a report with that data. I spoke with Relius tech support and was advised that the ud fields in database PLANEE2 for rows 1-5 are the only ones available at this time. She advised me that I could use the PARTUDF database and create a sub-report with reference to the lines after line 5 (ie., 6 - 10) but it was rather a complex operation and she wasn't even sure I could get it to work. There is a variable in the PARTUDF database that references the row number of the user-defined field. I've been trying to incorporate that and get Crystal to look, for example, at row #6 and print the data in row 6 and beyond but to no avail. I'm not super proficient in Crystal, but any advice would sure be appreciated. Thanks in advance.

Is the following permissible with respect to a cafeteria plan:

An eligible employee may make an election to participate within 30 days of employment, the election becomes effective retroactive to the employee's date of hire and the employee's salary is reduced after he makes the election to pay for the retroactive and prospective coverage.

Suppose a cafeteria plan permits an employee to change his elections mid-year due to a status change event if he/she submits a new election form within 30 days of the event. May the new election be effective retroactive to the date of the event (especially in light of the modification made to Example 2 in the January 10, 2001 final cafeteria plan regulations)?