employer has fired me for being on LTD so longfrom stroused to be timefrme.

we were promised benefits to 65 if dsabled . Does this fall under ERLISA? my employer is self insured. aPlease advise Thank you

The school district were I am employed has a third party administrator who has rejected my Vanguard 403b application to be my custodian because of a no hold harmless agreement. Does anyone know if I could have a hold harmless agreement drafted by an attorney and signed by me to meet this requirement? It would appear to me that either Vanguard or the school district would have to sign such a document. I hope to get some feed back before I discuss this with the school administrators in order have a plan in case the administrators reject my second request.

Thanks

Ed

A single-participant DB plan is terminated in 1985 and a favorable Determination Letter for the termination issues 2 years later. However, plan assets are not distributed due to difficulty of locating IRA custodian/trustees for certain unusual plan assets. Plan continues to file Form 5500 EZ to current day; plan assets remain undistributed (but IRA custodian/trustees now are equipped to house plan assets).

Due to ongoing existence of wasting trust is it necessary or preferable to re-terminate the plan? Or simply file final Form 5500 EZ?

I know there has been considerable debate on the best way to eliminate the money purchase plan now that egtrra allows for the increased deduction limit for Profit Sharing plans. Does anyone see a problem with amending a Money Purchase plan formula down to 0% effective 1-1-02. That way it will at least buy some time to figure out whether to Term, merge or freeze. What needs to be done other than an amendment?

The preamble to the PWBA regs (Oct 19, 2000) makes it reasonably clear that stocks, etc., held by a registered broker-dealer, are qualifying assets. I don't know much about the stock investment end of financial services. Could we reasonably assume that in an annual data gathering pamphlet, if the client answers "yes" to a question such as, "Are the stocks and bonds held by a registered broker-dealer" that these are qualifying assets? Or do we need to take the extra step to ask who actually physically holds the stock certificates? Obviously we'll also need to know the name of each brokerage firm for the SAR disclosure.

I'd be interested to hear how the rest of the world is handling this. Thanks in advance!

I currently have a roth, and my money is in the stock market. The question I have is, when I sell the stock my roth is in and buy something new, am I being taxed on that?

One of our clients has a situation where an employee was layed off about 5 months ago. This employee participated in the health FSA offered by the employer. At the time the employee was layed off, he had been reimbursed for expenses up to his annual election, although he did not have nearly that much withheld up until that time. He is now being rehired. Our plan document allows for plan entry immediately upon rehire. Can the employer require that his deductions for the rest of the plan year be in an amount that would "make the plan whole?" Or, can the employee may a totally new election or is he required to step back into his prior election? My thought is that because he is being rehired after 30 days, the employee can do whatever he chooses, and the plan will remain in the negative where his account is concerned. Thank you in advance for your responses.

I have recently been presented with some unsettling information concerning the requirement that all plans be treated as one plan for purposes of catch-up contributions under the new legislation. For example, an employer maintains a 401(k) plan and makes certain employee groups ineligible for the plan. Some of the ineligible employees participate in a defined benefit plan. An ineligbile participant's benefit in the defined benefit plan is limited by Section 415. It appears that the new legislation can be read to require that the participant be allowed to make catch-up contributions in the 401(k) plan even though the participant is not eligible to participate in the 401(k) plan.

Does anyone have an opinion on this example? Also, it would appear that if one subsidiary adopts the catch-up provisions all other subsidiaries in the controlled group will be required to implement the catch-up provisions. This could be a problem for American subsidiaries of foreign companies that operate independently here in the U.S.

Are there other issues and problems that you have noted with catch-up contributions?

I am desperately seeking any information available on the "Same Desk Rule". Thanks for your imput!

I've never heard of a presonal care account. Why can't the vendor explain it to you?

Can additional contributions be made to an account that was a conventional IRA rolled over to a Roth IRA, or does a separate ROTH account have to be set up for?

"X" owned 50% of a C corp until he sold his share on 6-1-00. We have a calander year 401(k) plan. The son of X is in the plan on 7-01-01. Is he an HCE because his father was an owner last year?

A participant entered the plan on 7/1/00, and was hired on 6/9/99. His employer contribution is based on compensation from date of participation. Is 415© comp for this person from participation, 7/1/00? Or is it for the full year?

Does anyone know why IRC section 402(a)(8), which characterizes 401(k) deferrals as employer rather than employee contributions, is not found in the main body of the Code but rather in the small print part that looks like older, repealed sections?

:confused: Selling grocery business; no retirement plan for employee. Want to give deferred compensation to employee after 33 years with us. What are the tax requirements on deferred compension of this sort?

Can anyone point me to a stand alone testing module for cross-tested plans? Is there such an animal that doesn't cost tens of thousands of dollars?

I have access to a proposal system (which works most of the time), but can't seem to find anyone who also doesn't want to sell me an entire allocation system - which I don't need!

Thanks...

Does anyone know whether it is permissible for an entity that changes its status from private to governmental to continue to maintain a 401(k) plan? I know that as of 12/31/98, governmental entities can no longer sponsor 401(k) plans unless they are grandfathered, but I was wondering how the rule applies to an entity that had a pre-exisitng 401(k) plan and is just now becoming a governmental entity.

I am enrolled in my employers Cafeteria plan Medical Flexible spending account and have had payroll deductions for this purpose taken since the beginning of the year. I have submitted a claim which has been approved by the third party administrator.

The third party administrator has not received funds to cover this claim from my employer. Can some one tell me how long my employer can hold the funds before paying the administrator? In other words what do the statues say about how long I must wait for payment? I have contributed more to the fund this year than the claim is for. The claim is for over $500.00.

Thank you.

Our company specializes in non-qualified plan administration (IRAs, SEPs, SIMPLES, etc) w/ a few qualified retirement plan business thrown in. We subscribe to an outside vendor who supports our prototype plans. This vendor also provides administrative document support in that they take care of drafting non-qualified marketing brochures which we can customize & put our company logo, as well as administrative forms for our customers to use.

We're working on a project to "shop around" different vendors to make sure we're getting the best services for the best price.

The problem is, we aren't finding anyone who specializes in providing this kind of service to a company who markets non-qualified plans to customers. The yellow pages have turned up nothing....

Do you know of any firms (& their URLs) of who are in this line of business?

If an employer maintains a US qualified plan and has Puerto Rico resident employees, how does the employer go about qualifying its plan with the Puerto Rico Treasury Department? Where can one get a copy of the qualification procedure and forms?