Joe dies in 2001. He became 70 1/2 in 2001 but hadn't taken his RMD yet. Does the RMD for 2001 go as a taxable item on his final 2001 tax return?

can a corporation carry forward the deduction for profit sharing contributions made in a year it has no profits? do retained earnings have anything to do with this?

How long do I have to terminate the 401/psp plan after the PC is closed? The owner wants to submit and get a determination letter. Is it possible to freeze plan when sponsor is no longer in business?

Does anyone know where I might look to get insight on the above?

Is an accountant's opinion required for a cafeteria plan 5500?

What are the risks for self-insuring a dental plan? How do I calculate the potential liability? How risky could it be? It appears to be low to medium risk according to my novice calcs.

I have a choice in fully underwritten with premium and enrollment limitations, a rider to medical coverage taht forces ees to take the dental coverage or to self insure (annual max 1,500). My goal is to offer a free-standing dental plan. Self=insuring seems to be a good solution. Your Thoughts?

A client has semiannual open enrollments under its health/dental plan. The premiums are paid through a 125 plan. What is the effect of the midyear open enrollment? It does not seem to fit any of the change in status, cost or coverage pigeonholes. Would an electing employee be able to elect coverage but not pay the premiums pre-tax until the start of the next year? Would it make a difference if the employee had been eligible at the last open enrollment (i.e. this is not their first "entry date") and has had no change in status since then? This health plan allows entry after a 90-day wait for new hires, but requires that employees enrolling "at will" do so only at one of the 2 open enrollments. Clearly that is fine for the welfare coverage, but what about the 125 entry?

We have a company with 250 participants who have a partially self-funded Welfare Plan for medical insurance.

What are the audit requirements for this plan? Can anyone point me to documentation?

Thanks for the help!!

A participant in a state sponsored 401 (a) deferred compensation plan was found to be ineligible to participate after nearly twenty years of employer/employee contributions. If the plan administrator is willing to return the contributions to the employer, what options are available that would allow the contributions to continue tax deferred for the benefit of the employee?

Are there any set deadlines for making a mid-year election change? I am aware that the change must be "consistent" with the change in status event, but do not know exactly when a change is considered timely. In this case, an employee had a change-of-status event 3 months ago and is just now asking for an election change.

I have a client that has both a profit sharing plan and a money purchase pension plan. My understanding of the changes made in the 2001 tax act are that they will no longer need the MPP plan for 2002 and beyond. Is this correct?

Also, assuming it is terminated, should it be terminated 12/31/01 or sometime in 02?

Thanks.

Who has recordkeeping responsibility for loans and payments-the employer and the plan administrators, or just the plan administrators? If there is a problem with the recordkeeping, should the company accountants find it and correct it, and ultimately call for an audit of the whole plan? We have this in our firm. The payroll deductions are difficult to track since they are as late as possible (42days?) and the administrators have sloppy accounting practices and employee accounts/loans are inaccurate. Now we are going to a new administrator and I think the whole plan should be audited before we get in deeper. I appreciate your answers and advice.

jam

A client has a Tax Deferred Annuity for an IRA. He turns 70 1/2 during 2001. He has mentioned that it is a Non-Qualified IRA. Is there such a thing as a Non-Qualified IRA?? If not, how must his RMD be calculated and can it be taken from one of his non-annuity traditional IRAs?? Thanks.

New Mexico has been granted a state wide extension for filing the 2000 federal tax returns, both for businesses and individuals. This extension is until 1/15/2002. This was given due to the fires.

Is this extension considered the same as if the employer actaully extended their corporate return, therefore giving them until 1/15/2002 to deposit their employer contributions to the plan and still have them be deductible?

Anyone have any documentation regarding this extension?

Dawn

I am seeing so much activity with respect to M&As recently and have heard conflicting ideas with respect to filings - wanted to hear thoughts regarding two types of acquisition scenarios:

1. Parent company acquires firm that has DCP in place. Parent company adopts plan - drafts new plan document. Does parent company need to complete a DOL filing or does the original DOL filing made by the acquired firm suffice? Does a new Trust document need to be drafted?

2. Parent company acquires firm that has DCP in place. New parent company "freezes" DCP - no new participants, but employees can continue to defer, and the acquisition does not trigger distributions. Does a new Plan Doc need to be drafted? New trust doc? New DOL filing?

Does a church plan need to withhold for self-employment tax with respect to elective deferrals under a 403(B) or 401(k) plan by dual status pastors (they are considered employees for purposes of income tax and plan participation but are considered self-employed for purposes of social security). If there is no withholding requirement, is the dual status pastor supposed to pay self-employment tax on the elective deferrals?

thanks for your help,

Kurt

I'm quitting my job, without giving 2 weeks notice, due to management abuses: ("gross misrepresentations" in interviews; "stiffing" employees leaving for sick days used, and vacation days used (by changing the formula used in calculating days earned); and finally the verbal abuse (you'd think you were in the Marines, except Management has no Honor)....

If I quit, and don't give two weeks notice, Can I get COBRA coverage?

Do loopholes exist which they might be able to use to deny me coverage?

Thank you,

Frank (BTW, I live in New York...)

Can dependent care FSA elections be revoke because the dependent care provider one uses does not provide for middle school age care and/or transporation to school?

i have a top heavy safe harbor plan that is using the 3% nonelective contribution method to satisfy safe harbor. the definition of compensation for newly eligible employees is from their participation date. this, i believe, is allowable for a safe harbor plan, however, the minimum 3% contribution for top heavy is based on 415 compensation which disregards participation date compensation and uses the entire plan year's compensation. does the fact that the plan is a safe harbor plan supersede the top heavy rules?

My client is a small company that sponsors a safe harbor 401(k) plan which uses the 3% nonelective contribution (based on whole year comp) to satisfy the 401(k) safe harbor contribution requirement. The plan is top heavy because a number of key employees made contributions to the plan in the 2000 plan year (the plan year is the calendar year). The plan was terminated in October, 2000.

The top heavy minimum is 3% of compensation. The company does not have the funds necessary to make a 3% of compensation contribution (which would satisfy both the top heavy minimum requirement and the safe harbor 401(k) requirement). The company is on the verge of failing.

Is anyone aware of a "substantial business hardship"-type rule that would permit the company to skip making the top heavy minimum contribution? If not, could the plan refund all of the deferrals to the key employees without violating the distribution restrictions contained in Code Section 401(k)? Thanks.

Is the credit available to an employer with a plan effective date of 1/1/2002, but the plan establishment fee is paid in 2001?