Can anyone tell me what a "401(a) plan with a g rider" is in connection with the plan of a government agency?

I would like to find out whether one should keep tracking the transactions in the 401k or 401k rollover account for taxation purpose at distribution.

Thanks,

Lu

Our plan document states that upon termination of employment, a distribution must be made (after employee requests such) as soon as funds can reasonably be segrated and paid. Since our plan allows for self-direction, and the funds are already segregated--a distribution can occur within 7-10 days after termination of employment. I have searched our plan document and perhaps I'm looking for something too specific but, my question is this--If a plan participant has worked 500 hours, the amount of hours needed to qualify for profit share, terminates and takes a total distribution from the plan, does this participant still qualify for profit share allocation at the end of the plan year or is all partipation in the plan "totally" severed upon distribution. If the answer is yes, any suggestions as to how an administrator keeps in touch with the former participant if he/she moves alot. I would appreciate any and all suggestions. thanks

I have two questions in which I could use some help on. (I know nothing about SEP IRA's)

Background Information:

a) 2 person sole prop - now incorporated

b) accountant stated that once incorporated should now get rid of sep and create a p/s plan

My Questions:

1) Must an organization terminate their SEP when they become incorporated? If yes, why?

2) If no, what advantages are gained by doings so and creating a profit sharing plan once incorporated?

Thank you in advance for any help on this matter.

JimJ

I am interested in finding out the following information from anyone in the high-tech, software industry with around 600-700 employees:

Current 401k matching program

Current Vesting Schedule

Fund Choices (all Class A, some Class A & C, etc)

Eligibility Rules (i.e. when can new hire enroll)

Thanks!

Are contributions allowed to an IRA for a spouse (non-working, non income producing) when the the husband works for a company who offers a 401(k) plan and max's himself.

For 2000, an employer will not be able to make matching contributions until ... whenever. What are the consequences of this with the IRS and/or DOL?

Defined Benefit plan (not covered by PBGC) froze benefit accruals and terminated the same date in 1999. Plan filed for FDL (received too). Final true-up contribution to be made this year to cover funding liabilities. Is the contribution fully deductible this year? Can the deduction be spread over a few years?

Does anyone have a reaction to whether allowing former employees to participate in a nonqualified deferred compensation plan under the circumstances described below would cause the plan to fail to qualify for the "top hat" exemption under ERISA. The plan in question is a plan that allows executives with nonqualified stock options to defer receipt of employer stock upon the exercise of the NSO until the occurence of a particular event, such as retirement, or until a specified date selected by the participant. The employer has several former employees (all of which qualified as part of the employer's "select group of management or highly compensated employees" when they were employees) that have NSOs that it would like to allow participate in the plan. The employer does not aniticipate that many of its employees will participate in the plan (you do not actually become a "participant" in the plan until you make an election to defer receipt of employer stock upon the exercise of an NSO). Thus, if the former employees participate in the plan, they could constitute a fairly high percentage of the participants in the plan (e.g., 33% to 40%).

Any comments would be appreciated.

A vendor has suggested that our company establish personal care accounts for the employees. The vendor is suggesting that the employees use their health FSA monies for any medical expenses before such expenses will be paid out of the personal care account.

Can someone explain what is a personal care account (and how it works), and whether the employee can be required to receive reimbursements from the health FSA before receiving any monies from the personal care account (and ultimately, the insurance plan)?

I would appreciate if anyone could help clarify two issues:

1. Did EGTRRA repeal the special 415©(7)(B) "$40,000/$10,000" church employee election ? If not....does it really have any practicle implications starting in 2002 with the Sec.415 limit increase to 100% of comp. not to exceed $40,000?

2. Did EGTRRA repeal the special church employee rule that allowed such employee with AGI under $17,000 to replace their exclusion allowance with the lesser of $3000 or their includible compenastion?

Am i understanding page 3 in IRS Publication 571 (Rev. June 2001)?

My interpretation would be that if a self-employed minister is employed by a non-501©(3) organization and would like to participate in a church plan such minister must share a common religious bond with the employer (meaning the church).

If a self-employed minister is employed by non-501©(3) organization such minister could set up a 403(B) account on their own and decuct their contribution as long as they do not share a common religious bond with the employer ( meaning the non-501©(3) organization.

I would appreciate any input on this issue

1. Did Notice 2001-42 effectively extend the GUST remedial amendment period for prototype filers to 12/31/02? If a prototype is approved after 12/31/01, is the deadline still 12 months after the day approval is received?

2. Can a plan sponsor that uses a prototype still freely choose current or prior year testing for 2001 and/or 2002?

The deemed distribution regulations (1.72(p)-1) provide several examples which demonstrate the need to accrue interest on late payments. Specific examples include (a) interest accruals during periods when loan payments may be suspended (e.g., during a leave of absence), and (B) interest accuals as of the time a loan becomes a deemed distribution.

The question I am strugling with is this - Must additional interest accrue if a loan payment is made late, but before a deemed distribution would incur. For example, consider a 5 year note with monthly payments due on the first of every month. Under the terms of the note, there is a grace period which ends on the last day of the quarter following the quarter in which the payment is due. In this case, the note expressly provides that no additional interest need accrue if a payment is made within the grace period. In this case, the borrower makes a single payment of all amounts due in the previous quarter just prior to the last day of the subsequent quarter.

Is it permissible to draft a note specifically avoiding additional interest during the grace period? In commercial loans, this is routine. However, a commercial loan would not provide such a long grace period (e.g., most notes allow 10, 15, or 30 days within which payment can be made without additional interest or penalty). The extended length of the grace period in this note is clearly permitted under the regs., but it is it reasonable not to accrue interest during such an extended period?

Do you have any knowledge of a requirement (in the regs, or in the opionion of the IRS) that interest accrue on loan payments made within the grace period, but after a commercially reasonable period of time (e.g., 30 days). Alternatively, do you know the name and/or phone number of any IRS or Treasury employee to whom I might address this question?

Thank you very much.

I work for a local TPA and one of our clients was on strike for 3 months. They are now back on strike and the ones that were on strike didn't get paid at all. Is it a law that the client needs to do a catch up on those employees who have the Unreimbursed Medical and Dependent Care Account? The client wants to just drop those 3 months (7 Pays) and not do a catch up. Please advise.

If there are 100 or more participants on the 1st day of a brand new plan, is an audit required, or is there any exception for the 1st year of a plan?

Anyone else run into problems with the 410(b) includable/excludable employee lists when checking the "statutory exclusions" box?

If an employee is excludable from 410(b) testing because of age or service, in my thinking they should show up on the normal excludable list not the list for the seperate test of statutory excludable employees as excludable. Too many "exclduables" here!! Let me try again....

To make the question simpler, I think that if you run the 410(b) test and test the statutory excludable employees separately you should only have 3 reports:

(1) Includable EE's

(2) Excludable EE's

(3) Includable EE's but Statutorily Excluded

Why would you ever have a fourth report of Excludable EE's who are Statutory Excludables.

My problem is that I have a fourth report!!

As an example, one EE who was hired 07/31/2000 is on report #2 and another employee hired on 07/31/2000 is on report #4. Same hours, relatively same age (30 and 33).

Any ideas?

RE: Double dipping schemes under Code Sec 106-as discussed in EBIA cafeteria manual pg 251-employees pay total premium through 125 plan and employer then reimburses employees for part of what they paid on a pre-tax basis - has there been any IRS comment on these plans? Purportedly, the sellers of these schemes are now saying they offer "audit protection." Is there anything to their ability to make such an offer?

Can a us citizen working for a foreign subsidiary owned by a us corp participate in the parent's 401(k)? what determines whether or not he can participate? is it whether or not he has US source income?

what's your take on this situation: A firm uses a POA to sign Form 5500 for the Plan Administrator, then the person named on the POA has his secretary sign his name to the forms.