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?

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?