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?

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?