Doesn't really bleong here... but:

is it true SEPs remain 15% in 2002?

If I have an IRA and a 403(B), can I take my RMD (I'm 74) distribution from my IRA only or must I treat them seperately and take one from IRA and one from the 403(b? Also, can I roll my 403(B) into my IRA? And finally, in determing the 2001 RMD I"m supposed to take, do I use the age I was on 1/1/01 or the age I am on 12/31/01?

Thanks

Company Alpha sponsors a defined benefit plan and a defined contribution plan. A participant in both plans terminates his/her employment with Company Alpha. Assume his/her accrued benefit and

account balance exceed their respective cash out limits. The participant would like to take a distribution from the defined benefit plan, in the form of a lump sum distribution, and roll that

amount into the profit sharing plan. The profit sharing plan is an eligible retirement plan. Since, at the time of the rollover, the individual is not an employee, can he/she make a rollover contribution to the profit sharing plan?

An employee is covered through a cafeteria plan. Her self-employed spouse's coverage through an agent has been cancelled due to the discovery of a condition that has been ruled pre-existing. Can the employee then add the spouse to her coverage? All the guidance I see talks about losing coverage due to a job change or eligibilty change. Again, the spouse is not losing coverage through his employer, as he is self-employed.

Sponsor of a Simple 401(k) wants to amend to be

a "traditional" 401(k). They are not using the

Model Amendment (Rev. Proc. 97-9) but have an Adoption Agreement. Can they amend to a traditional 401(k) this year (protecting accruals), or do they have to wait until 1-1-02?

And since there's 100% vesting under a Simple (k),

do all existing participants have to remain 100% vested going forward, not only in existing Simple contributions, but in the new traditional (k) employer contributions too? There are discussions under the 401(k) section, that indicate the vesting schedule must follow the participant.

We are the TPA for an orphaned plan where the plan sponsor filed for bankruptcy, terminated all employees, and closed their offices. We are in the process of terminating the plan. A plan audit is required for which the accountant's fee will be paid from the plan assets. If we decide not to have an audit conducted and file Form 5500 without the accountant's report who would the DOL & IRS impose delinquent filing penalties & fees? The bankruptcy estate?

Apparently, IRS has issued a PLR and ruled that the right of an employee to make an election to receive cash in lieu of vacation in the year before the vacation is earned does not trigger the constructive receipt doctine. The PLR is 100130015, 7/30/2001.

Am I the only one who missed this? Does this mean that the door is open to allow employees who choose to sell next year's PTO and recieve cash (or flexible credits) during the next year, and not impact have any impact on those who choose not to sell PTO?

Obviously, PLRs are only valid for the taxpayer requesting it. However, this seems to be much different than the discussions posted on this board over the last couple years. Interested in the "experts" comments.

Is there any way to exclude bonuses from the definition of compensation for a safe-harbor plan?

Notice 98-52 requires that the 414(s) definition be used. 414(s) says compensation means that within the meaning of 415©(3). The related Regs. include bonuses.

Are we just simply out of luck on this one? If there is a way, I need statutory cites in support of your position. Thanks.

When doing form 5330 for reverse deferals taken back after the 2 1/2 month deadline. the HCE has to take back match, Vested portion goes to him, remainder forfeited, Do we list the total amount of the match reverse deferal on form 5330 or just the vested portion.

Thanks

James

If anyone could provide some feedback and rather quickly I would really appreciate it.

I have a 403(B) plan that is excluding independent contractors, union employees, and those who work less than 500 hours per week from deferrals. There is only one plan of the employer.

Does this violate the Universal Availability Rule?

It is my understanding with a 403(B) plan that all "common law employees" must be allowed to defer to a plan of the employer.

Is it allowable to exclude these populations named above from making deferrals?

Thanks Nabiyah

I'm looking for information on church plans--health and welfare benefits only. I know they are exempt from ERISA, COBRA, HIPAA. What then regulates them? Anything special the TPA should require in terms of the ASO agreement? I would appreciate cites to books, etc. if you know of good sources.

Has anyone come across this? I have a non-calendar plan year that failed the ADP test. The employer elected to have corrective distributions for excess contributions completed within the 2 1/2 months. The affected HCE's will have to amend their tax returns now. Because they have to amend their returns, they will get penalized with interest. Is there any relief that waives interest and/or penalties to the HCE? It seems the IRS should allow for some kind of waiver because the HCE would have no way of knowing the final results until after the plan year end. If anyone has come across this, I would greatly appreciate any guidance. Thank you!

Has anyone come across this? I have a non-calendar plan year that failed the ADP test. The employer elected to have corrective distributions for excess contributions completed within the 2 1/2 months. The affected HCE's will have to amend their tax returns now. Because they have to amend their returns, they will get penalized with interest. Is there any relief that waives interest and/or penalties to the HCE? It seems the IRS should allow for some kind of waiver because the HCE would have no way of knowing the final results until after the plan year end. If anyone has come across this, I would greatly appreciate any guidance. Thank you!

If a sole proprietor has schedule C income of 230,000 and 15% contributions to his employees of $6,000. Can his contribution be $25,500 (15% of 170,000)?

Any comments?

Thanks

My client XYZ was organized and established a new individualized Plan in May 2001. XYZ tax year and plan year are calendar years. The general GUST amendment and IRS submission deadline is December 31, 2001. But the general remedial amendment period for this new plan would be due date of employer's 2001 tax return or March 15, 2002 (plus extensions). Does anyone have any thoughts as to whether this Plan would need to be submitted to the IRS by December 31, 2001 or by March 15, 2002 (or extended due date)?

Also do you think it would make a difference if XYZ and XYZ Plan were established in connection with an asset purchase of another company's ABC Division, where all employees of the ABC Division became XYZ employees upon deal closing, and the assets attributable to their benefits in the seller's plan were transferred to the XYZ Plan. The seller's plan had a TRA '86 determination letter, was not yet amended for GUST when the transfer occurred, presumably seller plan will be GUST amended and submitted by the seller by December 31. (Seller Plan is a large plan covereing all the other Seller's employees -- the ABC division was just one division of the Seller Company.)

If anyone else has given thought to this situation, your thoughts would be appreciated. I have 3 or 4 situations similar to this one, and having until the tax return due dates in 2002 would be helpful...but I certainly do not want to miss the GUST deadline!! Thanks.

Some Insurance Co's. won't allow annuitzed 90-24 transfer of individual 403(B) contracts if the employee is under age 59 1/2, and or, still in service. I know you can't take distribution till some key triggers take place, but a) why can't annuity settlement payments be transfered under Rev. Rul. 90-24 to avoid being a distribution, b) If the IRS allows this, how can the Insurance Co. prohibit it?

My mother in law is the beneficiary of her son's ESOP Plan, he recently passed away. Does the beneficiary have to Roll Over that money? Is she taxed on that money if she takes a Lum Sum? Finally; how long does it take before payment is made. There are no rules pertaining to payout for the beneficiary in the Plan Book.

Does a beneficiary pay taxes on a 401K Plan, when it is a mother of a son who passed away?

Which of the "good faith" amendments provided in IRS Notice 2001-57 for EGTRRA need to be adopted before 12/31/02? Do any need to be adopted (if they are to be used for 2002) on or before 12/31/01?

Some EGTRRA provisions apply starting January 1, 2002. Should 403(B) plans be amended prior to such date to comply? Are they required to be amended by such date? For qualified plans the IRS permits the amendments to be made generally by the end of 2002. Is there any simiar rule for 403(B) plans?