IRA owner passed away April 14, 2001, at age 61. He had a 500,000 IRA. The estate was named the beneficiary. Son is sole heir and executor of the estate. Here are the questions: Since the estate was named beneficiary, must the IRA go through probate? Can the executor name himself beneficiary? If executor names himself beneficiary, may he take distributions over his life expectancy?

The employer offers health insurance to its employees and pays almost all of cost for single coverage and some of the cost for single+1 and family coverage.

It sponsors a 125 plan that allows employees to choose benefits and to allow for pre-tax payment of insurance not provided for by the employer.

However, the company pays 100% of the health insurance premium for some employees. I am confident that some will be classified as highly compensated participants under Code Section 125(e) and some will be classified as key employees under Code Section 416(i)(1).

Can this payment of 100% of the premiums for certain highly compensated and/or key employees pose a discriminiation problem? Can it be a problem under the 125 plan?

I guess the logical extension is "can an employer pay 100% of the premium for HCE's and 0% for non-HCE's" and does the answer depend on if the premium for non-HCE's is paid through a 125 plan?

I'm a pension actuary and this just sounds like something is wrong but maybe not.

Ok our client forgot to 1099 the recipient of a hardship withdrawal for the year 2000, as such the recipient didn't include that amount on his income tax return... no income or excise tax was paid on the money.

NOW what do we do? Do they issue a 1099 now and have the recipient amend his return? And in general what are the consequences for this mistake?

Thanks.

There are all kinds of contributions in a 401(k) plan... salary deferrals, matching, company optional, QNECs, voluntary after-tax, etc.

Which do I use or NOT use when determining a minimum contribution for the Non-keys in a Top Heavy plan? Ex. Do we count matching towards a non-key having 3% of compensation for his required top heavy contribution? What about the others?

Thanks.

I need some confirmation on a question.

Can an Employer make a contribution to an Employee's medical reimbursement account?

If yes, can that contribution only be made to certain Employees (mostly to NHCE's)?

If yes, can those funds in the medical reimbursement account be used to pay the premium for the Employer's group health care program?

Thanks in advance to anyone who can help me out.

I have an employee who is a Canadian citizen and is interested in joining the 401k plan. What happens when/if he returns to Canada? Does Canada have any kind of reciprocal plan or will the money remain here until he reaches retirement age? I also assume that he can pay the taxes and penalty and just cash out if he chooses.

The premium to PBGC was underpaid in 1996. My company received the first notice of this in April 2001. Almost 5 years later. Anyone have any suggestions on getting the interest & penalties waived? PBGC is not budging. The interest and penalties amount to more than the premium owed. I cant see paying for something the PBGC never notified me on. 4.5 years ago, I might of considered paying the penalites and interest, but not now. I believe I should have been notifed then not now.

I know the deferral limits for SIMPLEs changed to $6,500 effective this year and will increase in the future- but I can't find it anywhere that the employer contribution limit was also raised. Some practioners seems to think that it was- any comment? cites?

Without our knowledge, an owner-employee S-Corp shareholder took a loan from his plan in 2000. The new EGTRRA regs would exempt this transaction from the PT rules if it were to happen after December 31, 2001. In write-ups on the new rules, I have seen it said that the IRS will also waive penalties for these transactions made before 2002 if the loans would have been allowed had the new law's change been in effect throughout the period of the loan. However, I can't find any official documentation of this. Can anyone help point me in the right direction to determine if I have a problem?

I have a defined benefit pension plan (plan year = 3/1 - 2/28; funding method = FIL) that had been frozen since 3/1/93. We defrosted the plan as of 3/1/2000. My Unfunded Accrued Liability (UAL) and Normal Cost as of 3/1/99 were $0. In defrosting the plan, we made an assumptions change and amendment change which created amortization bases of ($237,025) and $771,392 respectively. Thus, my Remaining Unfunded Liability (RUL) as of 3/1/2000 equaled $534,367.

However, when completing the Schedule B for the 2000 Form 5500, my equation of balance is off by $20,612. This $20,612 is my credit balance from the 1999 Schedule B.

How do I correct my valuation so that the equation of balance is balanced?

Would it be legal for a third party to sign the 5500 based on information provided if the employer is not available to sign forms and file them on a timely basis??? If not, what would be result of such an event?? Thanks.

DB Plan has NRA of age 60 and 5th anniversary

Participant enters the Plan on 7/1/94

DOB is 9/15/41

Vesting service is 1000 hours

benefit service is 1/4 year for 175 hours

175 hours is needed to avoid a break in service

Participant never worked 1000 hours in any Plan Year

worked 200 hours in 2000

has not worked during 2001

I know that if this participant was still active on 9/15/01 he would be 100% vested and his NRD would be 10/1/01.

What determines if he is still active on 9/15/01? Does he have to have 175 hours in 2001 to earn credit and avoid a break or does he just have to working on 9/15/01?

I am looking for good information concerning Variable Employee Medical Accounts. Who has had experiance with them. How easy to administer. Advantages and mainly Disadvantages.

Any IRS reg that states the what is and is not possible to do.

I'm considering a job offer and am being offered a package with and without benefits, including their 401K. My question is, is the employer required to allow me to participate in their 401K plan without matching if they have one?

Thanks

Is it common to have a seller finance the sale of shares to an ESOP?

That is, no bank loan involved. S-corp owner who wishes sell 100% ownership to the plan and take a promissory note for 15-20 years from the plan.

Thank you.

what are the risks associated with giving participants option to increase their deferral percentage or dollar amount during the middle of the plan year? can current election be revoked and replaced by a new election? if so, how frequently - quarterly, monthly?

Its been over a month now since I started to market Ameriplan USA, while I know there are many supplemental plans out there, I would like to get some feedback on various supplmental plans in the market place.

Thanks

www.mybeneftisplus.com/smclean/

Wondering if anyone knows or has heard the following:

New law effective 3/1/01 states that a distribution for under $8,000 does not require MA state tax to be withheld.

Any guidance would be appreciated. Thanks!

For a participant past NRD, does the law require you to give the

greater of actuarial increase vs. continued accrual,

or

just continued accrual ?

With the new tax bill being passed, I see that in most cases the MPPP will no longer be needed. The elimination of the 15% deduction limit for P/S plans makes the MPPP obsolete.

How would you get rid of the MPPP (assuming you have paired plans)?

1. Terminate the MPPP

2. Merge the MPPP into the P/S plan

3. Freeze the MPPP and keep it around just in case

I am curioius as to how others are plannig on handling this situation.