A client has asked me about asset management fees.

They have been told that according to investment industry standards, that equity management fees should not exceed 50 basis points and that fixed income management fees should not exceed 30 basis points.

Does anyone have a web site or resource that I could use to address this issue?

If a Terminated vested employee dies after his NRA and never applied for and therefore never collected a benefit, I would say that the benefit due upon discovery and payable to the estate is the retroactive benefit payments accumulated from NRA to date of death and based on the normal form of annuity. If married at NRA and the normal form is J&S, then I believe the estate is entitled to retroactive J &S payments accumulated from NRA to date of death. If the spouse survived the participant, then would you agree that the spouse (or the spouse's estate) is due the back survivor payments? And lastly, if the spouse is still living, she will continue to receive the survivor annuity until she dies.

This all seems logical, however, I'm confused over the forfeiture rules under 1.411(a)-4(B)(1)- Death. Can someone explain what is being said here and perhaps I need to alter the above analysis?

Thanks

I am conducting a survey as part of a research project I am currently working on for my Master's Degree. This survey is intended for employees who have access to their company's employee benefits and basic human resources information via a web-based tool (i.e. a benefits website or company Intranet). I am requesting a few moments of your time to respond to my survey. I don't have any incentive to offer for your participation other than my eternal gratefulness in aiding my research process. I also invite you to pass along this web address to anyone else you may know that would fit my target respondent profile. To take the survey please go to the following website:

http://www.inquisiteonline.com/VP7QT2

Thanks in advance for your assistance!

I am conducting a survey as part of a research project I am currently working on for my Master's Degree. This survey is intended for employees who have access to their company's employee benefits and basic human resources information via a web-based tool (i.e. a benefits website or company Intranet). I am requesting a few moments of your time to respond to my survey. I don't have any incentive to offer for your participation other than my eternal gratefulness in aiding my research process. I also invite you to pass along this web address to anyone else you may know that would fit my target respondent profile. To take the survey please go to the following website:

http://www.inquisiteonline.com/VP7QT2

Thanks in advance for your assistance!

I am conducting a survey as part of a research project I am currently working on for my Master's Degree. This survey is intended for employees who have access to their company's employee benefits and basic human resources information via a web-based tool (i.e. a benefits website or company Intranet). I am requesting a few moments of your time to respond to my survey. I don't have any incentive to offer for your participation other than my eternal gratefulness in aiding my research process. I also invite you to pass along this web address to anyone else you may know that would fit my target respondent profile. To take the survey please go to the following website:

http://www.inquisiteonline.com/VP7QT2

Thanks in advance for your assistance!

A plan allows an employee to elect between pre-tax and after-tax premium payments for health and dental insurance. The plan has adopted the change-in-status rules of 1.125-4.

The employer wants to know if the employees who elect after-tax payment can change their elections at any time or whether they must follow the change-in-status rules. Realizing that the plan document may need to be amended, can the after-tax employees ignore the change-in-status rules? The Regulation only says "elections" and does not differentiate between pre-tax and after-tax.

Thanks!

Hoes does EGTRRA affect dividends for stock of closely-held companies?

Hello -

We have a participant who submitted a central home HEPA-filtration system, recommended by their physician, for reimbursement under their Health Care FSA.

I know that air conditioners and humidifiers are eligible if by recommendation by a physician. I am not clear on air filtration, however; the last "list" of ineligible expenses I was able to obtain (for 1999-2000) shows air filtration not eligible even if recommended.

If there is no other documentation out there on filtration systems, which says "No" to reimbursement, could this be reimbursed under "capital expenses" since it is a central system for the home?

Thanks!

If I have a plan that invests in a hedge fund that is an LLC, do I have to report the management fees on a sch. c? The fund provides a k-1, which does identify the management fees, but i am not sure i need to bother with the schedule c.

It's my understanding that forward averaging is not available for 403(B) assets . However, now that 403(B) assets can be rolled into a 401(k) plan, how will this impact forward averaging treatment?

It's my understanding that forward averaging is not available for 403(B) assets . However, now that 403(B) assets can be rolled into a 401(k) plan, how will this impact forward averaging treatment?

It's my understanding that forward averaging is not available for 403(B) assets . However, now that 403(B) assets can be rolled into a 401(k) plan, how will this impact forward averaging treatment?

Question: I am currently receiving Substantially Equal Payments (IRC 72t) from my IRA of approximately $3,000 per month and have been for more than 5 years. I turn 59 1/2 in October 2001. Would I be disrupting my 72t distributions if I were to, in mid August, withdraw a onetime distribution of $15k from my IRA, continue taking my $3k monthly, and on Oct 1, after my 59 1/2 b-day, withdraw $15k and then redeposit it (to cover the first $15k dist) within the 60 day window? How closely would the IRS look at this transaction? Thanks

I work for a large high tech company. My division ( about 600 people ) is being bought by a 3rd party equity company. We will lose our jobs here and have a job at the acquiring company. I understand that our 401K plans will be directly transferred to the new company's 401K plans.

Some of my co-workers are upset. They feel that this is a 'distribution precipitating' event and they should be able to choose the destination of their balances.

I have turned the code, ruling and regs over and can't figure out how my company is able to perform such a transfer without my consent.

One co-worker indicated that their financial planner said a private letter ruling by the IRS last fall ( 200036048) should be plenty of evidence to our company ( which is virtually identical ) that distributions/rollovers etc. are available to us.

What do you think?

At least once a month we receive notices of class-action settlements and an option-in form, or bankruptcy settlements for health care companies I have never even heard of. Does anyone out there respond to these? Does a TPA have the duty to pursue these settlement amounts on behalf of a client, notify the client that they exist, or what? The latest one would require that we search through hundreds of thousands of pharmacy records to see if we paid for certain drugs that are the subject of the settlement. No idea whether the settlement is pennies on the dollar. Help!

I have two problems with the same client:

1. Several deferral deposits for 2000 were not made on time, but they were made several days late. Since this is a prohibited transaction, is there any other correction other than filing 5330 and paying the excise tax? My understanding is that this is not eligible for correction under APRSC. Is there anything related to the DOL that I need to consider?

2. An excess deferral withdrawal related to the 1999 ADP test was not made until 2001 so the plan fails ADP tests for 1999. Other withdrawals were made before 12/31/00. Can I correct under APRSC or does it have to be under SVP? I realize that an excise tax will be imposed on late withdrawals.

Thanks for any help!

I occasionally hear other practitioners refer to the "conversion" money purchase plans to 401(k) profit sharing plans.

What is the preferred mechanism to do this... set up a brand new 401(k)/PS plan and then merge the money purchase plan into it? (Noting that the 204(h) notice is properly met and there are no 411(d) protected benefit issues...)

Or can a money purchase plan simply be amended and restated into a 401(k)/profit sharing plan?

We have a prospective client who currently has a money purchase plan which requires that the employees contribute a certain percentage of their compensation to the plan in order to receive the money purchase contribution. The employee and employer amounts are "tiered" based on years of service. The employees can either contribute the required amount, or opt not to participate.

Is this a money purchase "thrift" plan?

How is this type of plan tested...?

Is it possible to either: (1) incorporate an additional "voluntary" employee salary deferral component to this type of plan (i.e, is there any such thing as a combined 401(k)/money purchase plan), or if not, then (2) structure a 401(k) plan to contain the similar, tiered employee/employer arrangement, in addition to 401(k) salary deferrals...?

Thanks for your input.

I am designing a cross-tested profit sharing plan for an owner and 7 employees. The owner's son who is 12 years old is a part-time employee. He has never worked 1000 hours. Would it be legal and/or ethical to allow anyone employed on 1/1/2001 to enter plan and class exclude owner's children??? This way the son won't benefit, but will still be included for testing. Thanks.

An individual serves as an outside director for many corporations and sets up a Keogh plan to defer a portion of his directors' fees. He defers an additional portion of his directors' fees with the corporations for which he is on the boards. Assuming this individual receives $50,000 in deferred directors' fees in 2002, can he defer a portion of such payout into the Keogh plan? With common law employees, it is clear that the receipt of deferred compensation may be treated as compensation for 415 purposes. See Reg Sec. 1.415-2(d)(3)(i). For self-employed individuals, there is a cross-reference over to earned income. However, I am unaware of any exclusion from earned income of deferred compensation received. Any thoughts?