We have a number of participants in our church plan who are Canadians who have worked in the US and participated in our pension plan. When they move back to Canada, they request that we transfer their retirement money to a Canadian RRSP. My response has always been we can't do that. Has anything changed in the US tax treaty with Canada, or have any other laws been passed that would allow a tax free transfer?

On the Schedule I, where do I put life insurance premiums paid during the plan year? I was always under the impression it would be listed on line 2(h) as other expenses, but now I'm not so sure. The instructions for Line 2(e) seem to indicate that it should be called a benefit paid.

Any guidance is appreciated.

Plan year is 10/1 thru 9/30. On 6/15/2000, plan sponsor failed to make accrued contribution, resulting in a funding deficiency retroactive to 9/30/99. Sponsor paid the 10% excise tax (under IRC 4971). I think the IRS has stated they do not have authority to waive that tax.

Assume the deficiency is 100K. The contribution for the 1999/2000 plan year is due 6/15/2001. Assume that contrbution is 300K, including the prior funding deficiency.

1. If the sponsor cannot make the 300K by 6/15/2001, but does make 100K (plus interest), then does that correct the prior funding deficiency?

2. If less than 100K plus interest is contributed by 6/15/2001, then clearly the prior funding deficiency is not corrected. Section 4971(B) imposes a second excise tax of 100%. My understanding of 4971(d) is that the IRS might waive this second excise tax. Does the sponsor have to apply for such waiver in advance? If the sponsor knows it will not make the 6/15/2001 contribution, any other action necessary in advance?

Client has a terminating defined contribution plan and is unable to locate more than a few former employees who resided in Puerto Rico. What should the client do?:confused:

To what extent do tpa's in general let their clients know of amendment deadlines with respect to plans they administer? I have got a tpa that was administering a plan for a client from 1987 up until 1996. No amendments have ever been made to the plan. Client says he had no idea since the tpa was handling everything and advising him on the plan. Any comments?

To what extent do tpa's in general let their clients know of amendment deadlines with respect to plans they administer? I have got a tpa that was administering a plan for a client from 1987 up until 1996. No amendments have ever been made to the plan. Client says he had no idea since the tpa was handling everything and advising him on the plan. Any comments?

:confused:

Hello~

I'm new to researching Roths and I'm trying to find a fund to invest in but I don't understand how to compare one fund to another.

What is a sales charge and what is a good % rate?

What is a transaction fee and what is a good % rate?

What is breakpoint pricing?

What is a management fee and what is a good % rate?

What is an expense ratio & what is a good %

How do you compare returns? For instance I found one fund that had an 1 year return of 55.55% and another with a 1 year return of .34.

Aloha and Mahalo (Thank You)

My reading of Rev Rulings 98-30 and 2000-8

is that , notwithstanding the annual notices distributed

by the plans in the fact patterns, the IRS (as reflected in the LAW and Analysis part of the rulings) only requires "a notice," i.e., the

initial notice to the participant prior to the initiation of payroll

deductions.

Does anyone agree or disagree? Is there any more recent guidance?

What is the statute of limitations for plan years being subject to IRS audit? I believe it is six years?

If an employer has elected to use the 3% safe harbor nonelective contribution and a participant terminates mid-year and wants a distribution as soon as possible, can the employer contribute 3% on this participant's behalf prior to year-end? Otherwise the participant will be cashed out but will still be entitled to the safe harbor contribution for the year. Seems impractical to have to cut a check to the participant at year end for the additional contribution.

Any thoughts?

A company maintains a union 401(k) plan and a salaried 401(k) plan. A participant in the union plan ceases to be a union member and becomes a salaried employee. Can he transfer (trustee to trustee) his balance in the union plan to the salaried plan? This doen't seem like a distributable event.

A small LLC has three employees, Mom age 70, Daughter age 38 and Son-In-Law age 38. Can the Mom waive out of the SIMPLE-IRA?

Has anyone heard anything regarding this concept of reverting to the old law? I'm specifically interested in 415 limits. Does this mean that if you have a person who's NRA is more than 10 years away, I can't fund for the new limit?

I would think we would need guidance fairly soon.

ABC Company has 3 family members employed..

Son 1 owns 100% of Company Stock

Son 2 owns 0% of Company Stock

Mother of Son 1 and 2 owns 0% of Company Stock

Due to family attribution Mother would be considered owning 100% of Company Stock (Indirectly) because of Son 1. She would then be considered HCE and Key EE.

Would Son 2 also be considered owning 100% of Company Stock (Indirectly) because of his Mother????? Or would this be double attribution????

Thanks...................

Most of the new stuff is effective for plan years beginning after 12/31/2001, but the DB 415 limit increases seem to be effective for plan years ending after 12/31/2001.

This is despite the fact that, according to the joint committee report, both the House and Senate legislation proposed effective dates for years beginning after 12/31/2001. Yet, for some reason, it was accelerated (for non calendar plans). Why?

1. given the recent pension reform, must the 403b plan first be terminated prior to transferring (actually a rollover, yes?) the $ to a 401k?

2. since a plan term is not a distributable event, how exactly can 403b money be transferred out to a 401k?

3. if the 403b is terminated, and since a plan term is not a distributable event, assets are frozen? so the participants just watch their $ and hope it grows over time? until they terminate employment from that organization, then rollover to an IRA... or another 403b or 401k...?

thanks for any assistance provided.

I would like to know if an employer can add at anytime additional insurance carriers to a current section 125 plan. Would there be any enrollment issues or tax issues?

I have a client that has a welfare benefit plan, is self-insured and has stop-loss coverage. They have recently found that there were commissions paid on the stop loss coverage in 1998 and 1999. They have not filed schedule A's for this coverage. Does a self-insured employer need to file schedule A's on their stop loss coverage?

A cafeteria plan has individual health insurance premium reimbursement accounts. Employee elected to use this spending account to get reimbursed for COBRA premiums paid to former employer. The COBRA rates have declined. Can the employee change the dollar amount of the election?

Here's an interesting perk -- Forbes magazine (5/28/2001) is reporting that Cognex Corp. of Natick, Mass. provides awards to the top 10% of its 800-employee workforce but also has its chief executive officer send a letter to each of the winners' parents describing their awards!

Sure sounds to me like a cost-effective way to make employees proud and happy. (Though the top-10% process at Cognex sounds like it involves employee ranking, which is controversial, I understand.)