A client has a Section 125 Plan which was drafted some time ago. Over the course of a few years the client began to offer several additional pre-tax benefits. These new pre-tax benefits are not referenced in the old Section 125 Plan document. As it is the intent of the client to offer these benefits pre-tax, we included the financial information for this coverage on Schedule F of the Form 5500 for the Section 125 Plan. Is this correct? Some of these pre-tax benefits are offered through a national insurance company. This insurance company files a 5500 for these benefits only. We were engaged to filed the 5500 for the Section 125 Plan. Must we have a wrapper document to file all of these pre-tax plans together? Should we continue to file a 5500 for the Section 125 Plan as well as separate 5500's for each Plan under the Section 125 Plan?

regretfully, i found this site after the fact...My company began the process of seeking a letter fo determination from the IRS because we wanted to begin offering a 401K plan.

During the transition period we asked the trustee of the old plan to deposit all fund into a money market account. They remained there for the 3rd quarter of 2000. During the 4th quarter of 2000, we filed for a determination letter with the IRS. our existing pension plan required this of us.

At that time,for the whole 4th quarter of 2000, they took the funds off deposit with the MM account and put it back into the general stock fund. This was done without our consent or knowledge.

does this sound legitimate? please help.

What is the most efficient and effective way to audit health claims paid for a large self-funded welfare plan that requires an audit due to a VEBA trust? Claims administrators are concerned about the new HIPPA rules and may not offer to share claims information, etc. If claims paid can not be tested, this would cause a report qualification, which would be rejected by the DOL.

How about a NQDC plan that allows the participant not only to change the form of his/her distribution "downstream" (ala the Martin case), but also to take an inservice (non-emergency) distribution upon demand?

The provision that would prevent constructive receipt would be a built-in penalty for all inservice distributions equal to X% of the distribution's value. This would place a significant restriction on the distribution and would it not create the fofeiture of a valuable right?

That said, any guidance out there as to how much the penalty % would have to be to escape constructive receipt? 5%? 10%? More?

Thanks.

What happens in 2002 if an employer has both a 401(k) plan and a frozen DB plan, and both plans provide that the T-H minimum is satisfied in the DB plan? Would the T-H minimum still need to be made under the frozen DB plan (despite what EGTRRA says), or will the plans need to be amended to state that the T-H minimum contribution will now be made under the 401(k) plan?

i am the owner of a small company of 35 people.

last june we began the procedure to end our old pension plan, established in 1987. we wanted to rollover the funds into a 401k plan where the employees would be able to direct the type of fund

here is the issue. when we began the rollover process, we had the existing pension plan put the money into a money market account. the money remained there for the 3rd quarter OF 2000. BUT, in the 4th quarter, the old plan, without our consent or knowledge moved the money back into their stock fund. the market, as we all know, suffered losses, hence all the employee accounts suffered losses.we are currently waiting for a letter of determination from the irs to have our old plan terminated and to put this issue to rest, but,

we were supposed to be insulated from any potential loss because the money was in a fixed income money market. the million dollar question is, WERE THEY ALLOWED TO MOVE THE MONEY BACK INTO THE STOCK FUND WITHOUT OUR CONSENT OR KNOWLEDGE?

If an individuals designates, as the beneficiary of the IRA, a valid trust as defined under Prop. Treas. Reg. 1.401(a)(9), can the individual beneficiaries ( there are multiple) under the trust use their own life expectancies if the assets are separated into individual inherited accounts by 12/31 of the next year?

Under the old rules, it was mandatory that the life expectancy of the oldest beneficiary be used- has this changes with the new rules?

Employee had the required 1,000 hours of service, but terminated prior to entering the plan. Employee was rehired after incurring a break in service. It is my understanding that the employee must "start over" for eligibility purposes. Can anyone confirm this (preferably with a citation)? Also, does the employee retain the year of service for vesting purposes?

Hey Everyone,

I was wondering if camp ( music camp, summer camp, ect.) would fall under dependent care.

Any input wound be a great help.

Thanks in adavance,

Motor

I have a client who I had to answer "Yes" on the question on Schedule I regarding whether they made untimely deferrals. The untimely deferrals were for 5 out of 80 people and only occurred for one payroll period. Do I have to file a Form 5330 with the IRS?

The final regulations on loans (1.72(p)) discuss the concept of paperless loans and the conditions in which they will be pemissable. However, the Regulations say nothing about spousal consents in the case of J and S plans. Wouldn't this be an issue precluding a paperless loan in the case of these J&S plans? Any comments would be appreciated.

I currently own a $50K note I want to sell at a discount to my Roth IRA, ok? What if I purchase a Note from someone else?

Can my Roth Flip investment properties?

I purchased an option on a mobile home park for $1000.00 and sold the option for $10,000.00, Is this a fully tax free event?

What are some good companies to get an IRA account?

My husband's financial adviser sent me stuff from Putnum about IRAs, but I noticed that I can only choose from Putnum funds. I am rolling over my 401K to a rollover IRA and want a variety of funds to choose from. I really like Fidelity and Janus funds.

I've thought about opening an IRA account at the credit union or at the bank where I have my checking and savings accounts.

I understand the difference between traditional IRAs and Roth IRAs, but none of the literature seems to address how to open an account, what funds are available, and how to manage it.

Thank you in advance for any advice.

Zelly

It is my understanding that the only grounds for employees of private employers to opt out of social security is as a member of a "recognized religious group," and that it is necessary to waive SS benefits by executing IRS Form 4029.

I am seeing an increasing frequency in clients' employees claiming exemption from Social Security taxes and want to make sure that this is the only approved means to opt out of the system.

Any comments appreciated.

I'm curious what others are doing. EGTRRA eliminated the user fee for new plans if filed during the first 5 plan years. I have some new plans that are cross tested that I was about to submit for FDL. Seems like I should wait until 1/1/2002 to avoid user fee. Any comments?

Effective 1-01-02 one may use either a 401(k) or a 403(B) along with a 457 to contribute a combined maximum of $22,000.00.

What other types of plans can be used along with a 457 to accomplish the same objective?

Best wishes.

Joel L. Frank:)

A doctor in a C corporation profit sharing plan would like to elect out of the profit sharing contribution for the year since the doctors actually fund their own contribution amounts. The doctors comprise the top rate group in the plan. The document allows for participants to make an election not to participate in the Plan, however, it is silent on when the waiver must be signed.

Question, 1. can he waive participation for the 2000 plan year at this piont in time and 2. Can I still include him in the cross-test with a zero contribution or does he fall out of the test.

Any help is greatly appreciated!

Under the new top heavy rules effective for 2002, distributions are only counted for one year except for "in-service distributions". However, does anyone know whether these are true in-service distributions (after age 59 1/2) or if distributions due to ADP and/or ACP failure will be considered as "in-service distribitions"?

Thanks!

Government DC Plan is a Money Purchase plan- employer contributes x% and Employee is required to contribute x% (these are considered pick-up employer contributions). Employees get a bonus at the end of the year and employer would like to amend the plan to allow employees to make a one-time irrevocable election to defer all or a portion of any bonus amount into the MP plan. Can you do this? Can employee make election for each bonus each year (I don' think so). Can this be part of a Government MP Plan at all?