Looking for articles or slides/presentations on post-NRA accruals.

Any IRS or employer info on rollover/transfer restrictions when rolling money between two different 457b's, when employee is employed with same employer`?

Both husband and wife are nearing 55. Net worth approx. 850,000 with husband self-employed in construction and wife is a school teacher considering going to part time work. Retirement accounts (state and 401k) approx. 40,000. Small money mkt investment worth 10,000. Husbands term life insurance 100,000. Wife's term life insurance 50,000. Cash on hand 100,000. Hope to retire or semi-retire in 10-15 yrs.

Financial Advisor advises the following:

Begin retirement acct. at work, matching 3% of employees contributions and each spouse contributes 6,000 per year (business is incorporated and both partners draw a salary)

Buy 750,000 to 1,000,000 universal life insurance each. Begin with 40-50,0000 payments first year, tapering off each year for 10 years.

Roll 401k into an IRA

Invest in nursing home insurance.

This seems like too much of our money is going into insurance. Are there smarter, but safe, alternatives?

I would like to see a compilation of the most generous DB pension funds, both public and private. PensionExchange which was bought by InvestorForce.com is no longer around. Does anyone know of a service that furnishes this information?

Best wishes,

Joel L. Frank:)

Can someone please help me understand what plan(s) are available to government entities. For some reason I was under the impression that municipalities could sponsor a 401(k). True? Not true? If not, what are the available choices for local government outside of a 457?

Thanks in advance

Admittedly an oversimplification, since governmental plans are exempt from ERISA but "qualified" nonetheless under the various code sections that apply including 401(a). Kudos, and thanks for reminding me to think before I type.

Does treating a plan benefiting otherwise excludable employees, i.e., employees who could have been excluded under the age 21/1 year of service rule, as two separate plans affect how testing must be done in the following year?

Is anyone aware of any guidelines concerning how long a "reasonable period" to provide an employee with and effective opportunity to elect out of an automatic enrollment into a 401(k)

must be, other than a "totality of circumstances" test?

Based on a "totality of circumstances" test and the facts presented in Rev. Rul. 2000-8, assume a plan that permits immediate eligibility and is administratively able to permit immediate entry dates immediately automatically enroll new hires. Thus, if the employer has weekly payrolls and is administratively able to generate paychecks for new hires immediately, a new hire whose first day of work is a payday is effectively given only that very same first day as a reasonable period to elect out!

I think this is "reasonable", relative to the employer's payroll period and practices, as long as the employee may stop contributions at any time.

On the other hand, if an employee is not permitted to stop contributions at any time, "reasonable" should probably bear some relationship to the period of time the employee must wait before stopping contributions.

We are a US based company with offices in the US, Asia and the Pacific. My question is whether or not we are subject to offer COBRA for non-US expats who terminate employment with us. For example, we have an Australian national working in Hong Kong for 1 year. During this time, the employee is placed on a "Cigna" type international expatriate health plan. Before the employees year is up, he/she leaves the company for personal reasons. Are we required (as a US company) to offer COBRA? Does COBRA extend outside of the US? Please advise. THANKS!

We have a client, Mr. X, who owns 100% of Corp A. He has no retirement plan for Corp A. All the assets of Corp A are sold to Corp B in May 2001. Corp A is now just a shell with no employees, and Mr. X has no ties to Corp B. In fact Mr. X is unemployed. Mr. X wants to run the proceeds of the Corp A sale through as W-2 earnings for himself. The proceeds from the sale do not come in until June 2001. Mr. X wants to set up a MPP/PS plan effective 6/1/01 for Corp A with him being the sole participant. I keep seeing red flags. Will this fly?

Is permitting rollovers optional to the employer? Does the plan have to be amended to permit rollovers to an IRA?

Is anyone familiar with the 20/50 Rule?:confused:

IRC §411(a)(7)©, and the regulations thereunder, provide for the repayment of prior distributions by participants when they are re-hired. When this is done, previously forfeited amounts must be restored to the participant's account under the plan (assumes "buy-back" occurs timely). Are there any restrictions on the source of the repayment? Specifically, if the participant took a cash distribution and paid taxes on thje original distribution, the individual could repay the amounts with "after-tax" dollars that could come from any source of assets owned by the individual and this would then create a "basis" in the participant's account. If the individual "rolled-over" the original distribution, either to an IRA or another employer's qualified plan, and upon re-employment, elects to roll the original money back into the original employer's plan, can these funds be used as the "buy-back" that would trigger the restoration of the participant's previously forfeited balance, or are there restrictions on the source of the cash used for the "buy-back"?

It seems that opinions vary as to what constitutes a "Qualified"

Plan, so I will throw in my 2 cents.

I have always defined a "qualified" plan as one subject to the limitations and restrictions of ERISA.

Any form of deferred compensation arrangement that is not subject to the restrictions and limitations imposed by ERISA would therefore be considered a "non-qualified" plan.

I hope this helps.

Does anyone know what the penalties are for Employers who turn in their employee contributions late? If the form 5500 Schedule I Part II 4a. is marked yes with a dollar amount, what penalties would the employer incur? I would like to let my employers know so they understand what can happen if they are late with their contributions. Thanks! Mike

I need help defining a Master Trust versus a commingled Trust. I have a few clients that invest their PS and MP Plan assets jointly. To date we have allocated the investment performance and underlying assets between the two plans on a consistent and reasonable basis for purposes of participant allocations and Form 5500 reporting. Recently an auditor (CPA, not IRS or DOL) asserted that these are Master Trusts that must file MTIA 5500s. In none of our situations are the Trust documents written as Master Trusts, but they do allow for the commingling of investments. While the investments may be placed with brokerage firms or mutual funds, the brokers or mutual fund families are not acting as Trustee or Custodian for the plans. The Plans are Trusteed by the shareholders. What insight can anyone out there offer?

I need help defining a Master Trust versus a comingled Trust. I have a few clients that invest their PS and MP Plan assets jointly. To date we have allocated the investment performance and underlying assets between the two plans on a consistent and reasonable basis for purposes of participant allocations and Form 5500 reporting. Recently an auditor (CPA, not IRS or DOL) asserted that these are Master Trusts that must file MTIA 5500s. In none of our situations are the Trust documents written as Master Trusts, but they do allow for the comingling of investments. While the investments may be placed with brokerage firms or mutual funds, the brokers or mutual fund families are not acting as Trustee or Custodian for the plans. The Plans are Trusteed by the shareholders. What insight can anyone out there offer?

I have a 401k plan that will only have been in existence from 2-00 to 7-01. It's a std prototype. Do I need to update it for GUST?

Thank you.

I am looking for the specific language in IRC Sec 408 regarding establishment of an IRA with a custodian. The IRS website's search engine is not very helpful. Can someone tell me where I can locate the it online? thank you

It was always my understanding that for partnerships and LLCs that did not use W-2s that the earned income would be the partners' net K-1 income. What i was recently made aware of is that net K-1 income is net of any Unreimbursed partnership expenses from the Schedule E (Form 1040). I was wondering if this is correct and if i should be requesting the Schedule E info in addtion to the K-1 income?? thanks.