An employer starts a profit-sharing plan, effective 01/01/2001. The adoption agreement states the eligibility requirement to be "age 21 & 2 years of service".

On 01/01/2001, one of the employees is 30 years old and has worked full time for the employer since year 1995.

Does this mean that he immediately enters the plan on 01/01/2001 (since he has already met the age & service requirements) .... or is there something in ERISA that says employemnt/service prior to the plan's existence is not allowed to be counted toward meeting the "eligibility service requirement" ??

Profit sharing plan recently amended to add 401(k) provisions. Does employer have to get a tax id no. for the 401(k) portion or can it still be reported under the psp's tax id no.?

In determining compensation for purposes of the ADP test for a PLC taxed as a partnership, we used earned income from the PLC.

I have a member of this entity questioning if there is any affect on the testing if each of the members have separate expenses as they relate to the earned income from the PLC (as shown on Schedule E on the Form 1040).

My reply was no as it seems that obtaining this information from each member whould be too much of a burden at the PLC level.

Any thoughts?

Thanks

Hello everyone:

We have an irate participant that would like written documentation that specifies what documentation is needed to substantiate a claim. We requested that she submit proof of medical necessity for a specific service.

Any ideas where I could find this information?

Thank you very much!!

I am searching for a matrix of allowable 125 plan election changes that incorporates the March final regs, the proposed regs, and changes to final regs made on 1/01/01.

Question for the TPA's.

Who is using Corbel or another 125 Plan Document provider? Any thoughts on the pros and cons? Do any of the document providers have a true Cafeteria Plan Document with Benefit Credits etc.? Who has a 1/1/2002 legal document?

Thanks for your input.

COBRA CONTINUATION OF BENFITS

I used to think that an active person's accrued benefit (1st and excess SSCC formula) could not decrease due to the increase in social security covered compensation. For example, I had thought that in no event could the current year's accrued benefit for an active person be less than last year's accrued, if FAE and CS remain unchanged. Just recently, it has been pointed out to me that that is not the case--that is to say, if FAE remains flat and credited service has already hit the maximum of, say 30 yrs, it is conceivable (and allowable) that an active person's accrued benefit computed a year ago would decrease a year later due to the update in the covered comp table. It was also pointed out to me that what cannot decrease is the benefit that would have been immediately distributable. In other words, the minimum retirement benefit payable today (if retired today) is the greater of the current amount based on the current covered comp table, service, FAE, and ERF if applicable vs. what would have been immediately distributed if retired a year earlier.

Does anyone dispute my "new" analysis?

Is compensation for a premium only plan before or after FICA and FUTA??

I received a call today about a pension plan that was "terminated" back in 1993. The person who called me said that he is not sure that a PBGC Form 500 had ever been filed. Is there any way to anonymously check (maybe via the internet) to see if the PGCG ever received this filing?

An individually designed 401(k) plan has been amended for GUST, but has not been submitted to the IRS for a favorable determination letter. Plan was amended to provide for prior year testing for ADP/ACP testing. Plan administrator is now doing ADP/ACP testing for the plan year that ended 6-30-2000. Plan fails the ADP/ACP tests based on the prior year testing, but would pass if current year testing were used.

Because we are still in the GUST remedial amendment period can we amend the plan to provide for current year testing for the 2000 plan year only?

What kinds of things will directly affect Cafeteria Plans with the Privacy Issues of the Gramm-Leach-Bliley Act?

Any practical information you can share will be helpful.

Shawn Bailor

Cafeteria Plan Client Representative

225-926-6370

Baton Rouge, LA

IRS analysis of Rev. Ruling 2000-27 reveals that a transferred employee does not continue to work for the same trade or business if less than substantially all the assets of a trade or business are sold to an unrelated employer. Thus, 401(k) assets may be distributed. As a result of this Rev. Ruling, is such an employer now REQUIRED to offer distributions to the transferred employees? Can the option/right be withheld? If distributions are offered, does the plan have to be amended in any way to allow for this type of distribution? Do any plan-to-plan transfer restrictions from the seller's plan to the buyer's plan apply under the Rev. Ruling?

A non-5% owner may defer (assuming document allows) age 70 1/2 distributions until after retirement. What if a full-time salaried employee reduces down to 5 hours per week? How about 1 hour per month? At what point is the person considered retired or separated from service?

I couldn't find anything in the plethora of IRS Notices released back in 1996 and 97. Did I miss something?

When is the amount available for loan determined, when the participant calls to find out what is available, or when the analyst sits down to do the check?

The regs say ambiguously the amount is determined when the loan is made, without saying "when the loan is made" is.

Is there any statutory rule against the "one-year hold-out rule" for a rehired employee as applied to 401(k) deferrals? What happens if a 401(k) plan does have a one-year hold-out rule and the rehired employee participates retroactively? Is the plan sponsor then required to make QNEC contributions under self-correct for the rehired employees inability to defer during the hold-out period?

Widow was told that she is not entitled to the previously paid death benefit should have been paid to the employer instead. How did she get the money if she wasn't the beneficiary? Subsequently, the market dropped and she doesn't have it the original amount? Thus far, the non profit organization has not produced the documents that says she is not the beneficiary. Who is liable? What can she do? Does she have to pay for transfer fees also? They have treatened her with litigation. What does she do now?

Where can one fine the list of approved surety providers?

I was looking for a reference to min. coverage rules relative to a company having a dc and db plan.

An ESOP allows a distribution of company stock. What information is required from the participant in order to make this election? What options does the participant have (can the participant have the stock certificates mailed to a rollover institution)? Is there anything else that should be considered when distributing company stock from an ESOP?