When a 401(k) plan terminates, elective deferrals cannot be distributed if the employer sponsors a successor plan. SEP's and ESOP's are specifically eliminated as successor plans by regulation. Most concur that SIMPLE IRA's are also excluded since they are not qualified plans under 401(a). Does the same reasoning exclude section 457 plans?

I'm having a stupid attack!!! Dealing with a Plan that has a discretionary profit sharing contribution with a last day/1000 hour rule. What identity should I give to this contribution on line 4d of Schedule T?

None of the seven options in the instructions seem to apply, and my software check feature is giving me an invalid entry if I use anything but one of the seven options. What am I missing?

Thanks in advance.

Rudy

What steps are plan administrators taking to make sure they do not engage in prohibited transactions? What are the requirements for holding a fiduciary liable?( ex. Knows or should know?). What is the civil/criminal liability for a fiduciary engaging in a prohibited transaction? With the 2001 Advisory Opinion, what are plan administrators doing to make certain they are in compliance? What corrective actions are being taken to avoid the liability and have no penalties?

Any and all help is greatly appreciated.

Thanks

Dave

The ERISA Regs on 404© say that you must disclose the plans investment manager(s). Who are the referring to in the case of a cross-fund platform 401(k) with several families of mutual funds selected by a registered investment advisor that does not actually manage the funds? can there be several different investment managers as that term is defined in ERISA?

I am trying to find some commonly used techniques for avoiding liability, and/or correcting liability for engaging in prohibited transactions. For clarity, the requirements seems to be that the fiduciary knows or has reason to know that he is engaging in a prohibited transaction. What is the potential liability I can face for engaging in this activity? What techniques are plan administrators using to make sure they are in compliance, and, if applicable, correcting a problem w/o liability? Especially, with the DOL 2001 Advisory Opinion, how do I make certain I am not incorrectly charging the plan, and if I am, how can I avoid liability while correcting the problem? What is my potential liability? What do I need to do?

Any and all help is needed?

Thanks

Dave

If a company is establishing a new ESOP (with plan year and Company fiscal year end of June 30) is there a requirement somewhere (I swear I read one and it may be a Tax Credit Employee Stock Ownership Plan requirement) that would require the trust to be funded PRIOR to the time required by 404(a)?

Any help would be greatly appreciated.

Thanks

I have a 401(k) and an ESOP plan of the same Employer. For 415 testing purposes, the ESOP has an Limitation Year of 10/1-9/30 (its Plan Year), while the 401(k) has a calendar year limitation year (its Plan Year).

Shouldn't these two plans be tested together, but with differing Limitation Years, not sure how to accomplish this smoothly, if at all.

Any feedback will certainly be appreciated.

Thank you,

Andmik

Does anyone know if and how the new Pension Refrom effects QTIP trusts?? Thanks.

I've read several conflicting articles regarding passing on the determination letter expenses to the participants when the plan is first established. Some articles say you cannot pass the the initial plan determination expenses along and others say you can. Help!!!!

Regarding contributions to a ROTH IRA - I'm currently self employed so have earned income as well as lifetime alimony. When I retire and no longer have "earned income" will the alimony count as "earned" income?

Can I use a 90-24 transfer for my 403B annuity to place it into an IRA with mutual funds? Or do I still have to transfer it to an annuity. I am still employed at the school district but I want a better performing vehicle.

My working wife and myself are both considering starting a ROTH IRA.

What are the investment options within this investment instrument?

Does it matter what institution use for investment? In oterwords, if only have limited investment options, does it matter if go thru a local bank or thru a broker?

Thanks,

Investor turned 50!

Can anyone recommend a stand-alone software program for calculating contributions to a cross-tested plan?

Does anyone know of any planned changes on the reporting of test results?

I know several people who have taken the C-3 exam multiple times and the only response they recieve from ASPA is "You have a received a 6."

It would be helpful if you would get your original test back with an answer key or at least some response so you'd know what areas you need to work on.

I believe ASPA is planning on splitting the C-1 exam (as well as the C-2(DC) and C-2(DB) exams) into two parts each.

Has there been any announcement regarding an expected timeframe for this to occur?

(Presumably once they split into two parts each students will get to purchase 2 study manuals and pay for 2 exams...)

Is there any lower limit for the guaranteed rate of a 412(i) plan?

Dennis- where can I get my hands on the law review commentary "ERISA and Indian Tribes:Alternative Approaches for Respecting Tribal Sovereignty"? I've checked the FreeERISA website for a select few tribal nations amd see that they have filed Form 5500 for their 401(k) pension plans and even welfare plans. If tribal nations fall under "governmental", then it is not clear to me why they filed.

My goal is to get some closure on whether pension plans sponsored by Native American tribes are subject to ERISA.

I am a salaried employee at a non-profit, 501 3 ©, organization.

My "offer for employment" letter stated that I would be paid $25,000 per yr. for 35-40 hours of work a week.

Since starting 4 months ago, my employer told me that, although they don't have an official comp. time program, I would be allowed to use any overtime hours that I put in, at a later date. She told me that if I worked 40-45 hours one week, for example, I could work 30-35 hours the following week, or at a future date of my choosing.

BASED ON THIS, I told her I was going to start building up some extra hours, to be taken off when my family moves... to allow me time to unpack and settle in. She had no problem with this. (6 weeks ago.)

Now that I have spent several weeks putting in lots of extra hours, I talked to her yesterday about using those "built up" hours next month when we move. She suddenly sprang a completely different "rule" on me. She told me that since they don't have an official comp. time program, she cannot allow me to take those extra hours off. Furthermore, she said, since I am a salaried employee, this means I am an "exempt" employee. She said this means that technically they don't have to follow any laws regarding how many hours they can make me work. She said they can work me 50, 60, even 70 hours a week if they want to. She said, "A salaried employee works til the job is done." I told her I understood that to be true, but that most salaried employees also have a project to complete or a certain amount of work to be done in a week.

FYI- my position has never been a salaried position, but always an hourly position. This is because the job is NEVER done... there is ALWAYS more work to do. Technically, there is enough work for me to do that I could go 24-7 and not be "done" working for the week.

My question is: Isn't there some kind of law on how many hours they can truly make me work in any given week? As a salaried employee, can they REALLY keep finding things for me to do and say that is part of my "job?"

My other question is: Can she really change the rules on me like this? Being she TOLD me I would be allowed to put in extra hours and then take them off at a future date, shouldn't that mean that any hours I've accrued up until yesterday SHOULD be able to be taken off? I can understand that if she's changing the rules, that FUTURE overtime hours cannot be counted... but the ones I accrued under our original verbal agreement, should be used as the original rule was stated... shouldn't they?

Maybe these questions aren't "professional" enough for this board.. but I didn't know where else to turn. I have been very frustrated and saddened by what I heard yesterday, and as a single parent, it's enough of a struggle to put in 40 -50 hours per week... I cannot handle more than that just because they "decide" that it will be part of my "pay."

If anyone has an answer or knows the law on this, it would be so appreciated.

RHART

(rebecca@isd.net)

If I contributed $22,000 to a regular IRA, all on an after tax basis (didn't qualify for the deduction)and now the account is worth $32,000, now that I'm over 59 1/2, can I withdraw the $22,000 now, not pay taxes, and then transfer the taxable $10,000 to my rollover IRA account? Is there a defined method for withdrawing funds from this account or is it up to me to decide which funds I'm withdrawing (after tax contribution $ or pre tax earning $)? Thanks

Larry:

Do ESOP plans need amended for GUST? When? What is GUST?