In light of the First Union and related lawsuits, I'm interested in finding out what financial institutions and mutual fund companies are doing with their own 401(k) Plans? Are most of them offering only their own mutual funds? Proprietary and non-proprietary funds? Do the mutual fund companies offer the whole family of funds to employees in their own 401(k) Plans or only a selection? Any ideas of where to go to find out this kind of information? I am striking out with the various consulting companies.

A plan failed to prohibit participants from making elective deferrals during the 12-month period following their hardship withdrawals. The safe-harbor correction involves returning the mistaken deferrals. But how do you implement this correction with respect to participants who have already terminated and taken a distribution of their mistaken deferrals?

Has anyone out there worked with a program where the employer pays for or subsidizes the purchase of a PC / internet access for employees? (like Ford, Delta, etc. have implemented) I'm looking for general information on program guidelines and associated costs.

Thanks!

An employer has a discretionary match that maximizes at 3% of compensation. He has made this contribution for his employees during the first four months of this plan year. He has a discretionary profit sharing provision that he has not been using. The plan is top-heavy.

He is going to drop the match and initiate a 3% discretionary profit sharing contribution to maintain the same percent of pay for the participants while satisfying the top-heavy minimum. He does not implement a Board of Directors resolution to communicate either types of discretionary contributions.

Is there a problem to view or recharacterize the first four months of employer contributions as profit sharing contributions rather than matching contributions. Both types of employer contributions have the same eligibility requirements and vesting provisions.

Are withdrawals from 401(k)s to pay for Investment Advisor Fees on that account considered taxable income and subject to any 10% early withdrawal penalty?

Are withdrawals from IRAs (Roth or Conventional) to pay for Investment Advisor Fees on that account considered taxable income and subject to the 10% early withdrawal penalty?

Are withdrawals from IRAs (Roth or Conventional) to pay for Investment Advisor Fees on that account considered taxable income and subject to the 10% early withdrawal penalty?

My employer currently offers health insurance coverage for all full time employees at no expense to them. We have a part time employee that has been employed with our company for a long period of time, and wishes to be placed on the company insurance. The part time employee is willing to pay for her insurance premium in full. We are located in Florida and desperatley searching for infomation on this situation. Are there any articles that would clarify this issue? I have previously been told that as long as we make it standard practice to provide part timers benefits if they wish to pay for them then we are not in violation of any laws or regulations. However we have not found this in writing. Any advise will be appreciated

A new plan is effective January 1, 2000 and allows for immediate eligibility for anyone employed on the effective date of the plan. Accordingly, there are 112 participants as of the first day of the plan year. I informed the client that an audit will be required, however, they are disagreeing. Can someone please confirm that I am not off base here. Many thanks!

My company may be acquiring a 60% ownership in another company in a stock deal. If we let the target's employees into our 401(k) plan, will we create a multiple employer plan? Is there a bright line rule for determining when a multiple employer plan exists?

What are the obligations of an employer, with what appears to be a self-funded health insurance plan, after the company goes out of business?

Can the 29 month extended period of COBRA coverage be required for a potentially disabled adult qualifying beneficiary (spouse of employee) who is unable to obtain a Social Security disability determination of disability because she has not contributed to the Social Security system for a sufficient number of quarters due to employment with a state government which does not participate in the Social Security System? If so, who makes the disability determination? Assume all the other parameters for the extended period of coverage can be met (e.g. disability determined to exist within 60 days of the qualifying event, etc.).

Has anybody out there encountered a DOL regulation which requires the auditors opinion letter which is attached to the Form 5500 (for a plan with greater than 100 participants, of course) actually be signed, as compared to being stamped with the name of the firm?

In looking at the PPC audit guide to employee benefit plans, it seems to indicate that there is a regulation that requires, as part of an ERISA audit, the audit report be manually signed.

Any thoughts or opinions would be appreciated.

Has anybody done a transaction in which the 100% owner of an S Corporation sells all stock to ESOP creates 401(k) plan for remaining employees and in effect winds up with 100% interest in ESOP ?

Is anyone aware of a good Dental PPO network that a self-funded Dental Plan could lease for use in the State of Georgia? (Needs to have good participation by Dentists in the 7 county metro Atlanta area.)

We have a terminated participant who will be eligible for a lump sum distribution next month. The participant wants the check payable jointly to herself and a third party. I am fairly certain that this would be an assignment of her benefits. Since she is in pay status this would be permissable only if it is voluntary and only up to 10% of the total benefit.

Am I missing anything?

Thanks in advance for any guidance.

Anyone know of any cases in which TPA was held liable for errors in administration of a qualified plan such that the TPA was held to foot the bill for IRS correction?

Employer has a leveraged ESOP and allocates shares held in the suspense account as the loan is repaid. Employer has a chance to buy employer stock at an arms length transaction, and wants to loan money to the ESOP and have the ESOP buy the stock. So now we would have two loans and two allocations every year. However, the employer wants to keep the amount of shares allocated to participants at the same rate as before the second loan. Can this be done? If the employer were in financial difficulty, there are some PLRs that permit the employer to use the second loan to pay off the first loan as it come due, but not count such repayments for the purpose of determining the amounts to be allocated. But in this case, the employer is not in financial difficulty. Can this same approach be used?

A person is born in 1916 and retired in 1999.

It appears that this person was not required to receive a pension at 70 1/2, since she was over 70 when this became law. I believe this became effective 1/1/88 or 1/1/89, as part of either TRA '86, OBRA '87 or ADEA.

However, wouldn't the plan be required to provide this person with a suspension of benefits notice? I am not sure when this became effective, but even if it became effective say 1/1/88, and she was well over 65 at this time, it would appear that they s/ provide the notice then.

The plan does notprovide for an actuarial increase to the pension for working past age 65 (NRD).

Any comments?

A person is in the second year of taking penalty free pre 59 1/2 substantially equal payments from his IRA. He wants more money and wants to know if he can take advantage of other penalty free exceptions such as withdrawals for education or first time home buyer fTwprom this same IRA?