Is there any similar program to the CPC / QPA program that is focused mainly on executive compensation? Thanks for any leads.

We have a client that has a 12/31 EOY valuation date. We performed the 12/31/2000 valuation according to normal schedule. This was to determine the contribution for the 2000 PYE.

On 3/31/2001, the client froze accruals and terminated the plan. (Single participant - not subject to PBGC).

How do calculate 404/412 costs? would we use a 12/31/2001 valuation date and prorate charges and credits? Or should we use a 3/31/2001 valuation date (which is now technically the last day of the plan year).

Do we calculate interest on the charges and credits to 3/31 or 12/31?

An employer intended to create a SIMPLE Plan and filled out the appropriate and correct documents to create the SIMPLE Plan. When the employees went to the trustee to fill out the appropriate documents to establish the IRA, the trustee provided them with the wrong forms and therefore, the employees established a SEP IRA. The employer made contributions to what he thought was a SIMPLE IRA, but the trustee reported the contributions on Form 5498 as SEP contributions. The trustee would like to correct this mistake (i.e., have the employees signe a SIMPLE IRA agreement and report the contributions as being made to a SIMPLE IRA). Any suggestions?

Suppose an employer with a calendar year plan timely provided the 3% nonelective safe harbor "might notice" to their employees, then mid-way through the year followed up with the supplemental employee notice declaring that the 3% nonelective contribution definitely would apply for that plan year...

At the beginning of the year, the employer was making discretionary matching contributions equal to 3% of compensation. When the safe harbor supplemental notice was distributed mid-year, the employer stopped making the match and started making the 3% nonelective contribution instead.

The 3% nonelective contribution must be made based on compensation for the entire year, correct? If the document contains a discretionary match, was it permissible for the employer to cease the discretionary match mid-year? Could those matching contributions be "reclassified" to satisfy the 3% nonelective contribution requirement? Thanks.

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?

An owner wants to buy a REIT held by the profit sharing plan of his company. Is this a prohibited transaction? Is there any way for him to own 100% of the REIT (his profit sharing source share of the REIT is currently over 50%)?

Forfeitures were used to reduce employer match in the same year rather than the following year as per the document. Is that a problem? If so how do we correct the problem?

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?