I have a client using an Aetna Standardized Prototype. I am trying to determine the date non-vested match contributions from terminated participants become available for reallocation.

I have read through the document and the adoption agreement, and cannot find a definitive answer as to when these funds become available for reallocation. I find information on what to do with the funds once they are available, but no guidance on when they become available.

Any thoughts? Thanks!

An IRA owner will be purchasing a farm in their IRA. The farm will be rented for cash rent only. What circumstances would be necessary to make it permissible for the IRA owner's son to rent the farm from the IRA?

Would appointing an independent discretionary trustee for the IRA make this transaction permissible? Does having an independent trustee choose the son in an arms length transaction remove the PT issues? Any other possibilities?

Thanks.

Dawn

If the employer's corporate charter or bylaws restrict the ownership of substantially all outstanding employer securities to employees or the ESOP, can the corporation purchase the securities which are allocated to the terminated participant?

If stock is distributed, and a put option is exercised, can the participant roll over to an IRA the cash that the employer pays to purchase the securities?

Cobra Conversion Policies.

I have been under the cobra insurance plan through my ex-

husbands employer. In about 3 months this program will be running out. I have requested information on the conversion policy but no one seems to no anything about this. I was told of this conversion from a local bcbs rep.

Can you please help.

Under California law, since when has it been permissible to separate "core benefits" such as medical benefits from dental benefits and allow the applicant to elect only dental coverage without electing medical coverage as well on COBRA? Is the rule set with regard to consistancy on how the package is offered upon eligibility? For example, if we allow employees to elect only dental or only medical upon eligibilty, then they will also have the option to separate out these options on COBRA as well? Obviously they have to be a participant in that plan to begin with.

Thanks!

Employer has had an MPP with 2 year / 100% elig provisions in place since 93. MPP Plan is Top Heavy. Co. makes 10% allocation to MPP eligibles. Co. adopts 401K Jan 2000, with immediate elig.

When aggregated plans together for top heavy test, which eligbilty requirments are used for the purpose of allocating top heavy contribution?

I am looking for any Pension Plan Seminars or Continuing Education classes pertaining to Pension Plans that I can attend. I live in Ohio so anything near Ohio would be most helpful. Please list company hosting seminar, location & dates of seminar. Thank You!

My company would like to set up a bonus plan for individuals who remain with the company to close out a program that has been terminated. The bonuses are somewhat substantial. The employee must not be offered a new position with the company and must stay until the project is closed out in order to receive the bonus. The director however, does not want to label this a "retention bonus." Does anyone have any suggestions as to what we can call this program? Thanks!

Can someone please tell me what government agency oversees a COBRA plan

In determining who must receive the 3% Nonelective Employer Safe Harbor Contribution, can anyone site any notice(s) that define(s) the "Employees Eligible to Defer"?

Does anyone have some information on what a corporate-owned nonqualified annuity is? I'm just looking for some background on it or some direction on where I could learn more about this type of annuity.

If my employer offers a SARSEP Plan but I have never signed up for the plan, can I still take the deduction from a Traditional IRA ?

I asked my employer about this and he assures me that I can take the IRA deduction. According to Publication 590, I cannot take the deduction if my employer OFFERS a pension or annuity plan. I don't want to get penalized by the IRS if my boss is incorrect. Is a SARSEP plan considered a pension or annuity ?

I am interesting in QPA certification sponsored by the ASPA. but I am concerned about the depth of the material covered in their P-1A and P-1B study program. Is it a good program for someone with a little over a year experience in the retirement industry? I have already gone though the Daily valuation Book and was not thrilled with the content.

Do you have much info on career advantage for those with an ASPA certification?

I participated in my employers 401K last year. I left their employment in March after contributing approximately $4000.00. Can I also contribute to a Roth IRA? And if so, how much for 2000?

Is anyone familiar with the circumstances under which payments from a pension plan to a disabled retiree for a service connected disability could be considered non taxable? My understanding is that the payments must be in the nature of workers' compensation. So if service connected disability retirement is a provision under a local government's police pension plan, can payments from the plan to the disabled retiree be excluded from taxable income?

Does anyone have an opinion about what extent a Form 5310 determination letter provides plan document reliance? A GUST amendment is of course required to get the 5310 favorable letter. The determination letters I have received usually mention the GUST amendment in the letter. If you have a favorable 5310 letter, is it overkill to restate the plan into a GUST document?

A daughter complained to her father about her life and how things were so hard for her. She did not know how she was going to make it and wanted to give up. She was tired of fighting and struggling. It seemed as one problem was solved a new one arose.

Her father, a chef, took her to the kitchen. He filled three pots with water and placed each on a high fire. Soon the pots came to a boil. In one he placed carrots, in the second he placed eggs, and the last he placed ground coffee beans. He let them sit and boil, without saying a word. The daughter sucked her teeth and impatiently waited, wondering what he was doing. In about twenty minutes he turned off the burners. He fished the carrots out and placed them in a bowl. He pulled the eggs out and placed them a bowl. Then he ladled the coffee out and placed it in a bowl.

Turning to her he asked. "Darling, what do you see."

"Carrots, eggs, and coffee," she replied.

He brought her closer and asked her to feel the carrots. She did and noted that they were soft. He then asked her to take an egg and break it. After pulling off the shell, she observed the hard-boiled egg. Finally, he asked her to sip the coffee. She smiled as she tasted it and smelled its rich aroma. She humbly asked, "What does it mean Father?"

He explained that each of them had faced the same adversity, boiling water, but each reacted differently. The carrot went in strong, hard, and unrelenting. But after being subjected to the boiling water, it softened and became weak. The egg had been fragile. Its thin outer shell had protected its liquid interior. But after sitting through the boiling water, its inside became hardened. The ground coffee beans were unique, however. After they were in the boiling water, they had changed the water.

"Which are you," he asked his daughter. "When adversity knocks on your door, how do you respond? Are you a carrot, an egg, or a coffee bean?"

~~~~~~~~~~~~~~~~~~~

How about you?

Are you the carrot that seems hard, but with pain and adversity do you wilt and become soft and lose your strength?

Are you the egg, which starts off with a malleable heart? Were you a fluid spirit, but after a death, a breakup, a divorce, or a layoff have you become hardened and stiff. Your shell looks the same, but are you bitter and tough with a stiff spirit and heart?

Or are you like the coffee bean? The bean changes the hot water, the thing that is bringing the pain. When the water gets the hottest, it just tastes better. If you are like the bean, when things are at their worst, you get better and make things better around you.

How do you handle adversity? Are you a carrot, an egg, or a coffee bean?

Author Unknown

I have a question regarding calculation of 401k deductions when there is also a pre-tax medical deduction. My wifes employer deducts her medical insurance pre-tax premium first and then calculates her 15% 401k contribution based on her gross salary minus the medical premium. Is this correct?

Not only does it result in a slightly less contribution each paycheck to the 401k account but the employers match is also reduced.

Any input would be appreciated...

thanks

Seems to me these are underutilized for small start-up companies. No consulting firm that I know of wants to talk about them. Brokers don't want them because there's little money.

So, I would think that means the only people selling or advocating them them may be pushing for clients to do alternatives. Any programs out there that offer these plans with reasonably objective advice?

Anybody out there do business by advising on such programs?

I use Quantech 6.0. I am working on a non-standard age weighted profit sharing plan. Two employees terminate with less than 500 hours so I don't include them in 410(B). When I tests Quantech correctly identifies the employees included in coverage tests under 410(B), however, when Quantech actually runs the tests it includes the 2 people who termed with less than 500 hours.

Has anyone run into this problem? If so, how do I fix?

Thanks for any help.