We have a 401(k) plan & a 403(B) plan. Going forward, we would just like to offer the 401(k) plan. With respect to eliminating the 403(B) plan, what are our options? Should we freeze it? Could we terminate it & pay out all individuals? Is ther new legislation that would allow participants to move their 403(B) dollars into their 401(k) accounts?

We have a 403(B) plan, a 401(k) plan & an integrated MP plan. We plan on eliminating the 403(B) plan, keeping the MP plan & amending the 401(k) into a safe harbor 401(k).

Could we structure the 401(k)match so that it meets the ACP safe harbor & then make the 3% non-elective contribution into the MP plan? If so, could the MP plan still be integrated?

On a calendar year plan a participant terminates with over a 1000 hours before the end of the plan year. The computational 12 month period for a year of service for vesting is the plan year. Does the participant receive another YOS for vesting? Somewhere I think I remember reading that the determination of Years of Service for vesting is made at the end of the computational period. What does that mean? If someone terminates before the end of the computational period, but with over 1000 hours, do they get another YOS or not?

The Pension Answer Book states that the 7th Circuit Court (Coleman v Interco) ruled that an employee would not receive credit for a YOS even though the employee worked over a 1000 hours because the employee terminated employment before the end of the 12 month period.

Our software gives everyone with at least 1000 hours another YOS for vesting, without regard to when they terminated, and that is how we have always administered plans.

Is anyone not crediting employees who terminate with at least 1000 hours with another year of service for vesting?

If a Roth contribution was made in April of 2000 for the year 2000, and then it turns out the AGI is too high to allow the contribution, can the $2000 contribution plus earnings be recharacterized as a traditional IRA and be transferred to an existing traditional IRA? There is no coverage under another retirement plan so there is no issue as to qualifying for a traditional IRA. It's the earnings I am wondering about.

have you looked at the new proposed minimum distributions rules!

What simplification!

It doesn't matter who the beneficiary is, you simply use a 10 year difference and recalculate every year. (Of course if spouse is greater than 10 years you can still use the tables, but even if spouse (or beneficiary is less than 10 year difference you can use the 10 year table)

rules effective 1/1/2002 but you can adopt model amendment and use now.

the issue not addressed is what to do if you are already in pay status.

I'm very new at this so please pardon my ignorance. I have a Roth IRA and I know my maximum contribution per year is $2000 (single/<$95,000.) If I want to OPEN another Roth IRA with $2000, does that mean I can't add to my existing Roth IRA the same year? In other words, is the $2000 I use to OPEN the 2nd IRA considered a contribution? I'm guessing that it is, but I need to find out for sure. Thanks much.

Let me start by saying that I am a complete newcomer to all of this. I am now self employed and do not know if I will earn enough to even _make_ a contribution this year--that said:

I currently have a Traditional IRA with DWR ($30.00 per year fee) with very little money in it. I also have a 401k from a former employer with even less money in that! I'd like to get this all combined into one Roth IRA. What is the easiest and cheapest way to do this? And can someone recommend a cheaper account manager than DWR for the Roth?

My husband has a "Public Utility District Money Purchase Pension"--can this be rolled into his own Roth IRA without a penalty? And if so, how long before he can take that money out and invest it in an "investment" property?

Again, I apologize for my abysmal lack of knowledge on this subject,

Thanks,

Jennifer

my husband has been in an intensive care unit for 111 days. i filled out for ssi over 3 months ago, we have three small children and no disability insurance at work. i don't understand why it is taking so long to approve his case. he has botulism and the prognosis is long term rehabilitation approximately 1-2 years. are there any other options that we may be referred to? also could you explain to me how a person could be a county employee for 9 years and not have long term or short term insurance. what about fmla through his blue cross blue shield insurance?

is an arkansas county employee covered by long term or short term disability after being an active employee for 9 years. or is there any other program that would financially help?

I understand that for ERISA covered plans, employee contributions must be paid to the plan within a certain period of time (as soon as they can be reasonably segregated etc...). However, for a non-ERISA 403(B) plan, is there any time limit for employee contributions to be paid over to the plan. For example, is there potential liability if the employer holds the money for 30 days before turning it over? Are there any state or federal laws that could apply?

My firm is about to dissolve. All employees are being made offers of employment by a comnparable firm. First, what choices does our firm have for the surplus in its cafeteria plan, and what are the risks/benefits of each of those choices from the employer's and the employees respective perspectives? Do the answers depend on whether the new firm has a cafeteria plan or not or some other pension or welfare plan?

Second, given that this change in employers will happen in mid-January, should our firm not allow its employees to enter a flex plan this year under these circumstances?

Thanks for your input.

My father and mother are 64 and 60 years old. They have $100,000.00 in a Roth IRA converted from a Keogh Plan. Can they now take that money and buy a farm without any penalties?

Question:

Our firm has had a 401k program for about 5 years .Initially the Financial group educated the personnel on 401k plans and we all signed up.In the last 3-4 years the financial group's only direct communication is with the periodic reports as well as an on an line or phone call method of communication.I am concerned that the common man to the person, may be hurt during this period by basically not making correct decisions. With the stock market like it is ,i myself have been paying closer attention. Is it felt that a Financial group administering a 401k program should or should not have more periodic live contact ie meetings with the employees or not. Should the "They are old enough to make their own decisions" be good enough?When the only contact is to deliver the employee year end reports to the office manager for lunch it makes me wonder here. Perhaps their only obligation has been met. Do other financial groups have a more proactive approach or am i just concerned about nothing?

Any help here will be appreciated.

This has been an ongoing problem for almost a year now. My company takes out money from my paycheck for my 401K and it takes on average 60-90 days after the end of the month it was deducted from before it shows up into the plan.

As of today my last deposit was from September 1999. Now my company is in serious financial problems and I laid off last week. I asked about the 401k missing deposits and my HR manager said this "As you know the company is having financial problems.. once they company has caught up on their bills they will then deposit the 401k money." So it is plainly clear that they are using our 401k deductions to pay their bills and not put it into our 401k plan. I have already told the HR manager that I was informed she has 15 days after the end of the month to make the deposit and she says I am wrong.

What recourse do I have to recover interest on this money deducted? If the company files bankruptcy as it appears they will, what will happen to the last 4 months of money I had deducted from my paycheck?

Who do I need to contact about this? The DOL? The IRS? Any other organization?

Any help or information would be greatly appreciated! Thanks!

Does anyone know how to determine an estimate of the "required amount" to be contributed for a defined benefit plan (414h)?

For example:

Assume an individual is 42 years old and is eligible for a 20 year service retiree pension of 50% of final average salary. The employees final avg. salary is $80,000. Also the employee has contributed 5% of his yearly salary for only 15 years out of the 20 year period.

Is there a way to determine what the employees "required amount" in his pension account should be in order not to reduce his pension below 50%?

In addition, are there any good books and/or tables to help in calculating this?

Any insight would be helpful.

Thank-you.

1) Calendar year individually designed 401(k) Plan has an entry date of the January 1st following an hour of service.

2) There are a number of eligible participants in the Plan hired after 7/1/99 who chose not to defer for 2000.

3)Plan has been in existence for a number of years but 2000 is the first year that the Employer has made a match.

4) 1999 ADP for NHCE's is much better than 2000.

What do y'all think of the following regarding 2000 testing:

A) It appears that I cannot use a first year ACP of 3% since while this is the first year that a match is being made, this is not the first year that the Plan has contained provisions allowing a match.

b) Since this is an individually designed plan I can use current year for ACP and prior year for ADP.

C) I can restructure under the "old rules" for the ACP test using dual entry dates. Therefore, any Participant hired after 7/1/99 could be in a separate testing group since their satutorily required entry date would not have been until 1/1/2001. I could not use "new rule" restructuring because all of these individuals would have a year of service before 12/31/2000.

D) I can resturcture ACP without restructuring ADP (If this is incorrect, how do you restructure on prior year testing).

E) Are there any "consistency rules" requiring restructuring in the future?

Any thoughts or comments would be appreciated.

Looking for suggestions:

Employer wants to start 401(k) plan (no safe harbor, no razzle dazzle)for the benefit of the employees (not just a tax deduction for ER!)

Approx 15 employees - will experience 50% growth over next year.

All but 3 EEs are HCEs.

ER only wants discretionary contributions (based on profitability).

ER wants to maximize deferrals for EEs. (Emphasis here)

Anyone have any ideas (other than standard)? Thanks!

Can the owner of a company maintain a SEP/IRA, but start a 401 (k) Plan for his staff? He will not participate in the (k) Plan.

Any thoughts?

What is a 414(k) account? How does it work? What are the advantages and disadvantages? How is it treated with respect to coverage,participation, and general non-discrimination? What are the pitfalls?

I was wondering if others (especially those who work in the computer industry) would be willing to share the number of sick/personal/vacation or PTO days they offer. We're a tiny company setting up our first formal policy on sick/personal time.

Thanks,

Liss