Can an employer terminate your health care coverage prior to your last day of employment? When does the employer have to notify an ex-employee of any COBRA options available? Are there any monetary penalties to an employer for late or no notification of Cobra to an ex-employee? Who can collect the penalties?

Does the tax code allow a participant, that is presently taking "required minimum distributions" because of age

70 1/2, to strike a deal with the plan which will allow him to off-set his quarterly loan payments against his required minimum distributions ?

For example:

He is presently paying $1,000 each quarter to the plan on a plan loan. He is also receiving $800 of required minimum distribution each quarter.

Can he pay the plan only $200 each quarter and have the plan keep his $800 distribution & apply it to his loan?

I realize that he will still have to report $3,200 of distribution income each year ($800 per qtr x 4 qtr).

I hate to go here again, but an issue has come up with respect to a client involving the use of a brokerage account in a 401(k) plan. The provider maintains a brokerage commission schedule with reespect to "retail" (non-401(k) plan) account which provides for discounted brokerage commissions if the account owner maintains certain minimum account balances. The provider is considering two things: 1) have the same, or a similar, commission schedule for brokerage accounts in 401(k) plans (where the breaks are pretty steep - $100K or so); and 2) aggregating retail and 401(k) accounts for purposes of the breaks. I think #2 is clearly a bad idea, but haven't found anything with respect to #1. My gut tells me that being a vendor imposed condition, this may be appropriate.

Any discussion?

We are in the process of making a new year end checklist for our administrators. Are there any examples on the internet just to get some ideas?

Any guidance is appreciated.

Does the military now offer 401k plans?

I have been told that after my Roth account is over 5 years old , i could then if i choos make withdrawals of the EARNINGS tax free, even if i am not over 59 years old and am not using the money for any of the IRS exceptions that they allow for withdrawals prior to age 59. However i would be sugject to paying a 10 % penalty for this early withdrawal of the earnings. Can anyone verify that this is the case?

thanks

tom

My father passed away and my mother was employed by him. She is now self employed and looking for health insurance. Is she eligible for COBRA benefits?

Once you contribute to a Roth Ira, what are your investment options? Can you buy stocks with your contributions? How is this handled?

WHAT ARE THE REQUIREMENTS FOR A RETIREMENT PLAN TO QUALIFY AS A SOCIAL SECURITY REPLACEMENT PLAN? PLEASE HELP. THANKS.

I am interested in opening an IRA. I would like to find out whether it is better to go through an investment company or a bank. Is there any other way to get started and if so, where do I go to find out more information. Thanks for your help.

I have a profit sharing plan with three participants: the owner, his daughter and a NHCE. He wants to maximize contributions for himself with single plan. I'm considering a cross-tested plan, and the EBR's are 3.62 for Owner, 4.45 for NHCE and 11.86 for Daughter. Daughter and NHCE will receive 5% contributions. Obviously, if Daughter is brought into the HCE group through attribution, I have a problem. Can I have three groups: (1)Owners, (2)Owners Through Attribution, and (3)Others? When doing the Nondiscriminatory classification test, is Daughter a HCE or NHCE? Is the average benefits test done once comparing the HCE to Groups 2 and 3, or is it done twice, once for each group? Thanks.

For PTO policies, that group all absences together (no distinction between sick, vacation, etc.), how do you deal with clauses that prohibit PTO during certain busy times of the year? What about illnesses, etc? I am for the a day off is a day off no matter the reason, but am now stuck on how to deal with absences (due to illness, accident, etc.) during PTO-prohibited time (meant to curb vacations).

Also, how to deal with notification for planned time off like vacations - when the various PTO are all grouped together, doesn't this make that requirement more difficult also?

Thanks for the help.

Dan

Fact situation:

Plan at 4/30/98 has 92 employees at the end of the year.

At 4/30/99 the count goes to 109 (i.e., 17 new entrants at 5/1/98, as this is an MP plan)

at 4/30/00 the count goes to 118 (i.e., 9 new entrants at 5/1/99)

Question: Does the 80-120 rule allow me to get out of the audit requirements for the 4/30/00 plan year? Reading previous threads indicates that you can, but I want to be doubly sure. Thanks for any advice.

In trying to research material for a new HR manual, in maternity cases with medical certification, if the new mother elects to take the states (we're in NY) short term disability coverage, which extends for 180 days, can this possibly extend or override the FMLA regulations of 12 weeks (84 days)

Thanks for any help and/or insight.

If a plan sponsor has passed out the safe-harbor 401(k) notices, but has not currently amended the plan for the safe-harbor 401(k) language:

1) Is the plan a safe-harbor 401(k) plan? (Has the plan sponsor oligated itself to do a safe-harbor 401(k) amendment? Can the amendment be done as part of the GUST restatement process?)

2) Is the plan required to do ADP/ACP testing because it is not a safe-harbor 401(k) plan due to the lack of an amendment, despite meeting the notice requirement?

3) What action should the plan sponsor take at this point?

Question on the following scenerio:

Section 401(k) plan contains participant profit sharing balances that are not fully vested. The plan subsequenctly amends to become a SIMPLE 401(k) plan.

What happens to the nonvested profit sharing money if it becomes forfeitures (in future years) while the plan is a SIMPLE 401(k) plan? (The document states that forfeitures are used to reduce future employer contributions.)

Can the employer use the forfeitures to reduce SIMPLE 401(k) match or nonelective contributions?

Would they be stored in a suspense/forfeiture account indefinately?

Other options/requirements for handling the forfeitures?

I am looking for additional guidance on what is a management organization under Code Section 414(m)(5). The proposed regulations issued in February 1983 are not helpful.

I have a situation where a partnership provides management services for my client and at least one other non-related corporation. My client would like to allow the employees of the partnership to participate in its 401(k) plan. Since my client and the management partnership are not part of a controlled group, it seems that a management organization that is an affiliated service group may be the only way to show that we do not have a "multiple employer plan". Does the fact that the management partnership performs services for other non-related entities cause it not to be an affiliated service group? If the partnership receives more than 50% of its revenue from my client, is that sufficient? What if it is less than 50%? Any guidance would be helpful.

Are there any rules that preclude a husband and wife from participating in their own flex spending (cafateria plan) at their respective places of employment? If not, how does the 5,000 limit in the regs apply to a situation where the husband and wife each have their own plans?

When an employee in a 401(k) plan exceeds the plan percentage limit for contributions, how is that excess deferral to be treated? Is a refund required? (Nothing is specified in the plan document).

What funding method are you using for a frozen plan? Is unit credit preferable? why? Is unit credit required? Why? (i.e. do the reasonable funding method regs require the unit credit funding method for a frozen plan?)