I have a frozen target benefit plan that got several checks from the Nasdaq settlement. Can the company cash these checks and pay plan fees or must they be allocated as earnings?

Thanks

A married participant has a sex change operation (male to female) but remains married to his (now her) wife. How are they to be treated during a new enrollment period? A same sex couple, which would seem appropriate due to new/different health risks and possible expenses? Are they "grandfathered" into the plan or under law as a heterosexual couple since they were married at the time of operation?

I work for a Multinational Company in Sales and have done so for the same company for 5+ years. In 2000, I finished the year as the #1 Salesperson in my region of the country and for this accomplishment, I am supposed to win a trip to Cabo San Lucas, Mexico. But, I am leaving the company and now they are denying me this reward that I justly won. They are paying me my 4th quarter commission and my year-end bonus that I earned, but they will not give me this trip. I see this as some type of violation of the law because there are no stipulations in the contest rules which state their position that since I'm leaving the company, I can not claim this reward. Any thoughts for me??? Thanks!!!

What criteria must a closely held, foreign owned company meet in order to comply with the definition of qualifying employer security for a 401(k) plan (a domestic plan with a foreign parent company).

Please supply source of information provided.

If a son has the limited power of attorney (to control the asset allocation) on his father's IRA is it a prohibited transaction (PT) if:

a. son receives no compensation for his investment advice.

b. son receives compensation from non-IRA assets

c. son receives compensation from IRA assets

Assume that:

1. Son only has the power to direct an independent custodian (mutual fund, brokerage house etc) as to the IRA's asset allocation.

2. Son has no other interest in the IRA except that he is one of the bene's on the IRA.

3. Compensation was reasonable.(And then we could talk about what reasonable means)

I received a non-binding research opinion from the Service that said that (a) and (B) were not PT's but that © was a PT. The logic the IRS rep. used was that a PT can only occur between a "plan and the disqualified person". Since in (B) the fee was paid from non-plan assets that makes it OK. Since © came from the "plan" it would be considered "self-dealing" in this case.

I'd be curious as to the thoughts/analysis of the group. I have some concerns that even (B) could be a PT given the scope of IRC 4975©(1)(F) even with the "reasonable compensation for services rendered" exemption in 4975(d)(10).

Thanks.

My husband works for a large company and for many years has had a percentage of his pay deducted to pay for stock in the company. He is considering early retirement, age 56. We have been told that we can roll the stock over to a plan under 72t for five years and be paid a certain interest rate on this money, and that we won't have to pay any capital gains tax at time of roll over. I'm having trouble verifying this. Can you be of help or direct me to where I can get accurate information.

Has any Quantech/Oracle user upgraded to a new db server without sending the new server to Corbel or having Corbel tech come to your office?

What is the recommended procedure when the Employer fails to deduct loan payments from the participants' paychecks and doesn't discover the omission until the allowable grace period has elapsed?

We have a participant in our plan who has achieved normal retirment age. She has elected to take her account balance out. She has requested 10 year averaging. She meets the age requirement for 10 year averaging, but since she is still employed she will continue to receive annual profit sharing contributions. To qualify for 10 year averaging must the distribution be her total account balance. In her case it will not be her total account balance because we continue to allocate contributions to her account. Our question is whether she qualifies for 10 year averaging or not?

What are (if there are any?) the State Law requirements in New York for continuation of health coverage- some materials I have indicate that there is a "mini-cobra" law in New York. Does anyone know? Do you have citations?

Thank you

A retiree receiving a disability pension under a governmental defined benefit plan died with a balance. This person was divorced and had designated a parent as a beneficiary in writing. The plan does not specifically discuss the designation of a beneficary by a disability retiree but the practice has been for beneficiaries to be named by disability retirees and balances remaining have been paid to the designated beneficiary. My question is whether the balance should be paid to the estate or to the named beneficiary.

Do an owner's deferrals have to be considered when calculating the 5330 penalty for untimely deposit of employee deferrals?

Can a pregancy be considered a pre ex under HIPAA?

I have an employee of a small group (8 employees) that originally refused coverage at the open enrollment date (in April). She is now pregnant and wants to buy into the coverage.

There is an active participant who is not a 5% owner, and turned age 70 ½ in March of 1999.

The plan document has always required all active participants to start minimum distributions in accordance with the “old” rules and has not and will not be amended to allow participants to defer.

The plan document allows in-service withdrawals after age 65.

The minimum distribution for 1999, to be paid by April 1, 2000 was calculated to be $2,000. The participant took an in-service withdrawal of $5,000 on March 31, 2000.

The minimum distribution for 2000, to be paid by December 31, 2000 was calculated to be $1,500. The participant took an in-service withdrawal of $2,000 on December 31, 2000.

What amount is eligible for rollover from the 1999 distributions?

From IRS Notice 97-75:

Q-9: If distributions are made under a plan to an employee (other than a 5-percent owner) who did not retire before January 1, 1997 from employment with the employer maintaining the plan, is any portion of a distribution made after attainment of age 70 1/2 a required distribution under section 401(a)(9) for purposes of section 402©(4)(B)?

A-9: (a) General Rule. Section 402©(4)(B) provides that a distribution is not an eligible rollover distribution to the extent that it is required under section 401(a)(9). As noted in Q&A-6, for purposes of determining the amount of minimum distributions that are required after December 31, 1996, the required beginning date for an employee who did not retire before January 1, 1997 from employment with the employer maintaining the plan is redetermined under section 401(a)(9)©, as amended by the SBJPA. Therefore, whether or not a plan allows an employee who attained age 70 1/2 before January 1, 1997, but did not retire from employment with the employer maintaining the plan before that date, to stop receiving distributions in accordance with Q&A-7, a distribution to such an employee prior to the year the employee retires is not a required distribution under section 401(a)(9). Such a distribution is an eligible rollover distribution unless it is excepted for some other reason. An exception is provided under section 402©(4)(A) for a series of substantially equal periodic payments made for the life (or life expectancy) of the employee or the joint lives (or joint life expectancy) of the employee and the employee's designated beneficiary, or for a specified period of 10 years or more. If an employee's benefit is being distributed in a series of annual payments that would equal the required minimum distribution determined in accordance with Q&A F-1 of section 1.401(a)(9)-1 of the proposed Income Tax Regulations, then the series of payments will be considered a series of substantially equal payments over the life (or life expectancy) of the employee or the joint lives (or joint life expectancy) of the employee and the employee's designated beneficiary, or for a specified period of 10 years or more, in accordance with Q&A-5 of section 1.402©-2 of the Income Tax Regulations. Therefore, payments under such a series of payments are not eligible rollover distributions.

We have a number of cross-tested plans that identify allocation groups by age or year of birth. Contributions for each allocation group are discretionary. I recently read somewhere that this may violate ADEA. Any thoughts?

Am trying to get name(s) of vendors who provide "flex debit or convenience cards" used by third party administrators with their client's participants enrolled in the medical and/or dependent care reimbursement plans? Can anyone help?

SECTION CODE 415(B) and ©

I WAS LOOKING UP THE KEY EMPLOYEES AS DEFINED BY THE IRS AND IT REFERED ME TO THIS SECTION 415 b,c. PLEASE ENPLAIN SEC 415 b & c??? THANKS

When an employee's status goes from an excludible employee to an eligible employee are all years of service considered for participation purposes even for the period when the employee was excludible?

The Consolidated Appropriations Act 2001 signed into law by the President on December 21 includes provisions that seem to affect withholding for Roth IRA distributions. Are some Roth IRA distributions now not subject to federal withholding? I am not sure what impact these changes have. Any imput would be helpful, thanks

Can anyone recommend a stand-alone 401(a)(4) software package for DB (or DB and DC), or is this not available in a stand-alone setting?

We are very happy with our administrative/valuation software but do not like the testing package at all.