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?)

I need your help! I thought that COBRA meant that you are guaranteed the right to continue your former employer’s group plan as individual or family health care coverage for up to 18 months at your own expense. Well, my husband's former employer was on United Healthcare. The company was bought out. We paid our first COBRA payment. I went to pay for a prescription today, which was denied. I call the company handling the COBRA benefits and they tell me, SURPRISE!, as of January 1st, when COBRA benefits began, you are now covered under AETNA. Now granted, the benefits are the "same," i.e. the same deductibles, etc. But only one out of the four doctors we use is on their provider list! Going the "out of network" route will cost us a considerable amount of money. Is this considered "same" coverage under COBRA law?

Thank you!

Kermit

An employer sponsors a SIMPLE IRA for 2000. His fiscal year end is 3/31. It is my understanding that the deduction for fye 3/31/01 would be all contributions made in 2000 (January through December). He would now like to establish a Money Purchase Plan as of 1/1/01 and take a deduction as of 3/31/01 for 25% of compensation paid from 1/1/01 through 3/31/01. Would he be allowed a deduction since he is also taking a deduction for a SIMPLE IRA? It seems that it would need to be a short plan year because if it is a full calendar year, the deduction would be taken 3/31/02 for the minimum funding requirement for 2001. Any thoughts on this?

Non-5% owner participant was hired at age 73 in 1996. Entered Plan in 1997. No MRD required for 1996 or 1997 since no account balance at 12/95 or 12/96. No MRD's have been made to date. Was he required to sign an election form to opt out of the 1998 MRD or does he automatically qualify for the post-SBJPA rules?

They haven't posted this one on the web site, so be aware-

the 5500 count report appears to be in error for

the item # of participants who terminated during the year with less than 100% vesting.

This is suppose to be fixed with svc pack 4.

I mention it here, because we just completed a valuation, and we go ahead and process as much of the 5500 as we can at this time. It would be easy to send the data to peak 1 and miss this one.

There is a detail report now available for this report, all you have to do is count up the YES that appear in the column. It looks like it is doubling the number.

also, a reminder of possible posting problems of splits. sometimes even though allocation percentages are entered, the system will not use them (or it will throw the $ into your default account if you have one listed). This is also supposed to be fixed soon.

We implemented an Automatic Enrollment (Negative Election) program nearly two years ago. Eligiblity is 90 days, and at that point the employee has 30 days to "opt-out". If they don't opt out, they are auto enrolled at 2% into a Stable Value fund.

The good news is that only about 5% of the eligibles are choosing to opt-out. The bad news is that less than 10% of those who were auto enrolled have either increased their deferral percentage above the 2%, or changed Investment elections.

My understanding is that our experience is not unusual, and my question is whether anyone has successfully tackled the problem of inertia in deferral percentage and investment elections.

Participant in a profit sharing plan terminated employment shortly prior to the Anniversary Date of the Plan. Participant's entire account balance was self-directed by participant. Plan document (a Corbel doc) provides for valuation of the trust assets as of the Anniversary Date. Plan has a reasonable amount of time before it must distribute the participant's account balance. Plan document provides, as you would expect, that self-directed accounts will be separate from the plan trust and will not share in the income, gain, loss, etc... of the plan trust, but rather will have its own income, gain, loss, etc... Participant is saying that he is entitled to the value of his self-directed account as of the Anniversary Date and not as of the distribution date, i.e., up to 180 days after Anniversary Date. Thus, given the stock market's performance, the value as of the Anniversary Date is somewhat greater than the value now. Seems to me participant would get whatever's in the self-directed account at the date of distribution and not as of the Anniversary Date. Anyone have any comments or observations? Thanks for your input.

What is the maximum Roth IRA contribution for 2001?

What is the tax benefit of opening up a ROTH IRA and would investing 4000 vs 2000 make a difference by Apr 16?