"Jay" applies for a job at Company X and the hiring manager makes him a verbal offer that includes salary and starting date. Jay will have to take a company physical before being hired. Jay is currently on SSA disability due to kidney disease (he takes dialysis three times a week, on his own time). Can he be denied employment because of: a) his SSA disability status; b) prescribed drugs found during his physical; or c) because he will be expensive to the medical plan? Does ADA apply to this situation?

I'm looking for information on "Opt Out" benefits offered for Dependents coverage. We are a small company (< 20 employees) and we are considering offering a monetary pay out for those who opt out of our group Medical insurance plan. Anyone with an opt out plan willing to share their policy? We're looking for ideas on structure and amount (ie: opt out benefit paid monthly/semi-annually/annually, 25% (??%) of current Co contribution for Dependents

insurance premiums, etc...).

My wife owns a small but growing specialty store and I am thinking of "jumping ship" from my corporate job to join her full time. She currently has only one employee--my mother-in-law, who recently retired and is working part time. Other employees are less than 20 hours per week or purely seasonal. Our goal is to create a sustainable business that meets our needs, not to create the next Starbucks. But, once I quit my job, we'll have expensive COBRA premiums that will have to be paid with after-tax money. Buying into an HMO or low-deductible health insurance plan isn't an option, though, because my wife is Type I Diabetic. I want to avoid paying income and SSI tax on our health expenses. So, I think I've got a possible solution. Can anyone tell me if this makes sense given our situation?

1. Move from a sole propreitorship to a C-Corp to allow us to deduct the benefits we provide ourselves.

2. Buy high-deductible health insurance for myself and our two children from a private carrier. My wife would buy a similar policy from a state program that insures people who can't buy their own private insuarance because of pre-existing conditions. My mother-in-law has her own retiree health plan, but currently has to pay her part of this coverage with after-tax dollars.

3. Set up a 125 flex plan with an "Individual Premium Account", which allows employees to use pre-tax dollars to pay health insurance premiums of plans other than those offered through their employment. Thus, my health policy, my wife's policy thru the state and my mother-in-law's retiree premiums could be purchased pre-tax by our company.

4. Set up a Medical Expense Reimbursement Plan where the company would pay for deductibles and prescription expenses as they are incurred. These payments would be deductible to the company. We would be willing to provide this benefit for my mother-in-law, too.

Is this a good idea? It seems like it would work for us, but am I missing other choices?

I'd prefer not to run this arrangement myself. Any recomendations for a TPA who would be insterested in our tiny business? We're located in MN.

Thanks for your time and your input.

I'm looking for information on "Opt Out" benefits offered. We are a small company (< 20 employees) and we are considering offering a monetary pay out for those who opt out of our group Medical insurance plan. Anyone with an opt out plan willing to share their policy? We're looking for ideas on structure and amount (ie: opt out benefit paid monthly/semi-annually/annually, 25% (??%) of current Co contribution for employee insurance premiums, etc...).

We have a client that has two participants with outstanding loans. During mid year 2000 the client switched payroll providers and the new provider did not get the loans set up for payroll deduct, so no payments have been withheld or made since July. Since this is not the fault of the participants themselves, but an error on the part of the employer, we would like to get the payments caught up and avoid having to default the loans. What are my options with doing this, and what are the risks involved if we do not default the loans?

I'm looking for thoughts on the following beneficiary situation under a 401(k) plan:

While married, participant names spouse as primary and sole beneficiary on plan's beneficiary designation form. A few years later the marriage ends with a legal divorce. The divorce decree has general language that neither spouse will make claim to any portion of the other's retirement pension or savings plan benefits. The aforementioned beneficiary designation is never updated by the participant. Then, the participant dies.

Does the beneficiary form prevail? Or does the language of the divorce decree have an effect?

What if, instead of dying, the participant had simply re-married? What effect, if any, does this have on the "old" beneficiary designation that still shows his then ex-spouse as primary and sole beneficiary?

Thanks in advance for any thoughts or reactions.

Cole

I'm looking for thoughts on the following beneficiary situation under a 401(k) plan:

While married, participant names spouse as primary and sole beneficiary on plan's beneficiary designation form. A few years later the marriage ends with a legal divorce. The divorce decree has general language that neither spouse will make claim to any portion of the other's retirement pension or savings plan benefits. The aforementioned beneficiary designation is never updated by the participant. Then, the participant dies.

Does the beneficiary form prevail? Or does the language of the divorce decree have an effect?

What if, instead of dying, the participant had simply re-married? What effect, if any, does this have on the "old" beneficiary designation that still shows his then ex-spouse as primary and sole beneficiary?

Thanks in advance for any thoughts or reactions.

Cole

Employer can not locate participants to open an IRA account for the SEP. What are the employer's options? Does the money go back to the employer? Do they open another type account for the missing employee?

Any assistance is appreciated.

70 1/2 participant has requested full distribution, but has also requested that we not withhold 20%. He claims that his income is not enough to file tax return (even including distribution). Can we do that or is there a possibility that we could be liable for the taxes on that distribution? Is this between the taxpayer and the IRS, or are we required to withhold?

With the IRS Notice 2000-3, the plan sponsors were able to stop doing the safe harbor match provided they issued a notice atleast 30 days prior to the date the plan sponsor wanted to discontinue the safe harbor match.

Can a Plan however skip 1 quarter from doing the safe harbor match and restart the safe harbor match the next quarter? If they are allowed to restart do they have to make up the safe harbor match and also what about testing?

The notice only mentions that if they decided to stop doing the match then they would go back to testing for the entire plan year using the current testing method.

Thank you and Happy New Year to all the members!

I'm wondering whether I've missed the deadline for making a 2000 Roth IRA contribution. Is the deadline December 31 or April 15? Thanks and Keep Hope Alive.

Do plan sponsors or their service providers allow participants to convert their loans to coupon payment upon termination?

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?