Four years ago, A shareholder, who owned 10% of the company and is also an employee, sold 40% of his stock to an ESOP. In a transaction where the ESOP Acquired 40% of the Company. This Shareholder did not elect Sec. 1042 deferral treatment and has participated in allocations of stock in the ESOP. In December 2000 This shareholder sold his remaining stock to the ESOP. If this shareholder remains an employee and elects Sec. 1042 deferral treatment, (1)Can he receive an allocation of stock in the ESOP for the year 2000 (assuming only shares acquired by the ESOP in the first transaction are allocated in 2000)? (2) Could he participate in any remaining allocations of stock acquired in the first transaction in future years?

1. Have there been any changes to DFVC as a result of the implementation of E-Fast?

2. How will reasonable cause letters for a late fringe benefit filing be handled under the new system. (The plan in question is not required to file under ERISA -- just the IRC)?

Thanks for your help.

Under ERISA Section 407 a retirement plan may hold qualifying employer securities. Under the definition of a QES is the term "stock". I am unable to find a definition of stock. Would an interest in an LLC be considered stock for these purposes if the state in which the LLC is in treats as a corporation?

There is no folly of the beasts of the earth which is not infinitely outdone by the madness of men.

Melville, Moby Dick

What happens if someone chooses 10 year distribution of their 457 account and there are funds leftover after the ten year period? Or are all funds distributed in the tenth year regardless of the amount?

Thanks.

This may sound like a really stupid question, but I can't find anything on point! Client sets up a n-q deferred comp plan for general manager. When gm starts taking payments from n-q deferred comp plan, client allows 401(k) deferrals and employer profit sharing contributions based on "salary" from deferred comp. This seems to make no sense as you normally don't get payments under a deferred comp agreement until termination of employment and, of course, you can't participate in the qualified plan if you aren't employed! Anyone have any reference, or is this just a common sense error. (If it does work....pretty neat idea for continuing deferral of income!!)

Does anyone have any recent experience with deferred comp plans that didn't file initial notice with DOL? Failure then results in 5500 requirement which, of course, were not filed. I had heard that the DOL had an amnesty program for this kind of thing, but I want my client to proceed carefully.

Is my former employer not required by law to offer COBRA coverage to me? There were only 8 employees?

I need help. I have a Hospital that is a 501c3 with a frozen dc plan. All assets are pooled in a multiple employer trust administrated by a regional bank. This trust assoc. is for municipalities and hospitals owned by governments. Frozen assets are in one account (balanced fund). What are the compliance issues for the Hospital, it's board memebers and ee issues with 404 c regs.? Who is the plan fiduciary? Who owns the assets? No disclosure for adm. fees, asset fees, etc. Is this employer subject to ERISA? Thank you in advance.

The two year old class action lawsuit against Nasdaq marketmakers/brokers has apparently been settled and checks were delivered this past week. Nice year ending surprise for those that signed and returned the forms. Apparently just a couple of trades got you a check for $25 and active traders could get $4,000+.

Question 1: Assume the check you receive is large and based upon trading activity in an IRA. The check indicates it was related to an IRA. Can these funds be deposited into the IRA as a kind of rollover? It would seem that the settlement represents a court view of your additional profit from the alleged pricing abuses. Therefore if the "abuse" had not occured, theoretically the IRA assets would be greater. I can remember a custodian accepting a misdirected dividend check (sent to residence and not the custodian... too long a story to explain) to be re-deposited to the IRA.

Question 2: What is the likely tax status of settlement checks? Many of the checks will be based upon standard brokerage accounts. The letter cites IRS Code 468B "whether a distribution to a claimant is included in the claimant's gross income is generally determined by reference to the claim in respect of which the distibution is made..." Wow, that must be clear to everyone!

Knowledge is great, but conjecture and analogies are also welcome.

Why did my company not offer COBRA to me, when I was told a few days ago that they had to?

I have a client who is getting ready to distribute funds to a terminated employee who owes the company money. The client asked if they could net the amount owed the company out of the retirement plan distribution. Has anyone had this situation before?

I have a profit sharing plan that terminated, distributed

and filed a final return as of 12/31/98.

The trustee of this defunct plan has received, as a result of a class action lawsuit, a refund of an intangible property tax ($4,800).

What does he do with it?

Do we file additional 5500s having already filed a "final" return?

If we allocate the funds based on the distributions made, on

what basis can these additional monies be rolled?

Confused!

Is there a prescribed method for determining the Participant's retirement age under Section 415(B) for adjusting the DB benefit limit to an age earlier than the Social Security Retirement Age? In other words, is there a required method of exact age, nearest age, etc?

Thanks.

I would like to establish a custodial ROTH for my sister. She is 25, but has no current earned income because she is in medical school. I thought I read somewhere that after a certain age, you may contribute to a ROTH without having earned income. Any assistance would be greatly appreciated - thanks!

Can a QDRO issues to a DB plan provide for an assignment of a flat dollar amount?

i worked for lukens steel for 30 years prior to bethleham steel buying the company out. i have since left the company, but have not yet retired. my pension is frozen, however i get burned by 6% for each year i am under the age of 62; currently 53. my worry is that bethleham will go under. will my lukens pension still be there.

In a recent discussion with another person in the pension business, I was told that a IRS 5305-SEP form COULD be used when a Money Purchase was combined with it but only if the SEP had been opened first. It is my understanding that if a SEP is to be combined with any qualified plan, that a prototype document must be used to open the SEP (or restate the SEP) to provide for the proper top-heavy contribution language. I'm not aware that it matters which came first the SEP or the QP. Can someone shed some light on this subject for me.

I am wanting to establish a Roth IRA for 2000 for my wife and I. I am curious what the final date is that I have to have the accounted opened, as well as when it has to be completely funded to count for the year 2000?

Do I have until April 15th 2001 to open and fund the account?

a small employer group(approx 20 employees) has an employee retiring on 12/31/00.

that employee is currently enrolled in the group health plan and elgible for medicare.

is the retiring employee eligible for COBRA programs since he is already eligible for medicare?