If a 403(B) is funded using custodial agreements, is the custodian required to give participants a disclosure statement (similar to disclosure statements required for IRAs?) If not required, is it common practice to do so? Cites would be helpful.

I am new here and have a question from my DH. He has a 401K plan at work and wants to quit work and open his own business using his 401K money. Is this possible? Thanks in advance.

In a defined benefit plan, could a bonus paid after dec 31st 2000, be included in compensation for the year 2000?

I think I have an interesting one .... Employee A belongs to Plan A and defers 10,500. Plan B acquires Plan A and Employee A defers $10,000 in Plan B; Plan A is terminated and Employee A initiates a rollover to Plan B.

Can excess deferral come from the rollover source or must the entire $10,000 excess come from the deferral source? Your insight will be appreciated.

What is the difference between an FSA and a self-insured medical reimbursement plan? They appear to have the same purpose and I am wondering if there are different circumstances when one should be used rather than the other.

One of our employees, who claims his parent as a dependent on his tax returns, wants to know why parents are not considered as eligible dependents under our medical plan. Can anyone offer a textbook definition as to why they are not covered? Are parents excluded as dependents in all Section 125 plans?

For purposes of Sec. 105(h) testing, are former employees who are still receiving coverage under COBRA considered "employees"?

We have a client that currently sponsors a money purchase and a profit sharing plan.

Some of the participants have mention that they want a 401(k) plan; the client has agreed to amend the profit sharing to include the safe harbor feature, since he has alwys contributed more than 3% anyway.

Rather than restating the whole profit sharing plan to a safe harbor 401(k), does anyone know of a simple snap- on type of amendment to add a safe harbor feature to a profit sharing plan??

Does anyone have a copy of a restricted stock plan that I might be able to look at? A privately-held company is interested in giving an executive 5% of the company's common stock. The stock will vest 1/3 for each of the next three years. The executive will not pay anything for the stock, but will make an election under Code Section 83(B). Thanks for your help. Ed

Can I transfer individually held (nonqualified) shares of stock to my Roth IRA for my annual contibution?

An employee made an election to defer a portion of his pay into the employer's 401(k) plan. Since then, the employer has deducted the elected amount from the employee's pay. However, through an administrative error, the employer has failed to deduct anything from the employee's pay for the last 2 pay periods. The employer realizes that the elected amount, plus earnings and any appropriate matching contribution, needs to be put into the participant's account.

To correct the error, can the employer deduct 3 times the normal amount from the employee's next paycheck? Or, does the employer have to "eat" the 2 missed deductions and pay that amount into the plan from its own coffers?

A Plan states that the lump sum is based on the factors published by the PBGC (this was pre GATT lump sum).

My question is what is the mortality table required? Table 1 of Sec 4044 is based on the GAM83 table for males. Table 3 is based on the UP84 table. Does anyone have any thoughts at to what table is more appropriate? I am requesting interpretations of the Plan provision. I do not care to discuss what the administrator actually does.

gary

We have set up an educational assistance plan under 127. As such, reimbursements for qualified expenses are nontaxable. I understand that graduate level courses cannot qualify for tax free treatment under 127. If you continue to offer graduate level courses under the plan (so that you treat those amounts as wages), will it jeopardize the tax free status of other qualified expenses provided under the plan?

If I have a defined benefit plan with a compensation year of 01/01/2000 to 12/31/2000, a plan year of 12/31/2000 to 12/30/2001 and a prospective valuation date of 12/31/2000, does this present any problems for either valuation or benefit accrual purposes?

A client has requested that we prepare a 1099-R for a loan that they have now deemed to have been in default in 1999. They want a 1999 1099-R.

Do we need the actual 1999 1099-R paper forms? Is there some way we can indicate on the 2000 form that this is taxable income in 1999?

Thanks.

- If you have started RMD on your 403b (you're above 70½)) and return to work, do you have to continue distributions?

- Can you start contributing to your plan again?

- What if you change employers? Can you stop distributions even though you are with a different employer?

- Can you open a new plan with the new employer and start contributing?

A C-corp is owned 25% by Owner A, 25% by Owner B and 50% by Owner B's IRA. The corporation now wants to convert to S-corp status. Questions:

1. Does the current ownership structure constitute a PT?

2. How does Owner B get the stock out of his IRA? Can he take a distribution, sell the stock and roll the proceeds into another IRA within 60 days?

Thanks.

A spouse rolls a QDRO distribution to another qualified plan. If the spouse takes a distribution from the current plan, can that distribution be from only the QDRO portion of her total plan assets? Does the QDRO exception to the 10% early penalty still apply? The plan allows in-service distribution of rollover assets. She has QDRO rollover, and non-QDRO rollover assets in the plan. These have been seperately accounted for as differrent sources. Can she take a distribution of just QDRO rollover money? Or should a distribution of rollover be pro-rated as part QDRO and part non-QDRO? The plan document is not much help, only says allows in-service distribution of rollover account.

My understanding is that no Credit Union could ever be a governmental 457 plan - but why? I can't specify what it is about these organizations that dictates they be non-governmental deferred comps (and if I'm wrong on this count - please tell me!) What section of the Code covers these plans? I'd like to be able to refer to it. Thanks!

We have a client with multiple S-Corps. Is it possible for him to setup an ESOP for only a couple of his S-Corps and have no ESOP for the others?