Retired employee dies at age 75. He did not take his required minimum distribution for 2000 at time of his death. Designated beneficiary is charitable trust. Must the RMD be made and if so, is it made to his estate or to his designated beneficiary?

A Plan requires that a lump sum be computed as the sum of 50% of the value using PBGC male mortality and 50% of value using PBGC female mortality.

What is 50% PBGC male mortality? ERISA 4044 has two tables. Table I is mortality for healthy males (same Table I w/ 6 yr set back is female table). And Table 3 is entitled "lump sum mortality table*, which may be a table that blends male and female rates from some mortality table.

If my memory is correct, Table I is the GAM 71 male and female tables. And Table 3 may be related to the UP84 Table.

Like to know your thoughts.

Gary

The plan provides that union employees are eligible to make elective deferrals, but are not eligible to receive a matching contribution. For purposes of the 3% 401(k) safe harbor contributions, it seems to me that since they are eligible to defer, the union employees should receive the 3%. Is this correct? The fact that they are excluded from the regular 401(k) testing, however, causes me to reconsider the requirement for them to receive the 3%.

Mary Kay ,

Thank you very much for your reply. I wonder if you could clarify a couple of points:

1. If the basis of the employee's contributions is not reporetd on the form, is it at all possible to figure it out so the benefit isn't lost?

2. Not sure how you got $20K cost & $80K NUA in the example - my example included $100K basis and a

$400K NUA ($500K total value of 401K), in which case,

I understand, the $100K is originally taxed as ordinary income and then recoverd upon the stock sale and the $400K is taxed at 20% LTCG rate.

Thanks again for your great help.

Are there any advantages to using a grantor trust rather than a VEBA for a self-insured health plan with "church plan" status that provides benefits to employees of multiple affiliated organizations?

some additional comments on 6.0:

if you are holding forfeitures in suspense, and in particular, in the 'FORFEITURE' account (rather than to the account where forfeited), you will have to have a fund name 'FORFEITURE', fundid = FORFEIT for the values from suspense to print on the summary of accounts report. make it a cash account.

(This is added to the investment fund table, not plan specs)

if you are making changes to census items, you have to hop off the last field you edited before going to another employee. otherwise the changes won't take place. in the past, I don't recall this being 100% necessary.

(There are further 6.0 notes in an earlier message if this is the first 6.0 comments you have looked at)

Has anyone heard anything (perhaps at the ASPA conference)about possible changes, new questions, etc. for the 2000 Form 5500 and schedules?

John Hancock

Is anyone offering a legal services plan to their employees? What features do you look for in a plan? How do you choose between plan administrators?

Thanks.

Dan

Under the family status change rules, can an employee who currently waives coverage enroll in the plan?

Plan A is being merged into Plan B at the end of calendar year 2000. Plan A's loan policy provides that participants may continue repaying loans after terminating employment or retiring by bank draft. Plan B's loan policy requires full repayment within 60 days after termination or retirement. Can participants with outstanding Plan B loans be required to repay the loan balance at termination of employment or retirement?

Company has 2 NHCEs who are husband and wife. Both are 3% owners. When family attribution rules are applied, do both husband and wife become > 5% owners, thus making them HCEs by ownership?

Under IRS Notice 97-11 "Sample Lnaguage for a QDRO" under the Appendix to 97-11, Part I, Section D(1)(B) "Comencement of Benefit Payments to Alternate Payee," the DoL states that a retirement plan "...may (but is not required to) allow payments to begin to an alternate payee at a date before the earliest retirement date." IRS Section 414(p)(4) states that no distribution can be made before the earliest retiremenet age. If the Plan does not permit a participant to receive distribution before age 55, then the earliest retirement date is the date that the participant 1) actually retires or 2) reaches age 50. Can you add a provision to a plan, as the IRS Notice states that says "Regardless of whether the participant is entitled to receive a distribution, an alternate payee is entitled to a distribution at any time, even before the earliest retirement date."?

Need help with the following detaails:

As far as the NUA in the employer's stock lump-sum

distributions:

1. are the employee's contributions covered as

well as those of the employer?

2. for example, if the lump-sum is $500,000 and

trusee's cost is $100,000, & $400,000 of Net Unrealized Appreciation (NUA) :

a) what are tax reporting procedures of the

future share sales (which will qulify for

a 20% cap. gain rates) :

i) is the first $100,000 of sales tax

free? (since it was included in your

ordinary income upon the distribution)

ii) what's the basis of the next, let's say

$200,000 - is it zero?

iii) what back-up is reqired to be filed

with and/or retained for the tax

reporting purposes?

iv) can the future sales of the NUA balance

be offset with the capital loss

carryovers from the prior years (which, I understand, can be carried forward indefinetely, until fully used-up or the taxpayer's death)

b) can the first $100,000 (the trustee's cost)

be definetely tranferred to an IRA ?

Appreciate any info .

We are in the process of upgrading to 6.0. It looks like things are running pretty smooth for most of you.

Do any of you use the Trust Accounting package Quantech has added to 6.0 and if so, how is it working?

What recommendations can you make? Thanks.

I have worked as a Corrections Officer at the local Jail for the past 16 years. Last July(1999) I was cut by a razor that had been used several times by an inmate (they were disposable razors, but they were supposed to use them several times before the Officers replaced them). The inmate had no problem with releasing his medical records for me, and he can back positive for Hep B & C . I was tested by the County Dr. that same day and my test came back negative. Twice more I was tested and also Negative. Then in February of this year my tests came back positive for Hep C. Needless to say, I was very scared & sad.

About 3 months ago I started hurting all over and I'm very tired all the time. The Dr. thinks it might be CFS and I have no idea what to do. The County has accepted my claim for Hep C treatment, but I have no idea what my options are at this point. My viral load is in the normal range at this time but that is always subject to change as this virus mutates.Can anybody help? Anyone else in this line of work ever have this problem?? Thanks for any help you can give me.

I want to know if I can put life insurance inside of a defined contribution plan that has a provision for life insurance. The ben. is going to be charities. Do I need to use a subtrust or not to accomplish this. Also I think I can use a second to die policy yet am not sure. I am finding conflict on these issues yet it seems like it is possible to do. Also I would like to find out if one can convert a defined contrubution plan into a simple 401k and if the plan has a life ins. policy inside it what happens. Thank you.

I'm a little new to this. What is the "desk rule" issue with respect to terminated or successor benefit plans?

My father worked for Union Electric in St.

Louis, MO from 1948 to Oct. of 1976 when he

died of a heart attack. At that time, the

contract said that if the worker had not worked

30 years, dependents would not be entitled to

any benefits he had paid in (28 years worth).

The law has now changed - my mother is in

hard times financially and I'm hoping there is

some say she can recoup some of my father's

pension...

If a TPA receives and cashes a check for initial COBRA premiums and later finds out from the employer that the payment itself (or the election for coverge in the first place) was not timely, can the TPA just reimburse the ex-employee from its own account or does the acceptance of payment mean that coverage is effective - at least for the period covered by the payment.