Has the IRS set forth any guidelines concerning a participant's ability to change a distribution option under

an unfunded nonqualified deferred comp plan. The current plan document states that a payout election may be changed if notice is provided to the Plan at least 90 days prior to separation. Is it permissable to amend the plan to reduce the notice period to 30 days prior to separation and not trigger any constructive receipt issues.

This multiemployer (collectively bargained) defined benefit pension plan has an accumulated funding deficiency. Does each employer participating in the plan have to file a Form 5330 Return of Excise Taxes Related to Employee Benefit Plans or can the board of trustees that act as plan sponsor file one 5330 on behalf of the participating employers. I know each employer has to pay their fair share of the excise tax- but does that necessitate individual filings of From 5330?

Thanks

Can Notices to Interested Parties be sent by email?

Hello Cathy,

Blaze SSI--- RTS System

When we have a test that is separated into subgroups due to excludable testing (Less then a year of service or age 21, or whatever the circumstance may be) Some of the employees are also coded with a 3 in field 61(because of different eligibility requirements). When we encounter this situation the tests includes the individual with the code on the ADP test despite the subgroup they may be in.

For example if Bob should be in subgroup 01 only, And is not eligible to receive a matching contribution but is eligible for an elective contribution a code 3 will be placed in field 61. We run a test based on subgroup 01 and he appears, as he should.

Now when running a test on subgroup 02. He also is listed on this test which he is not a member.

Is there a solution to this problem that we may be overlooking?

When excludable testing is performed is there an easier way that you know of to separate the data into two different test? (Over 21 and greater than a year of service) and (less than 21 or less then a year of service.)

Blaze confirmed that the field #61 is used regardless of sub-group. They say the only solution to this problem is for them to add an additional field doing the same as #61 but would not take precedent over any subgroup. There would be a charge if this were done. I would think this would be a common problem amongst users. The said they can not adjust the field 61 because some users may want it that way. Is there any circumstance that you may know of that you would run a test on a subgroup and want these coded employees to be added on?

Have you encountered this problem before?

Do you have any suggestions that may help?

I'm looking forward in hearing back. I'll keep you busy on this board. I'm surprised you don't receive many questions. Blaze is not the easiest program to use and there is so much that can be done that not many people know about.

Thank you for all your help,

Denis

Denis

I have questions concerning the IRC 529 program, the qualified college tuition plan that Schawb is offering to the public effective Dec. 15, 2000. It appears to say that the pre-tax contribution is allowed. Do you have any ideas of what kind of contribution limit imposed by the Code and how does it work?

Sorrry I have to post this question in the 401(k) section.

1. Can a plan terminate its loan program and call in all outstanding loans, deeming distributions to the borrowers who do not choose to pay the entire outstanding balance?

2. If so, are there any time restrictions?

3. Finally, if the plan terminates its loan program and deems distributions to those participants who do not pay, what becomes of the plan asset that is the loan note? There is no longer any loan program through which a participant could pay it back (even if he/she wanted to) but a "deemed" distribution is clearly not an "actual" distribution per the IRS regs. This leads me to think that the note has to hang around as a "plan asset" even though it can never be paid back. Any advice?

Has anyone had any expeience dealing with the new "Kansas City" office position of the DOL on plan expenses in a DOL audit? I'm interested in how rigid their approach is, are they willing to compromise, given the more lax standards they previously announced publicly? How about 502(l) penalties? Your experiences are appreciated.

Has anyone been through a recent DOL audit where expenses charged to the trust was the focus? I'm particularly interested on those that have experience the "Kansas City" office view on this subject. How flexible is the DOL in this area, given the more lax standards they previously announced publicly? Are they assessing 502(l) penalties? Etc. Your experiences are appreciated.

Question, does the 415© limit only apply to after tax contributions? Reason for the question is the mass Teachers Retirement Board has taken this stance when they improved their DB pension plan and long term employeees have to contribute another 6% of salary for a 5 year period to be eligible to use their "Retirement Plus" plan. Teachers that are retiring on July of 2001 they are allowing to put up to 100% of their salary into their DB plan to qualify for the extra benefit. This will mean some of my clients will be contributing almost 80% of their salary earned from 1/1/2001 to 6/30/2001. Their stance is the 415© limit of 25% of salary is only for after tax contributions.

Can a participant, age 76, still make salary deferrals? He is a full-time active employee and has not yet begun his RMD.

Self employed employer contributes to a multiemployer pension fund. The fund gets a judgment for past contributions against the employer personally. The self employed employer also participates in the plan. Can the fund get around the assignment and alienation provisions of ERISA and set off the participants benefit?

I HAVE A DR. GROUP. 5 DRS. 3 ARE OWNERS AND I WANT TO MAX, 2 ARE NON OWNERS ONE I WANT TO MAX, ONE I WANT AT 0%. HOW CAN I WORD THE GROUPS SO I SEPARATE THE TWO NON OWNER DRS.? CAN I JUST USE THEIR NAMES, CAN EACH GROUP BE ITS OWN DR WITH HIS OWN NAME?

THE DR AT 0% IS WILLING TO PERM. WAIVE OUT OF THE PLAN.

HOW WOULD THAT EFFECT THE TESTING? WOULD HE BE EXCLUDED FROM THE TESTING - WHAT ABOUT THE 404 LIMIT? DO I ALSO EXCLUDE HIS COMP?

THANK YOU IN ADVANCE...

IF YOU NEED ADDITIONAL INFORMATION PLEASE LET ME KNOW....

Does anyone have experience drafting nonqualified "wrap-around" arrangements combined with a 401(k) plan? As I understand it, prior to the beginning of a plan year, a HCE participant enters into a salary reduction agreement with respect to the nonqualified plan. He or she also elects to have the maximum permissible elective deferral under the 401(k)plan, after testing is done, transferred from the nonqualified plan to the 401(k) plan.

Could someone lead me to some sources describing the fundamentals of KEOGH plans? They are a new pension plan creature to me and I am looking to understand how they are similar and different from other qualified plans. Alternatively, prehaps you could give me the name/address of a company which offers a M/P KEOGH plans? Thanks.

Has anyone had any experience recently with the PBGC regarding timing on the distributions in a plan termination? We had a client who missed the date by 6 days and I'm wondering if they nullify the termination what does that really mean? The plan was frozen so there are no additional accruals.

What are the main differences between a 403b & a 401A? I work mainly with 403(B)& 457 plan. Is it mainly for employer paid accounts for highly compensated employees? I work in a school district & need to establish one for our Superintendent.

I have contributed toward a Roth IRA which I purchased through Merrill Lynch for 2 years and would like to know how I would go about putting this years $2000 contribution in a fund only offered by ETRADE. Would I have to take my money out of Merrill's account and move it into ETRADE, or can I have part of my Roth IRA with Merrill and part with others? Would I just buy the fund I want through ETRADE and that contribution be recognized toward my Roth?

A top-heavy defined benefit plan was terminated 6/30/00 and all assets paid out.

A new 401(k) plan was effective 1/1/00.

What is the top-heavy contribution requirement in the 401(k) plan (3% of full-year compensation, 3% of compensation for 7/1/00-12/31/00, required for all participants, required only for participant that did not benefit in the DB plan, other)?

Is the top-heavy contribution requirement in the 401(k) plan affected by any top-heavy accrual in the DB plan? For example, if a participant had 1,000 hours of service in 2000 and received a year of top-heavy service in their accrued benefit determination, does that person have to also receive a top-heavy 401(k) plan contribution (since there was a short plan year ended 6/30/00, the participant did not get the benefit of using 2000 compensation in the top-heavy determination, but did get an additional year of top-heavy service)?

The safest and easiest course of action would seem to be to just give a 3% contribution to everyone in the 401(k) plan for 2000, but does anyone know it the plan sponsor could be okay not giving it to some participants (that had DB benefits), or giving less than 3% to participants who had DB accruals?

Anybody given thought to how to adjust a plan that would satisfy the 5% contribution gateway if the contribution were sufficient, but isn't in 2002.

Example, plan designed with rate groups of 20% and 5% for 2000. Plan says contributions are allocated proportionately to those percentages. Testing passes in 2000 and 2001, but in 2002 the employer can only put in an amount resulting in 10% for one group and 2.5% (or 3% if top heavy) to the second group.

This fails the 1/3 and 5% gateways, so cross testing isn't available. Should such a plan, if designed in 2000, have a "fallback" formula in such contingency? How might it be worded? How then would it be definitely determinable?

Clearly a corrective amendment increasing the contributions for NHCEs would be allowed. How else could this be planned for in advance without restricting design to the 1/3 rule?

Business owner has Target Benefit plan they are considering rolling to an IRA. She is eligible for 10 year averaging. She wants to know if she should take her lump sum distribution this year (2000), or wait until next year when in July, she will be 70 1/2. Additionally, if she takes her RMD in 2001, will she lose her 10 averaging option? If she postpones her RMD until 2002, will she still lose her 10 averaging option since it is excercizes in or after the year in which she attained 70 1/2?

Thanks for your input.