If a Plan uses a bank as a directed trustee or custodian, my read has always been that although the bank does not have to be bonded (presuming it meets the other requirements of the ERISA 412 regs) the person or persons who give "direction" regarding investments must be bonded. Does anyone have a different read?

I am working with a company that set up a Premium-only plan for 2000. The plan is "semi-self insured", in that the insurance company charges a fixed premium per month, and then a variable portion, which is attributable to individuals within the plan.

In terms of administering the 25% Key Employee concentration test for the year, what premiums are counted towards the total which is then used to calculate the 25%? Is it fixed premiums, or the total premiums? Doesn't this make testing diffucult, as the number is a moving target? What happens in a year when the variable portion is attributable mainly to one of the key employees? (My company has 6 brothers who each own 16.67% of a C-corp)

Any ideas would be appreciated. Thanks!

I am new at this and don't have too much experience. Can someone please explain what the "non-traditional" OBRA full funding limitation measurement for determining the deductible limit of a corporate retirement plan is? A general overview would be greatly appreciated. Also, is there a "traditional" full funding limitation? Under what circumstances should you use the "non-traditional" vs. the "traditional" approach?

Is an SEPP distribution from and IRA Variable Annuity any different from an SEPP from an IRA invested in mutual funds? Can it be done by setting up a payment stream of systematic surrenders without annuitizing the contract? The owner is 53 now and once he reaches 59 1/2 he'd like to stop distributions and let the annuity IRA continue to accumulate.

It is my understanding that generally fees can't be charged for a distribution to a terminated participant. The investment company charges a check fee on all distributions from the plan. This raises 2 questions:

1. Is there a problem with the check fee? I don't think there is, but I could be wrong.

2. The investment company summarizes the distribution on the check stub. Recently the company has relabled the "check fee" as "administrative fee". I definitely do not like the new wording, but maybe its nothing. Should I be concerned?

I am a principal in an inc. biz that does not have any retirement plan in place. Therefore, I contribute to an IRA.

As a second biz in which I alone am employed (from a home office), I earn approx. 20K per year. Is it possible for me to set up a Simple or SEP IRA for this revenue? Which option applies if I am the sole owner and sole ee? Can I simultaneously continue to contribute to my IRA and claim the 2K fed. tax benefit? I have tried to read the regs, speak to investment firms and accountant but have gotten conflicting information. Thank you for any help.

I own 20% stock in my primary biz's inc.

Employer contributed an excess profit sharing contribution to participant's account. Participant terminated and rolled over the excess amount to an IRA. If the overpayment is returned to the employer in connection with a VCR submission, does the participant suffer unfavorable tax consequences with respect to the IRA?

I am trying to find a good example of how coverage testing works. Does anyone have any good examples?

Recently, the President signed the Electronic Signature bill making "digital" signatures legally valid. Is anyone aware of any DOL regulations (pending or published) clarrifying to what extent electronic signatures can be used on retirement plan forms? For example, is it sufficient to get an electornic signature on a Distribution Form. what about spousal consents and notary requirements?

An employer maintained an (ERISA) insured long term disability plan. As usual the employer had only an insurance contract. There was no separate ERISA plan document.

Employee A was aware of the plan. Employee A terminated employment and was rehired within several months.

However, unbeknownst to employee A or any other employees the employer had, prior to A's separation, decided to cancel the LTD coverage. There was never a formal notice to employees.

Two years after A was rehired he became disabled and attempted to file a claim under the LTD plan. Of course, he was then told the plan was no longer in existence.

What cause of action might A have against the employer?

Estoppel would require a showing of a misrepresentation by the employer, and that may be difficult here. There may be a breach of fiduciary duty, but does that duty survive termination of the plan? And what would be the remedy? Benefits under a nonexistent plan? What would be the employee's best argument?

Thanks-

rob.

401k deferrals through 125 plan subject to FICA? Code and Regs are unclear. In other words, if a 401k is included as a cafeteria plan benefit, are those deferrals subject to FICA or not?

401k's within cafeteria plans: what is the tax treatment of 401k deferrals through 125 plan? subject to FICA or not?

Jones (single) died leaving a brokerage account and an IRA, about $4 mil in total. Both consisted of very large holdings of the same 3 stocks. Since his death, last month, the values have dropped substantially, and the executor is selling shares to raise $$$ to pay PA inheritance tax, and Federal Estate Tax.

The IRA is left to the same 8 beneficiaries, and each will then be the beneficiary of a Jones IRA for the benefit of......., when the custodian decides to divide the plan, and will make elections or liquidate.

The issue is how the alternate valuation date for the estate will be affected by the actions of the beneficiaries, when or whether they liquidate the stocks in their accounts, which is of course beyond the control of the executor.

The rules are clear as to how to arrive at the AVD for the brokerage account, but do any of you know how to include the IRA assets in the calculation? I will appreciate being directed to any treatises, rulings, or articles on point. Thank you very much.

I have an ESOP that I'm separately tracking two different 1042 sales to the ESOP. The employer has repurchased shares from the ESOP. Which shares did the employer purchase, or does it matter? Can I just assume it was pro-rata from each?

Can anyone provide me evidence (ammunition) that will allow me to roll over my 401(k) assets to a conduit IRA without requiring my spouses notorized signature.

For the record I'm not trying to cheat my spouse, but rather trying to expedite the distribution!

A plan sponsor wants to pay an annual per participant charge for active participants but wants to have terminated participants who leave their accounts in the plan pay those same expenses. Would this have to be tested as a BRF? Other comments?

the following inquiries are in reference to the plan document, the adoption agreement.....

1. situation: a plan sponsor with three adopting employers has been allowing mpre-tax denatl premiums for one of the control groups and not the others.....does this sponsor have to adopt a separate plan for the control group with dental insurance? and why...thanks

2. situation: a plan sponsor with multiple adopting employers offers a select group of the employers to have dental insurance with orthodontia. The others have no orthodontia provision. the sponsor's plan document/adoption agreement says the plan includes dental insurance premiums as a pre-tax benefit......does the sponsor have to adopt a separate plan for the groups with the ortho dental policy ? and why?

3. situation: a client has called to inform us as their TPA that they have added a supplemental and dependent life insurance policy to their cafeteria plan and they want us to do the paperwork......are these benefits eligile for pre-tax status?

4. situation: same as # 3 but the client is beginning a ltd/std policy....same question...

The tribe I am working with already has a 401(k) plan for its employees. Can the tribe set up another plan within its present 401(k) plan for only members of the Tribal Council (who are also salaried employees) using non-elective employer contributions?

How can I find a missing beneficiary (401k plan) for whom I have a social security number? (This is not a terminating plan.)

What is our obligation to do so if we have made a reasonable effort,(And what constitutes a reasonable effort?) Do we need to hire a locator firm? The plan document is silent for this matter. I am wondering if I can put the proceeds in the forfeiture account as the plan document directs to do when we are unable to locate "participants." I sure would appreciate anyone's suggestions!

I am a little confused on the filing of Schedule P with the 5500 forms. I have a client who has multiple plans participating in the same trust with each filing their own 5500. Based on my reading and interpretation of the 5500 instructions, I think I need to compelte individual Schedule P's to attach to each 5500. However, there is one sentence that throws my thinking off. It reads "If the trust or custodial account is used by more than one plan, file one Schedule P." This sentence would seem to limit the work I need to do as their is only one trust, but it would also seem to leave many "plans" without an attached Schedule P.

Any thoughts?