I have a 401(k) plan doc that contains the usual boilerplate stuff about if there is a defined bene plan maintained by the employer, and all the necessary junk etc etc. I recall reading somewhere that maybe we can eliminate all that stuff? This employer has no defined bene plan and never has had one.

Anyone know if this language can be deleted? TIA

Samantha Prince

Is the choice of a distribution date in connecton with a plan termination a fiduciary decision, if the distribution date affects the interest rate used for single-sum distributions?

A client would like a source where one can obtain a list of every Form 5500 filer. Does anyone know where one can obtain this?

Employer A has a 401(k) plan that is terminating. Employer B purchased the business and will probably retain many of the employees with Employer A. Employer B has a profit sharing plan without a 401(k) feature.

Employer A will have many participants with outstanding loan balances upon plan termination and would like to help these employees avoid taxes on these loan balances. Many of them cannot afford to repay them before the plan terminates.

Any suggestions on how to avoid these tax consequences?

I am trying to find information about the deferred retirement option program (DROP) as it relates to divorce cases.

Required Beginning Date: A participant, who is a 5% owner and who has reached the age of 70 1/2, must begin a distribution of his benefits on April 1 of the following calendar year. Does a look-back rule apply for purposes of determining if the participant is a 5% owner? If it does, what is the specific authority?

I am planning a fair size estate, approximately 1/3 real estate and cash; 1/3 in Husband's IRA which he will begin drawing next year; and 1/3 in Wife IRA which she will begin drawing in 2004. They want to put their IRAs into credit shelter trusts. I am not sure of the best way to do this. Can there be an outright transfer of the IRA with the client retaining withdrawal rights? Should there be a bequest in their LW&T of their IRAs to these trusts? Or should I only have the beneficiary of the IRA changed with the Custodian? Further, how do you value the IRA to offset againt each person's unified tax credit? I have read articles in Lawyers Weekly USA dealing with the minimum distribution requirements and the stretch out election and feel like I have a handle on those issues. Can any one please help me on the transfers?

Joe is 100% vested. His balance is $30,000. His outstanding loan is $14,000. How much can Joe's wife's attorney get for her in the form of a QDRO ??

Any cites would be appreciated.

I need some guidance on a "wrap plan". I have never drafted one but have been given the SPDs for 3 welfare plans and have been asked to wrap the plans so that only 1 5500 needs to be filed. At this point my understanding is that I need only create a document which contains the ERISA reqd language and references the SPDs for each plan in the appendix. Any help or material on this matter would be appreciated.

Lets say you have a 401(k) plan and the document says the match is 25% of deferrals up to 4 percent of pay. Beginning 1-1-00, you decide to increase the match to 50%. You notify the participants of the increase, but fail to amend your document. It is now September. You've been matching at 50% each month since January. Is it too late to amend the plan now? You've failed to follow the rules of the plan, but clearly all participants have benefitted. Is there an alternative to VCR or CAP? How about forfeiting the extra match for the HCE's? Opinions welcomed.

Can a 401(k) plan accept a rollover from the government Thrift Savings Plan?

I have a client calling me regarding 404©. They want to know if section 404© is worth the additional work that they must complete. Since the plan trustee is ultimately responsible for the plan with or without 404© I'm not sure what to recommend. The issue that really concerns me is "What should I indicate on the 5500?" Either way the question is answered, it seems to me, it could come back to implicate the client. Any advise?

Current plan document for profit sharing. Added 401k feature. Trustees have not signed document. Even though enrollment meetings have been completed and they have submitted deferrals for investment. Must deferrals be returned. Or since the effective date is prior to receipt of deferrals, can they sign document now?

401(k) Plan has 140 participants as of 1/1/2000 and as of 9/30/2000. Client wishes to split plan into two plans (one plan for each of company's two divisions) as of 12/1/2000. Each plan would then have 70 participants.

Clearly a CPA audit of Form 5500 is still required for 2000 Plan Year. I believe that a CPA audit would not be required for the two new plans years beginning 1/1/2001, since each of the new plans would have less than 100 participants as of the first day of the plan years.

Plan participants have daily valued investments with a national insurance company's group annuity product. To obtain better expenses/prices the client would like to maintain the plans in one contract with the insurance company's records.

TPA receives electronic download from insurance company and can produce separate plan level and participant statements on a divisional basis. This is easy since the investments are valued daily.

New plans will be identical in provisions. Only difference will be plan name.

Question: Are there problems with having the two plans investments in one contract? Does this create a common collective trust and additional reporting requirements?

401(k) Plan has 140 participants as of 1/1/2000 and as of 9/30/2000. Client wishes to split plan into two plans (one plan for each of company's two divisions) as of 12/1/2000. Each plan would then have 70 participants.

Clearly a CPA audit of Form 5500 is still required for 2000 Plan Year. I believe that a CPA audit would not be required for the two new plans years beginning 1/1/2001, since each of the new plans would have less than 100 participants as of the first day of the plan years.

Plan participants have daily valued investments with a national insurance company's group annuity product. To obtain better expenses/prices the client would like to maintain the plans in one contract with the insurance company's records.

TPA receives electronic download from insurance company and can produce separate plan level and participant statements on a divisional basis. This is easy since the investments are valued daily.

New plans will be identical in provisions. Only difference will be plan name.

Question: Are there problems with having the two plans investments in one contract? Does this create a common collective trust and additional reporting requirements?

Is the following correct:

If a plan borrows an amount equal to the cash value of a participant's life insurance policy minus the accumulated P.S. 58 costs, and then distributes (transfers the ownership of) the policy to the participant, the amount of the P.S. 58 costs is treated as a non-taxable (or after-tax) distribution, while the distribution of the borrowed cash to the participant is treated as a taxable distribution (or as an eligible rollover distribution).

However, if a plan surrenders the policy for the cash surrender value, and then distributes this cash to the participant, the entire amount is taxable (and an eligible rollover distribution) - there is no basis for the P.S. 58 costs.

I'm looking at Private Letter Ruling 8539066, and trying to figure out what it means to "convert the whole life insurance policies to their cash surrender value," and what event triggers the loss of tax basis in P.S. 58 costs. Is the P.S. 58 tax basis lost anytime the ownership of the policy is not transferred to the participant?

A sole proprietor adopts a Profit Sharing and a Money Purchase Pension Plan. The sole proprietor has no employees so she did not apply for an EIN. Does she need to file Form SS-4 to obtain an EIN or can the plans use her social security number as the EIN?

I'm sure everyone has been following closely all of the proposed pension changes in the House and Senate this summer. One proposal in particular is to change the 415 limit for DC plans to the lesser of $30,000 and 100% of Compensation. On the surface this is great; however, we have a number of age-based plans where there are a few older NHCEs in the population who presently are capped at 25% of pay in their allocation. If this proposal goes through the attractiveness of the age-based allocation could fall dramatically (although a great windfall for these select individuals).

Anyone have any thoughts on this issue?

i'm looking for some help. I searched around and didn't find exactly what i was looking for. Here's my problem(not really a problem but you'll get the picture): i'm a 21 year old college student that nows diddley about IRA's, yet a Pharmacist i work with got hooked on the idea. I've defintly decided to get a Roth IRA. What is the difference and or value between a savings or a certificate of deposit IRA? Here's the deal i don't make a great deal of money and i'm going to pharmacy school next fall '01. so only in the summer's will i be able to make limited contributions. but i think anything to get on jump on my retirement will help, correct. what is better for just sitting around???? and i don't/won't 'play the market' cause i have a weak stomach for that. I need something i can dump some money into that will eventually grow. Any help would be great.

thanks

A client requested disability coverage in the UK for their 7 person office.

I was able to get a LTD quote for the group but not STD as I "was told" that their is a federal program called Statutory Sick Pay (SSP) that covers up to 28 weeks.

Does anyone have experience obtaining STD coverage in the UK? where did you go for it?

Thanks for your help!