Is it possible to satisfy the 50% participation rule for SARSEPs at any point during the plan year (e.g., the last quarter or last two months of the year), or is it necessary that the threshold be met at all times during the plan year??

All the assets and employess of an LLC are being merged with another Corporation to form a new Joint Venture in which the LLC will own a 50% interest. Assuming that the employees job change substantially in scope, responsibility, and job location, do you think a distribution can be made by reason of a separation from service? Do you think Rev. Rul. 2000-27 would cover this situation (i.e., can a the creation of joint venture qualify or do you need a sale). Do you think I am under 401(k)(10)? If an employee does have a separation from service, can an employer force a trustee to trustee transfer (spin-off) (any problem with anti-cut back)?

Employee A participates in a medical FSA. During the coverage period, Employee A's spouse loses his job and his employer-based health plan coverage. Employee A wishes to revoke her medical FSA election prospectively. She claims the loss of her husband's job is a change in status (under the old proposed and new final regulations). We believe that while this is true, the election change (ie, revocation of medical coverage through the FSA) is not consistent with the change in status and therefore the change is not permissible. We believe that if her husband loses his medical coverage, the consistent change would be to add more coverage in the FSA, not revoke. Her reason for wanting to revoke is they need the money given the husband's loss of job. We would like to help but don't think we can. Any ideas?

Anyone know how I could obtain rev rul 71-446? And is there a website where one can pull up rev procs, rev rulings, IRS notices, etc.?

An LLC is forming a joint venture with another Corporation, in which they are both contributing assets and people to form another LLC. The job of several of the employees will be changing substantially in scope and responsibility. I have the following questions:

1. Is a sale required under the IRS recent guidance relaxing the same desk rule for sales of less than 85% of a companies assets?

2. Is the same desk rule an all or nothing rule?

3. If someone is deemed to have separated from service because of a substantial change in jobs, must an employer allow a distribution or can the employer force a trustee to trustee transfer to the new joint venture?

I have several other questions, but this should be a good start. Any input appreciated.

Are fees associated with gathering, registering and storing cord blood and stem cells from a newborn at a cord blood bank a reimbursable expense under a FSA? My response would be no, but would like other opinions.

Thank you.

Can a plan exclude some, but not all, collectively bargained (union) employees? If so, can the plan exclude all union employees not covered by the plan for 410(B) coverage purposes, and include all union employees participating in the plan? What other issues should be considered due to the plan including some, but not all, union employees?

All of our health care options are geographic based HMO coverages. We have an employee who shares custody of her children with her spouse who lives out of state and out of her service area. She has elected to pay for the cost of her health care coverage on a pre-tax basis under the 125 flex plan. She would like to add the children to her health care coverage when they are with her and take them off when they are with her spouse. We are trying to determine where or even if this fits in the new 125 regs. Can anyone help or offer an opinion?

My daughter was born Oct. 6th and will probably not have a Social Security Number before the start of the new year. Is there a way to contribute to a Roth IRA in her name without her SS #?

An easy question (from someone not in this field) follows:

Does the annual compensation limit (currently set at $170,000) mentioned in Section 401(a)(17) apply to earnings only in the tax year 2000 or to previous earnings as well?

Specifically, if a company has a db plan based on final average earnings (an average taken from the last xx years of earnings), should each year's earnings be compared to that year's limit or to the present limit?

If the former, do earnings prior to 1982 face no annual compensation limit?

Thanks in advance,

Brian Mason

Where can I find information on ERISA lawsuits? I'm researching pending and historical litigation against plan sponsors and analyzing by business type, type of claim, etc.

A 401(k) Plan allows a participant to begin receiving retirement benefits before actual retirement once he reached age 65. If a participant is 70 at 12/31/00 and continues working, can he take a distribution of his entire account balance, roll it over to a Traditional IRA in 2001 and then roll it over into a Roth IRA before April 1, 2002 which is his required beginning date? Once in a Roth IRA, the MRD rules do not apply, right?

Can a 5% owner who is 70 1/2 and not retired, continue to make contributions to the plan while receiving his MRD?

Section 420 states the tax treatment on amounts transferred out of 401(h) accounts to a transferor plan. What is a "transferor plan"? Can the transferor plan be the pension plan? Our situation involves terminating the 401(h) accounts and returning the assets that remain in the 401(h) accounts. If the assets go to a "transferor" plan, does that mean that there is 50% reversion tax to the employer and the transferred assets are not includable as gross income to the employer?. Do the excess assets have to be returned to the pension plan? Are there any other tax ramifications associated with this situation?

Hello, My name is David Rein, I am a doctoral student at Georgia State University. I am looking to speak with benefit administrators of self insured companies about the way they finance dependent coverage for dental, vision and other ancillary health services. Particularly, I am interested in speaking to managers with experience going from a two-tiered dependent option (payer or payer + family) to a three tiered structure (payer, Payer +1, Payer + family). Any information at all on this topic would be appreciated.

Participant's claim to excess cash surrender value prior to rollout of a split-dollar policy

Do the involutary cash-out rules ($5,000) that apply to qualified plans also apply to 403(B)s? If so, does it depend on the contract wording?

Does it matter if the plan is an ERISA plan or not?

Are there different rules that apply to deferrals versus employer contributions?

A small employer (less than 10 employees) sold her business in an asset sale. The owner is continuing as a consultant under the same name. The plain vanilla profit sharing plan was terminated at the same time the business was sold, and all participants were paid. Can the owner immediately start a SIMPLE plan?

I recently switched jobs and am not eligible for participation in my company's 401(k) until 1/1/02. I expect I'll leave my money in my former company's 401(k) until then. However, in the meantime I'm interested in making contributions to a Roth IRA. I'm married filing jointly, my spouse doesn't work and my income exceeds the $160k annual limit. Am I still able to participate in a Roth IRA, or even a conventional IRA? I really don't want to wait a year and a half to make retirement contributions.

A participant died and had a valid loan outstanding at the time of his death. Surviving spouse wants to continue to make loan repayments on loan. Loan docs. and promissory note silent on issue. Is this permissible??