What is considered a 'Benefit Claims Payable' for a Daily Valued Plan?

For a daily plan, I would think that a payable is not possible.

I am hearing if the TPA receives an authorized distribution request prior to year-end and subsequently process this distribution after year-end then this qualifies as a 'Benefit Claims Payable' for 5500 purposes. On what basis is this true?

Thank you.

I have an Equitable SIMPLE IRA, held longer than two years. I now want to move the full cash value of that plan (to close it out) to a new Traditional IRA outside of Equitable.

The transfer form that Equitable sent me offers two of three possible options (the third being a Taxable Rollover Conversion, which is not applicable). In the General Instructions "Reference to "Traditional IRA" will also include SEP, SARSEP and SIMPLE IRA"

The options are:

Option 1, Direct Rollover -

In accordance with IRS Code Sections 401(a)(31), 402 and other applicable tax rules from a qualified plan or TSA into another eligible plan. Indicate type of retirement program and check:

TSA to TSA; TSA to IRA; Qualified Plan to IRA; Qualified Plan to Qualified Plan

Option 2, Direct Transfer -

TSA to TSA - Direct transfer from a TSA to another IRS Code Section 403(B) annuity contract or custodial account ("Section 403(B) arrangement") in accordance with Revenue Ruling 90-24, 1990-1 C.B. 97

Traditional IRA** to Traditional IRA - direct transfer (issuer to issuer, or issuer to custodian or trustee) of an IRA to anoyher IRA. During the first two years of participation a SIMPLE IRA cannot be transferred to an IRA.

**IRA refers to an individual retirement account and/or an individual retirement anuity under Internal Revenue Code Section 408.

Roth IRA to Roth IRA - (N/A)

NQ to NQ - (N/A)

I've gotten two different answers as to which I should select (Direct Rollover or Direct Transfer) given what my intentions are.

Can anyone either explain the difference between a rollover and a transfer, or which best suits my intentions.

Carl

A participant lived in the US, worked for a US company, participated in the company's pension plan and earned a benefit. The participant then terminated employment and moved to Australia. We got election forms from her and are now trying to have the plan make the distribution to her.

Is the plan required to withhold 20% for federal taxes (she elected not to roll to an IRA)? I know that state withholding is not required for the state in which the company is located if the participant receives the benefit in a different state. But what about different countries?

Any insight would be helpful.

I have a small company ESOP, the company by-laws do not allow stock ownership outside of the plan. When the plan distributes a terminees balance, the shares are repurchased by the active participant's cash accounts. Very straight forward.

This year three significant distributions have occured, which have used all of the cash in the plan ($449,969 down to $805). The company has been making 15% profit sharing contributions to fund for these distributions.

This year, when I repurchase the shares of the terminees receiving a distribution, there is not enough cash in the active participant's accounts, I also have to use the cash in the terminated participants accounts.

I have reviewed the past seven years' allocation reports and terminated participants have never repurchased shares before. If a terminee decides to leave their money in the plan, they share in the appreciation or deperciation of the company stock and the gain or loss in their cash account until they are paid.

The plan document does not address the repurchase of shares, as far as active / terminated employees. Do I have a problem this year? The company and their attorney (who wrote the ESOP document) do not think so.

Thank you.

We have a new client that transmitted 401(k) contributions late in 1998 and 1999. We are currently calculating a rate of return on those contributions so that they can deposit the lost earnings to the plan. They also had a 1997 discretionary profit sharing contribution that was not deposited until April 1999. If they did not take the deduction for that contribution for 1997 and were well within the 404 limitation, should they deposit "lost" earnings on the discretionary contribution? My first thought is no, since this is a discretionary contribution, unlike the failure to transmit 401(k) contributions on time.

Is there a minimum age in order to start contributing to a 401(k)?

I'm looking for information regarding the DOL's response to the timing of 401(k) deposits. I have read the "final regulation" that the DOL posted in 96 or 97, but I am wondering what other information/interpretations might be available.

DB Participant has began receiving benefits under a QJSA while married to Spouse 1. P continues to receive benefits, and divorces, and marries Spouse 2 without notifying the Plan Administrator. (Assume Spouse 1 does not have a QDRO.) P then dies while married Spouse 2. Who gets the survivor benefits?

Section 1.417(e)-1(B)(2) says that consent is required for distributions under $5,000 after the annuity starting date. Does this mean what it says, or does it only apply to distributions that have already commenced.

Is anyone filing a Schedule D this year for their GIA? Or are you going to not file the schedule this year since 1999 is a "voluntary" file year?

I never see interest rates mentioned when IRAs are discussed.

Are IRAs and Roth IRAs attached to interest rates, and if so, what is the best way to go about shopping around for the best rate?

Can this rate change through the life of the IRA?

Thanks for any input.

Zelly M.

Can someone please confirm/answer the following for me...

The maximum reimbursement that can be taken under 125 plan is $5,000. If two working spouses each have 125 plans at their respective employers, can each spouse be reimbursed for $5,000 under each separate plan (for a maximum of $10,000 as a taxfiler - 1040)? Or, is the family limited to a reimbursement of $5,000 as a whole?

Example: A married filing joint taxpayer, with both spouses working, has two children in daycare. Costs for both children is approximately $15,000 per year. The reading I have done seems to indicate that only $5,000 of the the $15,000 could be reimbursed through only one of the two 125 plans. Is this correct? Cites either way would be appreciated.

Can anyone advise of a stand alone loan package that prints schedules as well as the notes, ect.? Thanks. JimP

We have a retirement plan where a stock was purchased in the mid 80's for $25,000. This asset was gradually written off over several years. Now we find out a new company has taken over the original company and we will be getting our $25,000 investment back.

My question is - who shares in this income? Current plan participants? Or do we have to look back at the participants in the plan during the years the asset was written off? Or is this something that the plan document should address.

Thanks.

1) If an existing, calendar-year 401(k) plan distributed proper safe harbor 401(k) notices prior to May 1, 2000, and amends the plan to adopt the safe harbor method effective November 1, 2000, does an employee who terminated in September have to receive the safe harbor contribution (the employee met age and service requirements)?

2) If an existing, calendar-year profit sharing plan that did not have a CODA distributed proper safe harbor 401(k) notices prior to September 1, 2000, and amends the plan to add a CODA and adopt the safe harbor method effective October 1, 2000, does an employee who terminated in September have to receive the safe harbor contribution (the employee met age and service requirements)?

Becoming a recognized asset in Corporate America. Pre-Paid Legal Services are being put in place by some very large corporations through employee benefit eligibility. Providing legal coverage to the everyday working stiff.

There is a new trend now which is a small business legal insurance. It is not available in all states yet but any owner of a small business should look into this.

I currently use the EBIA cafeteria plan book as my reference. I can't seem to find a timetable as to when the SPD must be distributed in a "Premium Only Plan". I know that the SPD must be distributed to a FSA or DCAP particpant within 90 days, but don't find it for POP's. Also, what methods of distribution are acceptable..Must you physically give a SPD to each employee?

Plan excludes union employees. Several participants have joined the union. These participants have account balances. On question 7 of the 5500 how should these employees be classified?

I have a client whose bank failed to execute a wire transfer of employer contributions to trustee on tax filing deadline (September 15, 2000). My client submitted the request in a timely manner and followed up with phone calls to the bank. They made a good faith effort, it just didn't get done. Does anyone know whether the constructive payment or agency relationship rules apply to this situation? Is there other basis for deducting the contribution?

Thanks!

I'm looking for information regarding Defined Contribution (specifically 401k) participant education and what's required for educating and enrolling participants who speak languages other than english (let's use Spanish as an example). My understanding is that if enrollment/marketing materials (including fund fact/sizzle sheets) are translated into "Spanish", then you also need to have a Spanish prospectus available. Is this understanding correct for 401k plans? What about other DC plans, 403b? If it is correct, is there any way to educate Spanish speaking individuals and get around the prospectus issue? Because as you know most mutual fund companies do not print prospectuses in other languages (it's way too expensive). Can anyone provide the regs that deal with this (code numbers/names)? Thanks.