If the plan document accepts rollovers from other plans, is it permissable for a participant to roll from a previous 401(k) plan to a Money Purchase Plan?

if a document covering more than one employer in a group of employers is amended to include dental ins premiums, does that mean all the employers have to offer dental ins to their employees?...one of the employers that was added to th group has always offered dental ins as part of their benefits, the other employers that have been around longer have not offered it and they are afraid amending the document will cause them to have to....help!

Although this may seem like a simple question, some of at our office have been debating it for awhile:

When an auditor selects participants for purposes of testing participant data and employee contributions, from what population should the sample be drawn --

a. all employees

b. only eligible participants

c. only active participants who are contributing

If the answer is a or b, the risk is that you select too many ineligible employees or participants who are not participating -- and thus may not have sufficient coverage when testing employee contributions. If the answer is c, the risk is that you will not identify potentially eligible participants who are being excluded from the plan.

For you auditors out there, how do you determine your sample?

Some employees of Company A were participants in Plan B which offered a lower rate of return, lower deferral limit & lower employee base to the participants than Plan A.

These Employees are now being transferred to Plan A.

We need to find how these employees could have incurred the losses, the nature of these losses & to calculate and make whole the economic losses suffered by the Employees and the Plan.

We also have to analyze how the IRS or DOL would recommend these losses to be compensated.

Could Anyone please help in correcting the above operational defects ?

Employer has been approached about a program where employees can personally invest after tax dollars in mutual funds through payroll deductions. These are the same family of mutual funds offered in the employer's 401(k) Plan. It has been represented that employees who use this payroll deduction program can be "linked" with the assets in the employer's retirement plan for determining "break points" on reductions of sales charges etc.

I know something like this was allowed for IRA's and non-Title I Plans in PTE 97-11, but has anyone seen something like this "linking" to a Title I Plan? Any comments on prohibited transaction issues? [Edited by KJohnson on 09-08-2000 at 02:20 PM]

In a single employer plan whose investments are in a common collective trust with full participant direction, should Schedule H, line 4j be checked yes or no if greater than 5% transactions exist but result from participant direction. Trying to interpret special rule for participant directed transactions and whether schedule of transactions should be attached.

Is there a way to learn qualified plan testing on my own? Is there a book, or manual?

I am looking to move to another employer, I am offered a great opportunity, but I need to learn testing.

Are ADP and ACP testing the only tests required for a plan, or are there more?

Thanks for any direction.

My company just started a 401-k program and will match 1% of my salary (approx. $1,200). Am I better off contributing new money to this 401-K, or continue to fund my wife's and my Roth IRA. Thanks

A local municipality sponsors a defined benefit plan. The municipality has been advised by a partner of an international accounting firm that a third-party, i.e., an entity other than the municipality or any of its employees, may donate $1.5 million of nonvoting, S-corporation stock to the defined contribution plan. The donor is a minority shareholder in the corporation. It is expected that the shares of S-corporation stock will be redeemed within 3 years of the donation. I have two questions:

(1) Is it possible for an entity/individual other than the employer or employee to donate/contribute funds to the defined benefit plan?

(2) If such an entity/individual can make such a contribution, are there any other related issues that I need to consider.

Thank you.[Edited by SCUDDESLER on 08-31-2000 at 11:55 AM]

I am wondering if someone can give me information on an indemnity plan (helath plan). I am possibly going to switch employers, but the new company's plan is a health plan through United, it is an indemnity plan. I have researched it a bit, but the information I have been finding is vague.

I have three small children who are constantly at the doctor for ear infections, strep throat, bumped heads, etc.

The way I read indemnity plans is that unlike my usual HMO where I just pay $5 per visit, I would have to pay a % of the bill, usually 20%. In addition, I have read that I would have to pay the bill, then get reimbursed. Also some things I have read say that sometimes indemnity plans do not cover check ups. Would that include vaccinations for my kids, and well visits like prenatal care? I am confused about it all. The employer keeps pushing that it is great because I can see any doctor, but I dont particularly care about that (I have always been happy with the wide choice of doctors my HMO has offered)

I would truly appreciate an experts opinion on this indemnity plan. Is this increase in salary which I would be receiving going to be gobbled up by health care costs?

Thank you much,

Kimberly

Is the amortization method of "rule of 78" still a valid option for 401(k) loans?

Thanks

My company just started a 401-k program and will match 1% of my salary (approx. $1,200). Am I better off contributing new money to this 401-K, or continue to fund my wife's and I Roth IRA. Thanks

Does anyone know of a good reference book for cross-tested plans? More specifically I want some material where I can actually learn to do the calculations manually.

An ERISA 403(B) Plan states the Employer may make a matching contribution expressed as a % of the amount deferred.

In practice, the ER has made a flat 9% contribution if a Participant made a minimum 3% contribution.

Obviously, they are not following the terms of the plan document and that issue will have to be resolved through one of the voluntary compliance programs.

The real question is: if they amend the plan to conform to their practice will it now be in compliance? Its not really a match in the traditional sense and , except for the 3% minimum elective deferral, it would be a non elective contribution. Is this type of "match" permissible in ERISA for either a 403(B) or 401(k)?

Per instructions to Box A(2) of the 1999 Form 5500, a single employer plan is defined as a plan in which several employers contribute to a plan and funds are pooled for investment purposes, but only the funds contributed by each employer are used to pay benefits to employees of each respective employer. Then each employer is a single employer and must file a separate 5500.

If one of these employers has over 100 participants and is required to have an audit, does the entire plan get audited or just that employer's part of the plan?

My question has to do with part-time employees and health insurance offerings:

What are the specific rules under ERISA and/or IRS nondiscrimination regs, about employer offering of health insurance and/or participation in said plans, by employees that work less than full time?

**Are there any hours thresholds (eg Lt 20, 20-34, etc) that apply for part-time employee health insurance coverage?

**What are the hours thresholds, if any, and what participation rates have to be achieved?

**Where can we look for further information?

Many thanks.

Can a participant in a 401(k) potentially defer more than $10,500 or 15%? The Company provides a matching contribution of 50% of the first 3% of compensation and no profit sharing contribution. According to some discussion I have heard, the participant can actually defer the following percentage:

20% - (80% X 50% X 3%) = 18.8% of compensation

Is this correct?

Do all qualified plans need to include a Schedule T with their Form 5500 filing for the 1999 plan year or is Schedule T included just for cross-tested plans?

On Schedule I, Part II, Line 4j, if there are several funds with more than 20% of total assets, do I attach a Schedule and list each asset and amount separately or do I just put one total amount in line 4j?

A plan is amended to reflect some significant design changes. What is the deadline to file for the determination letter? What happens if that deadline is not met?