Any thoughts on how to handle the undue stresses and stains of meeting the October 16th deadline??

Any thoughts on mailing the forms after October 16th.

One org seems to think we can attach a letter to the 5500s stating the profound lateness of the software as an excuse for a late filing; while another org says they spoke with DOL and there is "no way" they will issue an extension-- they would rather see incomplete forms than no forms.

Go figure.

Plan has purchased rental property in Hilton Head, SC. The property is in the segregated account of the HCE. The property is rented out at FMV. The HCE wants to use the property 2 weeks out of the year and pay fair rental value. It seems to me that this would still constitute a prohibited transaction? Any comments or thoughts? Also, how does the HCE get the rental property out of the plan later when he has retired and wants it entirely for his own personal/rental use? Regular distribution? Seems dangerous to me.

Can someone route me to a place on here on internet where I can get a sample COBRA Election Notice.

We have a Sec. 125 cafeteria plan with fewer than 100 participants. I realize that the IRS has not excluded cafeteria plans from filing the Form 5500 and must always file regardless of the number of participants. My question is are we required to complete Schedule I? If so, do we just show our plan assets as zero and the employee salary deferrals as contributions received and subsequently as benefits paid?

If a plan sponsor has processed a QNEC in 1999 in lieu of corective distributions for 1998 testing results, does that QNEC amount need to be factored into the ADP for participants if performing a prior year test in 1999? My feeling is no, that one would use raw 1998 ADP's.

An Employee is on an FMLA leave. Her 12 weeks are just about up. The Employer wants to "extend" her leave for an additional two months. The Employee will continue to be covered under the Company's medical plan. Does the Company need to provide her with a COBRA notice now when FMLA leave would normally be up or can the Company wait until the Employee will lose medical coverage under her "extended" FMLA leave? I'm guessing that the Company could wait. Any thoughts? Thanks. Ed

A shareholder is awarded her former spouse's IRA Rollover (conduit IRA) pursuant to a divorce. Can the shareholder roll this IRA over to a qualified plan maintained by her employer?

help with Schedule I to make sure I am filling out correctly

in a leveraged ESOP,

company makes $400,000 contribution

and receives $800,000 in dividends.

$100,000 is paid in loan interest.

2(a)(1) Employer contribution = 400,000 + 800,000

2 © Other Income = increase due to change in share price

2 (h) other expenses = 100,000

Total assets = (# of shares * share price) - loan balance

3(d) ER securities = value of all shares

3(f) loans (other) = loan balance

thanks for any help

I have an interest in the new Roth IRA and 401k limits and the new Roth 401k scheme which I have read about. How can I get more information about these new provisions and when will we know if the bill has been passed? ie. what is the schedule for the various hoops it has to jump through before becoming law?

We terminated a profit sharing plan in 1985 or 1986. To the best of our knowledge and recollection, all participants were paid out then. We destroyed the records relative to the terminated plan in 1996. Now a former employee has presented a formal demand for a distribution he claims never to have received. How do we prove we paid him out? How does he prove we didn't? We are within the 30-day response period and will deny that he is due any benefits under the plan. Any experience on this?

Now that the Neolatology case was decided, did the promoters of such arrangement back off? No, they put their heads together and concocted a new scheme to get around the tax laws. Why don't they read the opinion. Judge Laro, who respectfully and impartially reviewed the Prime Benefit Plan in the Booth case (although correctly finding that the Plan was experience-rated), trashed the Southern California Medical (or "SCAM") VEBA, the insurance company (Interamerican, which is now defunct), the financial planners who misrepresented the information to clients and the clients who didn't even bother to do a check with their own CPAs or attorneys before they got involved.

It is obvious that Judge Laro's primary concern (and reason for throwing out deductions without even getting to an IRC section 419 analysis) was the intent of the parties. The VEBA promoters sold the plan on the basis that they had found a tricky way to use welfare benefit plan laws to get money out of a closely-held business. There was never any welfare intent, only the greed of the owners. The Judge imputed their intent and actions to categorize the payments (in excess of the current group-term life insurance premiums) as dividends.

Did they get the message? No. The group who brought you the "speciously designed" continuous group product, now called CJA and Associates, has "found" a new "loophole." They propose to modify their "Group Plus" product to provide a paid-up term insurance policy at retirement. The new product would still be a very expensive product (which Judge Laro correctly described as a combination of two policies in one), but now there would be no conversion privilege. However, since the policy is guaranteed to stay in force for life, it could be "sold" (a viatical sale) for cash.

Now the owner of the business is being encouraged to buy very expensive "group-term life" insurance policy which can be converted to a cash lump sum at retirement. Still doesn't sound like a welfare purpose to me. Will the IRS will be able to see through this? In about 30 seconds.

I'm preparing a requalification application for a multiemployer defined benefit pension plan. My question is about Schedule Q (Nondiscrimination requirements). The plan allows contributing employers to contribute on behalf of nonbargaining unit employees pursuant to a participation agreement -- must I survey all employers with NBU employees to get the information necessary to complete Sch. Q or is there some way that other people do this?

How do you figure out the distrubtion schedule for a 403(b)invested with Fidelity in mutual funds. Fidelity doesn't seem to know

In a retirement plan, a participant must have their spouse listed as primary beneficiary unless that spouse choses to waive that right and notarizes the appropriate paperwork. That being said, lets switch to a company that allows Same Sex Domestic Partner Benefits (which I am very much for)for it's employees. The employee signs an affidavit stating that the other person is their domestic partner and so forth. I know legally that they are not considered married, however, in a sense by signing the affidavit they are saying "if we could get married, we would". The questions (which I already know the legal answer) then is could an employer force that person to name their Same Sex Domestic Partner as primary beneficiary and, on the flip side, could a surviving domestic partner use this thinking to sue for benefits that may have not been left to them. Looking more for discussion than "no, the plan can't" responses.

A DB plan's first PYE is 12/31/99. On that date, no participant has a vested benefit because vesting is based on years of participation and they're using a 2/20 vesting schedule. There are 4 participants: the owner and his wife, and his adult daughter and her husband who do not have any ownership. It seems the plan should/will be covered by the PBGC, but when should coverage begin? Should it be covered from 1999 inclusive, i.e., does the PBGC expect coverage even in the absence of vested benefits just in case the plan terminated and everyone became 100% vested in the first year?

Also, in the case of a new plan where PBGC coverage is needed from the start, do most of you file a PBGC return for two premium payment years the first time you do the tax forms?

Thanks much.

Okay, I'd like a little help with the very basics of applying the Section 415 limit to profit sharing contributions in a 401(k) plan.

A 401(k) plan provides for deferrals up to 15% and a match that can be up to 6%. One NHCE defers 15% and gets the 6% match. The plan sponsor wants to make a 10% profit sharing contribution.

1. Can the plan sponsor make the full 10% contribution and return deferrals to the NHCE (whether the NHCE wants the deferrals returned or not) to satisy 415?

2. If the plan sponsor decides early enough in the year that it will make a 10% profit sharing contribution, can it limit all NHCE deferrals during the year in anticipation of the 415 limit to something below the limit set by the plan?

3. Stupid Question: Can the plan sponsor contribute 10% to everyone but the NHCE and contribute 4% profit sharing for the NHCE?

4. In general, how is a situation like this handled (other than by telling the plan sponsor that it might be wise to redesign the plan)?

5. Is there any type of official guidance that would prevent this type of plan design?

Thanks!

A company has a joint venture subsidiary which the company owns 50.1%. Participants from the parent and sub particpant in the 401k plan. The parent controls all activity. The match is paid from earnings. The parent and joint partner do not contribute funds into the plan. The plan functions as a single employer plan. However I am not sure if it meets all the IRS regulations. According to Regs 1.414, even though the company does not own 80% (<50% o.k. for common control purposes) it appears that common control is established and it is a single employer plan. Is this correct???

If an employer match is required to be invested in a money market account rather than allocated according to the participants selected investments, is this considered non-participant directed? Participants may move the match money after fully vested. Also once employees are fully vested the match mirrors the participant's selected investments. Is the match considered participant directed or non-participant directed??? If non-particpant directed additional footnote disclosures will be required.

If you haven't registered for the meeting yet, here are even more reasons for you to plan to attend!

QUANTECH 6.0 ROUNDTABLE

Nancy Bramlett and Susan Davis of Corbel's 6.0 Update Team will join us for the Quantech 6.0 Roundtable. They'll be prepared to answer any questions you might have about the update procedure and join us in our discussion of any 6.0 issues you might have.

CORBEL TO OFFER QUANTECH CONVERSION TRAINING IN SAVANNAH ON THE DAY BEFORE OUR MEETING

Corbel will sponsor 2 separate hands-on training sessions--Converting from Quantech 4.x to 6.0 and Converting from Quantech 5.x to 6.0--in Savannah on Thursday November 9. This is not part of our user group meeting (you must register separately with Corbel), but has been scheduled for the convenience of our members. Be on the lookout for a announcement from Corbel!

ASPA C-2DC REVIEW CLASS

ASPA now offers a new designation--Qualified 401(k) Plan Administrator (QKA)--which can be earned by passing the ASPA C-1, C-2DC exams and PA1 and Daily Valuation self-study courses. Sign up now for the C-2DC review course and get started on earning your designation now. (and Please e-mail me at TPoje@LDA-FCPA.com as well)

For your convenience, a copy of the full meeting announcement and registration form is attached.

(Please note: this is not limited to Southern USer group members only)

Quantech Southern User Group

Fall Meeting

Friday November 10, 2000

Savannah, Georgia

8:30 – 9:00 am Registration

9:00 – 10:30 am Quantech 6.0 Roundtable

(moderator: Bernadette Sharma, HAW Benefit Advisors)

10:45 – 12:00 noon Using Crystal Reports with Quantech: Crystal 7, Subreports,

Parameter Fields and Other Features

(instructor: Kory Murphy, Crystal Report Designer, formerly Quantech

Report Designer with Corbel)

12:00 – 1:15 pm Lunch – sponsored by Manulife

1:15 – 4:00 pm Crystal Reports (continued)

6:00 – Dinner at Marshall House

Meeting Fee: $125 SUG members/ $155 non-members (includes meeting, lunch and dinner with group)

Location: Marshall House (912) 644-7896

123 E. Broughton Street, Savannah, Georgia 31401 www.marshallhouse.com

Please call the Marshall House directly to make your room reservations. Mention that you are attending the Quantech Southern User Group meeting. We have reserved a block of rooms at the special rates noted

below. These special rates apply to this block of rooms only, so make your reservations now.

Hotel Room Cost per night, excluding taxes: Single/Double: $109

Name(s): _____________________________________________________________________________

Company: _____________________________________________ SUG Member?: yes, dues prev. paid

yes, dues enclosed

Address: __________________________________________________________ no, send application

Phone: ___________________ Fax: ___________________ Email: ____________________________

I would like to bring ___ guest(s) to dinner [add $50 per guest to registration fee]

Please fax/email me a registration form for the one day ASPA C-2(DC) review course to be held on

Saturday, November 11 at the Marshall House Hotel. Course will be taught by Tom Poje and is

open to all ASPA students. Cost is $250 per student; last day to register is Friday October 27.

Return this form with your check payable to the “Quantech Southern User Group” to :

Maggi Heffernan phone: (770) 641-1429

Applied Financial Concepts fax: (770) 594-9631

1108 Hope Road, Atlanta, GA 30350

http://www.benefitslink.com/taxregs/1.401a...-proposed.shtml

Basically (and this is really simplified, so take a look at the actual wording):

the new regs effective 1/1/2002

minimum is lesser of 5% or 1/3 the rate of the allocation rate of the HCE (in a 401(k) plan an HCE defers 10,000 and receives 20,000 profit sharing. 20,000 / 170,000 = 11.76%, so minimum is 1/3 of that or 3.92%.

There are are other options for combo DB and DC plans, as well as what is called broadly available allocation rates.

e.g. lesser of 5% or 2 times. if one age group is 6%, then the rate for the next group is capped at the lesser of 11%(6% + 5%) or 12% (6% * 2) The age bands for the groups must be the same length.

Anyway, its only 11 pages