A c corp owned primariliy by an ESOP wishes to convert to an S corp. The built-in gains tax triggered by the conversion, however, has proven to be a significant obstacle. Any ideas on eliminating or mitigating its impact would be appreciated.

I am looking for a dual deductible fully insured health product. Anyone have any suggestions?

I have a client who is interested in enacting the Section 132 benefit program on a pre-tax basis- both transit and parking.

Can someone who handles this internally e-mail me their phone number so I can be educated as to how this works procedurally within the organization.

Thank you.

I have a PS plan and a MP plan both merging into a DB plan. Is a 5310-A required to be filed??? Thanks.

My Question:

An employer offers only fully-insured medical coverage in its cafeteria plan. Does the medical plan have to prepare a Summary Plan Description and issue it to employees ?

Before you think about this question .... I found conflicting answers in the Benefits Link Q & A Section as follows:

Q&A Section: CAFETERIA PLANS (question # 94 of 12/28/98) answered by R.C. Morris Incorporated. He says NO !

Q&A Section: ERISA (question # 60 of 07/21/99) answered by Royce Charney ...who is some kind of world famous TPA guru. He says YES !

(Does anyone know which of these professionals is correct or am I simply not understanding something ?)

I'm somewhat confused about the premium for a former spouse of a former employee. The spouse elected COBRA when he and his wife (the employee) got divorced. At the time, the wife was still enrolled as an active employee. The insurance company continued to bill us for the two of them as Employee plus Spouse. (FYI - plan bundles rates for active employees, i.e. Emplpoyee only = $170.40, Employee & Spouse = $378.90). Recently, however, the employee terminated and did not elect COBRA for herself. The plan is now charging us individually for the husband at the $208.50. My question is, since he is a QB and no-longer "bundled" with the employee, shouldn't his rate be the same as a similarly situated "unbundled" QB ($170.40)?

I recently terminated employment with Employer A and have informed that I can continue COBRA coverage for an 18 month period. I recently accepted employment with Employer B and have now discovered that my spouse (who lives out of state) is not covered under Employer B's HMO policy (since she lives out of state). Can I choose to decline coverage under Employer B's policy, and elect COBRA coverage from Employer A?

Has anyone seen the official annual limitations for 2001? If so, please advise where I can find them. Thanks.

I am interested in purchasing a reference guide on the subject of international benefits as we are expanding globally. We had located one previously in HR Exec magazine, I recall, requested the report (which included a CD I believe) and did not receive it. We have been unable to find that ad again. Any advice on an extensive reference for international benefits?

Does anyone have a "maybe" 401(k) safe harbor notice that they would be willing to share with me. I have sample notice we use when the employer does not want to utilize the "maybe" option of Notice 2000-3.

I'm setting up an ESOP for a company. The client wants to know if the participant can "put" the shares to the ESOP in addition to the employer as required by 409(h). I did some research and the legislative history and a few secondary sources suggest that this is permissible. I'm uncomfortable with the idea. Any thoughts? Thank you.

How are GATT interest rates determined? Is there a website that lists past and current GATT rates?

If a governmental DB plan transfers excess assets to a 401(h) account, must IRC Section 503(B) be examined? IRC Section 420 exempts the transaction from IRC Sections 4980 and 4975, which already had an exemption for governmental plans, but does not appear to exempt the transaction from IRC Section 503(B). Assume that state statutory and constitutional law permits the transfer. If IRC Section 503(B) is potentially applicable, would it also apply if instead of a 420 transfer, a targeted distribution is made from the DB plan only to retirees who had health insurance costs? Would it matter if part of the retiree health insurance costs were normally an obligation of the employer?

My client adopted a mass-submitter standardized prototype profit sharing plan in Jan 1999. Now they want to terminate that plan and roll the assets over into a SIMPLE IRA (there are only the owner and 3 employees in the plan.)

We would recommend filing for a determination letter on the termination, but there are some complicating factors. First, the company that sold them the plan says that it was a new plan, and they filed for an initial determination letter, but haven't received a response yet. After they receive a response they will amend the plan for GUST.

Do we have to wait until the plan is amended and brought into compliance before filing for the termination? Do we have any other options? Thanks for any help you can give.

Two questions regarding adjustment of IRC 415(b)limits for age before NRA:

If someone retires at age 55, does the limit remain at $80,008 (with indexing for inflation) throughout retirement, or does the limit increase the next year (when the retiree is 56) to the $ amount for age 56, and each year thereafter, so that when the retiree is 62 the limit is $135,000?

What are the standards for determining the $ amount of the limit for ages before 55? Is a governmental DB plan free to use whatever standards its actuary provides?

[Note: I read Joe Hoho's reply to a previous question on 415(B) limits, but I did not understand his reference to GAM83, GATT and 5% interest rate.]

JSW

two people own a c-corp, 50/50. The are also the two directors of a non-profit orgainization.

How do control group rules work. does the director status in the non-profit equate to voting power and create a control group?

thanks!

With the increase of the 415 dollar limit to $35,000 for 2001 and the compensation limit remaining at $170,000, it appears that the most a self-employed participant can have allocated to him in a DC plan is $34,000.

If anyone knows a way to get more than $34,000 allocated to a self-employed participant in a DC plan, I would like to know about it.

I am taking over a new client. In the ESOP plan document, the Employer is the Administrator but has the ability to designate someone else. The employer designated one of its employees as the "Plan Administrator". I'm trying to figure out the reason for this. Is this a good idea? Doesn't such a move expose the employee to unnecessary personal liability exposure?

I would love to hear some opinions of what's been getting hyped lately as the 401(k) plan of the future.

Briefly, a participant could open up a 401(k) account at virtually any brokerage firm and have the whole world of investments to choose from - like an IRA, for example. Then (I believe) the broker would generate a "5500k" for the individual like a 1099 at the end of the year. I presume company matches would be directed to the respective broker /dealer.

What percentage of the participant population do you think will benefit/suffer from having his or her investment horizons opened up to unlimited choices?

Does the Super Top Heavy minimum designation change from 3% to 4% when dealing exclusively with a defined contribution plan?