We're considering start-up of a small engineering consultancy and specialty construction firm. Working on proforma financials, and would like to get an idea on costs per employee for an outsourced benefits package (medical, dental, life, 401k).

We're looking at 15 full time employees at the end of yr 1, and 50 by the end of yr 3.

What's a ballpark budgetary figure per employee on an annual basis?

What's a ballpark for worker's comp insurance?

Any help would be greatly appreciated.

I am curious about distributions to Alternate Payees under a QDRO. Do most 401(k) Plans allow Alternate Payees to withdraw money they have been assigned under a QDRO even if no "distributable event" has occurred? It has been our practice to NOT allow an Alternate Payee to withdraw their money until the participant they were assigned money from retires, dies, separates from service, etc. However, we hear that others routinely allow Alternate Payees to withdraw their money. If this is true, what is the regulatory basis for this? Does the Plan document have to be amended to specifically allow for this? Thank you.

Thanks in advance

hi all,

I am a graduate student in my final year of school looking to place the max amount possible in a ROTH IRA.

What I do not know are the criteria I should consider when selecting a "broker/bank" to help me set the IRA up. Are there differing service, setup, or account fees I need to consider, and what "broker/banks" generally offer the most competitive rates? Is there a website or information source you might have found helpful?

Thank you for any assistance you can offer and have a great day.

If the 3% non-elective 401(k) safe harbor contribution is made to a money purchase plan that has no other contribution; what is the 404 deduction limit?

I think it would be 18% of eligible comp (15% for the ps plan plus 3% for the money purchase plan).

Someone else here thinks it would be 25%.

My question is related to Workers'Comp (WC), short term disability (STD),long term disability (LTD) and social security (SS). My salary changed while on STD meaning I got a raise, but insurance carrier used old salary as basis for LTD. What case/s would be prove that if my salary changed the from one disability policy to next basis of benefit is on the higher salary? I have tried for months with no avail to get the insurance carrier to make the correction, my employer has sent a letter stating what my correct salary was. To make matters worse the insurance carrier is now offsetting for SS overpayment, which is the correct step but amount is wrong, using PD which in California is not an income benefit and month of SS which I was not receiving any payment for. Can anyone give me some cases which I might prove that this is wrong? The policy basically states what my salary was. Of course my real question is who the best litigator in the Sacramento area who is familiar with this area of the law and federal ERISA litigation experience. If you have nominations, please let me know, because I have not been able to even find any prospects. Don't worry nomination does not imply any liability on your part if it does not work out.

A company seeking QSLOB status has 3 divisions with the following distribution of HCE's and NHCE's:

Division 1&2 has 32 HCE's and 40 NHCE's.

Dviision 3 has 14 HCE's and 714 NHCE's.

Divisions 1, 2, and 3 all have completely separate workforces, separate management, and separate financial reporting. There is only one employee allocable to more than 1 division, and that is the president of the company. The company is not publicly-traded, and there are no union employees.

The company designs, manufactures, and distributes machines for the gaming industry. Divisions 1&2 are located in Silicon Valley, CA, and employ the college-educated designers and engineers. Division 3 is in the midwest and employs lower-level manufacturing personnel. Currently, there is a single 401(k) plan, which has a matching formula, applicable to all 3 divisions. Divisions 1&2 would like to become a QSLOB, because they want to liberalize eligibility for the plan, and perhaps improve the vesting and matching formulas. The plan currently regularly fails ADP/ACP tests, and so the refunds adversely affect division 1&2 personnel more than division 3 personnel. It isn't practical to consider either 401(k) safe harbors or QNECs, because of the costs involved.

ANALYSIS

I believe the employer can successfully demonstrate that it maintains separate lines of business. However, I have determined that the lines of business do not satisfy the statutory safe harbor or the normal administrative safe harbors (for qualification). It therefore appears that the only remaining hope is to request and receive an individual determination from the IRS.

QUESTION

Has anyone had favorable experience with the Service in granting QSLOB status to a group such as this? If so, would the employer have to submit such an individual request on an annual basis? What arguments might be persuasive to the Service?

When must a "traditional" 401(k) plan, with a 10/01-09/30 plan year, have to have been amended to convert to a "safe-harbor" 401(k) for its plan year ending 09/30/00?

Thanks to all respondents!

Can a 501©(3) adopt a 401(k) Plan?

Is anyone moving forward with amending plans to eliminate optional forms of distributions in accordance with the newly-finalized regulations without waiting for approved language (LRMS) from the IRS? It seems like a fairly easy change to do without approved language (ie, simply eliminate the option with the effective date stated in the regs - earlier of 90 days after notice or first day of second plan year after amendment is adopted). I have clients that have J&S annuities in 401(k) and profit sharing plans that are very eager to get rid of them immediately. Obviously, waiting on approved language is the safetst approach, but I do not feel terribly uncomfortable with amending without the approved language.

Another issue: Will the IRS issue a DL on a plan that has been amended to eliminate an optional form of distribution in accordance with the new regulations now, or will it only issue a letter once LRMs are out? If no DLs will be issued yet, this would be a reason to wait on the approved language.

Last, when are LRMs expected to be issued?

Employers business went bankrupt. Closed the doors and terminated the plan. Trustee (ttee is ER)wants to pay out all participants but is unable to locate 3 of them. What is he soppose to do? Note: the biggest balance is just over $200.00 of these lost participants.

Any guidance/comments would be appreciated.

We have one "lost participant" with over $5k in a terminated plan subject to QJSA provisions. Does anyone know of an insurance company that will sell a deferred annuity for this lost participant. The insurance companies contacted so far require the participant's signature to set up the annuity. (Obviously if we could find the person we would not be in this situation to begin with).

Each employer sponsored health plan that issues an SPD becomes a separate election for COBRA purposes. If major medical and dental are under one SPD and the hospital is under another SPD and the vision plan under another SPD - then at the qualifying event the employee/beneficiary is allowed to pick and choose what benefits he wants to elect as long as he was enrolled in that plan the day before the Q event? I need clarification on this. Is there a penalty for employers that don't allow the pick & choose elctions?

I recently heard of a concept/product/feature called Multi Generational IRA. Supposedly, it allows an MRD to be based on the life expectencies of 2 persons, eg: a father and son. Anyone ever hear of something like this?

Thanks,

Is anyone adding a surcharge to their bills this year as a result of the extra time spent completing the new 5500's?

I would like to convert my 401k (50k value) to a Roth IRA via Trad IRA route. Some questions:

Can my wife and I still contribute 2k each to the Roth this year or will the conversion stop this?

Can I split the conversion taxes over 4 years still or did they do away with that rule?

Are the taxes withheld at conversion or do I handle it with my normal taxes in April?

At what rate is the converted funds taxed at?

Now that 5500 season is in full swing, here's a question about a multiple employer plan filing for 1999. The IRS instructions clearly state on page 10, under Box A(3) that "Participating Employers do not file individually for these plans." You are required to file a separate Schedule T for each participating employer according to the instructions. My question is, what happens to all of the participating employers that filed separate 5500's for 1998? Will the IRS or DOL come looking for a 5500 for a plan of a participating employer in a multiple employer plan that no longer needs to file under the new rules?

If an employer-contributory 403(B) arrangement (hence subject to ERISA) does not update its plan document for SBJPA et seq. (presume underlying annuity contracts/custodial accounts ARE legally up to date) but is operated in conformance with SBJPA et seq. changes (e.g., multiple salary deferrals OK), are the Plan fiduciaries in breach of ERISA for failing to operate the Plan in accordance with its written terms??

A new teacher two years ago, I was not made aware of the availability of 403(B) plans. Therefore, although eligible, to date no deferrals for 403(B) have been made. Over the summer, I changed school systems (from one county to a neighboring county in Virginia). I am now at the point of asking a vendor to calculate the MEA. Are these calculations made on a calendar-year basis? If so, may I ask (is there a basis) to have the income earned in my previous public school earlier this calendar year included in the calculation?

My former employers pension plan year ends on June 30th. Before giving my notice of resignation last May, I inquired about eligibility requirements for the plan year to make sure I qualified. Employer has never given any employee the Summary Plan Description. Seems I met all those requirements according to the company that handles the pension plan annual reports. Upon receiving the distribution papers in June to sign, I immediately noticed the final figure to be that of June, 1999. This company did not tell me one had to be actively employed on the last day of the plan year. My question is: Am I not entitled to at least earnings on the balance from July, 1, 1999 to the date of employment termination or date of distribution? Is this company liable for not informing me at the time that one important fact of active employment on last day? Is my former employer liable for never giving any employee anything in writing about the plan? I just need advice, since after nearly 3 months I still have not received any reponse or the distribution.

Thanks.