Does anyone know if the 411 post normal ret age accruals apply to State Plans? i.e. for a teachers plan? I thought there may be something in ADEA that might require a gov plan to apply 411 post NRA accruals.

This has to do w/ receiving the greater of AB or age 65 act increased AB.

Gary

A Plan has a formula equal to:

1.5% * svc (limited to 40 years) * avg pay

less

66 2/3% of Soc Sec Ben.

The offset in its current version does not seem to be a fixed formula or a unit credit formula. It would appear that the 66 2/3% would either have to be prorated for service under 40 or would have to accrue at say 1 2/3% per year for a max of 40 years/ What do you think? Is there an omission in the formula? Is it illegal since it doesn't explicitly include one of the above?

Has anyone got current insight into the issue of whether Affiliated Service Group rules apply to a corporate director who owns less than 50% of the underlying corporation. The issue is whether that Director can establish a SIMPLE retirement plan using his Directors Fees (in addition to his coverage under the primary corporation's conventional qualified plan). I am still not sure whether a Directorship would be considered a 'Service Organization' under 414(m)(5).

Can an employee continue to defer while on short term disability?

We received a response to an IRS General Information Letter Request confirming that the rule of parity applies to employees and not just participants. This has confused me for a long time and we reached a point where we had to know.

General information letters are free and may be requested at the following address:

Employee Plans Technical Branches, IRS, 1111 Constitution Avenue, N.W., Attn: T;EP; Room 6052, Washington, DC 20224. Turnaround time is 30-60 days.

We sent in a detailed request with examples, but if all you want to know is whether or not the rule of parity applies to employees or participants, just send in that simple question. The information letter does not apply to a specific set of facts but expands on information already out there that may be confusing.

Hope this is helpful to some of my fellow strugglers.

Are you aware of any IRS plans to begin auditing 457(f)plans in school districts? Any comments on pairing a 457(f) and 403(B) in a district as a method of sheltering retirement incentive pay?

Has legislation been passed yet that will allow me to roll over the funds in my 457 account to an IRA, upon retirement?

Currently, what are the timing requirements for filing a form 5300 and form 5309? Assuming you want to obtain a determination, how long do you have? Is it 90 days after the START of the year in which the plan is adotpted? Is it 90 days after EXECUTION of the documents? Is it 90 days after the END of the year in which it is adopted? Or, is the time period for obtaining a Deterination suspended temporarilly so that you can continue waiting? Please give a citation to support your answer.

In Feb 1999 I rolled the company contribution portion of my 401k saving plan into a Merrill Lynch IRRA distributing the money across several mutual funds. This past summer I sold the mutuals and the money is currently in an ML money market. Can I roll the money back into my 401k savings plan? I realize I can not put it back into company stock which was the companys contribution from where it came from, but I want to roll it back into one of the 401k funds where my contributions currently reside. I have not made any additional contributions to the ML account and have only made a small return on it. The 401K plan administrator says yes but ML says no. Who is right?

I have read Roth rules and regs and would like confirmation on a few points:

1.) If you withdraw conversion money after it is in a Roth for 5 years and you are not 59 1/2 it seems to me that the 10% penalty still applies, is that so? (only deductible money was converted).

2.) Earnings on contributions or conversions would be subject to 10% until an exception was to apply, 59 1/2 etc.

My filing status is married filing jointly. If I want to

convert my traditional IRA to Roth, do I only consider my IRA funds, or do I need to include my spouse's too? Also, do

I need to include 401(k) funds?

Anyone have experience using variable universal life in a bank's deferred comp plan? I think this is a fairly new development in regulatory approval. How is plan structured for matching of asset and liability, etc.?

Under a QDRO a DB pensioner is required to share half of his pension with his former wife. Must he do this under a joint annuitant option where the cost is about 7%? Or can he request the Trustees to simply use the Single life option and then divide by 2? Each will, therefore, receive their own single life annuity without incurring the 7% cost.

How can an (otherwise exempt) employee voluntarily choose to have his wages become subject to the Medicare tax?

A friend inherited an IRA from his father (died prior to his required beginning date) and upon the advice of his broker, he distributed out the entire IRA in August 2000. Now that he has learned about the tremendous tax deferral benefits he could have enjoyed over his 39.6 year life expectancy, he wants to put the money back into the decedent IRA. Due to the large amount of money involved, the IRA provider has agreed to take the money back into the account and have the beneficiary complete new death claim paperwork. I believe the company will still send out a 1099r in January and will also send another form (5498?) showing the money going back into the IRA.

I do not know of any instance where this type of transaction is allowed by the IRS. (No non-spousal rollovers) Supposedly there are Private Letter Rulings (2000-28040 & 28041 of 4/18/2000) that address this exact example but I have been unable to locate a source to view them.

Is school district's 457 plan for administrators (the teachers are part of a state retirement plan)required to file an annual 5500?

Can anyone site any laws that require a standard employer with a standard HMO plan to offer an annual open enrollment period? Furthurmore - is there such a requirement(besides section 125 plans)?

loaded svc pack 2 at 6.0

haven't had too much time to look at, but here are some comments:

had one error message while running the svc pack - nothing to indicate it was serious. In fact, the rest of the svc pack appeared to load fine. fortunately I contacted support and asked about it. turned out to be a problem. had excellent help, (no, it was super help) the person was able to walk an idiot like myself through the process of restoring the backup, deleting whatever bad file was sitting there, etc. support person even called back and said there should have been a better warning message attached to the error I received.

Make sure you have a recent backup - I had last night's and I ran the svc pack before anyone else was on QTECH, so there are two great words of advice!

anyway, there is a 415 report - but my note of caution would be it is hardcoded at 30,000 annual addition. since I expect the limit to be 35,000 next year, you may have to edit the report for future use. I already have a version that looks for 415 limit and does the 15% plan limit as well, someday I will make it available on our website.

Looked a little bit at the ADP/ACP crystal report. I am spoiled and prefer mine sorted by name (sorting by comp made sense when the def of HCE was the top 1/3 paid ees, but now I prefer alphabetical)and landscaped rather than portrait. I added an 'excluded from acp test' note to print next to people who are excluded. hopefully I can add the 'shift' logic I have been using on my custom reports. That really shouldn't be hard, it is just finding the time to do it.

sorry, thats about all I have looked at for now.

May a foreign country, or agency thereof, establish a 401(k) plan for USCs employed by it in the US?

I can find nothing which limits an adopting employer to US entities. Obviously, there is no employer income tax deduction involved but simply to offer the advantages of a 401(k) to USCs.

May a foreign country, or agency thereof, establish a 401(k) plan for USCs employed by it in the US?

I can find nothing which limits an adopting employer to US entities. Obviously, there is no employer income tax deduction involved but simply to offer the advantages of a 401(k) to USCs.