When calculating the 404(a)(7) limitation (25% limit), are 410(k) employee deferrals considered compensation? In other words, is gross comp reduced by deferrals before applying the 25%? If so, is comp reduced by deferrals before or after applying the $170,000 comp limit?

Also, regarding the 15% max ER PS contribution, is comp reduced by deferrals before or after applyng the $170,000 limit?

With regard to an employer that is utilizing a PEO for employee benefits, should that employer decide to leave the PEO and take the benefits in house, how does that affect the PEO's 401(k) plan? Are the employers employees considered having "Terminated Service" in which case they could remove money from the PEO as a rollover or have the employees not terminated service in which case the employer could spin off a new plan from the PEO?

I am looking for some guidance on the minimum distribution requirements for qualified retirement plans. If a plan owner dies prior to required beginning date and before distribution of the plan assets, and the beneficiary elects to take the distribution over a 5 year period, is there a statute of limitations for that decision? Is that decision irrevocable, and does it pass on to subsequent beneficiaries?

An Auditor friend of mine is working on a 401(k) Plan Audit. This is a non-standardized Plan with 1000 hour requirement for match contribution. The sponsors were told by the TPA/Account manager/Whatever that in order for a person to get a match, they must work 1000 hours to be a participant and 1000 more for the match. (A total of 2000 hours for the match contribution).

Is there a limit as to the maximum hours of service a Plan can impose to receive a match contribution? I have never seen more than 1000 hours and never questioned it. Please respond with a code section or site that says the limit. (also the TPA said they passed 410(B) with that 2000 hour requirement. (right))

Probably a stupid question. Thanks for your help.

I would be interested in any opinions on the following problem:

A self-funded health plan decides to change the cap on inpatient substance abuse benefits halfway through the plan year. They start with a $10,000 Calendar Year benefit, then switch to 15 days a year.

If you have a member incurring these types of charges in both the first and second half of the year, how do you apply the maximums? I've seen this done a number of ways, but know of no legal guideline.

Hi,

I have a question about my 401K rollover.

I quit my last job about 4 months ago and

I had to take my 401K out.. so what I did was

I put it in my existing Roth IRA account.

Is that legal?? I just read somewhere

that a 401K rollover can only be put in a traditional

IRA and then convert to a Roth IRA.

So for my case, what can I do to take my

401K money out of my Roth IRA and put it

in a Traditional IRA instead??

thanks a lot.

An employer automatically enrolls it employees in its self-funded group health plan. The plan is a bundled plan that offers health, dental, and vision coverage, and employees are not charged a premium. Now that employers no longer are required to offer core coverage only, can the employer charge one premium for COBRA coverage. Would the answer change if the plan was not bundled (i.e., separate plan documents, etc.)? My thought is that one premium could be charged, since employees and actives are treated the same (i.e., they have automatic coverage in all of the plans).

Any thoughts are appreciated (as there is no clear DOL/IRS guidance on this issue)?

If a provider is ready to hold on to the investments as well as do the administration work but are not ready to be trustees of the plan are they considered to be a bundled service provider or are they classified as a TPA.

I am trying to find out whether fiduciary responsibilities between Bundled Administration and TPA service differ?

I understand the type of service each one performs but what distinguishes a Bundled Service Provider from a TPA?

If a provider is ready to hold on to the investments as well as do the administration work but are not ready to be trustees of the plan are they considered to be a bundled service provider or are they classified as a TPA.

I am trying to find out whether fiduciary responsibilities between Bundled Administration and TPA service differ?

I understand the type of service each one performs but what distinguishes a Bundled Service Provider from a TPA.

Is it possible (allowable) to change the 12 month determination period for COBRA rates? We want to delink the COBRA determ period from the annual renewal of self-funded plan. Currently, plan administration renewal date is the same as the COBRA renewal date. This is causing way too much confusion with setting the premium for the 12 month period. Our thought is to extend the current 12 month rate to 14 months initially then renew again at 12 months. This most likely will be beneficial to the QB as rates inevitably increase. Could anyone tell me what reg. would allow or disallow this type of change in dates.

How do plans handle tips, i.e., amounts received for personal service at restaurants, beauty shops, gymns, barber shops, etc. for pensionable income purposes? My impression is that they are includable in 415 income and therefore cannot be left out of pensionable income.

Client has a 403(B) Plan. I need to know whather this issue can be corrected via TVC program. Plan document provides that the employer shall make non-elective contributions for each participant of 11% of compensation. In reality, the employees were given a choice of taking 11% in cash or receving contribution. most employees took cash. What, if any, is the problem with this? what is correction method?

Does anyone know if the SAR distribution date has also automatically been extened 2.5 months to December 15, 2000 for a calendar year plan? I know that if I had filed for an extension I would also be granted an extension on the SAR, but since the IRS automatically extended the 5500 due date to 10/15 for calendar year plans, do I also have an extension for the SAR.

I assume that I do, but I couldn't find anything official.

What is the best way of correcting the following?

Due to a payroll service not having the definition of compensation set properly, 401(k) plan deferral amounts and associated match are incorrect (too small)over a few months. Some of the participants that had incorrect amounts withheld have terminated, others are still active. Would APRSC be acceptable, or is VCR better in this case? Can the active participants be "corrected" by withholding additional amounts out of future compensation as a "catch-up." Does the plan sponsor need to correct this by making QNECS equal to all shorted 401(k) and match amounts plus earnings? What's the best way to get this corrected?

The plan document provides that forfeitures (of ER Matching contributions) will reduce ER contributions. The ER, however, has not done this and forfeitures have built to a considerable sum, $50,000. The ER now wants to use these forfeitures to pay plan expenses incurred when transferring assets from one investment company to another and amending the plan document (not SBJPA amendments).

This doesn't sit right with me, but I'm not finding any specific prohibition. The plan document provides that administration expenses may be paid from the trust. My concern is also that the ER has not properly handled the forfeitures in prior years.

Any suggestions?

I know that premiums paid for a whole life policy within a DC plan cannot exceed 50% of the contributions to the participant. Is this rule applied on a cumulative basis (contributions vs. premiums since plans inception) or a yearly basis. My client generally makes the maximum contribution, but this year only paid premiums.

We have some clients who are University Professors and participate in a

403(b) plan. Several of them wish to purchase life insurance with 403(b)

funds inside the plan. They have been told this is not possible. However,

by hearsay, they have been told that with a schedule "c" they can establish

a qualified plan and purchase life insurance inside that plan. Further it

is their understanding that funds can be transferred from one qualified plan

to another without penalty or taxes due, and within the schedule "c"

qualified plan they can purchase life insurance. Is this true. Can you be

of any help or point me in a productive direction.

John Wekselblatt

"wex"

1095 Market St., # 701

San Francisco, CA 94103

http://www.zpub.com/wex/

I'm currently work for a technology company and I have been delegated the task of researching the career progression of a "junior systems analyst". I am trying to research the promotional structure (aside from salary). For example, what are they promoted to from a "junior systems analyst"? How long should they be a "jsa" before they get promoted? I have tried extensively to find information on this topic but nothing seems to be out there. Any information or suggestions would be greatly appreciated.

I thought I saw somewhere (now I can't find it) that the original,not a photocopy, of the machine print version of F5500 should be submitted to DOL. Does anyone know if this is correct?

I am separating from service from a Massachusetts college which has a 457 Plan. I've heard that there is a bill in Congress to make 457 plans portable to 403b Plans. Does anyone know if this is going to pass?