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

A lump sum total distribution from a DC Plan was made to a separated participant (with spousal consent from particpant's spouse, his second wife) in connection with the plan's termination. Nearly one year later, notice was received that the participant was, in fact, still married to his first wife at the time of the distribution, and that in cashing out his pension monies the participant may have violated a preliminary injunction issued during the pendency of his divorce action from his first wife. The participant and his first wife had been legally separated several months prior to the distribution. The plan had on file a marriage certificate for the second marriage dated prior to the distribution, and the plan has never received notice of a QDRO or DRO at any time. I am looking for guidance on the following: 1) once a participant is legally separated from a spouse, is spousal consent still required? 2) Did the plan administrator have any obligation to question the legitimacy of the 2nd marriage? 3) In the absence of a QDRO or notice of a pending QDRO did the plan administrator have any obligation to question the consent of the 2nd spouse? Any wisdom, including IRS Q&A references would be greatly appreciated. Many thanks

My question pertains to "retirement income accounts" for churches.

IRS Publication 571 says:

A TSA plan can invest funds for participating employees in:

€ Annuity contracts

€ Custodial accounts holding mutual fund shares, or

€ RETIREMENT INCOME ACCOUNTS (defined-contribution plans maintained by churches or certain church-related organizations.

What exactly is a retirement income account? What can they invest in? Is it just for churches? How is different than the 403(b)or 403(B)(7) plans?

Thank you for your time and consideration.

Hello:

I WOULD LIKE TO KNOW IF IT IS LEGALLY POSSIBLE TO PURCHASE PENSION CREDITS OUTRIGHT OR FROM ANOTHER EMPLOYEE IN A DEFINED BENEFIT RETIREMENT PLAN? I HAVE 2 YEARS AND FIVE MONTHS UNTIL I HAVE "EARNED" MY 30 YEARS OF PENSION CREDITS UNDER A 30 AND OUT PROGRAM. I WOULD LIKE TO PURCHASE TWO YEARS FROM ANOTHER EMPLOYEE WHOM HAS 33 YEARS CREDITS. CAN THIS BE DONE IF WE CAN COME TO ACCEPTABLE TERMS?

RE: Conversion/rollover from SEP to Roth:

Can a person contribute to a SEP, say $8,000, then roll this into a Roth? And then repeat this process annually? My client has low AGI and doesn't really need the tax deferral right now, but building up a tax free Roth looks almost too good to be true. Can this be done? I realize that the SEP would have to be included in income in the year of conversion, but could this be a way around the $2,000 limit on Roth contributions?

Thanks for any comments.

I recently discovered a pick-up amendment that permits employees to select among a range of 2-5% but does not state that the election is irrevocable. This amendment is several years old and I am not sure how to correct this problem.

I am interested in finding out what small companies (less than 20 employees) do about tuition reimbursement.

Does anyone know where I can get an example of how to compute the 5330 excise tax on late deposits? In particular, I am seeking answers to the following questions:

1. How to compute the 1999 excise tax for a deposit of salary deferrals relating to a 12/1/99 payroll that wasn't remitted until February 15, 2000. Assmume the amount is $1,000 and a reasonable interest rate on this transaction is 10% per annum. It seems to me that the excise tax for the 1999 year would be calculated by applying the 15% excise tax percentage times the interest on the deposits for the period 12/4/99 throught 12/31/99. (I assumed a 3 day turnaround for the date that the deposits should have been remitted in this example). I come up with an excise tax of about $7.40. Is this correct?

2. Is there a need to file another 5330 form for 2000 due to the fact that the prohibited transaction wasn't fully corrected by 1/1/00? How do I calculate the excise tax for 2000? Continuing with the example at hand, would the 2000 excise tax be another $12.60 calculated by taking 10%/365 multiplied by 46 days (1/1/00 to 2/15/00) multiplied by the $1,000 of salary deferrals?

3. Finally, when filing the 2000 5330 form (I am assuming that needs to be done), would the excise tax for 2000 be the $12.60 from 2000 plus another $7.40 from the 1999 prohibited transaction that wasn't corrected until 2000?

Thanks a ton to anyone who can steer me in the right direction!

Phil

5330 Excise tax calculation question - Assume a plan sponsor fails to remit the salary deferrals for the 12/15/99 payroll until 1/15/00. Assume

Hi Everyone,

Need some help on this actual circumstance.

A man elects prior to his first RMD to jointly recalculate both lives with his wife named as beneficiary on his IRA. Several years after payments are underway he changes his beneficiary to his son solely, even though his wife is still living. She is continued to be used in the RMD calcs as is required because she is older than the new beneficiary.

Eventually he dies with his son still sole IRA beneficiary and his wife (who was used in the RMD calculations) still alive.

For the remainder payments to the son beneficiary, are the

assumptions based on options available to his still living wife who has been used in the RMD calcs but not named as IRA beneficiary or based on options available using his son who is now actually the beneificary?

What changes occur (if any) if the wife should die during the remainder payments to the son?

Can RMD reform come soon enough?

But then it keeps me in business!

Thanks for any input.

David

A client has made a contribution in excess of the deductible limit in order to make the plan sufficient for plan termination. The plan is covered by the PBGC and has less than 100 participants. I understand that the excess is deductible over 10 years. My question is whether or not the excess is subject to the 10% penalty?

A participant dies and his beneficiary (55 years ol) takes a direct rollover of the account balance into her own IRA. She wants to be able to take distributions from the IRA each year (about $3600 or so for living expenses) without incurring the 72(t) excise tax. Any suggestions on how this can be done? The payout over life expectancy option provided for in 72(t) is not going to work because the distribution amount is not going to be high enough.

Is there something about a 5 year payout that approximates or exceeds a life only annuity payment that would avoid the 10% excise tax?

how do you get your prescription card reinstated thru cobra my son was laid off on 8/30'2000 insurance terminated on 9/14/2000 his preiumn has been mailed for his cobra when he went to pick up his medicine today his card was no longer valid and he was asked for new card which he doesn't have.........thanks for any help we are new at this.

A plan is subject to the J & S rules. The same plan has a loan provision. Is a waiver of the QJSA required before a loan may be issued? The regs indicate that spousal consent is required, but only state that it: 1)must be in writing, 2)acknowledge the effect of the loan and 3)must be witnessed by a plan rep or notary. (Treas. Reg. 1.401(a)-20, Q-24) I have been told that the waiver must be completed due to the possiblity of a later deemed distribution or offset. I think I disagree. Any opinions?

Is there any reason that, as long as the plan document does not contain language preventing it, a 401(k) plan participant could not defer any $ amount up to the 402(g) limit from a single paycheck (presuming the paycheck is large enough)? So it would be theoretically possible for a 401(k) plan to allow a participant to defer $10,500 - or whatever the 402(g) limit is for the year - out of the participant's first paycheck for the year?

Currently my wife has a TSA (tax shelter annuity). We are interested in getting an Roth IRA. Can I transfer the money in her TSA to the Roth IRA without being taxed. Is there anything else we need to know about the possible transfer? Thanks

Also, Can I invest in mutual fund with a Roth IRA?

The thread originally begun by Garnett in January has been closed. Garnett- were you able to find out any additional information about these arrangements? I've seen similar marketing materials, and they do imply a double dipping if the intent is to reimburse the employee for the insurance premiums they've paid on a pre-tax basis. Are they instead suggesting the employer reimburse for other medical expenses?

thanks.

rob

My husband works for a large company who has a 401(k) plan for the unionized employees. I assume the company has more than 1 of these plans, but anyway, what the company has JUST done (and yes they are on a calendar year) is to send some employees letters saying that they were over $80,000 for W-2 wages last year (hence HCE) and were chosen at random (by lottery) to now lose their ability to defer anymore income this year (and thus receive a match).

These employees are naturally upset. The company doesn't want to run amok of the ADP or ACP tests so I understand why they have done this. (These employees reached the $80K limit by working mandatory and voluntary OT in 1999.)

Is this random selection of HCE's to give up deferring common practice? This is news to me as we don't represent any companies who have so many employees that they wouldnt just make ALL HCE's stop for the year.

What are other ways or more common ways of addressing this kind of problem?

TIA

SPrince

A calendar year plan sponsor starts a new safe harbor 401(k)plan on 10/01/00, having given timely notice, with an effective date of 01/01/00 (mostly for p/s purposes). 100% of deferrals up to 4% of comp is the safe harbor contribution. Deferrals begin 10/01. Employees can do normal deferrals and also elect to defer up to 100% of bonuses received in December. The employer bonuses everyone at least 4% of annual comp, which they defer. Employer deposits the safe harbor match of 4% of comp. Does this arrangement qualify as a safe harbor plan?

I wish to use the APRSC program to correct a plan's operational failures and would like to use one of the correction measures listed under Appendix B (which I understand to be appropriate for both APRSC and VCR). My confusion comes from the fact that the correction measures listed in Appendix B use the term "SVP correction method" and this term is associated with the VCR program, not APRSC. Thus, may I use a correction measure listed under Appendix B even though the plan will use the APRSC program?