Regarding the Schedule P's that are often receive directly from the trustee:

If a Schedule P was obviously created by changing the 1998 dates on the form to 1999, can this Schedule P be used?

If a Schedule P has the same layout as the 1998 form but has the 1999 dates printed correctly -- perhaps was produced on the trustee's own system or something -- can this Schedule P be filed? Does it make any difference if the Schedule P was created in March 2000 (before the final forms were issued?)?

Can 5500's be filed with these forms or will the filing be rejected?

Is the best course of action to print out a completed 1999 Schedule P and send that to the trustee to sign?

Has anyone else run into this?

Can a participant take the following loan over more than 5 years as a residential loan?

The participant had a residential loan in a prior plan of an unrelated employer. The participant borrowed money from a bank to repay the prior plan loan so that he could roll the money into the plan of his current employer. The participant would now like to take a loan from the plan of his current employer in order to repay the bank, and would like to classify the loan as a residential loan. Can he take the loan from the plan of his current employer as a residential loan if he used it to repay the bank?

I have a client that wants to have its SPD translated into Spanish. Does anyone have a company that they could recommend for this purpose? Ideally, the translator would be located in southern California.

P.S. I checked the prior message threads on this topic, and did not find any useful leads.

A few Qualified Replacement Plan questions:

1) It is clear that the initial transfer of the DB surplus to a DC plan that is a Qualified Replacement Plan is not deductible. If the surplus is allocated ratably over 7 years as matching and/or profit sharing contributions, it would seem to me that it would not become deductible in the year allocated, correct?

2) Since the amount must be allocated ratably over 7 years, am I correct that the amount to allocate in the 2nd year is:

(the initial amount plus all earnings minus the amount allocated in the first year) divided by 6 (absent any 415 limitations or other considerations)?

3) From a prior thread (answer from PAX), I take it that the surplus is allocated to all participants at the time of the ratable allocation from the suspense account, even if the participant never participated in the DB plan, correct?

4) For anyone that has worked with a DC plan that was a Qualified Replacement Plan and specified allocating the surplus ratably over 7 years, would you have any advice of things to be careful of, or issues that arose that you did not expect?

Thanks for any help.

Who is the settlor in a multiemployer plan?

Follow up to 8/7/00 posting on medical expense reimbursement account covering children of self employed individual. Sole proprietor's children are employees of business. Owner's spouse is not employed by business. Can children participate in employer funded medical expense reimbursement plan? That is, contributions would be made for them reimbursing their medical expenses for eye care, dental, etc.

Would the answer be different if funding is via salary reduction? Would either result in ownership attribution to children, resulting in them from being able to participate?

We agreed to take over a plan several months ago. Yesterday, during a final asset reconciliation for the Jan 2000 thru Jun 2000 period, we found several distributions that, when identified by employer, were returns of excess contributions (due to failure of ADP test) attributable to 1998!!(calendar year plan) Obviously this correction did not occur within the required 12 month period following plan year in which excesses occurred. This is a disqualifying event. Does anyone know of a way this can be voluntarily corrected, or any other method to avoid disqualification if uncovered by IRS? Although we have aleady committed to administer this plan, how might we reneg on that commitment?

Do investment committee minutes have to be disclosed to a plan participant appealing the calculation of his retirement benefit?

I have read the instructions for the new Schedule D quite a number of times and I am still not understanding in exactly what instances this schedule is necessary.

IS this something that needs filed with most of the forms?

For example, I have a few plans with invesments in Manulife. Manulife sends out a one page instruction sheet for completing the schedule D. I understand that they are an insurance company and the funds are in pooled separate accounts.

What about mutual funds such as those held by Fidelity, American Funds, Schwab, etc?

Are these pooled separate accounts or common collective trusts? The assets of many plans are held under one umbrella so to speak.

I would be so grateful if someone could clarify this confusion for me. If you could give examples of master trusts, common collective trusts, etc. that would be great.

I'm taking this 12/2000. Anybody take this 6/2000 or 12/99 that can offer suggestions on areas to study more or less? General comments on difficulty?

Anybody go to the review session in Denver that can offer any feedback?

Are elective deferrals in the form of balloon payments permitted?

When are 401(k) plans tested? Eg if you have employers coming in and out of the control group during the year, do you count all those employees or just those at year end?

Anyone know a way to overcome the global date option

(6 char) on census DERs because Qtech forces either a century 19 or century 20 option for all dates in the routine. Excel defaults to 20 if year is less than 30.

But this doesn't solve the 5.0 DCM imports where we have encountered plan entry dates or term dates that are last year and current year being returned by clients using 4.1 DCM systems. This means we will need to supply all clients with new DCM systems and use 8 character dates from now on or interrogate closely each client DAT file. I have talked with one of the Qtech programmers who says no mods are planned for 5.1 or 6.0 to change this.

Also... 5.0 documentation states the need to convert our DERs for 5.0, but customer support says "no need" until we go to 5.1. What's with this? I assume conversion does not

do anything to overcome the date problem.

To what extent is a 403(B) plan (with employer contributions and salary reduction) subject to 414(p)? Any other help/advice with respct to domestic relations orders would be appreciated.

Is there any formal (or informal) guidance stating that employees are responsible for monitoring their own 402(g) deferral limits when they participate in the plans of unrelated employers during the same calendar year?

Would it be discriminatory for an employer to charge highly compensated employees 10% of health insurance costs and nonhighly compensated employees 20%, where all employees can exercise the option to pay for their portion of helath insurance premium on a pre-tax basis through a cafeteria plan?

At what level of the organization (VP, CEO, etc.) can executives typically participate in an executive deferred compensation program? Up to what % of salary? What vehicle are deferred funds typically invested in? (We're establishing a program in our company - Thanks for your help!)

I know this has been addressed before but I can't find it. Anyway, an eigible employee was left off census and subsequently not offered opportunity to enroll in 401k. His eligibility date was 1/1/98. Employer wants to make up for the mistake.

Document states that, "in any Plan Year, any Employee who should be included as a Particiapnt in the plan, is erroneously omitted and discovery is not made until after a contribution by his Employer for the year has been made and allocated, the Employer shall make a subsequent contribution with respect to the omitted Employee in the amount which the Employer ould have contributed...had he not been omitted"

Ok, easy enough if this were a MP or PS plan, but what about deferrals? And what about gains? Accounts are daily valued and who knows what he would have picked as an asset allocation. Any ideas or points of reference will be greatly appreciated. We have some idea of what we think would be ok but I want to hear from others who have had the ssme issue.

Thanks!

A 501©(3) organization has a 403(b)plan for their employees with only voluntary salary reduction contributions.However they signed an ERISA type plan document with the annuity carrier and they have been filing Form 5500. They never have made, nor do they intend to make Employer contributions as this is strictly a voluntary 403(b)plan. Questions: Does the fact that they signed a plan document and filed 5500s make them an ERISA plan?? If not how do they go about correcting this - i.e. filing a final 5500 with an explanation??

Does anyone have information about a "Springing Cash Value Annuity" contract? It would be used in situation where the plan is greatly overfunded and would like to use all assets to buy a contract which in a few years would have a lump sum value that would pay back the excess.