If an employer failed to timely deposit any participant contributions to the plan, a prohibited transaction occurred. Although the 1999 Form 5500 has been extended to October 16, 2000, the 1999 Form 5330 reporting the excise tax is still due July 31, 2000. What are other firms doing with respect to this issue?

In order for a bank to set up an ESOP for its employees, does it have to maintain the ESOP through its bank holding company or is it otherwise subject to any bank holding company rules? If so, what the relevant citations?

Has anyone ever been involved in a situation where benefits were increased for vested deferred participants? I have a client who would like some ideas and has asked me "what do other people do?" I told him it's not very common, but I would check around. I have asked most of my local colleagues but most of them have never done it either.

Has anyone done it? What type of formula did you use to arrive at the increase? Did you recognize how many years they have been terminated?

I'm interested in what has been done in practice

If I have a loan against my 401(k) as an owner of a C corp and want to elect S corp status, what happens to the loan, which is prohibited as the owner of as S corp?

For a calendar year plan (1999), must I file for an extension to go beyond 7/31/2000 or is it automatic for 1999?

Hi,

This past April 15th I paid a whopping big tax bill to the IRS and California state for a 1999 conversion of my traditional IRA to a Roth. Am I correct in assuming that when next April 15th comes around that I can take the state taxes paid for the conversion as a deduction when I itemize on Schedule A?

Thanks for any help

- JC

We are now starting to send out 5500s to Plan Sponsors who are not required to file SARs.I usually use one of two form letters, one for forms to be filed without 5558 extensions and one for forms with an extension. In the letter for froms with an extension, I warn the Plan Sponsor that failure to make the extended deadline can expose it to penalties back to the original filing deadline.

Under the automatic extension for 1999 5500s, would the penalty for failing to file by October 16, 2000 be computed from October 16, or from the original filing date, even though the forms were not available on that earlier date? The press release merely extended the deadline, not the filing date, therefore it would appear that the DOL or IRS could impose penalties back to the original filing date. Any comments?

I have memebers of a new LLC taxed as a partnership participate in 125 for 2000 and who got claims reimbursements under FSA accounts

What to do now?

How do they rectify the situation?

Thanks

Pat Insall, CPC

Can an employer pay 100% of the premiums for a fully insured health plan for highly compensated employees and only 50% for NHCEs but allow the NHCE's to pay their premiums on a pre-tax basis by setting up a 125 Plan that specfically excludes all HCEs from participation? Any regs or cites on this?

This insurer started to offer group health coverage in our area about a year ago. They come in with very attractive rates. It is an A rated company but I have not had any experience with them. Does somebody have insurance coverage with them? Any good or bad experiences? Any history on renewals? I am a benefits broker and on some younger, mainly male groups, I get premiums as low as $45 a month for a copay PPO. Everybody else is at least a $100 for such a group. I am not comfortable placing with them at this point. I'd appreciate any input.

does anyone know where I can get a sample investment policy for a 401(k) Profit Sharing Plan?

A client took an early distribution from his IRA but failed to pay the excise tax. He already filed his return for 1999 . he would like to pay the tax. what is the procedure for this? should he file an amended return and just pay the 10% . how does he calculate the late interest and penalties, if any?

[Edited by k man on 07-10-2000 at 08:49 AM]

A 401(k) plan had 114 participants at the end of 1998. At the beginning of 1999 the plan has 134 participants due to employees becoming eligible January 1, 1999. Since the plan has greater than 120 participants at the beginning of the 1999 plan year, is an audit required for 1999?

Do companies generally offer reimbursement for graduate courses? If so, do they generally do it on a taxable or non-taxable [only job related courses] basis?

Interested in hearing about any experiences.

Thanks

I have a client who is a C Corp and the ownerships percentages of their stores are as follows:

Company 1

Owner 1 100%

Company 2

Owner 1 50%

Owner 2 50%

Owner 1 has "right of first refusal" of shares from owner 2. I am under the impression that this implied ownership constitutes a controlled group situation and thus the plans can be viewed and tested as one. Does anyone know where I can get actual documentation to support this concept?

Please help.

The instructions to the 5500 say that no audit needs to be attached if the plan assets are invested in a CCT (common/collective trust) a PSA (pooled separate account) or a MTIA (master trust investment account). (Instructions for Schedule H, page 41). But I have heard differing opinions as to whether the plans are actually exempt from the audit requirement. The law itself is less clear. Does anyone know of a citation which would exempt such plans from the audit requirement?

Ok Company A bought Company B in a stock swap. B to be a subsidiary.... now A purchased all the assets of B and many of the employees are gone from B. What do i do with B's 401(k) plan? merge them? or terminate?

B's employees are all 100% vested under B's plan and i just found out that some of B's employees are still paying off loans that they received from their accounts.

figuring that there is no partial termination issue here and that i have the choice of to merge or terminate.... any suggestions?

Except for the ACP testing....can a plan allow or provide for a match that is greater than 100% of the deferral?

ex. 150% of the salary deferral is the match, etc.

thanks!

My husband is the primary shareholder of an S Corp, of which I am an employee, and the owner of an LLC, of which I am an officer. Is there any way to set up a 401(k) for either company so that I can take a loan on my account? I will be transferring a substantial amount in from a former employer's 401(k), and would like to have access to it. Are LLC's and S Corps treated differently regarding owner/employees taking loans? Thanks for your help.

My TPA employer has received a request for health claim copies (in relation to a member involved in an accident) from an attorney representing a state attorney general's office. Does the member's standard consent to release of information (for payment/treatment purposes) extend to

cover something like this?

I used to work for a large national insurer that would not even consider such a request without a subpoena for the info in question. We don't want to run afoul of any regs on privacy or confidentiality. Would it make any difference if this attorney was strictly in private practice vs working for an agency?

Please help! Thanks.