Is the amortization method of "rule of 78" still a valid option for 401(k) loans?

Thanks

My company just started a 401-k program and will match 1% of my salary (approx. $1,200). Am I better off contributing new money to this 401-K, or continue to fund my wife's and I Roth IRA. Thanks

Does anyone know of a good reference book for cross-tested plans? More specifically I want some material where I can actually learn to do the calculations manually.

An ERISA 403(B) Plan states the Employer may make a matching contribution expressed as a % of the amount deferred.

In practice, the ER has made a flat 9% contribution if a Participant made a minimum 3% contribution.

Obviously, they are not following the terms of the plan document and that issue will have to be resolved through one of the voluntary compliance programs.

The real question is: if they amend the plan to conform to their practice will it now be in compliance? Its not really a match in the traditional sense and , except for the 3% minimum elective deferral, it would be a non elective contribution. Is this type of "match" permissible in ERISA for either a 403(B) or 401(k)?

Per instructions to Box A(2) of the 1999 Form 5500, a single employer plan is defined as a plan in which several employers contribute to a plan and funds are pooled for investment purposes, but only the funds contributed by each employer are used to pay benefits to employees of each respective employer. Then each employer is a single employer and must file a separate 5500.

If one of these employers has over 100 participants and is required to have an audit, does the entire plan get audited or just that employer's part of the plan?

My question has to do with part-time employees and health insurance offerings:

What are the specific rules under ERISA and/or IRS nondiscrimination regs, about employer offering of health insurance and/or participation in said plans, by employees that work less than full time?

**Are there any hours thresholds (eg Lt 20, 20-34, etc) that apply for part-time employee health insurance coverage?

**What are the hours thresholds, if any, and what participation rates have to be achieved?

**Where can we look for further information?

Many thanks.

Can a participant in a 401(k) potentially defer more than $10,500 or 15%? The Company provides a matching contribution of 50% of the first 3% of compensation and no profit sharing contribution. According to some discussion I have heard, the participant can actually defer the following percentage:

20% - (80% X 50% X 3%) = 18.8% of compensation

Is this correct?

Do all qualified plans need to include a Schedule T with their Form 5500 filing for the 1999 plan year or is Schedule T included just for cross-tested plans?

On Schedule I, Part II, Line 4j, if there are several funds with more than 20% of total assets, do I attach a Schedule and list each asset and amount separately or do I just put one total amount in line 4j?

A plan is amended to reflect some significant design changes. What is the deadline to file for the determination letter? What happens if that deadline is not met?

On Schedule R, question 3 states that profit sharing plans should not complete this line. When I look at the instructions from the DOL & Corbel they don't mention anything about skipping this line. Is anyone completing line 3 in part 1 for a profit sharing plan?

Do all qualified plans need to include Schedule T with their 5500 filing for the 1999 plan year or is Schedule T included just for cross-tested plans?

If a DB plan provides that a lump sum benefit is calculated by using the greater of GATT and the result obtained by applying a fixed rate and other mortality table, and it is desired to eliminate the fixed rate from the calculation, what needs to be grandfathered to avoid a prohibited cutback?

Assume a plan specifies that a lump sum is the greater of floating GATT (currently 5.85%) and UP84 at 7%, and we wish to eliminate the fixed rate. What must be grandfathered? It seems the options are:

1. Nothing

2. The PVAB on the effective date of amendment

3. The PVAB on the adoption date of amendment or effective date, if later.

4. The fixed rate applied to the accrued benefit as of 3 or 4?

We're interpreting having a fixed rate as potentially problematic for 415 purposes, and would like to eliminate it in some circumstances. But, that's another subject.

Opinions on what if anything needs to be grandfathered would be appreciated.

PLR 9009052 states that accrued paid time off is includible in an employee's income when not subject to substantial limitations or restrictions. "Limitations & restrictions" include maintaining a minimum number of accrued hours, a maximum number of accrued hours (above which hours are automatically converted to cash & distributed to employee) and the requirement that hours be cashed in in blocks of, for instance, 40 or more. What is not clear is whether a 40 hour block of time that can be cashed out, but is not cashed out, is taxed twice: once when it is "included in income" because not cashed out, and again when it is actually converted to cash and distributed to the employee. Any comments on or experience with this issue?

I'm a 23year-old college student who thought a Roth IRA was a good idea. When my bank mentioned "risk tolereance" though, I started getting nervous. Does anyone know of a website that explains how an IRA works in general? I'm really new at this, and I'd like to get an idea of what risks I'm taking. Honestly, I had no idea that risks were involved.

Thank you,

Tami

IRA Participant named Revocable Trust as of Required Beginning Date prior to New Proposed 401(a)(9) Regulations and therefore is taking Minimum Required based on Single Life Expectancy (Recalculating). Question is, now that the new Proposed MRD regs have been relaxed (Dec. 1997) and allow use of underlying beneficiary of Revocable Trust as "Designated Beneficiary" if certain requirements are met, is there any relief available? Can Participant now use Joint Life or upon Participant's death can beneficiaries use life expectancy of eldest Trust beneficiary to calculate distributions?

two things:

1) is there any limitation imposed by the regs or code on the amount of a hardhsip distribution? I am aware of the restrictions for the purpose and on earnings but i dont see any amount restriction?

2) does anyone know where i can get a sample hardship distribution form taking into account the 1999 law changes?

An employee's dependent loses full-time student status and elects to continue her coverage under COBRA. While on COBRA, the dependent has a baby who is enrolled as a COBRA participant. Subsequently, the employee's dependent elects to return to school on a full-time basis and becomes eligible to be covered by the employee as an active participant. The employee wishes to add the dependent back on to her coverage and to continue COBRA coverage for the grandchild.

My understanding is that the newborn (employee's grandchild) is not a qualified beneficiary under COBRA, and that coverage is tied to the parent's status (employee's child). Does this mean that if the child is no longer a COBRA participant the grandchild loses COBRA continuation rights? Any help would be appreciated - thanks!

I think preparation of the 5500's has gotten to me as I'm feeling our admin fees are too low! Has a survey ever been conducted here? If not, is this of interest to any admin firms? Let me know your interest and ideas on how this could be conducted. Thanks.

Professional Corporation, loan proceedures allow terminated participants to continue to pay on their loans. One term participant has a loan that has been habitually slow pay but never in default. We have been advised that the participant can only pay on the loan once a quarter. They want to re-amortize the loan for quarterly payments, which would not extend the loan beyond the due date of the original note. Would this change be considered a new loan (plan does not allow for new loans to terminated participants) and should the loan be current prior to re-amortization? Thanks for any advice.