Simple question: do most practitioners accept fax signatures on documents such as hardship withdrawal applications, termination distribution requests, and loan applications, or do you insist on original signatures? We are aware of the new laws regarding the acceptability of electronic signatures, but have not researched this thoroughly to see if there is anything specific about the acceptability of fax signatures. Our firm has been accepting them for several years now, but have heard of others that don't, so wonder if we're off base here.

In a situation where an employee leasing company is terminating its contract with the client company, are the employees entitled to obtain Cobra coverage from the employee leasing company even though the employee has not suffered a termination of employment and continues to work for the client company?

At one time, any matching contribution made by a partnership with respect to a partner's elective contributions was also treated as elective contributions made by the partner...I believe this was changed. Can anyone confirm this?

well, we are up and running. a lot less problems than last year at 5.0 . I believe most, if not all the printing problems we had at 5.0 are now fixed.

some initial problems because we had a more recent upgrade of NT then Quantech, but they were able to get around these problems rather quickly.

some points that aren't necessarily real clear in the notes:

All custom reports must now reside in one folder (unless you want to keep resetting the file location under Utilities) we had had our custom reports asigned to sub-folders. (under reports you are further able to assign your custom report to the custom folder, or, for instance, assign your certificates to the certificate section)

You are also limited to a file name of 8 characters. At 5.0 we had gotten real cute with the names since you could have more than 8 character names. However, nothing is lost, as you are now able to asign a desription to each report.

(under reports you are further able to assign your custom report to the custom folder, or, for instance, assign your certificates to the certificate section)

Since you should verify database on each of your reports it is simply a matter of renaming your reprots(If you used more than 8 characters) and assigning the reports to one folder (if you used sub folders)

Maybe we the only ones who did this anyway and so this note won't make a difference to you anyway

and, I guess I would add the following, before I get accused of it, I am not griping, I am simply pointing out our experience. we had verified the database on aa few reports, then tried to use them and discovered that we should have renamed them as well.

A standardized prototype money purchase plan (calendar year) was frozen 3/31/99. The plan has the usual standardized prototype language for contribution eligibility. Is there or is there not a contribution due for 1999, and for whom? There are three categories of participants we are concerned about:

a) employed all year with 500 or more hours by 3/31/99

b) terminated with 500 or more hours before 3/31/99

c) terminated with 500 or more hours after 3/31/99 but before 12/31/99.

An argument has been made (not by me) that for people employed all year, there is a last day employment requirement and the plan was frozen before that contribution was accrued. This seems to me to defeat the purpose of a standardized prototype (no 410(B) testing).

Any thoughts?

If a Plan uses a bank as a directed trustee or custodian, my read has always been that although the bank does not have to be bonded (presuming it meets the other requirements of the ERISA 412 regs) the person or persons who give "direction" regarding investments must be bonded. Does anyone have a different read?

I am working with a company that set up a Premium-only plan for 2000. The plan is "semi-self insured", in that the insurance company charges a fixed premium per month, and then a variable portion, which is attributable to individuals within the plan.

In terms of administering the 25% Key Employee concentration test for the year, what premiums are counted towards the total which is then used to calculate the 25%? Is it fixed premiums, or the total premiums? Doesn't this make testing diffucult, as the number is a moving target? What happens in a year when the variable portion is attributable mainly to one of the key employees? (My company has 6 brothers who each own 16.67% of a C-corp)

Any ideas would be appreciated. Thanks!

I am new at this and don't have too much experience. Can someone please explain what the "non-traditional" OBRA full funding limitation measurement for determining the deductible limit of a corporate retirement plan is? A general overview would be greatly appreciated. Also, is there a "traditional" full funding limitation? Under what circumstances should you use the "non-traditional" vs. the "traditional" approach?

Is an SEPP distribution from and IRA Variable Annuity any different from an SEPP from an IRA invested in mutual funds? Can it be done by setting up a payment stream of systematic surrenders without annuitizing the contract? The owner is 53 now and once he reaches 59 1/2 he'd like to stop distributions and let the annuity IRA continue to accumulate.

It is my understanding that generally fees can't be charged for a distribution to a terminated participant. The investment company charges a check fee on all distributions from the plan. This raises 2 questions:

1. Is there a problem with the check fee? I don't think there is, but I could be wrong.

2. The investment company summarizes the distribution on the check stub. Recently the company has relabled the "check fee" as "administrative fee". I definitely do not like the new wording, but maybe its nothing. Should I be concerned?

I am a principal in an inc. biz that does not have any retirement plan in place. Therefore, I contribute to an IRA.

As a second biz in which I alone am employed (from a home office), I earn approx. 20K per year. Is it possible for me to set up a Simple or SEP IRA for this revenue? Which option applies if I am the sole owner and sole ee? Can I simultaneously continue to contribute to my IRA and claim the 2K fed. tax benefit? I have tried to read the regs, speak to investment firms and accountant but have gotten conflicting information. Thank you for any help.

I own 20% stock in my primary biz's inc.

Employer contributed an excess profit sharing contribution to participant's account. Participant terminated and rolled over the excess amount to an IRA. If the overpayment is returned to the employer in connection with a VCR submission, does the participant suffer unfavorable tax consequences with respect to the IRA?

I am trying to find a good example of how coverage testing works. Does anyone have any good examples?

Recently, the President signed the Electronic Signature bill making "digital" signatures legally valid. Is anyone aware of any DOL regulations (pending or published) clarrifying to what extent electronic signatures can be used on retirement plan forms? For example, is it sufficient to get an electornic signature on a Distribution Form. what about spousal consents and notary requirements?

An employer maintained an (ERISA) insured long term disability plan. As usual the employer had only an insurance contract. There was no separate ERISA plan document.

Employee A was aware of the plan. Employee A terminated employment and was rehired within several months.

However, unbeknownst to employee A or any other employees the employer had, prior to A's separation, decided to cancel the LTD coverage. There was never a formal notice to employees.

Two years after A was rehired he became disabled and attempted to file a claim under the LTD plan. Of course, he was then told the plan was no longer in existence.

What cause of action might A have against the employer?

Estoppel would require a showing of a misrepresentation by the employer, and that may be difficult here. There may be a breach of fiduciary duty, but does that duty survive termination of the plan? And what would be the remedy? Benefits under a nonexistent plan? What would be the employee's best argument?

Thanks-

rob.

401k deferrals through 125 plan subject to FICA? Code and Regs are unclear. In other words, if a 401k is included as a cafeteria plan benefit, are those deferrals subject to FICA or not?

401k's within cafeteria plans: what is the tax treatment of 401k deferrals through 125 plan? subject to FICA or not?

Jones (single) died leaving a brokerage account and an IRA, about $4 mil in total. Both consisted of very large holdings of the same 3 stocks. Since his death, last month, the values have dropped substantially, and the executor is selling shares to raise $$$ to pay PA inheritance tax, and Federal Estate Tax.

The IRA is left to the same 8 beneficiaries, and each will then be the beneficiary of a Jones IRA for the benefit of......., when the custodian decides to divide the plan, and will make elections or liquidate.

The issue is how the alternate valuation date for the estate will be affected by the actions of the beneficiaries, when or whether they liquidate the stocks in their accounts, which is of course beyond the control of the executor.

The rules are clear as to how to arrive at the AVD for the brokerage account, but do any of you know how to include the IRA assets in the calculation? I will appreciate being directed to any treatises, rulings, or articles on point. Thank you very much.

I have an ESOP that I'm separately tracking two different 1042 sales to the ESOP. The employer has repurchased shares from the ESOP. Which shares did the employer purchase, or does it matter? Can I just assume it was pro-rata from each?

Can anyone provide me evidence (ammunition) that will allow me to roll over my 401(k) assets to a conduit IRA without requiring my spouses notorized signature.

For the record I'm not trying to cheat my spouse, but rather trying to expedite the distribution!