What software are you using? From your description, I believe that you are looking at the other "bar code" that imbeds the English answers into code, which the IRS computer can scan and input. Based on a seminar I attended, that code is called "Computer scannable 2D bar codes".

Just wondering if anyone has experience with putting together a FAS87 report for a SERP & if they could suggest some reading material ?

Just wondering if anyone has experience with putting together a FAS87 report for a SERP & if they could suggest some reading material ?

Self-insured med/dental plan where my organization serves as sponsor, administrator, and fiduciary. Other smaller organization has been in the plan for several years. We have the same outside council and some of the same companies are represented on both boards. We are being told that having these common board member companies puts us under "common control" and therefore not a MEWA. I don't read the PWBA booklet this way. I have just read the third installment of Q's and A's and note that Q 20 does address "a common control interest of at least 25 percent at any time during the plan year." Any clarification or further source of info would be much appreciated.

DB termination under standard provisions. Participant could not be located and was handled under the PBGC Missing Participant program. Now, as we are allocating excess assets, he shows up. My review of the MP instructions is that the Plan *can* send the allocation of excess to PBGC, but I do not see any requirement to do so. My opinion is that we should pay the excess directly to participant (with properly executed form) since that is much simpler and avoids having the PBGC track down 2 payments.

Any comments?

Self-insured med/dental plan where my organization serves as sponsor, administrator, and fiduciary. Other smaller organization has been in the plan for several years. We have the same outside council and some of the same companies are represented on both boards. We are being told that having these common board member companies puts us under "common control" and therefore not a MEWA. I don't read the PWBA booklet this way. I have just read the third installment of Q's and A's and note that Q 20 does address "a common control interest of at least 25 percent at any time during the plan year." Any clarification or further source of info would be much appreciated.

The scope of health care products now available through coalitions and their group

purchasing efforts is rapidly expanding.

The Heartland Healthcare Coalition is typical in that both regional and national health care products can now be accessed by

members. Direct contracts with hospitals and physicians, physical therapy rehab.networks, HMO's, and EIP programs are some of the standard regional products now available. PBM options, PPO networks, dental plans, Lab services, Third Party Administrators, and Centers of Excellence reflect some of the national products.

For the future, look for more nationally-negotiatied products through organizations like the National Business Coalition on Health, including internet-driven programs to encourage self-care and expand the scope of knowledge in area's like disease state management.

Jerry Custer

An employee has terminated mid year. How long must the cobra extension be for the cafeteria plan? The employee also has a 1 year severance package, can this individual elect pre tax benefits until the 1 year runs out?

In practice, do qualified pension plans covering clergy designate a portion of benefits as a housing allowance under Code Section 107? Rev. Rul. 75-22 is favorable but doesn't deal specifically with a qualified plan. The IRS won't rule on the issue. What do your clients do?

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Patrick J. Foley

Foley & Foley

415-399-0907

pjfoley@foleyfoleylaw.com

Client has compensation greater than $200K as non-owner/employee of big corp and defers $10,500 to 401(k) plus a small matching contribution. This person also has consulting business with income of $200K, and wants to set up SEP or perhaps DC or DB Plan. Does he get the full 415 limit for this new Plan, despite participation in the 401(k) Plan?

An ESOP holds 90% of an employer's stock. 20 employees then own .5% each. In such a situation would the only key employees be the officers and there could be no key employees based on 5% ownership, 1% ownership or top ten owners?

I know in certain instances under the 1.1563 regs you ignore stock held by ESOPs or employer plans in determinng ownership, but I could find no such provisions in 318 or the 318 regs.

An employee reaches normal retirement age, retires, and takes a lump sum distribution. The employee had previously been offered diversification at the applicable time.

The employee is now rehired. Is he automatically entitled to diversification? Plan provides diversification upon attaiment of age 55 and 10 "Years of Service".

If an employee is terminated prior to the end of a plan year, and has funds left in their flexible spending account, can they continue to use it through the remainder of the year even though they're not an employee any longer?

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Can an individual contribute to more than one Roth IRA account during the same year?

Residents in Federally Subsidized Housing pay rent equal to 30% of income. The local housing authority in CT is counting both interest on CDs held in an IRA and the required minimum distribution (person is over age 70) as "income".

I have been told there is nothing in HUD rega to give IRAs any special treeatment. Have there been any appeals to this type of ruling? This would seem to be a national problem with the popularity of 401k plans and IRAs which are treated the same way under this system.

A plan provides an annual COLA. A participant chooses the lump sum option. Is the COLA typically included? The plan does not explicitly state one way or the other. is there any feeling as to which is appropriate or what the default would likely be?

When a terminated participant is paid his entire vested interest in cash, and the employer stock that was previously allocated to his account remains in the trust, should that stock be reallocated to the remaining participants' "employer stock" accounts or is it held in the pooled "other investments" portion of the trust?

I believe that the demutualization award should be treated as a plan asset (and considered as investment return) to the extent that it derives from an annuity contract included in plan assets.

I'm wondering if I can take original contributions out of a Roth IRA at any time since taxes have already been paid on them. I'm 26 years old and would like to put $2000 in a Roth IRA, but I'm going back to school in the fall. Most likely I'll be able to support myself with part-time work, but if money gets extremely tight, would I be able to get the original $2000 out with no penalties?

Company X took over Company Y. Both have 401(k) plans. As part of the takeover, Company Y's plan terminated. The current service provider for Company Y's plan has been cold calling employees to get them to roll their assets into IRAs with the current provider. Company X wants employees to roll their assets into its 401(k) plan. Company X suggested to Company Y that the Company Y plan be amended to bar direct rollovers to the current service provider. Is this allowed?