If a money purchase pension plan freezes accruals (and complies with 204(h) notice at that time) is it necessary to provide a second 204(h) notice upon subsequent termination of the MPPPlan??

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Does anyone know the Treaty provisions for the taxation of U.S. pension benefits paid to Canadian spouse upon the death of a U.S. participant? The participant resides in Canada but works in the U.S. for a U.S. company.

Can anyone clarify how we are to complete the schedule a form for a defined contribution plan? Part II, #3 and 4. What amounts are supposed to be entered for these questions.

Is there a list of insurance carriers that are approved from whom to purchase annuities? My boss seems to think there is. He thinks the DOL may be involved in this list. It is not the list of state guaranty associations published by the PBGC.

For a CT 401(k) plan, could these be the participant classes:

1. Owners

2. Non owners who have elected not to defer

The employer would then provide a matching contribution to those that defer and a p.s. allocation to those who did not defer.

I'm sure that the employer could not allocate a p.s. contribution to only those that defer; that's the definition of a match. But, can a class exclude those who are deferring?

Doctor is sole participant in a frozen DB plan. The plan is substantially overfunded. Doctor now wishes to participate in a different plan, maintained by a member of the same affiliated service group. Can he do so? It appears to me that there should be no problem especially given the repeal of 415(e). Can anyone confirm this or correct me if need be?

Thanks.

Our pension system automatically is bringing over the amount of the Plan Year contribution and earnings minus the distributions as the Plan expenses. Is this right? I can't locate any instructions for the SAR. Thanks in advance

The employer maintains 401k plan w/ ER match. The plan has a last day rule. When the plan is disaggregated for coverage purposes, the 401(m) portion fails the Ratio Percentage Test. Is this portion (matching contributions only) of the plan tested separately for the Average Benefits test to see if coverage is passed?

When a participant "buys back" his forfeiture, do I establish an after-tax or pre-tax account for him? Assuming the answer depends upon the source of the money coming back to the plan, i.e. IRA rollover or personal funds, do I have any responsibility to verify the source? What if the source is both?

Company X currently sponsors a SIMPLE IRA for its eligible employees. Company X has a fiscal tax year which begins on October 1 and ends on September 30. I know that Company X cannot maintain a qualified plan at the same time it maintains a SIMPLE IRA without violating the SIMPLE IRA's exclusive plan requirement. However, can Company X implement a qualified plan on October 1, 2000 (the first day of its 2000-2001 fiscal year) even though it maintained a SIMPLE IRA (to which contributions were made) during the 2000 calendar year? Put differently, if Company X terminates its SIMPLE IRA before October 1, 2000, may it then implement a qualified plan effective October 1, 2000, without violating the SIMPLE IRA's exclusive plan requirement even though it did sponsor a SIMPLE IRA between January 1, 2000, and September 30, 2000?

The Code states that the relevant measurement period for purposes of applying the exclusive plan requirement is the calendar year (see Code § 408(p)(6)©), but does anyone know whether the IRS permits the rule to be applied based on the plan sponsor's fiscal year in lieu of the calendar year?

Our Risk Management department is looking at providing certain risk policies through a captive insurance arrangement as has asked if our company health & welfare benefit plans can be used to meet the 30% unrelated business requirements. From what I've seen, setting up a VEBA for benefit plans is a much more efficient way of funding benefit plans. Does anyone have any experience in attempting to fund employee benefit plans through a captive?

I have a 403(B) plan document that has individual Trustees named.

The account is a pooled investment account with a bank custodian.

I have a concern that 403(B) plan has named Trustees

Any thoughts on this?

The 403(B) in question is a church plan, although I don't think that changes the issues

Much thanks

Pat Insall

In the past we offered participation in our 401(k) plan to temporary agency employees that worked for us over 1,000 hours. The situation has come up again but the temporary agency doesn't know how to handle it at their end. Any help would be appreciated.

Participant in 401(k) turned 70.5 in early 90's. Took Min Distributions until 1997 when they elected to cease receiving. Participant terminated in 2000. How do we calculate the minimum distribution? Does original election apply or do you create new election? If they choose to rollover, do you take Min Distribution prior to rollover? If so, then which election?

Recently we have heard tales of Medicaid or Medicare going after non-profit entities, particularly hospitals, who terminate over-funded defined benefit plans. Supposedly they have gone after any excess assets that facilities proposed to revert. In one case, we heard that they got a court injunction to prevent the reversion. Our understanding is their reasoning is that when rates are set they include consideration for benefit costs and therefore the reversion is not allowed. First, has anyone actually encountered this situation and what info can you share? Secondly, do you believe that using the reverted assets could be used as an argument that the assets are still being used for benefits purposes? Any information would be greatly appreciated. THANK YOU!!

Our client has an employer who recently passed away. He was a teacher so he only works 9 months of the year, but receives compensation throughout the entire year for the 9 months he works. Can the employer withhold his 401(k) deferrals from the compensation that is owed to him that is now being paid to his estate? Can you please provide me with a citation to support any answers?

Does anyone have release language for an ERISA matter. The general release language used by my firm just mentions claims under ERISA. Does anyone have anything more specific. My e-mail address is mcelroy@wildmanharrold.com. Thanks in advance. Ed

I belonged to a company with 2 separate divisions. Both divisions shared 1 401k profitsharing plan. The plan is one where you are 20% vested after 3 years, 40% vested after 4 years and up to 100% vested after 7 years. I am currently 20% vested.

My division recently split and formed a separate corporation with no relationship to the former company and a new similar plan was developed which continued my 20% vesting.

My Question: Since I was forced to leave my first 401 k profit sharing plan and all money was taken out of the account and transfered to the new plan, in effect, in my case, the original plan was terminated by having my account closed. Any termination of the plan, as outlined in the rules and

regulation, means I should be 100% vested instead of 20% Am I missing something here?

All responses are greatly appreciate. Thanks

My wife has a Roth. We are married and file jointly. We can contribute $4000 to a Roth. My question is this. Can these contributions all be sent to to the same Roth?

In other words, does one Roth account handle all $4000 or do we have to set up two different accounts?

A 5% owner took a lump sum distribution from a Defined Benefit plan that was about $200,000 more than the plan formula allows. I don't know if he is going to return it to the plan or not.

The ERISA Outline Book states "A little known provision in the tax code, IRC 72(m)(5), imposes a 10% penalty on a distribution made to a 5% owner which exceeds the benefits provided for such individual under the plan formula."

Does IRC 72(m)(5) apply in this situation, and if so does it apply if he returns the overdistribution? If it applies, is the 10% penalty on the entire distribution or just on the portion that exceeds the correct distribution amount?