I recollect reading soemwhere where a loan can be rolled over from a prior employer's plan to new employer's plan.

If in agreement, what is needed to do this?

Much thanks

Pat Insall

Can my employer, the sole contributor to my esop, contribute so much that it interferes with the 15% max I can put towards my 401k ?

My employer is the sole contribitor to my esop, so will this effect how much I can contribite to my 401k ? I believe the max contribution I can make to my 401k is 15%, but my esop last year was over 15% of my salary.

In Rev. Rul. 2000-27 the IRS has essentially exempted, from the same desk rule under 401(k)(10), transactions involving the transfer of less than 85 percent of the assets of a trade or business - it has said that it will respect applications of the same desk rule to transfers of less than 85% of assets occurring prior to Sept. 1, 2000, it also stated that it will allow application of Rev. Rul. 2000-27 to past transactions that fall within its paramaters. Question - if the asset selling organization asserts the same desk rule in a transaction that is now eligible for non-same desk rule treatment under 2000-27, contary to the wishes of former employees, is it a violation of the former employees' ERISA Sec. 510 rights to continue to prohibit distribution or even rollover of their plan accounts to a new employers' plan??

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I have a church which currently has a 403(B) plan with a discretionary employer profit sharing contribution giving difffering %'s to 3 classes of ees.

There are currently no HCE's

Since a church plan not subject to ERISA

Is there any reason that they couldn't restate to a 401(k) plan? Any real advantages here since testing is a mute point?

I guess one hassle would be that they would have to continue to file a Form 5500 for the 403(B) plan since can't terminate?

Thoughts are appreciated

Thansk

Pat Insall, CPC

I would like to know what other administrators do in this situation. A profit sharing/401(k) plan does not provide for annuities as a form of benefit. Per the Code, therefore, spousal consent is not required for distribution. What should be done to be certain that a participant in the middle of a divorce is not trying to take his/her distribution to avoid losing part of it in in the divorce, via QDRO, etc? What types of questions are asked on every distribution? Do most administrators require spousal consent for all distributions? If so, under what authority?

It has just been suggested to me that I look into investing in a Roth IRA. I know nothing about this sort of thing; I have been relying solely on PERA and savings account for retirement (which is still 30+ years away). Here are few questions: minimum amount to open?; minimum yearly amount?; monthly payroll deductions?; interest rate?

Forgive my novice questions. Thought this would be a good place to start

I've been reading the IRS comments on the new cafeteria plan regs on mid-year changes. I'm pretty clear on most of the changes but am concerned with how the dependent care FSA deductions may be handled - or expect to be handled - by employees. According to what I have read, if an employee changes coverage (dependent care providers) mid-year then they can change DC FSA deductions. I understand that but wonder about ee's who either do not use dep care providers over the summer, or who begin to use dep care providers over the summer. I have several ee's every year during open enrollment who ask if they can stop deductions over the summer (or start them over the summer) during the school vacation period. My standard answer has always been no. But if an ee now stops or starts using DC providers during the summer months, this seems like it would fall in with the change in coverage. After reading and re-reading it several times I believe that an ee who just increases or decreases utilization of providers over the summer could not change their election. But the ee's who stop or start coverage may have a case to increase or decrease their deductions.

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Debbie Button

Is a 5500 required for a Section 132 plan (transportation)?

I am looking for a service that will provide a generalized Employee Benefit Policy and Procedures Manual that we can then personalize and modify for our Trust Department and our Employee Benefit Administrative Officers.

Any ideas?

Could anyone direct me to a good reference ( book or article(s) )that addresses the checklist of items that need to be considered for a practitioner who has been asked to quarterback a merger of 2 multiemployer plans ?

Money purchase pension plan has plan year end and fiscal year end of 12/31/99. Employer has extension for filing tax return to 9/15/00. Does the contribution have to made before the return is actually filed? For example, can the employer file the return 6/26/00 but actually make the contribution 9/1/00? Would answer be different if it was a profit sharing plan?

I ran across PLR 9135060 in which participant retired at age 50 and waited until age 55 to take a distribution. PLR stated that the distribution was not subkect to 72(t) 10% penalty. I know that PLR's cannot be cited as precedent and are only good for the specific taxpayer who requested it....... The PLR doesn't provide much in the way of reasoning, but it does get to the right result (per the participant). Anybody run across this situation or PLR before?

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I understand that that to convert a traditional IRA to a Roth your income must be under $100,000. Is this correct? If it is true. How is your income determined? Is the rollover itself considered part of your income? As an example, if I have a $60,000 taxable income and wish to rollover another $60,000 my taxable income for that year would be $120,000. Hence, I would be inelgible. Is the rollover itself excluded in determing elgibility?

Priscription Drug Coverage is increasing in cost at an alarming rate. There are many new programs that have been started to try to control these rising costs. Formulary Management, Cost Shifting, Prior Authorization for high dollar drugs. I would like to start this message board to share and identify new and successful programs to control costs. If you have any suggestions, or questions, please contribute

If I understand the instructions for Schedule T and Rev. Proc. 93-42 correctly, a plan that filed a 1997 5500-C that did not apply the substantiation guidelines on line 21 must file a Schedule T for 1999. Afterwards, one wouldn't be needed until 2002. Is this correct? Thanks for all help.

If a company is using a POP and wants to modify it to include flexible spending accounts, DCAP, etc, can it reopen the election date for these new benefits. Or, will the employees have to wait for the next election opportunity?

Can a 2 person Non-Profit have a 401(k) Plan? And does is matter if both are HCE's?

I would be interested in talking to anyone who is looking for ways to decrease the rising costs of health care benefits for their employees. I work for a health promotion company called Summex, and we can significantly reduce these costs - which I am sure you are aware - are expected to increase another 10-12 percent this year. We provide tools and programs used to measure and reduce the high health risk level of your employees. Our all-inclusive employee package uses our Health Monitor health risk assessment to first measure the risk factors of your population. Next, we implement interventions to reduce that risk level -- tools such as telephone calls from our health educators, home-mailed self education, medical self-care books, and stage of readiness for change based information. Individual reports go out to the employee, group reports to the employer, and monthly activity reports are generated to track all interventions and results. ALL employee information is guaranteed CONFIDENTIAL.

Many employers use a health risk assessment tool, but unless you take the next step - targeting and reducing those high risk factors in your employees, nothing is really gained. Innovative employers are putting their wellness infrastructure in place now - and are of the "investment mentality" when thinking of their employees' health. A healthy employee is more productive, absent less often, have fewer accidents, and are more energetic.

Many of you may know our Chairman, Larry Chapman. Larry writes for the American Journal of Health Promotion and the Art of Health Promotion, and he is highly regarded for his ability to put successful, cost saving programs in place for corporations throughout the United States.

If you are interested in learning more about what health promotion can do for your company, please mail me. I'd also like to invite you to visit our website at www.summex.com, and check out our online HRA at www.summexhealthmonitor.com.

Thoughts or discussion? Post a reply and I will answer for everyone to read on this board too!

Thanks!!! Kathy

We have several employees who have submitted reimbursement requests for significant $ for travel-related medical expenses (i.e. traveling to dr's appointment by car). Obviously the only expenses are wear and tear on car and gas!

Is there any special requirement regarding this type of reimbursement? What type of proof, if any, is required (i.e. proof of appointments, etc.)?

OR should we as the ER not be concerned with proof and place the burden of proof on the EEs in the event that the IRS comes knockin'?

Any additional thoughts would be appreciated. Thank you for your assistance.