A company's stock is traded over-the-counter and listed on the NASDAQ bulletin board. Does this satisfy the definition under Treas. Reg. section 54.4975-7(B)(1)(iv) of "publicly traded" for purposes of the ESOP requirements of a put option and an annual valuation and the prohibition against a right of first refusal on ESOP stock?

I can't find any guidance on point. The closest I have found is a PLR which says that stock traded on the "pink sheets" is not "publicly traded" under that definition. However, the "pink sheet" system is not the same as the NASDAQ bulletin board.

Based only on a reading of the definition, my thought is that the bulletin board constitutes "publicly traded," but since it will affect the way the company's ESOP must be administered, I would like something a little firmer to go on, such as any sort of IRS interpretation, written or oral.

One of our business units recently acquired another company who had offered their employees a PPO and an HMO option. Our company will now (effective 8/1/00) be only offering the employees at that site a PPO option only and will be eliminating the HMO plan. However, one of the employees who was on the HMO plan with the prior company would like to continue with that plan since his wife is pregnant and the HMO will pay 100% of the costs. They've decided that the best way to handle this if for the husband (who is our employee now) to take the PPO plan and the wife to elect COBRA so that she can continue the HMO plan. Once the baby is born obviously the baby can join the PPO plan, but can the wife also join the plan mid-year? Is that considered a qualified status change? If so, does it abide by the consistency rule?

Can a self-employed individual whose children are employed by the business establish an employer-funded medical expense reimbursement plan covering the children (and other employees of the business)?

Can a self employed individual whose children are employed by the business establish an employer funded medical expense reimbursement plan covering the children and any other emlpoyees of the business?

Does anyone know of a good ESOP training course?

Is a SIMPLE IRA plan a "successor plan" under the 401(k) rules?

Has anyone in the metropolitan NYC area implemented a TransitChek program on a pre-tax basis? It is a program we are looking to implement in the near future so I am looking for feedback (problems, solutions, etc.) Thanks.

When an employer reimburses participants for deferred sales charges by making a contribution to their account, does the plan document have to include language that permits this type of contribution? What is the contribution typcially labeled, miscellaneous?

On the 1999 Form 5500 Schedule T, it allows for reporting of the ratio percentages for disaggregated parts of a plan on the Schedule T itself without attachments. What do you do if a plan has a discretionary profit sharing source, but did not make a contribution for 1999?

In previous years, we completed an attachment for such sources and indicated that "No HCE's benefited". However, there is no where on the Schedule T to indicate that, for a particular source, no HCE's benefited.

Should a separate Schedule T be prepared for such sources? Or should the disaggregated source be listed without a percentage? with a 100% percentage?

Thanks for your help!

Suppose that a 401(a) plan of a bank invests the plan's assets through the bank's trust department. The DoL will take the position that the bank may charge "direct expenses" to the trust but not its standard trust fees. (If a customer walked in off the street with a trust account identical in size to the 401(a) plan, the bank may not charge its standard asset based money management fee.)

Why is the result any different for mutual funds? I keep reading articles (For example, see the Reish & Luftman law firm article on the First Union litigation.) That bank's plans invest through the bank's mutual funds and the bank receives asset-based money mangement fees from the plan.

If a bank is not permitted to keep an asset based fee when its trust department manages the money, why is it able to keep the fee when its mutual fund operation manages the money? [Edited by Dave Baker on 08-06-2000 at 10:50 PM]

Ltd is offered as a core benefit unde ra 125 plan.

It is after-tax

Does the fat that it is offered thru a 125 plan change the tax treatment when disability benefits become payable?

Thansk

Pat Insall

In part, Rev. Proc. 2000-16 Part III, Section 6.02(4)(B)(ii) states the following:

"Excess Amounts (whether arising from a section 415 failure or a section 403(B)(2) failure), adjusted for earnings through the date of correction, must reduce the participants' exclusion allowances by being treated as amounts previously excludable under section 403(B)(2)(A)(ii) beginning with the year following the year of correction (or the year of correction if the employer so chooses)."

If the Excess Amounts themselves have been left on employer records as non-forfeitable contributions/annual additions during the years they were contributed and continue to be counted as amounts previously excludable under section 403(B)(2)(A)(ii), does the Rev. Proc. statement mean that these same Excess Amounts are to be counted again as amounts previously excludable (amounting to a double-whammy), or should only the earnings through the date of correction be treated as "new" previously excludable amounts?

What is current thinking about compensation systems based on point factor systems? Further, what are benefits professionals doing to eliminate the use of grades for certain benefits such as office size, parking spaces, and similar benefits/perqs.

Can dependent and spouses group term life be offered through a 125 plan?

Pat Insall

Can one design a 125 plan as such

Employer will pick up 75% of benefits selected

Benefits offered medical, medical FSA & dependent care FSA

If ok, does anyone see any problems with this design?

Much thanks

Pat Insall

My employer maintains and makes contributions to a Money Purchase Pension Plan and a Profit-Sharing Plan. I do not make any contributions to the plan nor take any deductions. I was wondering if I can open and make contributions to a Roth IRA? Or does my participation in my employer's plan prevent this? What issues do I need to investigate?

Hope this is not too basic, but I have looked and can't find the answer.

Is it true that the ability to switch adp/acp testing from current to prior and prior to current is unlimited until the end of the remedial amend. period? So year 2000 and 2001 are still flexible and only have to eventually be documented.

Thanks!

Hi´,

I just had a question.If I were to trade my companies services for use of a one week timeshare,what would be the tax implications?Any information would be greatly appreciated.My address is mocm14@hotmail.com

Thank You,

Matt McDonald

HI,

I just had a question.If I were to trade my services for use of a one week timeshare and then use that week as an incentive for my employees,what would be the tax implications?Any information would be greatly appreciated.

My address is mocm14@hotmail.com

Thank You,

Matt McDonald

I have a client who is interested in investing a portion of his IRA in a L.L.C. The investment would be in the form of a note, which would outline the principal amount, interest rate, payment schedule, and so forth. The note is highly speculative in nature.

My belief is that this note, which from a fiduciary standpoint is probably not the best investment in the world, is still allowable under the IRA investment rules. The L.L.C. is not a "disqualified person" under IRC Section 4975 (therefore, not falling under the prohibited transaction rules)so that is not a consideration. I do not feel that the IRA is being used as security or being pledged as a loan, so it does not become a distribution under IRC Section 408(e)(4).

Anybody with experience or an opinion? Thanks.