The instructions to the 5500 say that no audit needs to be attached if the plan assets are invested in a CCT (common/collective trust) a PSA (pooled separate account) or a MTIA (master trust investment account). (Instructions for Schedule H, page 41). But I have heard differing opinions as to whether the plans are actually exempt from the audit requirement. The law itself is less clear. Does anyone know of a citation which would exempt such plans from the audit requirement?

Ok Company A bought Company B in a stock swap. B to be a subsidiary.... now A purchased all the assets of B and many of the employees are gone from B. What do i do with B's 401(k) plan? merge them? or terminate?

B's employees are all 100% vested under B's plan and i just found out that some of B's employees are still paying off loans that they received from their accounts.

figuring that there is no partial termination issue here and that i have the choice of to merge or terminate.... any suggestions?

Except for the ACP testing....can a plan allow or provide for a match that is greater than 100% of the deferral?

ex. 150% of the salary deferral is the match, etc.

thanks!

My husband is the primary shareholder of an S Corp, of which I am an employee, and the owner of an LLC, of which I am an officer. Is there any way to set up a 401(k) for either company so that I can take a loan on my account? I will be transferring a substantial amount in from a former employer's 401(k), and would like to have access to it. Are LLC's and S Corps treated differently regarding owner/employees taking loans? Thanks for your help.

My TPA employer has received a request for health claim copies (in relation to a member involved in an accident) from an attorney representing a state attorney general's office. Does the member's standard consent to release of information (for payment/treatment purposes) extend to

cover something like this?

I used to work for a large national insurer that would not even consider such a request without a subpoena for the info in question. We don't want to run afoul of any regs on privacy or confidentiality. Would it make any difference if this attorney was strictly in private practice vs working for an agency?

Please help! Thanks.

Can a shareholder/employee still receive a salary after selling to an ESOP and purchasing qrp under 1042.

Hi Everyone,

Has anyone seen anything substantiated regarding newly revised IRS life expectancy tables for use in RMD calc's?

A rumor started in these parts says that they have been released but I think not.

The usual sources reflected nothing as of this morning.

Hope I didn't miss something.

Regards,

David Hammond

Sentinel Retirement Services

Wakefield, Massachusetts

Can a person who reaches age 70-1/2 this year make a contribution to a traditional IRA? IRS Publication 590 says no. However, the only cite I have been able to find that has the 70-1/2 age restriction is under Section 219(d)(1) of the Code. And, that section deals with deductibility of contributions.

Cites would be appreciated.

Thanks.

Quantech Southern User Group

Summer Meeting

Friday August 11 – Saturday August 11, 2000

Orlando, Florida

Friday, August 11

12:00 – 12:30 pm Registration (Light Snacks Provided)

12:30 – 2:00 pm What’s New in Quantech 6.0 (Ken Simons, Corbel)

2:00 – 2:30 pm Break

2:30 – 4:00 pm What’s New (continued)

4:00 – 5:00 pm Roundtable Discussion: Converting from FDP to Quantech

6:00 until – Group Dinner at Bergamo’s (Italian restaurant with singing waiters)

Saturday, August 12

8:00 – 8:30 am Breakfast

8:30 – 9:15 am SUG Business Meeting

9:15 – 10:00 am Investment Downloads Using Quicken (Jason MacMorran, Faulk & Winkler)

10:00 – 10:15 am Break

10:15 – 11:45 am Tom's Quantech Tips II (Tom Poje, Lorraine Dorsa & Associates)

11:45 – 1:00 pm Lunch sponsored by Kemper Funds

1:00 – 2:45 pm Tom's Quantech Reports (Tom Poje, Lorraine Dorsa & Associates)

2:45 – 3:00 pm Break

3:00 – 4:30 pm DB Plans for DC Administrators (Lorraine Dorsa, Lorraine Dorsa & Associates)

Meeting Fee: $120 SUG members/ $170 non-members (incl. Friday dinner, Saturday breakfast & lunch)

Location: Sheraton Safari Hotel (800) 423-3297

12205 Apopka-Vineland Road, Orlando, Florida

Please call the Sheraton Safari Hotel directly to make your room reservations. Mention that you are attending the Quantech Southern User Group meeting. We have reserved a block of rooms at the special rates noted

below. These special rates apply to this block of rooms only, so make your reservations now.

Hotel Room Cost per night, excluding taxes: Single or Double $109; Junior Suites $139; Deluxe Suites $159

Name(s): _____________________________________________________________________________

Company: _____________________________________________ SUG Member?: 0 yes, dues prev. paid

0 yes, dues enclosed

Address: __________________________________________________________ 0 no, send application

Phone: ___________________ Fax: ___________________ Email: ____________________________

0 I would like to bring ___ guest(s) to dinner Friday and breakfast Saturday

[add $75 per guest to registration fee]

0 I plan to join the group for the optional Saturday night dinner at the Medieval Times dinner theater

(dinner, jousting exhibition, etc). My party will include ___ persons, including myself. (Cost to be

determined, estimate $40 per person. 14 day advance confirmation required.)

Return this form with your check payable to the “Quantech Southern User Group” to :

Maggi Heffernan phone: (770) 641-1429

Applied Financial Concepts fax: (770) 594-9631

1108 Hope Road, Atlanta, GA 30350

Does a document have to contain language about "legally separated" spouses for a participant to avoid the spousal consent requirements? Does a court order in effect for the "legally separated" status have to contain language about the retirement plan for a participant to avoid the spousal consent requirements?

IRS Reg 1.401(a)(20) Q&A 27 reads as follows:

§ 1.401(a)-20 Requirements of qualified joint and survivor annuity and qualified preretirement survivor annuity.

Q-27: Are there circumstances when spousal consent to a participant's election to waive the QJSA or the QPSA is not required?

Yes. If it is established to the satisfaction of a plan representative that there is no spouse or that the spouse cannot be located, spousal consent to waive the QJSA or the QPSA is not required. If the spouse is legally incompetnent to give consent, the spouse's legal guardian, even if the guardian is the participant, may give consent. Also, if the participant is legally separated or the participant has been abandoned (within the meaning of local law) and the participant has a court order to such effect, spousal consent is not required unless a QDRO provides otherwise. Similar rules apply to a plan subject to the requirements of section 401(a)(11)(B)(iii)(I).

-------------------------------------

I'm trying to interpret whether "a court order to such effect" means 1) a court order to the effect that the spouses are legally separated, or 2) a court order to the effect that the spouses are legally separated and the spousal consent will not be required in the plan.

My interpretation would be that the language does not need to be in the plan document, and there must be a court order that the spouses are legally separated. What is your interpretation?

Thank you.

Has anyone seen an education assistance program that reimburses employees for student loan payments? I'm envisioning a program much like a health FSA where the employee submits his/her proof of payment of each installment due on student loans and gets reimbursed by employer up to $5250 per year. It's possible that the employee took the courses several years ago and is still making loan payments. Would this work under section 127?

I am an employee of an S Corp, of which my husband is the majority shareholder. I own no stock directly. Can I take a loan on my 401(k)? Thanks for your help.

Where plan records are available to separate the pre-1989 amounts, are pre-1989 matching contributions (and other non-401(k) deferral money) that are distributed in a hardship distribution eligible for rollover?

I just started trading stocks with my Roth IRA Account. I track everything yearly for trading, but wasn't sure if I was required to do the same for the Roth?

My assumption was no, because the money is non-taxable. That would mean no tax on gains and no write off on losses. Correct?

Does anyone know of a good website to obtain copies of old Rev.Procs, Notices, etc., say back to the early '90's ??

I read a commentary that says that Code sections 419 and 419A do not apply to governmental employers. No citation in support of the statement was given. Is this correct? I haven't been able to locate authority for this statement. Any help you can give me (either way) will be appreciated.

Thank You,

Dan Wintz

I am an auditor of Employee Benefit plans within an accounting firm. We historically have audited plans up to about 400 participants. Recently, we were asked to propose on a plan with 2100 participants. What I would like to know: How many participants should I use as my sample size in order to get comfortable with the whole plan? Our reference material, PPC, discusses 25 and 60 as a sample size without reference to how many participants it is talking about. Can anyone share their experiences either from the audit or the audited standpoint? If you have any reference material I should refer to that would be appreciated. Thanks for your help.

A union employee left the company several years ago and was never eligible to participate in the profit sharing plan because union members were excluded. He is now rehired as a non-union employee. If his breaks in service is not greater than 5 years, is he immediately eligible to participate in the plan or does he have to wait one year?

How is employer stock worked into a 401(k) takeover? While moving the assets from one plan admin to a new plan admin, how is the stock handled?

A major mutual fund company made an error on my 1998 tax reporting that I didn't catch until now. They are refusing to correct this error becuase of the time frame invovled. They say that my "due diligence" has kicked in and it was my responsibility. At what time did this responsibility become mine and not the mutual fund company's since they were the ones at fault? I'm look for an IRS code or regulation that specifies how long the mutual fund company is responsible.

Thanks!!!