Cathy,

Look at lines 4d and 4e of the Schedule T and the blank lines provided, then refer to the instructions. Does this answer your question? (I believe that there is no need for attachments as long as there are 4 or fewer disaggregated parts of the plan).

I've read that a 503©(3) nonprofit cannot establish a SIMPLE IRA but can a SIMPLE 401(k). Does anyone have a reason for this? Thanks.

We are looking for practical feedback on how other independent TPA firms may handle the following situation.

Plan Background: Standardized 401(k) plan (Corbel) with forfeitures used to reduce contributions (match only). Match is 25% of first 6% with discretionary match above 25%. Many participants terminated during the year, so there were significant forfeitures. The employer contributes the match each payroll along with the deferrals. By the time the forfeiture amount was determined, it was well into the following plan year.

Question 1: Since forfeitures were not calculated until late the following year, can the forfeitures be used to offset employer contributions from the following year rather than the actual year of the forfeitures?

Question 2: Since the forfeitures were not known until late in the following year and the company had been contributing the match all along, the available forfeitures exceeded the amount of the required match for the remainder of the year. If the employer has not yet filed the corporate tax return, can he take the employer contribution back (a mistake in fact) and claim a $0 employer contribution on the corporate tax return?

Question 3: If the employer can not get the money back, can the excess forfeitures be carried over to the next plan year?

Question 4: In general, if due to the preference of either the employer or the investment company, can forfeiture money be sent back to the employer so it can write a check for an employer contribution rather than directing the money be taken from the forfeiture account each month?

I thought I read last week (on BenefitsLink?) that there was a web site where you could pay to look at archived Form 5500, even one person plans. Did I make this up? HELP!!

I thought I read last week (on BenefitsLink?) that there was a web site where you could pay to look at archived Form 5500, even one person plans. Did I make this up? HELP!!

Form 5500 and 5500EZ have now added for the first time the identification of a "paid preparer" (line 5). Instructions say that completion is optional. I'd be curious to know what other TPAs and actuaries think about the completion/noncompletion of this item and any potential ramifications.

Is this a mistake on the form? For a Profit Sharing plan you need to indicate the payor ID# in box 2. Right under box two it says skip line 3. But the instructions seem to indicate you DO fill in the number paid?

Are you putting in the number on line 3 or leaving it blank. THANKS!

Plan has safe harbor hardship withdrawal language. Issue: participant who desires hardship withdrawal has vested but unexercised stock options. Options are currently above water, and participant may take advantage of cashless exercise. Administrator's question: Does Reg. 1.401k-1(d)(2)(iv)(B) mean that the administrator must require the participant exercise his vested options (using the cashless exercise process, not cash) before the participant qualifies for a hardship distribution?

Has anyone encountered this situation before? If so, what did your plan administrator do?

I'm conservative and feel that the participant must be able to revoke his consent prior to the payment and I feel the amount should be on the form. However, we have a client that wants the consent to be irrevocable and does not want to have to enter the amount. They say the participant can look on the prior statement.

Are there some cites out there that specifically address this? The regs say the form must explain the "relative values" of optional forms of distribution. Anything else? I'm also particularly interested in the "irrevocable" aspect the client desires.

Thanks.

Two questions regarding hardship withdrawals under the safe harbor withdrawal provisions.

One: Can the administrator, in his sole discretion allow a hardship withdrawal without requiring the participant to first exhaust his plan loan options? Any precedent?

Two: If the plan forgot to stop employee voluntary payroll deductions when the hardship check was issued how should this be rectified? The participant received the distribution in December 1999, the end of the 99 plan year, and is still contributing. Can we stop contributions now and start the 12-month period? Any precedent?

Does anyone know the status of this aspect of HIPPA? As I recall, some members of Congress have been delaying funding for any system of National identification of individuals.

If the assets of a defined benefit plan exceed the liabilities, can one freeze the plan and take the excess as seed capital for an ESOP ?

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?