BLS does the small private establishments survey in even-numbered years, and medium/large establishments in odd-numbered years. The 1998 survey isn't on-line yet.

http://www.bls.gov/ebshome.htm

Employee Benefits in Small Private Industry Establishments, 1996 http://www.bls.gov/special.requests/ocwc/o...bs/ebnr0004.pdf

I am trying to decide how to set up our first plan that has more than one investment option. Since our other plans all have one investment option - we have always used the cash basis. This plan has many funds to utilize and we receive individual statements from the investment group showing the share price/value of each transaction for each participant. There is no reports however for the plan as a whole - so we want to utilize Quantech to keep these accounts. Quantech support has said that we can do it either by cash accounts or unit accounts. They say the unit method is more tedious and we would be duplicating the work for no reason. However, under the cash method it seems to me that you have to always back into the earnings posting.

Do most on Quantech utilize the cash method? If so, how do you calcuate the earnings if it is not reported to you by the investment company? When is it appropriate to use the unit method - daily valuations only?

This plan is being used as a "Test pilot" to see if we have the staff to go to a participant directed product - so I am not as interested in what is the best way for this plan, but what is best in general.

What plans follow the newest cafeteria regulations (11/97)? What about dependent care expense account and group term life insurance?

Has anyone switched from any of the DOS Section 125 administration programs to the Windows/internet versions? How is it working? Have the fees you have to pay for support and internet access been justified? What is your favorite program? Thank you. Susan Luskin

I have been contributing $2000 a year since it was available. I file jointly with my wife, but she no longer works. I was told since she does not work, she (or we)cannot contribute another $2000 into her Roth aco****. SHe does have one from wehn I rolled over her IRA account from when she was working a few years ago.

Can we contribute another $2000 for her, even if she is not working, yet files jointly with me (I do qualigy).

Is Laser Eye Surgery (LASIK) an allowable medical expense to turn in for reimbursement under a 125 Plan? If so, does it matter if the surgery is done inside or outside the United Sates (we have a lot of people go to Canada in our area)? Thank you.

If a participant leave a 401k plan and had employer stock in it, rolls over the cash portion and takes a distribution of the stock shares what basis does he use for the stock (he is not selling shares- just holding) and when he eventually dies what basis does the beneficiary use? Is there a step-up basis and can you briefly exlpain? I would appreciate any insight.

I'm a little confused about example (1) in Q&A -14 of Proposed regs on transit passes. In the example, the employee reduces his or her compensation for up to the statutory limit each month and receives a pass for that month. The IRS says this example is an example of a valid compensation reduction election. Thus, if an employee reduces compensation during March and receives a pass for March during March, that is acceptable. A more realistic example, and one that would be more palatable to employers and employees is to have the employee make payroll deductions in February and receive the pass at the end of February so that the employee could purchase tickets for March. Neither the proposed regulations nor the examples state that such an approach would be acceptable. Any thoughts on this?

"Senior" IRA owner is receiving RMDs and becomes mentally incapacitated (no legal guardian appointed). IRA beneficiary is child of first marriage. Spouse #2 wants to accelerate IRA withdrawals "to support spouse IRA owner." IRA agreement does not address situation. Spouse #2 has a general power of attorney (which does not specifially mention the IRA). Are there any federal precedents, rules, experiences on this or is it simply a state law question?

Thanks for any help.

An employer did not take 401(k) deferrals out of bonuses for at least 5 years. The plan document did not exclude bonuses from the definition of compensation. For the most part, the bonuses are small amounts, but pretty much everyone got one each year. Any thoughts as to whether this could be corrected under APRSC or which IRS correction program would be most appropriate?

We are looking to put in a stock purchase plan ...Looking for some vendor recommendations?

An underfunded DB plan is being terminated with the plan sponsor agreeing to pay whatever contribution is necessary to fully fund (standard termination). Irrespective of the usual normal cost and 10-year amortization rules, can the contribution be fully deductible immediately to the extent needed to fund PBGC guaranteed benefits? This seems to be what 404(g) implies.

Employer incorrectly calculted match and too much was contributed to both HCE and NHCE. Is ACP test run with incorrect amounts included or after corrections are made? Or do you leave it for HCE but take it away from NHCE before running ACP test?

Itook a teaching position and our deal was that we would both pay half concerning our health coverage. My half has been taken directly out of my check. Unfortunately my employer did not send any of the money in and our policy was cancelled due to non-payment of fees. In this time, I thought I had coverage and have accrued dr. bills that the school says they are not liable to pay. What can i do? I need HELP!!!

A participant submitted a deferral election form, which the plan sponsor also signed, in July of 1999. The participant just noticed that deferrals were not being withheld from the paycheck and informed the plan sponsor. The plan is a calendar year plan. What is the correction?

Does a person terminating their employment have an option to receive a payment from their retirement plan instead of waiting until the age of 55?

I have a doctor who maxed his contribution to his own Keogh as well as 2 401k plans at 2 different employers (works at 2 different hospitals). Should the 401ks be treated as one and be limited to the $10k limit in total. Is he limited to the max he can contribute in the Keogh based on the contributions to the 401ks. Or are all the plans treated separately?

When a sponsor establishes a plan with a mandatory 414(h) provision, I know that an employee can make a one-time irrevocable waiver not to participate and the regs regarding 401(k) plans state that such a one-time election will not be treated a a cash or deferred election. Treas. Reg. 1.401(k)-1(a)(3)(iv). However, in this reg, it states that, amoung other requirements, the waiver must apply to "contributions....... made by the employer on the employee's behalf to the plan and to any other plan of the employer (including plans not yet established) for the duration of the employee's employment with the employer....."

What if the employer adopted a plan in the future requiring no employee contributions? What if the employer amended the original plan to abolish the 414(h) provision?

Am I reading too much into the reg. or is the employee just out of luck for good with that employer?

Does the reg. only apply to future plans with employee contributions?

Thanks to all for the feedback.

When a fiscal year plan is amends to a calendar year plan is the top heavy test applied correctly in this example?

Year 1: 9/98 - 8/99

Year 2: 9/99 - 12/99

Year 3: 1/00 - 12/00

Determ Date yr 1 = 8/99

Determ Date yr 2 = 8/99

Determ Date yr 3 = 12/99

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