It's called Trust Officer's Power Pack, at http://www.bankinfo.com/Fundsm/trustpack.html.

[This message has been edited by Dave Baker (edited 02-03-2000).]

In the 8th Circuit, if there is a conflict between the SPD and the plan documents, the SPD trumps the plan documents. What is the case where the SPD contains an "active work" requirement, but the plan documents do not? I would assume a summary cannot contain requirements not found in the plan documents, but does anyone know of authority for that proposition?

New COBRA rates for the 12 month period are due Jan.1. Plan does not receive rates, quotes last year's rate to current COBRA enrollees and new elections. New rates arrive Jan. 25. Plan wants to retro the increase back to Jan.1, even though premiums are paid for January and in some cases 3 months in advance. My first thought is no way, but how long is the Plan tied to the rates quoted Jan.1?? May the Plan use the new rates any time during the 12 month period or are they bound (quasi-contractually) to provide COBRA at the first premium amount until a new 12 month period. Please provide citation if available...right now I'm thinking 26 USCS Section 4980B(f)(4)©applies("any applicable premium shall be made for a period of 12 months and shall be made before the beginning of such period."

Does anyone know if there are regulations on how soon participants must be notified of plan changes to a non-contributory dental plan?

Does anyone know of a court case or otherwise where the 10% early distribution penalty under IRC Section 72(t) has been challenged?

Or do you know of a tax case where a ruling has been made?

I have always thought that it is an arbitrary/illegal tax, and may want to fight it unless it's already been decided.

I have recently heard the as yet vague idea that a large IRA account holder could use a variable annuity to get money out of his estate w/o paying a lot in income tax. Apparently the annuity is set up to create a low basis for the purpose of making the IRA withdraw. Anyone have a take or experience with this mechanism?

I have recently heard the as yet vague idea that a large IRA account holder could use a variable annuity to get money out of his estate w/o paying a lot in income tax. Apparently the annuity is set up to create a low basis for the purpose of making the IRA withdraw. Anyone have a take or experience with this mechanism?

Employer has 12 employees in U.S., all in one location. The employer is a wholly owned subsidiary of a corporation in Europe that employs several thousand employees.

I think the controlled group rules require us to consider the employees in Europe in determining whether the employer has 20 employees, meaning that the U.S. employees are subject to COBRA.

Does anyone disagree?

Employer has adopted a matching formula of 100% of elective deferrals minus any amounts contributed to the profit sharing portion of the plan for that participant. Is this a permissible matching formula?

I'm looking for stats on the % of small businesses (under 25) that offer PS (no 401(k) option) plan. And also, what is avg. % of employer ontribution.

Thanks on advance

Can anyone direct me to a link/site that will give me statistics on small businesses and the % of those that sponsor PS plans? any help will be greatly appreciated.

Is it permissible to process a divorce transfer of SIMPLE-IRA assets to an ex-spouse within the 2-year holding period to either a SIMPLE-IRA or an IRA for the benefit of the ex-spouse.

An ESOP (which was at one time a leveraged ESOP, but has subsequently paid of the acquisition loan) acquired a "keyman" life insurance policy on the principal of the company. The policy then began to have a cash value shortly before the acquisition loan was fully repaid, however the Trust has never allocated any of this cash value to participants ESOP accounts. The cash value of the policy continues to grow.

I believe this should be considered a plan asset, and thus allocated to the participants.

I am curious as to whether any rules exist which would not require such an allocation? Would such rules, if any, only not require such allocation during the leveraged period (while the loan is being repaid with trust assets?).

Any help or references would be extremely helpful.

[This message has been edited by svatty (edited 02-01-2000).]

I'm working with a company that offers both a money purchase pension plan and a 401(k)plan. Currently, they self-administer and self-trustee the plans. Both plans offer individual brokerage accounts. Employees are permitted to open a single brokerage account to hold contributions from both plans. For reporting purposes, the company performs a pro-rata allocation of assets/transactions, etc. to determine activity in each plan.

Although I can't cite any legal authority, it seems that this approach has some issues:

1) Do you have a master trust if assets from two plans are commingled in a single brokerage account?

2) Are you accurately tracking benefit accruals (given that the MPPP and 401(k) plans have different distribution options) when you do a simple pro rata allocation to determine gains, etc. in each plan (presumably, the 401(k) plan receives contributions at a different frequency than the MPPP)?

Has anyone else experienced this type of fact pattern? Is there any legal authority supporting (or prohibiting) a single brokerage account for multiple DC plans? Opinions?

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

Jon C. Chambers

Principal

Schultz Collins Lawson Chambers, Inc.

(415) 291-3004

I am reltivly ignorant on this subject matter so any help is appreciated.

Currently my client has a 401(k) plan, it was part of a control group but due to change in ownership it must now be split into 3 seperate plans. The 3 new organizations would have less than 100 employees in each.

Can the 401(k) be terminated and then a SIMPLE IRA be setup?

Does this seem ideal or is there anything else I should be considering. I understand the setup of a SIMPLE IRA but am interested in other peoples experience with possible regularoty issues and conversion experience.

Thanks..

There's a raging discussion in our office about the entry date when restructuring the ADP/ACP test as allowed by Treas. Reg. §1.401(k)-1(B)(3))(ii). This allows us to exclude and test NHCEs who met the plan's entry requirements, but haven't met the statutory age and service requirements of §1.410(a)-3. This all seems straight forward to me, but there're some in the office who take it a step further and apply the statutory entry dates of §1.410(a)-4(B). I'm trying to find out if anyone else has heard of this. If you do, what's your guidance for appling the statutory time of participation rule to the otherwise excludible employee group?

I am located in Albany, NY and am currently looking for a health insurance carrier who would be willing to sell a stand-alone prescription plan. I have not had much luck with our current carriers. Is anyone aware of a carrier who may be able and willing to offer this? Any information would be helpful!

When the alternate payee is the spouse is the amount transferred to the spouse taxable to the employee or the spouse? Do you have a reference on this topic. It seems that if the employer is a governmental employer it is taxable to the spouse, but if the employer is a non for-profit the employee is always taxable. I cannot find any good reference material on this topic.

I am pregnant and work as an hourly employee for a very small consulting company in NY. Each payperiod a deduction is made towards the NYSDI. My employer has no formal benefits plan available and therefore I will not have any maternity leave benefits.

However, because I am paying towards the NYSDI, would I be able to make a claim once I stop working to deliver? And how much and for how long can I make a claim? Would my employer be required to process a claim or am I to do this myself? If I have to submit the claim myself where and how do I go about doing this? I have asked my employer and he seems pretty clueless. Any help will be gratefully appreciated.

I am pregnant and work as an hourly employee for a very small consulting company in NYS. Each payperiod a deduction is made towards the NYSDI. My employer has no formal benefits plan available and therefore I will not have any maternity leave benefits.

However, because I am paying towards the NYSDI, would I be able to make a claim once I stop working to deliver? And how much and for how long can I make a claim? Would my employer be required to process a claim or am I to do this myself? If I have to submit the claim myself where and how do I go about doing this? I have asked my employer and he seems pretty clueless. Any help will be gratefully appreciated.