Can a participant choose to have his required minimum distribution calculated using his spouse for the J&S calc if someone other than his spouse is his beneficiary? In other words, can they be different people?

I am currently negotiating a compensation package for our 4th (key) employee, and am looking for guidance regarding what portion of the company should be set aside for employees generally, and what portion should be awarded to early, key employees (as options). Any comments from eployees or employers would be greatly appreciated. MTIA!

Please include cites, if known.

I would appreciate an answer with any legal cites.

We have a restricted bonus plan using VUL on 35 employees of a US company. One covered employee is a Canadian who live and works in Canada. Canada requires annual reporting on investment income from life insurance unless the policy qualifies as "exempt."

Can anyone refer me to an attorney or CPA firm who has experience with this type of situation?

Has anyone heard whether or not the legislative bill mandating several changes to dollar limits and, mental health inpatient days, outpatient visits and copay limits pertaining to mental health coverages has been approved?

The latest major action was as of 8/6/99 when it was referred to the House subcommittee.

Effective date is listed as for plan years beginning on or after 7/1/2000, which would make the effective date 1/1/2001?

Thanks.

I have an employee who's spouse was on medicaid. Her coverage was cancelled two months ago. Can he add her to his coverage now even though the qualifying event happened over 30 days ago?

My understanding is that under a controlled group rule, both companies must have a 401k plan, or we must drop ours. Is there some kind of alternative to dropping our plan?

Our company has elected to have an employee leasing firm take over the current staff of our company as of Jan. 1. Prior to that, our company had a SIMPLE IRA implemented in Aug. 1998. The leasing firm currently does not offer any retirement plan (but is looking into a 401K). Consequently, our company had to discontinue employee or employer contributions to the SIMPLE IRA (for the 2000 tax year) when the leasing firm took over.

What options do we have with our current account balances (other than keeping it in the current plan or mutual funds)? Where can we transfer the money to with the least penalty from the IRS? Can they be transferred to traditional or Roth IRA's?

What are the implications on transferring before and after the 2 year holding period I've heard about?

Carl

The plan is still a 401(k) plan so it still files the form 5500 as a continuing plan. By your message, all you did was adopt the SIMPLE provisions to your plan. Adding the SIMPLE provisions does not terminate the 401(k) plan so there is no need for a final 5500 return. The plan is still on-going, still has the same plan number, etc. If you fail to comply with the SIMPLE rules added to the plan, your document still treats you as a 401(k) plan and you are then subject to the ADP test rules you seek to avoid by adopting the SIMPLE provisions. If you actually terminated the 401(k) and adopted a SIMPLE IRA plan, the answer would be different.

Can you set a predetermined value of stock to be transferred in satisfaction of the ESOP loan upon default or must the value be determined on the date of the default or maybe most recent valuation date? Any insights?

How are 403(B)(7) excess deferrals corrected? How should the correction be reported by the custodian? Does the employer need to amend any reporting like the W-2?

Client converted Traditional IRA to Roth just after getting married in late 1998. New spouse's income threw them over the $100K threshold. Client received notice of this from IRS 12/99 but failed to recharacterize prior to year end. What counsel would you provide and is there any chance of forthcoming legislation that would re-extend the period to recharacterize and/or address the discrimination against married couples with respect to the conversion limit on a retroactive basis?

Am I correct? If I want to split my test (for those who have less than one year service and are not age 21), I still MUST include in the one test I do all HCE'S even if they did not meet the age and service requirements. I thought I had it - but Datair support disagrees. Thanks alot.

I'm having a bit of trouble convincing an IRS agent that Average Compensation for a DB Plan can be determined without regard to when the plan began (i.e. a participants high 3 years can be derived from year's prior to the inception of the plan.)

The agent is insisting that the definition of IRC 415(B)(3), "a participant's high 3 years shall be the period of consecutive calendar years (not more than 3) during which the participant both was an active participant in the plan and had the greatest aggregate compensation from the employer," applies to a participant who's years prior to the inception of the plan yeiled a higher average compensation.

I have directed the agent to Reg 1.415-3(a)(3) which states: "...a participant's high 3 years of service is the period of 3 consecutive calendar years during which the employee had the greatest aggregate compensation from the employer"

My comment to the agent was that the regulations clarify the code, and are what should be relied upon in this instance. Her response is that the regulations do not modify the code, and cannot be relied upon.

I am looking for a cite that states that the regulations should be the overriding factor (even if they are more lenient than the code), and may be relied upon.

I am an employee of a not for profit organization funded by federal grants. We have over 50 employees but under 50 are currently enrolled in the health care plan. We do not have a benefits administrator and I have been asked to help with getting bids for new health insurance since the current one is a PPO and the local hospital and the local physicians are not signed up with the insurance (which means substantially higher payments for the enrolees).

Is there someplace that I could get direction or further information about what the rules are regarding to 50 employee cutoff (I know there is something, I just don't know what)and for the RFP and any other information that would be conducive to getting bids for affordable health coverage?

A plan sponsor, through a paperwork error, transferred a participant's account to the wrong fund. The sponsor now wants to correct the error by contributing the $10,000 (earnings lost by participant)to the right fund. Does this correction fall under any correction program (APRSC, VCR, etc.)? Are there any problems associated with 415 limits, deduction limits, etc. (that is, is it possible the $10,000 correction has to be considered a plan contribution and/or an annual addition, etc.)?

If a defined benefit plan had froze accruals for 2 years and now is unfreezing benefits, do the frozen years count toward a participant's accrual fraction??? How does this affect a particpant who terminated service prior to the unfreezing of benefits??

65 year old female has $40,000 invested in traditional IRA with a basis of $8,000. She does not need this money for expenses and does not want to take MRDs at 70.5. Assume her estate is less than the unified credit equivalent, so only concern is income tax. Can she purchase a whole life insurance policy, naming children as beneficiaries, to allow for tax-free transfer of IRA proceeds upon her death?

My company currently covers well child benefits (immunizations, physicals, etc..) up to age 6. No other well child benfits are covered until age 18, when the plan begins to pay for 1 routine physical every 4 years. I am interested in knowing what other plans out there cover in this area. Any comments suggestions are welcome. ALso, please state where you are and what type of company you work for.

Thanks!!!