We have a client who is dissolving its for-profit subsidiary. As a result, the 401(k) plan sponsored by the subsidiary will be terminated. The client would like to distribute the 401(k)'s assets upon termination. The client, however, sponsors a 403(B) plan, which all of the for-profit employees will be immediately eligible for once the for-profit subsidiary is dissolved. Will the 403(B) plan be considered a "successor plan" for 401(k)(10)(A)(i) purposes?

The company that I am currently working for is interested in implementing an Adoption Assistance program. Would love to hear what other companies are doing.

Thank you.

We have a client that terminated its plan in december of 1999. most of the plan has been paid out. however,we did not update it for GUST or submit it for a determination. We would like to do this however, the plan sponsor does not exist anymore. What can we do?

A controlled group exists with several companies and one company is sold, with original owner (sponsoring the plan) retaining less than 80% ownership. What must the Company that sponsors the plan need to do since the company sold is no longer a member of the controlled group? Also, what about the participants in the plan that worked for the company that was sold? The plan is on a prototype document. Any ideas?

If I have 9 employees and do a 20% test, I get an uneven number. Do I round up to 2 employees? Round down to 1?

appreciate the help thanks!

I thought I read somewhere that, pending resolution of cash balance conversion issues, determination letters for all types of plans (including non-cash balance plans) will include a caveat that the letter cannot be relied upon with respect to cash balance plan issues. Can anyone confirm this? What exactly does the caveat say? Has anyone received a determination letter (on any kind of plan) that includes this caveat?

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Where can I find a good model notice for

negative elections? Has the DOL provided one?

[This message has been edited by John C. Forrester (edited 05-02-2000).]

Yes, the amount converted from a traditional IRA to a Roth IRA is included in gross income for the year in which the conversion is made. That means you will have to pay tax on the amount converted.

However, the amount converted does not count in determining whether you can make the conversion. If your adjusted gross income, excluding the anticipated conversion amount, is greater than $100,000, you can't convert to a Roth IRA.

Hope this helps.

I thought I read somewhere that, pending resolution of cash balance conversion issues, determination letters for all types of plans will include a caveat that the letter cannot be relied upon with respect to cash balance plan issues. Can anyone confirm this? What exactly does the caveat say? Has anyone received a determination letter (on any kind of plan) that includes this caveat?

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On Wensday, April 26, 2000 the near 1000 employees of Burgess-Norton Mfg. Geneva, IL. were informed that effective immediatly that the distribution of there ESOP benifits has been changed. BN is one of eleven companies opperated by Amsted. Around half of these companies employees have ESOP benefits through Amsted.

Wensday at BN employees were informed that the 100% distribution at the end of employment would now be only 20%. The remained of the money would be distributed the following 4 years at 20% portions. However the interest paid during this period would only be a fixed 6.7%. Employees that had already set retirement dates after wensday would also be included.

It is not clear yet as to which company is responcicle for the after the fact notification. The motive however is not: employee retension.

Is there any sort of legal action that could be taken to prevent Amsted from holding on to what is not thiers? If interested in representing the employees of BN and the other effected companies please email to .

Also I would appreciate responses to this posting.

I remember seeing a website that BenefitsLink referenced which listed the 30 most common mistakes concerning plan participants. Anybody remember the website?

A new client of ours has been told by his former TPA (doing 12/31/99 work) that his target benefit plan terminated 5/26/99 based on an ERISA Notice dated 5/15/99. Therefore, he has no accrued liability to the plan for 1999. I cannot find the Notice referred to. Can anyone help? Thanks.

Have there been any predictions, official or otherwise, as to whether the DOL, rather than the IRS, will issue late filing notices and administer their resolution? In my experience the IRS has been fairly lenient in forgiving minor delays or failures to file but it is my understanding that the DOL is not so forgiving (even participation in their late filing amnesty program costs $$$$).

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Is there any reason that in-service withdrawals (that are not hardship withdrawals)cannot avoid the mandatory 20% withholding by being directly rolled over to a traditional IRA? Or does the 20% withholding always apply to in-service withdrawals (that are not hardship withdrawals)? Can in-service withdrawals be rolled over after the 20% withholding?

I currently have a subscription to Research Institute of America Pension and Benefits Weekly Updates. It is quite expensive for a self employed actuary starting out. Does anyone know of either a cheaper service or an internet site or any other means that gives a pension acturay up to date happenings in the pension world as well as applicable interest rates?

Thank you

Is open enrollment permitted when a plan is restated? For example, a new plan may require one YOS and age 21 to participate, but waive these requirements for anyone employed on a certain date, say January 1. Can this also be done when a plan is restated? I was always under the impression that it could be done only for new plans. Thanks.

We have a client with a profit sharing plan with term life insurance. In checking the incidental benefit limitation, there are 2 participants whose premiums exceed the 25% limit. We have looked at all contributions (and forfeitures) allocated to the participant's account, and all premiums paid from the participants account, going back to the participant's original date of participation. My question is what, if any corrections need to be made for this plan year? This is a 12/31/99 calendar year plan.

I'd appreciate any input on this issue.

In the past, if you had a plan that started let's say with 95 particpants and then eventually ended up with more than 100 particpants but less than 120, you did not need to have an audited report sent with the return (you could still use the 5500 C/R series). With the new 5500, will that provision still be available?

In all of the discussion about portability, lack of savings, etc. I have yet to see a good explaination of why Participants are allowed to remove their retirement plan funds, whether DC or DB, from retirement savings and spend it on whatever. The current 10% penalty is no real penalty when the choice is spending or not spending. Other than for a real hardship, ie, mortgage foreclosure, medical emergency, etc. it seems to me that a rational retirement policy would not allow Participants to spend their retirment funds until retirement.Having seen no real discussion of this issue, I do not know what the rationale is for the currrent system, if there is one. Any comments?

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A plan says that eff 11/1/96 all lump sums will be paid under GATT assumptions. The amendment isn't adopted until 8/14/97. A person terminates in May 1997 and receives lump sum in June 1997. Should this lump sum be paid under pre amendment PBGC rates or can it be paid under GATT?