We are a TPA that has doubled in size during the past two years. We sponsor our own prototype documents. When assuming duties as successor TPA, if the company used a prototype document (most do), we have been restating onto our prototype.

Is this necessary? I understand that technically a prototype/master document becomes an individually drafted plan when the sponsor of the prototype (bank or tpa) is removed. However, when the restatement for GUST begins, for calendar plan years we will be restating back to 1/01/97 on our document. Therefore my question. During this gap period, can we simply continue to use the former TPA/Bank's prototype/master plan?

Any idea when the new forms will be released by IRS for 2000? Any word from vendors, i.e. Hyper Prep?

Plan has one HCE and Failed the ADP. Plan matches 25 cents on dollar, per pay period, up to 12%. We are going to distribute deferrals and related gains.

Q 1) Do we have to distribute related match?

Q 2) How do we handle the related match and gains that were made with those deferrals? If the answer is forfeitures, does the HCE share in those forfeitures and when must they be allocated?

Ineligible employees were allowed to make salary deferral contributions and received matching contributions. The amounts have been returned or forfeited under APRSC. Do the contributions have to be included in the ADP and ACP tests?

One of the projects on the IRS 1999 Business Plan was an update of Notice 92-48 relating to the model notice under Code section 402(f). This would update the IRS model 402(f) notice for recent changes in the law, e.g., repeal of 5 year forward averaging. To my knowledge, this model notice has still not come out from the IRS. Has anyone heard anything about this lately?

I am looking for a sample PTO policy that has all employees earning their annual allotment of time on January 1 of each year. The employee then budgets the use of time through the year. My problem area is how to structure the policy to get new employees on the January 1 earning schedule, given that they have been hired in any given month. They don't earn for the first 6 months, and I know their first year PTO earnings will have to be prorated based on the month of hire. Bottom line, is there an existing policy like this or is there a formula I can use to easily get all employees on the Jan 1 earning cycle.

Has there been any additional information from the DOL on including Stock Option Gains in the calculation of the hourly rate used for Overtime Pay?

I know there was an option letter released in 2/99.

I am increasingly running into this situation and wondered if anyone has any thoughts or can point to a good research resource.

Assume the LLC is taxed as a partnership. Effectively, the compensation for each partner for plan purposes would be K-1 adjusted by 1/2 SE (self employment) tax (I think?). What happens when there are guaranteed payments? Guaranteed payments are cash distributions each partner will receive annually under partnership agreement, and commensurately these payments reduce reported K-1 income (this is my understanding mechanically).

In this situation is the partner's plan compensation his guaranteed payment received plus his K-1 adjusted by 1/2 his SE tax? I do know both the guaranteed payment and the K-1 are subject to SE tax. This would make sense to me but I'd be more comfortable w/ some verification. Thanks for any help.

What are the deadlines to distribute SPDs for a new welfare plan?

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?