I recently received a letter from a previous employer stating that the 401(k) plan that I had participated in had, from 1/1/95 through 7/15/97, been administered as if the plan document provided for quarterly entry dates. In actuality the plan document provided for semi-annual entry dates.

I began participating on 10/1/96 (quarterly entry). Quarterly entry was expressly stated in the SPD that was provided to me. I terminated in 11/97 and opted to leave my money, which was in excess of $3,500, in the plan. On 10/22/99 I rolled all of my money into a Rollover IRA.

They are now telling me that a portion of the money that they distributed to me on 10/22/99 included ineligible salary deferrals plus earnings and do not qualify for tax-free rollover.

I don't believe that I should be punished for their inability to administer their own retirement plan?

I had made deferrals based on their guidance. Do I have a problem here?

Eligible employer sponsors a "bridge" plan that pays $400 per month to employees who terminate after age 55. Payments end at age 62, with the intent that payments are a bridge to Social Security benefits. Plan doesn't satisfy 2000-1 "severance pay plan criteria." If 457(f) applies, we have a tax problem because no substantial risk of forfeiture. Can this arrangement be treated as an eligible 457 plan? Has anyone seen this type of formula in an eligible plan? How do you calculate dollar limits under 457(B)(2)? Since there are no employee deferrals and no assets are set aside to pay benefits, is a 457(g) trust required?

Is there any SEC or DOL guidance on the timing of the processing of trades received in a daily valuation environment? Put another way, is it permissable for a daily val. recordkeeper to have blackout periods at the end of a quarter where they don't allow trading or have cutoffs at a time during the day prior to the market closing?

Is there any SEC or DOL guidance on processing mutual fund trades in a daily environment? The main issue I am concerned with is whether the daily recordkeeper can not process trades received say at 3:00 p.m. from the participant for various admininstrative reasons.

Plan allows participants to elect an immediate distribution of rollover account balance. Want to amend plan to allow distribution of rollover account only when there has been a distributable event (ie, termination of employment, retirement, etc.).

We are trying to move from one prototype plan to another. The current prototype allows immediate distributions of rollovers and the new prototype does not. I would think this is a cutback with respect to rollovers put in the plan prior to the effective date of the amendment. Any thoughts?

Are ministers who are eligible for the 107 exclusion for housing allowances (parsonage allowance) always treated as self-employed for self-employment tax purposes? Or could they be treated as employees subject to FICA?

I'm confused. It seems that the housing allowance is only available if the minister is performing religious functions, and that seems to make him or her self-employed (or at least subject to self-employment taxes). But I've also seen information that says that a minister can be an "employee." Is the idea that the minister can be an employee, but will nonetheless be treated as self-employed.

I have an unusual situation - a 403(B) plan defines compensation for purposes of contributions as FICA compensation. I have a minister who gets a housing allowance. My ultimate question is whether the housing allowance is included in compensation for purposes of the 403(B) plan.

i feel like i should open a roth because although i have sizable loans, i also have sizable investments that are being taxed. In fact, i have left over loan money borrowed at 6.5%. Should I put this money into a Roth with a proposed growth rate of 12%

I need information on any Seminars or Publications available on how to become Compliant with the Department of Labor pertaining to Pension Plans & Profit Sharing Plans. I need to create an Accounting System for our Pension Plan and need some help in developing this. Any seminars on this would be most helpful. Thanks in advance.

The language you quote is originally from DoL Reg. 2530.200b-2(a)(2). It is counted for all purposes (not just to avoid a break in service). (See 2530.200b-3(a) for official confirmation of that.)

That said, you can have a plan that counts only "working hours." But a year of service is then 870 hours, and a break in service is 435 hours. (See 2530.200b-3(d).

Looks like you got an answer to this one on the Church Plans message board, from my former partner Danny Miller, who definitely knows what he is talking about in this area.

http://benefitslink.com/boards/index.php?showtopic=2050

All Section 125 plans (including premium conversion plans) should have all proper testing done and any company that is not insuring it is, is risking their entire plan. Testing should be done prior to the beginning of the plan year (as was discussed in the last posting on this topic) and appropriate adjustments made to insure compliance prior to the start of the plan year. Interm testing may also be required if there is a significant change in participation during the plan year and appropriate adjustments, if any, made at that time. For example, a large group of employees are hired or the company downsizes either situation could radically alter the testing results.

I am about to switch to unit accounting on some accounts...

Anyone doing it? How is the conversion process utility? Any problems of note? How is the div. utility?

(anyone moving to bay area, need a job?)

I am a 28 yo med student interested in opening up a roth. I would also like to purchase a home down the road. I understand that 10,000 is withdrawable, but the roth owner must be a first time homeowner. Does anyone have the precise definition of first time homeowner?

Does anyone know if Electro Dermal Screening is an eligible expense, aka EAV - EAV stands for "Electro Accupuncture according to Voll." The clinic states that this is FDA approved for investigational purposes only. I'm not certain what this means but evidently the office visit was for skin/probe read outs. This procedure has no needles but more of an electrical read out. Any help here would be well appreciated. Help!

I am relatively new attorney (associate) in the EB field and have been asked by a partner to begin drafting a KSOP. Therefore, I'm looking for a model KSOP document. Does anyone have any thoughts on where I might locate one?

We have taken over a Plan that currently uses the Elapsed Time method of crediting hours of service. Our document, however, only allows for acutal or the equivelancy method. what if any would the impact be of swithing the plan over to the actual method mid plan year? Should something like this be done at the start of the Plan Year?

I am 27, and will likely be leaving my current job. Upon leaving, I have the option to rollover my retirement earnings into an IRA.

I do not yet own a home and would to have the OPTION of using part of my retirement as a down payment on a house. I understand that one of the allowable hardship withdraws is for the purchase of a new home. However, I am not clear on how this works exactly.

Does this work with Both a Traditional IRA and a Roth IRA?

Do I have to wait 5 years before making any hardship withdraws?

Anything else I should be aware of?

I negotiate contracts for employee groups in public schools. One small country CPA has convinced the Board of Education that it is permissable under the Code to give employees the choice between employer-paid health insurance or a contribution by the employer to a 403(B). I don't believe this is permitted; I believe in either the case of the annuity or Section 125 plan cash has to be one of the options.

Where can I find something definitive on this. (The CPA refuses to seek a letter ruling from IRS.)

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Ben

We are starting a search for a new Actuary and I need some information or samples of questions for an RFP. Can anyone help me out here??? Any help would be appreciated.

Client signed Resolution indicating a PS contribution for 1998. Contribution was never made. Annual report was prepared and statements delivered to participants. A subsequently terminated participant received a distribution including the 1998 "designated" contribution.

Employer is financially unable to make contribution. Can employer revise the 1998 annual report and deliver amended benefit statements to participants? How does the plan handle the terminated non-key employee who received the "designated" contribution?

The 1998 5500 does indicate a receivable employer contribution; no deduction was taken on the 1120.