Has anyone found a way to provide access to participants to Quantech via the Internet other than through Quantech's own interface? Any assistance will be appreciated greatly.

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A participant dies with an outstanding loan balance. The beneficiary requests payment of the remaining account balance, the plan defaults the loan, thereby creating a deemed distribution. With respect to the taxes that are now due on the deemed distribution, who is liable for the taxes on the defaulted loan? The participant (his estate) or the beneficiary?

Seven months ago my previous employer deducted two months contributions from my paycheck but did not deposit it into my 401(k)account. Furthermore, when I requested that my account balance be transferred to a new account sponsored by my current employer, only my contributions were transferred. The employer match balance was not. I am fully vested in the account. My previous employer stated that they did give me the balance of the employer match because they made a mistake. Apparently they just learned that they did not have to deposit the match unless they were profitable. Hence, they stated on the transfer form that I was 0% vested knowing full well that I was fully vested. Others who have left the company received their full account balance.

What are my options?

Is a VEBA subject to the limitation under ERISA Section 407(a)(2), which prohibits a plan from holding qualifying employer securities in excess of 10% of plan assets?

I know that there are rules preventing forced payouts of benefits under a plan without consent (unless less than $5000 or a distribution that is not immediately distributable), but what would be wrong with giving a participant an incentive to his or her consent to an immediate lump sum payout? (E.g., cash incentive). Arguably, this wouldn't violate the "significant detriment" rule under 1.411(a)-11©(2)(i). Any thoughts or suggestions? Thanks!

Does anyone have any experience in converting from FDP to Quantech? I would like to import as much as possible from FDP to save time, but I'm not sure of the steps I need to take or how much information I need to enter into Quantech before I can import. Any help would be greatly appreciated.

I am currently working with a multiemployer plan which has run into some problems being able to deduct the employer contributions. 412©(8) and 11.412©-7 seem to state that I can adopt a retroactive amendment within 2 years after the close of the Plan Year and be able to recognize it for 412 & I assume 404.

Lets assume that I'm working on the 1/1/99 valuation. The 98 Max was 100K and the employer contributions were 200K (both expected and actual for simplicity).

Can we amend the Plan now (12/99), effective 1/1/98, to increase retirees by 5% on 1/1/2000? Assuming it would generate a max of 200K in 98, if we had done it then, are we "ok" for 98 or does the amendment have to increase the actives benefit?

Does anyone know of any real guidence on this?

Would I have to amend the 98 Sch. B as well?

Any comments would be greatly appreciated.

I am currently working with a multiemployer plan which has run into some problems being able to deduct the employer contributions. 412©(8) and 11.412©-7 seem to state that I can adopt a retroactive amendment within 2 years after the close of the Plan Year and be able to recognize it for 412 & I assume 404.

Lets assume that I'm working on the 1/1/99 valuation. The 98 Max was 100K and the employer contributions were 200K (both expected and actual for simplicity).

Can we amend the Plan now (12/99), effective 1/1/98, to increase retirees by 5% on 1/1/2000? Assuming it would generate a max of 200K in 98, if we had done it then, are we "ok" for 98 or does the amendment have to increase the actives benefit?

Does anyone know of any real guidence on this?

Would I have to amend the 98 Sch. B as well?

Any comments would be greatly appreciated.

A bank which sponsors a defined benefit plan is contemplating the following 2 actions:

1. Replacing the existing trustee (a non-related financial institution) with the bank's own trust department.

2. Retaining an investment advisory company to serve as the plan's investment manager. The investment advisory company is owned 100% by an individual who is (a) the bank's president, (b) a member of the plan's administrative committee, and © a shareholder of the bank.

Are either or both of these prohibited transactions?

I am a payroll accountant and I have a benefits/tax related issue on which I can find no supporting documentation.

Can any one provide me with ideas of where to research whether or not an Executive may deferred compensation from one tax year to the next?

Our Tax Consultant assures me that this can be done "No problem", yet niether of us can lay our hands on anything in writing.

Any assistane would be appreciated.

CLKeown

Does an FSA plan year have to match a calendar year? For example, can I run a plan year for the flexible benefits from 7/1 to 6/30 of the following year or do I have to stick with 1/1 to 12/31?

Walter M.

We are setting up a plan for a golf resort, effective 1/1/2000. Many of the golf pros will earn enough annually to be categorized as HCE's. However, these pros were classified as independent contractors up until 10/1/99, so their compensation as "employees" for 1999 will be itself not cause them to be HCE's for 2000. The question is whether it is possible to disregard independent contractor income from the same source in determining HCE status. It doesn't sound good to me (who knows whether the independent contractor classification was proper?) but others may feel differently.

A participant was not given any election form when the required minimum distribution was first due, so the plan administrator paid the amount based on a single life. What should be done currently? Can the participant now change the method? If the participant does change the method, can it be effective only prospectively, or would it be retroactive? Should APRSC be used due to failure to provide the participant with election forms?

I am attempting to contact person in an organization responsible for doing all legwork in getting health insurance bids, dealing with the renewal process, etc., for businesses 50-250 employees.

Any thoughts on titles, mailing lists, etc.?

Thanks.

Should a profit sharing plan (effective 1/1/98) being submitted to the IRS for Determination Letter contain the GUST amendments? If so, where can one find model language for these amendments?

Is there an unofficial rule of thumb for the maximum dollar amount of excludible de minimis fringe benefits (e.g., goods such as VCRs, clothing provided in holiday raffles, etc.) I am aware that $400 per person per year is the most an employer can deduct without a formal benefit plan but am wondering if the threshhold is not a bit lower for excluding the benefit from an employee's taxable income; e.g., $100 or $50. This as a result of reading Treas. Reg. Sec. 1.132-6(e). Any comments appreciated.

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I HAVE AN S CORP WHOSE 100% SHAREHOLDER DIED

IN 1998. PRIOR TO DEATH THE OWNER WAS RECEIVING MINIMUM DISTRIBUTIONS UNDER THE STRAIGHT LINE METHOD AND THE BENEFICIARY OF THE DECEASED IS A NON SPOUSE. HOW SHOULD DISTRIBUTION TO THE BENEFICIARY BE MADE FOR 1999? ALSO, WHAT IS THE STATUS OF THE PLAN

SINCE THE 100% SHAREHOLDER IS DECEASED?

Who out there is familiar with benefits issues for federal credit union employees?

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In a final average pay plan, is it "customary" to lock in any prior year's accrued benefit and pay that benefit if it is larger than the benefit derived from the plan formula? This could happened where there is a significant decrease in comp. I can find no basis in 411 for doing this.

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A profit sharing plan lost stock certificates worth approximately $70,000. The insurance bonding fee to replace the certificates was about $700. Can this fee be paid out of plan assets?