Is there ever an instance where a QDRO distribution to a spousal alternate payee would be subject to the 10% penalty in a 401(a)? The plan allows for a lump sum distribution or monthly periodic payments or a combination of the two. The spousal alternate payee takes an initial lump sum then monthly payments - which are not subject to the 10% penalty. But later decides she needs another lump sum distribution (not the entire amount). Is this amount subject to 10% penalty - does it make the other amounts already distributed subject to the 10% penalty?

When employer stock is offered as an investment choice in a 401(k) plan, what is the procedure for voting the proxies. Does the investment manager/fiduciary vote them on behalf of the participants or does he distribute them to the actual participants and let them vote?

Does anyone know the rules regarding proxy voting when employer stock is an investment election in a 401(k)? I know this is the ESOP board but thought maybe someone would know. Is the investment manager or fiduciary required to vote the proxies on behalf of the participants or does he have to distribute them to the participants so they can vote them?

I was a full-time employee for a company until 11/15/99. At that point I converted to a part-time status with the understanding and verbal verification from Human Resources that I would still qualify for health/dental/vision insurance coverage. (Policy stated that part-time employees would qualify after 1 year of employment-which I was employed as full-time for one year).After reviewing my first paystub of 2000, I noticed that I did not have a health insurance deduction which I had previously paid my portion of premieums 11/15/99 through 12/31/99. When I called Human Resouces, I was told that as of 1/1/00 employees are required to work 24 hours a week (I am currently 8 hours a week) to qualify for insurance benefits. Furthermore, I was told that they sent me a letter dated 11/3/99 notifying me of this change and offering me the COBRA option. I was also told that my manager was also notified but he did not notify me. (currently he is on vacation). Essentially, I have not had insurance coverage since 1/1/00. To complicate this even further, I am now 6 months pregnant (this being the main reason I maintained minimal hours for insurance benefit). My primary concern is I know I can obtain other employment if I choose, but due to the lapse in coverage my pregnancy will more than likely not be covered for a period of time if at all. What recourse do I have? I would appreciate any info before I proceed with any internal or possible legal action.

It is my understanding that the amount that I converted in 1999 from my traditional to Roth IRA is now taxable. I realize now that I have not had my employer set aside enough federal tax from my paychecks this year, and thus have underpaid my taxes. Am I subject to underpayment penalties in a case like this?

Can a US citizen working in the United Kingdom with a retirement plan from the British employer roll the money to an IRA? This supposedly became effective 12/31/99.

As an insurance broker, I am looking for feedback on peoples experience with Aetna USHealthcare HMO.

The deferral limit for SIMPLE plans is still $6000. The deferral limit for 401(k) / 403(B) was increased to $10,500 for calendar year 2000.

Try a TPA out of Valparaiso, IN

Pension Consulting Services, Inc. at 800-535-8099

They charge $650 to set-up including the document.

$1000 plus $20 per participant annually and that includes the 5500.

We use Kemper Funds and really like the reporting.

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!