Does anyone have employers provide statements to participants that their plan complies with Section 404©and if so what does the statement contain? Does the employer gain additional fiduciary relief in doing this?

If a block of people in a 401k plan are going to work for an unrelated employer because of a company sale (assume same desk rule is an issue), and the unrelated employer sponsors a 401k plan, and the intention is that the 401k balances of the people moving to the new employer will be transferred to the plan of the new employer, do the transferred employees have the option to leave their 401k balances in the plan of the company they are leaving (some don't want to move their assets - but understand that if they begin deferring it would be into the plan of the new employer).

Thanks in advance for any help.

Company A, B and C are participating employers in the XYZ plan the companies are a controlled group. Company C was sold to an unrelated buyer and is no longer part of the controlled group. Employees will continue at effectively the same job as they had before with this unrelated buyer (hence I think same desk rules apply?).

The gameplan is for former employees of C to have their 401k balances rolled to an existing plan of the unrelated buyer. I know I need to look at vesting issues.

If an employee does not want his balance moved to the new new company's plan, can he leave it with XYZ? Hence effectively giving the participants of C two choices for investment - either stay w/ the old or roll to the new. I'm just not sure in a spin off situation if the employees have the option. Thanks in advance for any help.

A DB plan terminated and some of the particpants rolled their balance into the company's 401(k) plan which was not subject to the QJSA rules. Is the 401(k) plan now subject to these rules? If so, does the plan need to be amended?

I hate asking this question, but what risk is an employer taking by not following the deemed distribution rules?

2 specific examples where an employer does not want to follow deemed distribution rules:

1. Participant is a few days beyond the grace period on a 3-year loan due to being out on leave. Employer would like to either reamortize loan or allow participant to double up on payments until caught up on the loan and does not want to report a deemed distribution.

2. Participant takes a 20-year loan for a principal residence. 6 months later, employer discovers loan was for property on which a residence might be built later. Employer would like to reamortize the loan over 4 1/2 years and not treat the loan as a deemed distribution.

I have talked to other practitioners that don't seem to have too much of a problem with the above.

Yes, I know the rules are the rules. But I would like to know what risks the employers would be taking (and should be advised of) by not following the deemed distribution rules. Is it a plan qualification issue?

I have been comparing charts from many sources listing items included or excluded in different compensation definitions. It seems pretty clear that "Severance Pay" is included in W-2. However, sources seem about equally split between saying "Severance Pay" is included or excluded for Long list 415, Short List 415, and 3401(a). Does anyone have a strong opinion on which is correct for Long List, Short List, and 3401(a). If so, reasons and/or cites would be appreciated.

I know this has been discussed before, but are people using employer or trust EINs on Form 1099R. Has anyone ever had the IRS specifically tell them which number to use.

Got a self funded plan, and need to rent a network of doc's and hospitals for SF area. Any suggestions??? HELP!!

Does anyone know if a local agency's withdrawal from a state retirement system constitutes a plan termination for defined benefit distribution purposes? In other words, if a local agency participates in a state's retirement system and then elects insttead to join a county retirement system, has the "plan" been terminated? Are the participants entitled to a distribution? Thanks!

I have a plan that is terminated and is planning on distribution in January 2000. They match deferrals 100% upto 7% of comp. The plan has 1 HCE. Deferrals have been frozen and the match determined and is in the process of being funded. Based on the comp figures, the ACP and mutliple use tests fail. Excess aggregate contributions are treated as forfeitures and for this plan is used to reduce employer contributions. Can the excess aggregate contribution be forfeited prior to the year end and used to fund the 1999 match?

Any other suggestions?

Can a plan use 2 different periods for ADP/ACP testing?

I currently have a simple IRA for my employees with a full service broker. He offers front load and back load funds and some of my employees want no load funds. Are

there any financial institutions that will let you invent in whatever you want with whoever you want? I checked at a bank and they will only take all employees or none. They also charge one percent per year of your total market value. Isn't that worse in the long run than buying a loaded fund?

An employer uses seasonal employees for whom he provides housing and a live-in cook. The employees come from Jamaca and are here for 4 months. They receive a wage of $7.30/hour for services provided. It appears they all make in excess of the SEP minimum. But, the employer states that they are covered under a special governmental program called H2A. It was stated that these employees don't pay taxes. This employer was told that they do not need to be included under his SEP program. I was wondering if anyone knew anything about the H2A program and can confirm whether or not the employees can be excluded.

Currently I have a simple ira plan for my

employees with a full service brokerage

firm. The brokerage firm also handles the paperwork. Some employees don't like paying for loaded funds. I want to know if there are investment firms that will let these

employees invest with them if the rest of my

company does not. I have ask a bank that has

a simple ira plan but they will only take all

or nothing and while they don't have loaded funds they do charge 1% a year of your total

portfolio as a fee. Isn't that worse than paying for a loaded fund in the long run?

Thanks in advance.

Does anyone find a problem with the proposed 5500 Schedule H instructions on the reporting of "deemed distributions"? The instructions indicate that amounts that were treated as deemed distributions in the current or prior year should not be included in plan assets as of the end of the year. Does this conflict with guidance that deemed distributions are not distributions for all purposes, and that a participant's account may not be "offset" (distributed) until a distributable event occurs?

I'm curious how other practicioners anticipate completing this question and how deemed distributions will be reported on participant statements (as an asset, or a distribution?)

Oscar

I have an IRA transferor who already holds LLP/LLC's wherein he has a management role and/or an outside ownership. Can he hold these or does he have a disqualifying investment?

We currently have open enrollments for our benefits at different times during the year. For instance, Health is in February, Life in Novemeber, etc... I would like to propose one annual open enrollment for all benefits and would like to know how many people out there have just one once a year, and why they chose to do it that way. Thanks so much!!!

I know an employer cannot use the 1,000/last day rule for safe harbor contributions, but does the reg. 1.410(B)-6(f) which allows employers not to contribute to terminating employees with less than 500 hours apply to the safe harbor match/nonelective contribution? If so, employers who match on a payroll basis may give more matching contribution than is required. Or, do employers have to give the safe harbor contribution for all eligible employees even if they terminate?

Participant and Spouse participate in the same Plan. Participant begins taking minimum required distributions from Plan based on a single life. Participant subsequently rolls the remaider into an IRA where she has to continue on a single life basis under the 401(a)(9) proposed regs.

Participant's spouse dies. Participant rolls the death benefit into the same IRA. Can participant take distribuitons from the "death benefit" portion of the IRA based on joint lives while continuing to take single life for the "retirement" portion of the IRA?

If a spouse waivers her right to a QPSA in a defined benefit plan (in order to avoid the charge for the QPSA)and the spouse dies before normal retirement age is there any way to provide spousal benefits?

The waiver was signed at age 35 of the participant and the spouse's signature was witnessed by a notary public. At age 45 the participant suddenly died and the plan administrator says no pension/death benefits available due to the waiver.

Do you have any experience with the QPSA waivers being overturned in court?