My spouse was reimbursed for taking classes to earn an MBA. His employer has told him consistently that it is job-related and he does not owe taxes on the reimbursements he received. Yet everything I read seems to indicate that graduate education is not included in the tax exclusion (only job-related undergraduate education is excluded). Who is correct?

My understanding is that the only consequence of a partial plan termination is that the affected participants become 100% vested. Are there other consequences? Does the partial plan termination affect participant loans? Any other issues that should be considered?

Can anyone update me on the status of proposed age changes for medicare? There has been discussion and it may be a few years away, but what is the status? Thanks !

My suggestion is a "wrap." Develope a short supplement to the insurance company booklet. The supplement would include the employer-specific information and any other disclosures the insurer might have omitted. For example, if the Women's Health and cancer Rights explantion was no in the insurer's booklet, it could be included in a supplement.

The plan offers optional dependent life. The employee insures her spouse. After five years, they divorce. Employee leaves change in status for first of the year plan change, but files divorce papers with company in order to change her name. Spouse dies six days after the divorce is final. Is the employee entitled to the death benefit? Both events occurred in the same month.

An employer sent a Notice of Discontinuance without knowing that a substantial early withdrawal penalty would be associated with its action. The employer then tried to rescind its decision. The insurance company replied that the Employer was unable to rescind its decision. Are there any options available to the Employer? Thanks. Ed

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Our cross-tested plans are set up almost

exclusively with NRA of later of age 65 or 5

years of participation (an uniform retirement

age). For cross-testing purposes, we utilize

SSRA per IRC section 401(a)(5)(F)(i).

In filing for determination letter with IRS, the agent said that Treasury Regulation

1.401(a)(4)-12 prohibits this methodology. Any thoughts?

How are the after-tax premiums in a cafe plan used? Client currently pays all of the premium for disability, so when disability income is received it is taxable to employees.

They want to give employees the choice between being taxed on the premiums or taxed on the benefit. Can this be done through the cafeteria plan by allowing employees to pay premiums with after tax dollars? Isn't this allowing them to pick from a taxable benefit (inside the cafe plan) and a pretax benefit outside of the cafe plan? Anyone encountered this issue and have any suggestions?

My husband's AGI is over $100,000, but I have no income of my own. Do I qualify for a Roth IRA? If so, what is the maximum contribution I can make in the first year?

We would like to rollover a traditional IRA (in my husband's name; a rollover from an old 401K)to a Roth IRA. My husband's gross earnings are about $200,000. Since we file jointly, is that income divided in half to calculate AGI for purposes of qualifying for a Roth IRA?

Notified by letter dated 12/30 that my 1998 401K contribution was in excess by nearly $9000 (nearly my entire 1998 amount) due to compensation and the plans failure on ADP/ACP. It looks like the company did not comply with regular testing as this was a complete surprise to me. To complicate matters, I have since left the firm and the excess was rolled over into an IRA. I imagine that this will occur again next year.

I was in a subsidiary organization an an executive and in a different plan than the executives in the corporate office, who were not affected by this. Please point me in a direction for counsel. Thank you.

What is typically done when a participant continues to make quarterly loan payments 60-75 days late?

Assuming the plan document, loan policy and loan document/promissory note are silent on this, is it typical to charge (i.e., accrue) additional interest during the delinquent period? If so, is this accrued interest added to the loan principal resulting in a larger level amortization payment or does it extend the amortization period (assuming the period was originally under 5 years).

Does it make a difference if the plan covers only the owner of the business (so the investment returns on these additional loan interest payments would be tax deferred)?

Thanks

Our 401(k) is through our payroll service. Unfortunately, they have given me some bad advice and now our plan is too liberal (immediate entry, eligibility at age 18, 100% immediate vesting). I understand that most of these benefits are "protected" and once given can't be redacted.

1. What is necessarry to terminate a plan?

2. After I terminate the plan, can I just start a new plan with the features I want?

3. Where do I find competent professional help to draft the plan and administer the plan? (Needless to say, I am unhappy with our payroll service).

*Thank you all. I enjoy this message board and have learned a lot!

An employee elected to be covered under his spouses plan with another company. Now the spouses company is changing medical plans and coverage will be at a higher premium rate. Our employee want to change his election and be covered under the company plan. Does the IRS regs permit this?

We have an employee who elected to pass on signing up for medical and dental coverage under our 125 plan. He is currently covered under his military retirement medical plan. He has been transfered to Ireland where there are no military medical facilities. He wants to change is election to cover himself, spouse and child for medical and dental under our plan. Is this acceptable?

Two County Offices of Education and several public school districts in California are forming a Joint Powers Agency (JPA) to provide maintenance, operations, food service, transportation, printing, ans warehouse/delivery services. The JPA is being formed by public education organizations to provides services to public education organizations. Is the JPA 403(B) eligible organization? Is it necessary to seek a Letter of Determination from the IRS?

An employer who sponsors a SEP with a three year service requirement, also wishes to add a 401(k) plan to give all employees a salary deferral mechanism that will not trigger a mandatory employer contribution (assuming plan is not top heavy). Is this possible?

I recently resigned from a University where I worked as a faculty member. Prior to termination, the University adopted a defined contribution plan. I switched from the state sponsored defined benefit plan. At the time I switched, a plan comparison was distributed by the University. This brochure stated a lump-sum distribution was permissible under both plans. I have since requested a distribution, and am being denied because the "actual" plan does not allow a lump-sum distribution. Is the University bound by the summary info provided?

I'm very new to investing, and know basically nothing. I'm 24, and I'd like to get started early. I have about $1,400 in a 401K from my previous employer. I have a friend that would like me to give him this money to put into a Roth IRA. I'm a little concerned, because there is a large annual cost to hire his services. ($150-$200). This seems excessive for my small initial investment. Can I get started in a Roth IRA for less money than this? Should I just leave my money where it is? I don't think they are charging me much to invest my money in Mutual Funds.

What do members of this group think about a

top hat plan funded by a rabbi trust that

permits participants to make daily investment

selections among a family of funds selected

by the trustee? While the trust document

contains language that these are only

"deemed" investment elections, in reality

the trustee will never evaluate these

decisions and, in fact, will never even know

what decisions have been made because the

participants contact the custodian of the

assets directly, i.e., there is no procedure

by which the trustee reviews the decisions.

Doesn't such a plan constitute a "funded"

plan for purposes of ERISA? If not, why not?

Thank you very much for your comments.