Should beginning of year participant account match up to end of prior year participant count? If so, we are not including participants who became eligible at beginning of current year. Is that correct? Does this also mean that we are to pur down 0 participants at the beginning of year for a new plan? The reason I ask is I have heard conflicting answers form various administrators. Thanks to anyone willing to help.

10 Employees transfer employment from Company A to Company B.

Company A and B have 401 (k) Plans with employer match. The same

desk rule applies, and trustees agree to transfer the account

balances to Company B's plan.

The vesting schedules of the employer match is different in each

plan. Company A's plan provides full and immediate vesting.

Company B has a 5 year cliff schedule.

Since the new contributions now made for these 10 employees are

subject to a longer vesting schedule (assume each employee has less

than 5 years of service and past service is credited), has a deemed

amendment of the vesting schedule occurred? In other words, are

the 10 participants entitled to make an election pursuant to

1.411(a)-8 and vest under the old or new schedule, if they have at

least 3 years or service? I understand that the transferred

account balances are not affected, and remain 100% vested.

Thanks to all that answer.

A client has 2 403B accts..they calculate RMD for both and take it from one acct..then transfer both to an IRA..however they fill out paperwork wrong and get an RMD check from the other 403b acct...can they simply roll this money into the ira within 60 days or since it was coded as an rmd do they have to take the distribution?

In a string starting in early Dec 1999 titled,"Loan default due to death of participant - who is liable for the taxes?", the view was that the beneficiary would be liable for the loan as an offset amount. I have a non-spousal beneficiary who will leave the money in the plan as long as possible. However, our recordkeeping process is to deem a loan if payments are not made for 90 days. How would I handle the loan after 90 days, would it be a deemed loan or an offset payment? If the loan is taxable income with the tax year for the participant, what category would be used on the 1099r. All help is greatly appreciated.

Can anyone direct me to some good samples of a "plain language" approach to 401(k) investment options? Employees are often confused by the convoluted nature of these communications -- as well as the level of detail.

We'd like to revise these to give people what they need to know, but in a way that is simple and direct.

Thanks!

I have a client who converted to a ROTH at end of 1999 to avoid further minimum distributions. However, when she did this the bank did not tell her she would be taxed on the conversion. Now she wants to undo the conversion. Can this be done prior to April 15? What are the reporting requirements?

Must a 457 plan for a governmental hospital terminate and distribute funds to participants when it is acquired by a tax-exempt entity and loses its governmental status or can the plan be frozen holding distributions until payable?

owner dies b/f RMD, bene wants distributions over his life, plan does not allow bene's wish. Can bene get wish by transferring to another plan?

[Reposted by Dave Baker as a separate topic, for "ak"]

The DOL's discussion on the new forms just issued speaks about "fair value vs. current value" reporting for insurance contracts on the, e.g., Sch. A. It says that fair value does not apply for investment contracts with insurance companies which are, in part, "fully benefit responsive" contracts held by defined contribution plans with assets of $100 million or less. Question: Where did they get the $100 million dollar threshhold? I don't know of any such limit in SOP 94-4 and am not aware of any such amendment to the SOP. Does anyone know the answer.

What is the plan year for your Cafeteria Plan?

Does anyone know of a good survey or other source of information that would provide insight as to the popularity of various match arrangements - such as whether a match (1) includes tiered rates, (2) includes different rates based on years of service, (3) includes different rates based on years of participation, (4) imposes a maximum dollar match, etc. I reviewed the surveys available by link on this website and was not sucessful in finding any survey that included these details.

Could someone please give me some guidance on when payments made to a participant on disability leave should count as income for plan purposes. Do factors like W-2 reportability, FICA funding and how the premiums are paid have any relevance?

Please advise.

Does anyone no of any good sources/articles to review regarding a "rolling" vesting schedule for a 457(f) plan designed to allow the participant to continue to defer his or her funds by continually electing a new period during which the funds will be subject to a subst'l risk of forfeiture and therefore not taxable? I have heard the IRS may not accept these types of rolling schedules.

It has been determined that an 3 part organization with a 401(k)is no longer part of a contorl group or ASG. Must the 401(k) be split into 3 plans or can the plans still be under one non-standardized plan document? It will still need to be aggreagated for 415 testing.

I have a defined contribution plan which issued a loan to a participant during 1999. The loan is not in default, but was errorneously reported on a 1999 1099-R with a "L" distribution code. My question goes to the correction of this problem. The IRS instructions indicate to prepare a corrected 1099-R with the correct money amounts - which would be zero. However, the instructions are silent as to whether or not the distribution code box should be left blank or if it should remain as orgininally marked ("L" in this case). Any information would be appreciated.

I am looking for sources to interview for 2 articles:

1. What will employee benefits look like 20 or so years from now and what national trends will help shape benefit plans?

2. More companies are beefing up their benefits for part-timers. Identify best practices---how to go about beefing up benefits, how to critique what you're already offering, etc.

Employee works for company A for five years. Company A has a six year vesting schedule. Employee leaves company A to go work for company B. Company B has same plan and same schedule. After the employee has worked for company B for a year, company B purchases company A. Company B offers company A employees retention of prior years of service for the purposes of the 401(k) plan vesting. Is this employee out of luck and back at one year of service or is company B required to recognize employee's five previous years at company A? Or is it up to the company to recognize her service at company A or not?

I am working with a company that is told that their current provider (bank 1) is a named fiduciary. They are looking at another provider who is a directed trustee (bank2). Bank 1 says that they provide a much greater service than Bank2. The plan sponsor picks fund choices. Is the plan sponsor relieved of fiduciary responsibility with Bank 1 being a named fiduciary? I do not see much difference in the services of bank 1 and bank 2 since the ER is still making the investment choices. Am I wrong?

Add. Info.: plan type 401k

Participant directed

Currently use bank 1 funds and a

few outside funds

Fund performance is a issue

I currently have a 403b mutual fund account with Fidelity Investments. Are there any companies (with reasonable fees) that I could do a 403b rollover into, that would permit me to invest in funds from multiple families in one account?

2 companies merged, both having 401(k) plans. One company dissolved and there are only 2 participants from that company still employed by the surviving company. I am trying to determine whether it is best to terminate the dissolved company's plan or to merge it with the surviving company's plan.

Any advice or direction? Thanks.