Do limited liability partnerships have the same issues regarding loans and earned income as do self employed individuals?

I am trying to secure statistical information about how long a company with "x" number of employees makes their employees wait before they receive the company contribution toward health insurance. Does anyone know of a website that could provide such information? Also, if anyone reading this can tell me how long the wait is at their company (please provide number of employees). Thank you.

I would like to open up a discussion about employee benefit considerations when a merger or acquisition occurs. More specifically, what are the implications associated with the merging of two benefit plan(s) into one or the acquiring company company and their benefit plan(s) vs. the acquired company benefit plan(s)? Does anyone out there have experience with either type of business transaction related to this topic?

In looking into establishing a Flex Spending program for our company, I was informed that the company owner nor his family can participate because the company is established as a S Corp and "otherwise" already has the benefits of the Flex account. How is this? and how can he excercise these benefits to pay for medical expenses (pre-tax) not covered under the our health insurance? Thanks

If a plan determines benefit accrual service using the elapsed time method, do you have to credit partial years of service? You don't have to credit partial years for vesting (1.410(a)-7(d)(1)(iv)), but what about for benefit accrual? And if you do have to count partial years, how do you calculate the service? Days between employment commencement date and severance from service date divided by 365? If you have a cite to a reg, I'd appreciate it.

Thanks.

Does anyone have an IRS cite (Code or Reg.)which specifically says that employees may change their deferral election mid-year, so long as the total amount of their annual deferrals does not exceed $10,000 or the amount specified in the plan document (i.e., 15% of compensation).

I know that such changes are allowed (and our prototype plan allows such changes), but I've got a client that wants to see it in writing from the IRS!

It is clear to me that the IRS is holding off on enforecment of filing requirements for certain "specified fringe benefit plans" under Section 6039D until more guidance is issued. However, it is unclear to me what 5500 requirements may still apply. If an employer is maintaining (1)a group term life insurance plan (self-insured); (2)weekly sickness and accident benefits plan(self-insured); and (3)$1200 death benefit payable (out of the employer's general assets)only to employees who reach a certain age before dying, and each of the foregoing plans has more than 100 participants, which, if any, are required to file a 5500?

Note: It is my understanding that the death benefit is a welfare plan under ERISA.

In determining the number of participants in the death benefit plan, would it be all employees since they are all potentially eligible for the benefit?

A company with a 401(k) plan is 100% owned by a trust. Two employees of the company and one non-employee are trustees. What effect does this have on the 401(k) plan and how is ownership determined in this situation?

We have a few employees past age 70.5 who are receiving annual distribution of their RMD with no withholding being taken. All of these employees were set up on the distribution payout in the 94 and 95 years. It is our understanding if the payout started prior to '96/'97 years, we're ok not withholding. All distributions are based on life expectancy, recaluation basis. Are we ok on these payouts because they start so long ago, or should we start withholding?

I understand that this bill (which extends the exclusion for educational assistance) has passed both House and Senate. Does anyone know if the president signed/vetoed?

I understand this legislation (which extends section 420 transfers through 2005) was passed by both House and Senate. Does anybody know if the president signed/vetoed?

Does anyone know of a regulation/guidance stipulating time limits for an administrator to make a distribution from a qualified plan once a plan participant submits proper paperwork for distribution?

Thank You

Many of the school districts in our state are using a flex spending administrative plan that was devised by a former attorney. One of the procedures that the school districts are using is to pay any claims that an employee writes on the outside of a sealed envelope. The contention is that as long as the school district does not open the envelope, they are not liable for paying reimbursement of inelegible claims. I say that they are the administrator of the plan and have the fiduciary responsibility to review the claims before reimbursing the employee. Does anyone know any tax code that would support this? I think they would be held liable for aiding and abetting tax fraud if ane employee is turning in fraudulent claims and they are paying them without a proper review for eligibility!

My client is 55 years old. He has a $900,000 traditional IRA and is thinking of converting it to a Roth IRA. He has been taking periodic distributions for the last ten years of about 33,000/year.

If he converts to a Roth, will the $33,000 distribution in the year of conversion count toward the $100,000 AGI test?

Can he spread the conversion out over three or four years to take advantage of lower marginal rates without incurring the 10% penalty for modifying the distribution series, and will the 33,000 periodic payment in those years count toward the 100,000 agi test? Thanks for any guidance.

Can someone clarify for me the tax treatment of premiums and benefits received by 2% or greater shareholders from a partially self funded plan in an S-Corp? I have been told by a CPA that the equivalent fully insured premium would be taxable to the 2% or greater shareholders. I have also been told by a TPA that the benefits paid for claims incurred by the 2% or greater shareholder and his or her covered dependents would be taxable as well.

Any comments would be appreciated.

In practice, does anyone have a de minimis policy or policies pertaining to returning excess contributions, excess aggregate contributions, excess deferrals, or other items? Or does everyone distribute the excess, even if the excess is 1 cent?

I have a 401k client whose prior administrator advised him to make a top-heavy minimum contribution no later than September 15, 1999. It has just been made.

What needs to be done about the late contribution?

What is the correct procedure for participants who are working, less than 5% owners and do not return their election form to receive or defer their MRD?

Is an ERISA 403(B) Plan with over 100 participants required to file an independent qualified public accountant's opinion? I know plans that provide benefits exclusively through allocated insurance contracts or policies that fully guarantee the payment of benefits, but if the 403(B) Plan is not funded through these means are they required to have an audit?

thanks.

A distribution to a non-resident alien is subject to 30 percent withholding unless the withholding agent has documents by which the participant certifies each portion of the distribution entitled to a different treatment.

The participant may certify each portion of the distribution that is

· effectively connected with a US trade or business

· foreign source income

· exempt under a treaty.

A participant uses IRS Form W-8 to certify her exemption from the 30 percent withholding tax.

A distribution to a non-resident alien may be comprised of up to three different kinds of income. A different withholding rule applies to each kind of income.

1) The portion of a distribution allocable to contributions for services performed in the US is subject to tax as income effectively connected with the conduct of a US trade or business ["ECI"]. Generally, ECI is subject to the regular pension withholding rules. However, periodic payment distributions that are effectively connected may be subject to either the normal pension withholding rules or the special 30 percent withholding.

2) The portion of a distribution allocable to contributions for services performed outside the US is not subject to US tax because it is not income derived from US sources. Also, such income is exempt from withholding.

3) The investment earnings portion of a distribution is US source income that is not effectively connected with the conduct of a US trade or business. The portion of a distribution to a non-resident alien that is US source income and not ECI is subject to 30 percent withholding rather than pension withholding.

A non-resident alien makes her withholding certificate on IRS Form W-8. Generally, this certificate is valid only for three years.

A non-resident alien must obtain an IRS taxpayer identifying number if she claims an exclusion for pension income or her withholding certificate claims the benefit of a treaty. Because for most citizens the Social Security Number is the taxpayer identifying number, the IRS has a procedure for issuing an individual taxpayer identifying number to an alien or other individual who is not entitled to Social Security benefits.

Don't do anything special unless you get the completed Form W-8 with a valid ITIN.

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