My company is starting a 401k plan. We currently have a Profit Sharing Plan, and that money is all going into that plan, I don't want to do that, our 401k Plan is a Lord, Abbett Mutual Fund. and I want to gradually put that money into the plan on a per month basis not in one lump sum. What if the stock market is not doing well, then the initial investment is going to be less that what it started out to be. Do I have that right to ask for my money from the Profit Sharing Plan? I am 100% vested in that plan, since they are closing it out. I don't think my company has that right to do that without my okay.

How are ESOP stock evaluated? My boss who is the plan administrator said tht it is determined by the area of business that we are in (banks) and that what other banks our size are worth or sold for goes into determining our stock value. I thought it what your own bank's profits are and not what other banks are. we are a closely held company.

Does an ESOP have an obligation to notify terminated employees when they are eligible for distributions, and are there any consequences for their failure to do so? Distributions from my ESOP account should have begun in 1997, but I did not learn of this until this year (previous requests for distributions were denied by my former employer who stated that I wouldn't be eligible until my normal retirement age which I now know is not true). The value of the company's stock has gone down since 1996. If the distribution had begun in 1997, presumably I would have had a reasonable return in investment income over this period instead of losing money. Can they begin the distribution now, payable in six installments, without any obligation to reimburse me for the loss I incurred by their failure to begin the distribution in 1997?

Is a terminating plan required to offer an immediate annuity to a participant with a pvab greater than $5,000 who is, for ex., 30 years old? NRA is 65 and ERA is 55/10YOS.

Does anyone see any problems with an employer paying the COBRA premiums to an insurer for some terminated employees and not others.

Could this actually be construed as creating a new plan with additional COBRA rights? I would think that as long as the COBRA notice was given, no benefits need be offered after the 18 months no matter who pays the premium.

Company A acquires Company B in 1999. Company B maintains a SARSEP. A SEP has to cover all employees of the controlled group, but Company A has more than 25 employees and does not want to have any SEP.

The SARSEP rules say Company B is ineligible to have a SARSEP after 1999. But if Company A is not adopting the SARSEP, does it have to be shut down immediately to avoid violating the basic rule that it must cover all employees in the controlled group? Is there any grace period like that for SIMPLE plans in 408(p)(10) or qualified plans in 410(B)(6)? Or can Company B still make an employer contribution to the SARSEP for the period in 1999 before it was acquired?

DOES A PLAN DOCUMENT NEED TO BE DRAFTED IN ORDER TO ALLOW FOR THIS BENEFIT TO BE OFFERED? IT MY UNDERSTANDING THAT ONLY A BOARD RESOLUTION AND POLICY/PROCEDURES NEED TO BE IN WRITING TO PROPERLY IMPLEMENT THIS BENEFIT OPTION. I KNOW IT CANNOT BE PART OF A 125 PLAN.

THOUGHTS?

Is a governmental plan subject to the nondiscrimination requirements of Code section 117(d)(3)? Code section 117(d)(3) references 414(q), which is of limited applicability to governmental plans due to the inapplicability of 401(a)(4) to most governmental plans under TRA 97. Thanks.

Can an employer contibute both a matching 3% and a non-elective 2% in the same year for his simple plan.

Employer hires seasonal employees each year for a period of four to six months April to September. Many of these employees are over age 21 and work over 1000 hour in the season.

If these employees are rehired in the next season, when must they participate in the plan( date of rehire or next entry date July 1)? From prior posts on the BB I see that exclusion of these employees is difficult because of an IRS Field Dirrective and 410(B) coverage rules.

Has anyone come up with any approaches to exclude these employees other than:

1) Write HEC's out of Plan and establish non-qualified program for them.

2) 410(B) carve out to exclude enough HEC's to pass coverage.

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?