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?

Here is a unique spin on a Section 410(b)cross-testing issue:

Client wishes to benefit his department heads across a controlled-group set of employers. The various department heads will receive a certain percentage of pay, based on their title. None of these department heads, as of now, are considered "highly compensated". The employer DOES NOT wish to benefit any rank-and-file employees; only the department heads.

My question is would this fly under IRC 410(B), under the "no highly compensated employee benefits" scenario? The attorney who is drafting this plan says he does this all the time, and no testing is necessary, as no HCE benefits.

Does this arrangement fly? Any opinions would be appreciated!

Thanks.

I work for a not-for-profit health care organization in NYS that offers a 403(B) plan.

We are paid every two (2) weeks and I have been told that the pre-tax deductions are deposited once a month (before the 15th) to the 403B.

The employer, in effect, is profiting from my money during that timeframe.

I am told I cannot participate in the 403(B) any other way.

Is this legal? If so, is anything being done to limit the time between deduction and deposit to employees' accounts? If not, can anything be done? How?

[This message has been edited by Dave Baker (edited 12-20-1999).]

We just took over a sponsor's standardized pension and p/s plans. There are two plans with two adoption agreements. The plans are 001 and 002. The account has been filing one 5500 since 1973, combining financial and participant data, indicating both plans in question 6c, but using the 001 number.

In our opinion this is not correct, but we are at a loss on how to correct it. Can we continue filing this way? Start filing 2 5500's and explain the situation to the IRS when they ask for past returns on 002? Notify the IRS/DOL and apply for correction under the VCR-like 5500 correction program? Any thoughts are welcome.

We took over a plan that was "allegedly" amended 4 years ago from a fiscal year to a calendar plan year. 5500's have been filed utilizing the amended dates since that time. however, the amendment cannot be located. Is there a mechanism for doing another amendment clarifying the situation other then APRSC or CAP.

Does anyone have a good checklist of things to ask the client for when taking over an existing plan?

May distributions from DB plans be made only on account of separation from service or plan termination? Where in the Code is this requirement? (I only see this for 401(k) plans). Thanks.

I am designing a small 401(k)profit sharing plan, calendar year 1999, of which for '99 there will be no 401(k) contributions. The employer wants to include all employees for the first yeat then have 21, 12 months for future years.

Problem is, may employees were hired after 1/1/99, some as late as 12/1/99.

I've thought as far as 1/1/99 effective date, double entry dates of 6/30 and 12/31 and the amending as of 1/1/200 for 1/1 and 7/1, but I don't think that will solve the problem of bringing in the people hired in December '99.

We're not talking of a huge contribution, the annualized % is around 7%, but I don't even want to think of a short plan year of 12/1/99 to 12/31/99.

The also want to go 401(k) for 2000.

Any ideas??