Section 4.04 of Rev. Proc. 95-51 addresses the takeover situation where the firm and enrolled actuary have changed & Rev. Proc. 98-10 adds Section 4.05 to address a change in software;if the enrolled actuary for a plan joins a new firm & gets the plan back, what now? written request for approval? also,is 4.05 intended for the situation where the EA and firm servicing the plan remain constant but the firm just decides, for example, to start using new software; and suppose the EA above who got the plan back is using new software but is unable to utilize the former firm's software? request for written approval?

A plan with age 21 and 1 year of service for making salary deferrals has a 2 year service requirement (and age 21) for profit sharing and matching contributions. No union employees in the picture.

When doing the (a)(4) test, am I correct in saying that I have to include all the employees with a year of service, even though they weren't eligible for a profit sharing contribution?

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No one responded on the other message board, so I thought I would try this board which seems to be more popular. Is anyone aware of rules analagous to the QSLOB rules for Code Sections 105 and 125?

Not everyone who is eligible to defer does. The plan sponsor is not going to make a discretionary profit sharing contribution but will make a match. Is the compensation of those who did not defer and will not share in the match (i.e they get no allocation) considered in computing the 15% of pay limit of 404(a)(3)(A)(I)? This considers beneficiaries of the plan, are eligible employees who do not defer and get no allocation a beneficiary under the plan for this purpose and if so, under what code section, etc?

I am the recordkeeper for a 401k plan which adopted the safe harbor provisions for their match. Previously, they reallocated forfeitures as a non-elective contribution. Is that money now considered 100% vested along with their prior match? Or, is this an issue that the employer decides when drafting the appropriate additions to their document?

Assume a "qualifying trust" (meets the five requirements) is beneficiary of an IRA, the IRA owner is deceased, so the IRA is paying out over the life expectancy of the sole beneficiary of that trust. The trust terminates upon the 45th birthday of the trust beneficiary. Can that beneficiary elect to keep the IRA open past the age of 45 allowing the IRA to continue paying out over his life expectancy directly to him, or must the IRA pay out in a lump sum upon the trust's termination?

My inclination is to say that the IRA must pay out in a lump sum, since the named beneficiary is no longer in existence. Prop. Reg. 1.401(a)(9)-1, D-5 states "...distributions made to the trust will be treated as paid to the beneficiaries of the trust...", but that appears to only relate to the calculation of required minimum distributions, not who may receive them.

Has anyone run into this before? Has anyone seen a private letter ruling in this area?

I am looking for information on percentages on distributions from retirement plans or programs on a national level. Specifically, employer related retirement plans or programs distributions vs. non-employer related plans or programs (IRAs and Rollover IRAs). If anyone has information on this subject, I would appreciate any assistance they can provide. Thank you.

An employee with over 15 year of service with a qualified organization would like to make the maximun catch up deferral contribution. Is it caculated as:

20,000 * 25% + 4,000 = 9,000 for 415 purposes?

I have an employee who is currently having her medical and dental premiums taken on a pre-tax basis. She had a baby in August. She now wants to drop coverage 3 months later. Is there a time frame of when the change of family status to make a change in premium only plans?

Any help appreciated --

Employees are promised company stock as part of compensation to be distributed/granted in 9/00, 9/01 & 9/02 this is before our ESOP was established - can that stock be part of the ESOP plan?

Thank for your help.

A client has excess contributions of $1,800 for the plan (calendar) year, and refunds are being made after the 2 1/2 month deadline. One of the participants requiring a refund also deferred $11,000 for the year and received a refund of $1,000 in excess deferrals before 4/15/99. Is the 10% excise tax based upon the excess contributions of $1,800 or the $800 remaining to be distributed?

Can a governmental or tax-exempt sponsor request a determination letter for its 403(B) or eligible 457 plan? If not, can a PLR be obtained for either plan?

Any cites to rev procs or other references would be appreciated.

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I can't find anything that says an HCE can or can't share in the 3% non-elective safe harbor contribution. Anybody already know this?

Also, I have a client with two plans - a 401(k) and an MP plan. He allows immediate entry for deferral contributions but employees have to wait 1 year to get match and money purchase contributions (MP plan is satisfying the 3% non-elective safe harbor contribution). In order to be considered a safe harbor, do all employees need to get this 3% even if they haven't satisfied eligibility requirements to share in the MP contribution?

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EAC

If a plan allows individuals to put individual insurance premiums through the company cafeteria plan, then the company decides to provide a group plan providing 50% of the premium, can the employees change their election because of a "major change in premium amount"?

Does anyone offer this as a benefit to their employees? If so, how large of a company are you? How much do you contribute to the dues? Do you offer it to everyone or require a certain amount of use per month?

A client has requested that their document require that an employee be employed on the last day of the plan year in order to receive a year of service for vesting.

Currently, they are on a prototype that only requires 1,000 for vesting credit. Could we accomodate their request on an individually designed document?

We have a leveraged ESOP client who is terminating the plan due to sale of the company. The yearly Employer contribution is $30,000 and there are two years left on the note. To pay off the note $60,000 must be contributed by the Employer but the § 415 limit is $28,000. What do we do with the "extra" $32,000. We want to treat it as dividends. Any suggestions? Are there any PLRs or TAMs on this subject?

Does anyone know of a website where I can find survey data on employer practices relating to employee benefits?

Dear Ms Calhoun: Does this Procedure mean that a 403(B)(7) custodial account holder can direct his Custodian to invest directly in publicly traded securities as an alternative to mutual funds? Thanks, Joel L. Frank

[Posted by Dave Baker for Sheldon Mike Young]

My client was deliberately fired for policing her ERISA rights. Suit has been brought under ERISA Section 510. The complaint requests damages under ERISA Section 502©(3) as well as 510. At the deposition of plaintiff, the plaintiff admitted she had never asked for the Summary Plan Description; had not known what it was.

Under 502©(3), a request must be made for damages to follow. She couldn't request an SPD if she did not know what one was.

We have evidence in this case that the defendant deliberately failed to issue an SPD. One was not even issued until after the litigation was threatened.

Does anyone know of a case where the deliberate act of the employer to issue an SPD excuses the plan participant from requesting the SPD and 502©(3) damages are awarded? Does anyone know of a case where the plan participant knows the employer is reviewing papers to go to participants but isn't reviewing them and the papers turn out to be the SPD? Were 502©(3) damages awarded in such a case?

Is the request requirement in Section 502©(3) "softened" in determining what is a "request" where there are multiple violations of ERISA? For example, where the employer both fires a Participant for policing her ERISA rights and has deliberately failed to issue an SPD, is P.'s having told the employer that his consultant has asked him to finish reviewuig the SPD so it can be duplicated and distributed enough to be considered a "request" for purposes of Section 502©(3)? Please let me know of any case you may know of that considers these matters.

I would appreciate any information.

Sheldon Mike Young

yomike@asacomp.com

614-898-1096

fax 614-898-7190