I've read previous e-mails in which you state that "any amendment that is inconsistant with the notice (previously given for the year) does not become effective until the following year". Therefore, the plan cannot be amended or terminated during the year. Where does it say this?-- in the guidance or the model form? I need to show it to a client and can't track it down.

Thanks.

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DLevine

I have an employee that has been off work under a workers' compensation ijury. Our workers' comp. carrier recently decided to deny any future claims and discontinue salary payments based upon a physician's recommendation that the employee is able to return to work. The employee still feels that she should stay off work based upon the opinion of her personal physician. Since she is no longer eligible for benefits under workers' compensation can she receive benefits under short-term disability? Before she was not able to access her disability because they will not pay out because of a workers' comp. claim. Now that she was been deemed by the workers' comp. doctor as "able to work" can she receive benefits?

Are participants limited to only one hardship distribution during the plan year?

AN EMPLOYER SIGNS AND ADOPTS A SIMPLE 401(k) PLAN BASED ON A V.S. DOCUMENT. THE PLAN RECEIVES A DETERMINATION LETTER.

TWO YEARS LATER, NOTICES ARE RECEIVED FOR FAILURE TO FILE 5500s. THE EMPLOYER STATES THAT THEY DECIDED NOT TO IMPLEMENT THE PLAN AND NEVER SENT OUT SPDs, ENROLLMENTS ETC. THE PLAN HAS NO ASSETS.

ANY THOUGHTS ON WHAT TO DO NOW?

My spouse has been participating in a Dependent Care program for the past 2 years. Just last week, she was informed by her Employer that an evaluation of the company wide program has determined that the percentage of highly compensated employees is to high and that she is no longer eligible to participate in their program for calendar year 2000. My company offers a Dependent Care program, however, the open enrollment plan has long since closed. My question is does my Company have an option to allow me to begin participating in the program for calendar year 2000?

I am trying to determine whether a compensation definition excluding cafeteria plan deferrals (which aren't reported on W-2) but including 401(k) deferrals (which are on the W-2) for purposes of allocating the 3% of pay non-elective safe habor contribution would be allowed.

My gut reaction is that I need to either exclude both 401(k) & cafeteria plan deferrals, or include both, but not mix-n-match. Notice 98-52 indicates that comp can be designed to satisfy the 414(s) safe harbor compensation definitions (hence it seems that all deferrals or no deferrals should be excluded). Any thoughts would be greatly appreciated.

I am doing some online benefits work for a client and discovered the need for data on the California Statutory Disability Insurance for workers who incur off-the job accident or sickness. What are the benefits, how long can a disabled employee collect? Is the plan contributory? Whom do I call for more info.

Thanks so very much

Rob

A controlled group consists of Company A (parent) and Companies B and C (wholly-owned subsidiaries). Each of the three companies has its own 401(k) plan and trust. Company A's plan allows participants to direct their investments into a number of funds, through Investment House 1. The plans for Companies B and C are virtually identical and allow participants to direct their investments into a number of funds (which are the same as each other, but different from Company A's plan), through Investment House 2.

For reasons not relevant to this question, Company A wants to merge all three plans within the next few days. Ultimately, the trusts will be merged and only one Investment House will be retained, but the decision has not been made as to which Investment House, recordkeeper, trustee, etc. will be retained for the merged plan.

Can the plans be merged and then, for a temporary period, can the merged plan continue to utilize the two Investment Houses, with different investment funds available for different groups of employees, and with three separate trusts, until the plan assets can be consolidated into one trust and one Investment House?

Any thoughts would be greatly appreciated.

I haven't been able to find the official version of this document on the IRS website. Call me paranoid, but I'm reluctant to rely on secondary sources for official notices. Does anyone have a link or cite to the official document?

An employer matches with company stock that is restricted. EEs can't sell or diversify unless they die, become diabled, retire, or terminate.

The stock price has fallen from $6 to $2 7/8 in one year.

The employer believes "we don't even have to match, so what's the problem if the stock price falls?"

What is the employer's liability for thinking this way?

Are there existing cases of employee suits against employers for being held captive by a match that cannot be changed and losses value daily?

Currently company pays 100% of employee and (after 1 year) dependent health insurance premiums (choice of 3 plans); 401k contributions by employees only -- up to 17% of salary; small disability policy and a token life policy provided. Firm is owned by a married couple. Wide range of employees in age and marital/ kids status. Profit sharing plan --max is currently paid into annually by firm. No pension plan.

Question: What are the pros and cons of a cafeteria plan in terms of:

-- flexible/ egalitarian benefits (some would like to have tax-free spending accounts for childcare, dental etc.)

-- max. limits in firm's tax-free dollars and how they are distributed

-- other issues such as the costs of administering such a plan in house and in fees.

-- Could we get some of the flexible benefits like tax-free childcare costs without a cafeteria plan?

(excuse my very basic questions but our financial and personnel committee chairs dumped this on the business development person!)

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Ann Trowbridge, AIA

I am trying to find out how people are handling plan language for a new 401(k) safe harbor plan. We use Corbel's document (individually designed documents) and the language provides that the employer will make an election to contribute either a matching, enhanced matching or nonelective contribution intended to satisfy the safe harbor requirements of 401(k) and 401(m). Notice 2000-3 seems to indicate, however, that the plan must be amended to state that it intends to satisfy the safe harbor requirements and the plan must specify the 401(k) safe harbor method being used. I am a bit concerned that our language is not sufficient. Any thoughts on this matter would be appreciated.

In the adsence of GUST Amendments from prototype providers how are people terminating DB Plans with the Service?

We are currently transitioning from an accrual environment to a daily envirnoment. In order to make this transition, we are investigating trade software packages. I would appreciate any feedback on the Sungard Trade Expediter.

Thanks,

Corey

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Corey M. Matis

I am receiving conflicting information about the permissibility of in-service distributions from money purchase plans. Is it o.k. to allow in-service distributions after a participant has reached "normal retirment age" as defined in the Plan, even though the participant is still working. Thanks in advance for your response.

Does a self employed person qualify to open a Roth IRA?

Our public sector labor union maintains its own dental, vision and life insurance benefits programs. Funds for these benefits are negotiated for during contract negotiations between the union and the municipality. However, costs for dental and vision services have outpaced the annual amount that the municipality provides. Short of cutting back on the levels of benefits provided, can funds that are DONATED to the union, FROM THE PUBLIC, also be used to pay for such benefits? Recently the union began a letter writing campaign to its citizens soliciting donations for worthy charitible causes that it supports. However there was no mention of using the donated monies for its welfare benefits plans also. Can such donated funds be used for such purposes legally/ethically? If this other purpose (to use the donations for the union's dental & vision expenses) was included in the solicitation letter, would it still be legal to do even though the benefits are being funded from the municipality through its contract?

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If a plan allows loans for the purchase of a principal residence that meets all the requirements for having the interest be tax deductible to the borrower, is the trustee required to issue a 1098 Form for the loan interest paid to the plan for the year?

The instructions to the 1098 form clearly state that the form only needs to be filed by those who are "engaged in a trade or business" and who received the at least $600 of interest during the year.

Is there a requirement for the trustee to file a 1098 form if the loan interest exceeds $600 during a calendar year?

Thanks.

A terminated DB plan sponsor has adopted a new profit sharing plan as a qualified replacement plan. Can the transferred surplus assets from the DB plan be allocated to ALL eligible participants in the new plan or is the allocation limited to only those participants who were covered under the terminated DB plan.

Any cites would be appreciated.

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Nadyne Nelson

Nadyne@iname.com

ICQ 2484855

Hello to all, My name is Sherry Jurach. I'm a group benefits specialist with xxxxx

[This message has been edited by Sheila K (edited 01-10-2000).]