Does anyone have any experience in converting from FDP to Quantech? I would like to import as much as possible from FDP to save time, but I'm not sure of the steps I need to take or how much information I need to enter into Quantech before I can import. Any help would be greatly appreciated.

I am currently working with a multiemployer plan which has run into some problems being able to deduct the employer contributions. 412©(8) and 11.412©-7 seem to state that I can adopt a retroactive amendment within 2 years after the close of the Plan Year and be able to recognize it for 412 & I assume 404.

Lets assume that I'm working on the 1/1/99 valuation. The 98 Max was 100K and the employer contributions were 200K (both expected and actual for simplicity).

Can we amend the Plan now (12/99), effective 1/1/98, to increase retirees by 5% on 1/1/2000? Assuming it would generate a max of 200K in 98, if we had done it then, are we "ok" for 98 or does the amendment have to increase the actives benefit?

Does anyone know of any real guidence on this?

Would I have to amend the 98 Sch. B as well?

Any comments would be greatly appreciated.

I am currently working with a multiemployer plan which has run into some problems being able to deduct the employer contributions. 412©(8) and 11.412©-7 seem to state that I can adopt a retroactive amendment within 2 years after the close of the Plan Year and be able to recognize it for 412 & I assume 404.

Lets assume that I'm working on the 1/1/99 valuation. The 98 Max was 100K and the employer contributions were 200K (both expected and actual for simplicity).

Can we amend the Plan now (12/99), effective 1/1/98, to increase retirees by 5% on 1/1/2000? Assuming it would generate a max of 200K in 98, if we had done it then, are we "ok" for 98 or does the amendment have to increase the actives benefit?

Does anyone know of any real guidence on this?

Would I have to amend the 98 Sch. B as well?

Any comments would be greatly appreciated.

A bank which sponsors a defined benefit plan is contemplating the following 2 actions:

1. Replacing the existing trustee (a non-related financial institution) with the bank's own trust department.

2. Retaining an investment advisory company to serve as the plan's investment manager. The investment advisory company is owned 100% by an individual who is (a) the bank's president, (b) a member of the plan's administrative committee, and © a shareholder of the bank.

Are either or both of these prohibited transactions?

I am a payroll accountant and I have a benefits/tax related issue on which I can find no supporting documentation.

Can any one provide me with ideas of where to research whether or not an Executive may deferred compensation from one tax year to the next?

Our Tax Consultant assures me that this can be done "No problem", yet niether of us can lay our hands on anything in writing.

Any assistane would be appreciated.

CLKeown

Does an FSA plan year have to match a calendar year? For example, can I run a plan year for the flexible benefits from 7/1 to 6/30 of the following year or do I have to stick with 1/1 to 12/31?

Walter M.

We are setting up a plan for a golf resort, effective 1/1/2000. Many of the golf pros will earn enough annually to be categorized as HCE's. However, these pros were classified as independent contractors up until 10/1/99, so their compensation as "employees" for 1999 will be itself not cause them to be HCE's for 2000. The question is whether it is possible to disregard independent contractor income from the same source in determining HCE status. It doesn't sound good to me (who knows whether the independent contractor classification was proper?) but others may feel differently.

A participant was not given any election form when the required minimum distribution was first due, so the plan administrator paid the amount based on a single life. What should be done currently? Can the participant now change the method? If the participant does change the method, can it be effective only prospectively, or would it be retroactive? Should APRSC be used due to failure to provide the participant with election forms?

I am attempting to contact person in an organization responsible for doing all legwork in getting health insurance bids, dealing with the renewal process, etc., for businesses 50-250 employees.

Any thoughts on titles, mailing lists, etc.?

Thanks.

Should a profit sharing plan (effective 1/1/98) being submitted to the IRS for Determination Letter contain the GUST amendments? If so, where can one find model language for these amendments?

Is there an unofficial rule of thumb for the maximum dollar amount of excludible de minimis fringe benefits (e.g., goods such as VCRs, clothing provided in holiday raffles, etc.) I am aware that $400 per person per year is the most an employer can deduct without a formal benefit plan but am wondering if the threshhold is not a bit lower for excluding the benefit from an employee's taxable income; e.g., $100 or $50. This as a result of reading Treas. Reg. Sec. 1.132-6(e). Any comments appreciated.

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I HAVE AN S CORP WHOSE 100% SHAREHOLDER DIED

IN 1998. PRIOR TO DEATH THE OWNER WAS RECEIVING MINIMUM DISTRIBUTIONS UNDER THE STRAIGHT LINE METHOD AND THE BENEFICIARY OF THE DECEASED IS A NON SPOUSE. HOW SHOULD DISTRIBUTION TO THE BENEFICIARY BE MADE FOR 1999? ALSO, WHAT IS THE STATUS OF THE PLAN

SINCE THE 100% SHAREHOLDER IS DECEASED?

Who out there is familiar with benefits issues for federal credit union employees?

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In a final average pay plan, is it "customary" to lock in any prior year's accrued benefit and pay that benefit if it is larger than the benefit derived from the plan formula? This could happened where there is a significant decrease in comp. I can find no basis in 411 for doing this.

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A profit sharing plan lost stock certificates worth approximately $70,000. The insurance bonding fee to replace the certificates was about $700. Can this fee be paid out of plan assets?

What are the consequences and what corrective action needs to be taken if a plan sponsor refunds a deferral during the year of the deferral (rather than doing the refund after the end of the plan year) in anticipation of failing the ADP test?

Does it matter which of the following 2 actions the plan sponsor took;

1) left the deferrals in the plan, reduced subsequent deposits of deferrals by a certain amount, and paid that amount as salary; changed the accounting for the deferrals appropriately

2) paid the deferrals out of the plan, just as would have occured after the end of the plan year?

I HAVE A CLIENT WHICH IS TWO PERSON LLC. IS IT PERMISSABLE TO MAKE A CONTRIBUTION TO ONE

PARTNER WHILE THE OTHER PARTNER OPTS OUT OF THE PLAN? I KNOW THIS IS PERMISSABLE IN A

PROFIT SHARING PLAN.

I want to implement Work/Life benefits for my small business, specifically LifeCycle Accounts, can you give me any info. about where I can find out how to start?

For a 401(k) Plan, are the deferrals for a shareholder of an LLC limited to the payments they receive during the year or on their net income? Where is this spelled out?

What constitutes an amendment to trigger 204(h) notice in a DB plan?

1st Board meeting: Board adopts the "idea" of a new pension design and names key features which are supposed to be presented to the Board at a later date for formal approval when the plan document is finalized. (Assume amendments trigger 204(h) notice.)

2nd Board meeting adopts the final plan document which specifies features that were not specifically named in the 1st Board meeting. These features include an early retirement subsidy, a deferred annuity interest crediting, and variations to the plan for a certain subsidiary.

Which Board meeting starts the timing for the 204(h) notice?