If a participant in a 401(k) plan terminates at age 60 with an account balance of 300,000.00 and elects to take an installment payment of 1,000.00 per month or 12,000.00 annually until his account balance is depleted, would this be considered a substantially equal periodic payment that would exclude the distributions from the definition of eligible rollover distribution? Would the answer change if the installment election was revocable?

Is a self-directed brokerage investment option that requires a minimum account balance for participation (imposed by the broker) considered discriminatory under 401(a)(4), both "current" and "effective" availability?

Have a not profit organization A that sponsors a 401(k) plan. Org A has a for profit subsidiary B that markets products, including investments for TSAs and qualified plans. Sub B has a subsidiary, C which is its broker dealer for securities for the retirement plan. The trustees for the 401(k) plan is the Vice President of HR & the CFO Org A and the Director of Consulting Services for Sub B. The Director is a registered representative for securities. The 401(k) plan investment options are asset managed accounts through a broker dealer. The trustees are considering replacing the current options with mutual funds from PUTNAM, through Sub C. The returns historically in these funds exceed the current offerings and the expenses are much less. The recordkeeping has been brought in-house and reviewed by an outside consultant. What issues should we be concerned with from a fiduciary and prohibited transaction stand point? The registered representative on the board would not be the account manager for the 401(k) plan. Any information would be appreciated.

This book, 401(k)Provider Directory Averages Book, is referenced in the DOL "Study of 401(k) Plan Fees and Expenses" as a tool to use in the investigation of fees. Has anyone ever heard of it? Who is the author and publisher?

Several questions regarding safe harbor 401(k) plans.

1. The employees must be notified at least one month in advance of the plan's effective date. Where can I find what the notice must contain?

2. Can the first plan year for a Safe Harbor 401(k) Plan be less than 12 months?

3. Can a Safe Harbor 401(k) Plan have a non-calendar plan year that is

(a) the same as the corporation's fiscal year, or

(B) different from the corporation's fiscal year.

4. What IRS notices, rulings, regulations etc. contain information on these plans?

Thanks

I am having difficulty with a payroll company. We believe we must gross up matching contributions at year end for employees who front loaded contributions in 1999. Definition of comp is w-2. The payroll company wants a cite because their system is not allowing it. Help.

Well, I've been reading in the Message Boards about excluding certaining classes of employees, and the terms "opting out" and "electing out" seem to come up quite frequently.

Legally, what is required of the employer and of the "electing" employee in order to take advantage of this election?

Also, what is the difference between "electing out" and "alienation of benefits"?

I'm investigating how to exclude an 85 year old HCE(still taking a salary) from a

401(k)Profit Sharing Plan. Excluding her by name is not an option (obviously). If the employer could use this "electing out" option in favour of excluding her in the text of the legal plan document, this would be ideal.

thanks for any ideas or suggestions.

I am pretty sure of this, but just to confirm, an individual participant may not, under 403(B)(8), rollover 403(B) assets into a 401(k)if their 501©(3)company now starts up a 401(k), correct? I think the assets must be maintained separately. Thanks for any comments.

I'm a sole proprietor and my objective is to contribute as much as possible to my retirement savings. As my income fluctuates annually, one year the $6000 max of the SIMPLE would do, but another year my income would exceed $46K and a SEP would work better.

Three questions:

1. Can I have both a SIMPLE and SEP IRA and depending on my income that year contribute to one of them?

2. Are there minimum annual contribution requirements for SIMPLE or SEP-IRA?

3. To throw in another IRA: can you have both a Roth-IRA and SIMPLE/SEP?

Thanks for your help!

My AGI for 1999 will put me in a situation of a limited contribution to a Roth for 1999. However, my AGI will be less than the limit to do a conversion of my non-deductible IRA to a roth. If I make a $2,000 contribution for 1999 to my non-deductible IRA, then convert the account to a Roth, in effect I made a $2000 contribution in 1999 to a Roth. Is this ok by the rules? Thanks, in advance with any help with this question.

Having permanently emigrated to the US, I wish to cancel my UK government pension(will not otherwise commence benefit payments until 2013) and place the accrued already funds in a Roth or ordinary IRA, while i continue to be employed by US State Government. Is this possible.

Situation:

Ira owner and spouse recalculate ages each year for minimum distribution requirement. Both 80 years old.

1) IRA owner dies first. Spouse rolls Ira into her name. Can she name a new beneficiary (son) and use the combined ages to calculate distribution? Must she continue to recalculate her age?

2) What if spouse dies first? Is the distribution continued using just the IRA owners recalculated life or does it continue on the joint life calculation? Can IRA owner name new beneficiary and incorporate the younger persons age in calculating distribtuions? (no more than 10 years apart).

What happens when IRA owner is the last to die? Does non-spouse beneficiary have to take all out by Dec. 31 of year following year of death? Or is there any way the beneficiary can continue distribtuions using his own life expectancy?

Thanks for any help.

Can a plan participant pay for his/her spouses insurance premium from his/her FSA if the spouse does not have a Cafeteria Plan offered by his/her employer?

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We are preparing a 5310 filing for a multiple employer plan. The form instructions do not clearly set forth directions for how to complete such a filing for multiple employers. Have called Cincinnati office of IRS and they have not been able to answer us (and subsequently faxed our questions in writing but still no response). Has anybody done such a filing? We think we will probably try submitting one application with combined data, and one user fee.

I have heard a rumor that someone out there is selling the idea that if a 401(k) plan sponsor changes the plan year end to December 30, the first year this change is made, the sponsor can deduct employee deferrals for the year end and for the new plan year the begins December 31 for the calendar year ending December 31. I have no idea how this could work. How could anyone possibly know what will be deferred by the employees next year? I would not even ask except my clients are being approached with this idea and are being told that the methodology used in a secret that will be revealed if the client signs up with the provider for the service.

An employer wishes to allow a 401(k) plan participant access to their money. The participant has reached the Normal Retirement Age of 55 under the plan, but is not yet 59 1/2. The adoption agreement and prototype do not seem to allow for choosing to grant in-service distributions from any source prior to 59 1/2.

Our thoughts have been:

1) Be sure the participant is terminated and then wait to rehire the participant until after the check is cut. Is it necessary to wait until the check is cut before the rehire?

2) Amend the plan to allow for in-service distributions prior to 59 1/2.

Are we correct that this could only be done for non-elective contribution sources?

Would the amendment make the plan an individually-designed plan?

Any suggestions as to the best course of action for the employer? Thanks.

Does anyone out there have a list or can you lead me in the direction of where I might find a listing of eligible prescriptions that would apply towards the flexible 125K spending accounts? I understand that not all prescriptions are eligible even though they are prescribed by a physician. Thanks for your help in advance.

When a company has a lay off, how do others of you out there handle the claims for medical reimb? Do you allow claims for expenses while they are laid off to be reimbursed? Same with leave of absence?

HOW DO YOU CORRECT EXCESS CONTRIBUTIONS TO A SIMPLE IRA?

What are the rules that apply to a cafeteria plan where the employer contributes a set amount of money which the employees can use toward employer sponsored benefits? Does it operate differently than a regular 125 plan? Are there special administrative issues? How does it affect the employer, tax wise? I don't know anything about this issue, so all help will be appreciated! Thanks!

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Liz