Does anyone know who assisted IBM with converting their DB Plan into the cash-balance arrangement? Was it a big consulting house (Towers, Wyatt, etc.), accounting firm, etc.

Are there any recent trends in the presentation of information in employee benefits manuals to make them more reader friendly? Would be interested in tips -- what works, what doesn't.

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Susan

Know of any? If so, maybe we should work up a list of them in the BenefitsLink "library" -- http://www.benefitsattorney.com/links/Bene...d_Associations/

A US citizen and employee of a US company is currently working at the company's location in England. He will stay there for several years. Apparently, he is not able to contribute to the company's 401(k) plan while employed in England. Is this an permissible exclusion? If so, any ideas on what he can do for retirement savings?

I'm new to ESOPs.

A client recently paid off ESOP loan, and now has a new document combining ESOP and money purchase plan.

At the ESOP session of the 1994 ASPA annual conference R. Grant Williams has in his written material: "An ESOP that includes a money pruchase plan in conjunction with a stock bonus plan may have a combined deductible limit of 25% of payroll. (Two separate plans are necessary for a 25% limit if no credit carry overs are used.)"

Does this mean that a money purchase - ESOP combination is considered 2 plans? Two 5500s?

Also, can the money purchase part purchase employer stock from the ESOP part of the plan?

A profit dharing plan establishes 3 categories of employees, Category A, who are INELIGIBLE for the plan, and Categories B and C.

The plan is Top Heavy.

Do Top Heavy minimum contributions need to be provided for employees of Category A?

Variation on this question.

A defined benefit plan excludes employees of Category A. The plan is Top Heavy. Does the plan need to provide Top Heavy minimum accruals for employees of category A?

Thanks

Does an employer have an obligation to inform a fellow employee whose status is about to be changed from a non-exempt to an exempt position that his/her accumulated sick leave will be forfeited with the switch?

This company also allows its employees to exchange unused sick leave for cash.

We administer a 401(k) plan for a client that is a 501©(3) entity. This client has just informated us that they also just began participating in the IPERS plan (the Iowa Public Employees Retirement System I believe).

Does anyone know what kind of plan this is? I would guess either a 403(B) or a 457 plan, but really don't have any idea. I was told the employees are required to contribute a specified percentage of pre-tax pay and the employer is also required to contribute a specified percentage of pay for each employee. It sounds like it is a defined benefit plan (no account balance but benefits each month at retirement).

My main concern of course, is whether I have to coordinate the contributions and or benefits from the IPERS plan with the 401(k) plan.

Any help would be greatly appreciated.

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that looks good.

I don't even think you need steps 3 and 4.

the 415 limit is probably covered elsewhere in the document.

step 3 only makes sense if HCEs at 160,000.

what if you want to give an hce 25% of pay (e.g. he only make 100,000.

also, it looks like next years comp limit will be 170,000. (If I understand how the limits increase according to the regulations)

Both ADP & ACP Tests fail. Must return excess contributions and excess aggregate contributions (this is in accordance with terms of plan document). Excess contributions have related match contributions to return/forfeit. Question: What impact does the "correction" of the related match contributions have on the ACP Test? Specifically, can you potentially reduce the amount of excess aggregate contributions to return based on the amount of the match related to excess contributions that is "corrected"? Any written guidance on this?

I have a prospect that has a Profit-sharing plan that is Top Heavy. They want to start up a 401(k) Plan. Two of the Key EE's are over 65 (one is 70). They have not made a contribution in over 3 years. Is there any hope here for the Key EES's being able to contribute without having to make an Employer contribution. (other then having the two Key EE's past 65 taking their money and then waiting for the 5 year look-back running out)

Do the COBRA guidelines require that you extend Employee Assistance Plan (EAP)benefits?

I am trying to find something that discusses these plans and I am not having much luck. Anyone know of any good, comprehensive resource?

If contributions to a money purchase plan are not due until the end of the plan year and then only for employees employed at year end, can you reduce the contribution formula mid-year as long as you give a 204(h) notice.

I thought I read somewhere that IRS says that you cannot change the formula for anyone with over 1,000 hours at the time of the amendment. However, I cannot locate where I read this.

Resolution issued effective 1/1/99 to merge all welfare plans into one master plan effective 12/31/98. There are two trusts involved which will not be changed in any way. The financials will just be reported under the new master plan. I have a couple of questions:

1) The dental plan has a different plan year than the other plans involved. It is my understanding that a 5500 will have to be filed for the regular plan year (3/1/98 - 2/28/99) and then another for a short plan year ending 12/31/98 where the plan will be terminated.

2) All assets from the 2 plans with the trusts will be shown as 0 assets on 12/31/98 and the new master plan will show 0 assets at the beginning of the year and all of the other plan assets will be added together and shown under the new plan as of the end of the year. The two trusts have been audited that are involved. Does the new master plan now have to be audited? Are the schedule As for the plans filed with the new master plan.

I would just like to hear your opinions. We have a lot of confusion with the auditors about how this should be handled. I cannot understand why. This is bound to have happened many times since ERISA was enacted.

Can I start up a safe harbor 401(k) Plan 11/15/99 with an April 1 Plan Year; have a first "short year" of 11/15/99-3/31/2000; and make the safe harbor NEC into an already established ESOP that has an April 1 Plan Year. The 401(k) would not be violating the plan year requirement since the first year is more than three months, but would implementing the NEC provision into the ESOP mid-year violate any other "timing" provision?

Client is 49, was terminated 13 years ago from a company who had a 401k/match program. Client was 100% vested at the time of termination. Administrator is holding onto the money until the terminated employee reached the age of retirement (65). I thought a terminated employee had the right to take their vested dollars at any time. Can they hold onto this clients money until the client reaches the age of 65?

Hello. I have a problem that is similar to an inclusion of an ineligble employee. We have two plans, each of which providees benefits for a different group of employees. Both plans are defined contribution pension plans for a public school. Two employees were mistakenly included in Plan A when they should have been included in Plan B. We are going to transfer the employees benefits from Plan A to Plan B, but must refund some excess benefits. Does anyone know what the tax effect of the transfer will be? Will the employee have income and if so, in what year (the mistake covers three plan years)? What penalty, if any, do we (the employer) have to pay?

I don't work much with SARSEPs, so.....

Company has a grandfathered SARSEP covering all employees. They decide that either a new comparability profit sharing plan or a DB plan (covering the same employees) would better meet their needs. The plan year would be the calendar year.

#1. Are they prevented from having an additional plan for 1999 since they currently have a SARSEP? (I know they would be prevented if they have a "simple" 401k.)

#2a. Assuming they can have a profit sharing plan for 1999, is the maximum aggregage contribution of 15% of payroll for 1999 determined based on the sum of the SARSEP deferrals and contributions, plus the profit sharing contribution?

#2b. Assuming they can have a DB plan for 1999, is the 25% of pay maximum contribution determined based on the sum of the SARSEP deferrals and contributions plus the DB contribution?

Thanks.

My small client wishes to terminate its 401 plan. The plan is a standardized prototype, with an adoption agreement last dated December 1994. The company that sold the prototype to my client has gone out of business. Can anyone recommend an organization that can provide a standardized prototype, including all applicable amendments, that can be submitted to IRS with Form 5310?