What is the purpose of Q 7(i) on the Form 5500 and the Form SSA reporting? If a DC plan immediately vests participants, how is this related to a deferred vested benefit?

I have been trying to find information and/or the best way to extend a benefit to our employees.

We were thinking of adding vision care to our health plan but thought that a better way to give a benefit to all of our employees rather than just those with vision care needs, is to give each employee X amount of dollars per year that can be used towards vision care, health club memeberships etc.

I have spoken to my Flexible Spending Administrator without success.

Does anyone have a similar benefit set up and if so, how does it work?

Thanks in advance for any help you can give me!!

Where can I find a list showing how states treat non-ERISA 403(B) assets in a bankruptcy?

We have several former US employees with 401(k) balances now employeed by non-US subsidiaries (not on temp US assignment). As they are members of the controlled group we consider them participants. As they have no US income they can not contribute to the plan. Does anyone else have this issue and how do you collect payment?

PEP plans are hybrid plans. What general rules apply to withdrawals and distributions for tax purposes? (i.e. pre-59 1/2 withdrawal)

An employer has made an error in calculating and contributing to the profit sharing accounts of some participants in the 401(k) plan. The plan clearly states in the contribution/allocation formula that no amount shall be contributed in excess of the 415 limits. However, the employer was unaware of what the 415 limits were for these individuals and made the contributions to each participant's account. Upon performing the 415 test, the improper contributions were discovered and pulled out of the participants' accounts. The employer subsequently used these amounts as an offset to the next pay periods salary deferral and matching contributions. A spirited discussion has developed regarding the treatment of these erroneous contributions. Any imput or comments as to the various positions taken would be greatly appreciated.

Here are some of the positions taken so far:

1. The contributions in excess of the 415 limits are excess annual additions and have to be treated as such under the correction method stated in the plan document. The document doesn't say that salary deferrals will be refunded. It says that the excess annual additions will be used to offset future employer contributions to the plan. The person advancing this position claims that the use of such amounts to offset salary deferrals is a prohibited transaction since the offset amount exceeded the total amount of matching contributions that were submitted (ie, this was an improper loan to the employer).

Any thoughts on this matter?

2. The erroneous contributions are NOT excess annual additions because the plan's contribuiton/allocation provision specifically prohibits a contribution in excess of such amounts. Therefore, any contribution over the 415 limit for an individual is a contribution in error that must be corrected (but it isn't an excess annual addition). The money pulled out of participants' accounts in this regard can be used for any legitimate plan purpose, including the payment of salary deferrals, since this is a pre-funded unallocated employer contribution.

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Can someone remind me when it is required to choose your testing method for ADP & ACP testing purposes versus being able to use the "better of" current year or prior year numbers?

Does anyone have experience with crediting of service with a foreign affiliate for purposes of determining credited service under a DB plan with a benefit offset for benefits under the foreign plan attributable to the same period for which service is credited under US Plan?

See Reg. 1.401(a)(4)-11(d)

See Reg. 1.401(a)(4)-3(f)(9).

E.g. how did you handle the exchange rate issue?

Any examples of plan language?

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I know that there are IRS regulations regarding the 401k plans that an employer must offer to related or "sister" companies. Are there similar regulations issued by the Dept of Labor that require an employer who owns more than one company (that are related or are "sister" companies)

to offer the same benefits in each of these companies? Thanks.

Does anyone know of a survey or have general knowledge about the typical length of time from when an employee gets paid to when the 401(k) deferral is actually invested. We administer our own plan of approximately 3200 deferring employees with 11 different pay cycles per month. Have only missed investing on actual pay day 4 times this year and upper management is upset. Would like some ammunition.

Would there be any difference in treatment for retirement benefit purposes between a QDOT for a non-citizen spouse and any other form of marital trust being the Participant's Designated Beneficiary? I assume there is not and that the calculation of required minimum distributions, other payouts and options (including spousal rollover) would be done under the normal rules applying to benefits payable to trusts. Does anyone else have a take on this.

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If one has maitained a SEP plan and the Employer's contribution for the employee was made in 1999 based upon the 1998 wages, can a Simple be implemented for 1999? The SEP was terminated in 1998 but the final payment was made in 1999.

Can a sole proprietor who has a 401K plan, make his 401k deferrals after 12/31 but before due date of tax return? For example, for 12/31/99 year end, can the deferral be made to the plan by 4/15/2000? Since we're unsure of exact compensation until the tax return is completed, we don't want to get into ADP issues.

A client is contemplating a "leased employee" arrangement with a private sector firm. Question: What impact will the plethora of cases like Microsoft have on a State or Local Government? The leasing company is covered by ERISA and the Government Agency (a city) is not. State statute does not contemplate these arrangements. Any ideas, or sources of information?

If you were participating in a plan that terminated on 3/31, then started participating in a new plan starting 4/1 (new plan is result of several companies merging together- no controlled group issues), are you limited to the $30,000 limit? Can you get $30,000 in the new plan, plus whatever was contributed for you in the old plan?

Client wants to adopt safe harbor 401(k) effective January 1, 2000. Am I right in thinking that client only needs to set up a plain vanilla 401(k), distribute the notice pursuant to Notice 98-52 in a timely manner, and that client has until December 31, 2000 to amend the plan to bring it into compliance with all safe harbor requirements?

Anything special that needs to be in the intital plan document??

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Has anyone out there had experience with HCFA requests? These are documents sent from HCFA to determine if an employee had coverage under your medical plan (they are reviewing coordination of Medicare benefits? We are a large corporation who has received these in the past couple of years. We have had several personnel changes and thus, there are lots of unfinished requests. We have determined the new ones that need to be addressed, but the old ones we are not sure about. Any advice on whether or not we can go with what we know?

Husband was over 70 1/2, wife is primary bene with children as contingent; method was jt life, both recalcuated. Husband dies and wife disclaims the IRA. Does this mean a lump sum to the children since both lives were being reclaculated or does the surviving spouse sill have a life expectancy and the children can use the mothers single life factor for the continued payout?

Can a participant defer his or her designated percentage of cash received for unused vacation pay, assuming the definition of compensation allows for this?

It has always been my practice to mail direct rollovers to the financial institution or trustees of the qualified plan accepting the rollover. My new employer has instructed me to mail rollover checks made payable to the financial institution to the participant. My understanding was that a rollover had to be a "trustee to trustee" transfer and that the participant literally could not touch the check. Is it okay to mail the rollover check to the participant?