Client is a large national home builder. Reviewing retirement program. Wants info on what other similar organizations provide. Main focus is on 401(k) and level of match, and indication other plans, with specifics if possible.

Any info or suggested sources of info?

May a municipality establish a SIMPLE IRA for its employees if it meets the other requirements, e.g. number of employees?

Facts: X worked for U.S.-based ABC Corp. for several years, received U.S. earned income, and received deposits into his profit sharing account for several years. ABC was bankrupt about 7 years ago, plan is just now being terminated (all required 5500's were filed). X is not a U.S. citizen and returned to his home country some time ago.

Question: Can X roll his profit sharing balance to a U.S. IRA? Can he do so tax-free, the same way a U.S. citizen would?

Thanks for any input.

We are a small consulting firm in Texas with plans to expand soon.

We need a benefits package BEFORE we recruit so that our potential new staff know what is available. No one we have talked to so far is willing to give us information without specifics about our staff, which or course, we don't yet have.

Can someone give us VERY GENERAL information about benefits packages, what they might look like/cost and how they are administered?

Samples would be nice.

Steve Evans

Evans Technology Applications

steve_e_eta@hotmail.com

I work for a small government relations firm in Washington, DC. We are looking into changing from a traditional vacation and sick leave accrual policy to a Paid Time Off policy. I have never worked for an organization where a PTO plan was used and could really used some assistance and direction on where to begin. I'm looking for HR professionals who are willing to share copies of their PTO policies (you can forward to my e-mail address listed above.) In addition, any input or feedback on what to do and not to do would be appreciated!

Thanks,

Sandi

This started as a response to 'Other 'perky' benefits'. IF you are comfortable allowing a financial services firm into your company… you can work with a financial services provider to negotiate reduced minimums and fees. The only cost I can see would be to set up the direct deposits.

This is my first posting. I have opened another topic under Misc. Benefits. I would be interested to hear comments from anyone else who has looked into these services. Why did you decided not to go forward? If you did go forward, do you have any tips?

Thank you!

I guess the employer figures the office employees aren't about to unionize, eh?

Besides the fact that the plan design seems intended to tick off office employees and field employees who did contribute, I'd be concerned that it violates the contingent benefit rule in the 401(k) regulations. Treas. Reg. 1.401(k)-1(e)(6)(i).

The employer also has issues about whether the amount exceeds employees' IRA limits and (considering they are eligible for a 401(k) plan) whether employees make deduct IRA contributions. The employer might also convert the IRAs into an ERISA plan (there's some DOL guidance that addresses what the borderline is).

Not a great idea, all in all.

If the QDRO value is rolled into a 403(B) and mixed with the person regular 403(B) account, it is possible the 10% early distribution penalty will apply to the money. Care is needed so the the QDRO money remains as QDRO money to be exempt from the new plan's distribution restrictions and adverse taxation.

I am trying to determine the importance of prospectuses for distribution to employees in employer-sponsored ERISA retirement plans (401(k), 403(B), etc.) At first glance, it would seem logical that each employee would need a copy of a prospectus for each fund offered in an employer plan. However, since the plan sponsor is ususally the client the purchasing client and is acting as a fiduciary, it may only be necessary to obtain prospectuses for the employer and provide prospectuses on demand for the employees.

Other issues are the cost of mailing, difficult of getting adequate supply from each independent fund company and the logistical nightmare of distributing them. For instance a 1000 employee plan, with 10 investment requires 10,000 prospectuses be delivered and distributed. This is difficult and expensive, cutting into resources and profitability.

Can anyone tell me the DOL position on the use of prospectuses and the most logical course of action (e.g.supply at enrollment to all, supply electronically on a website, deliver after enrollments but before contributions begin, or other)???

Thanks

If during a plan year a participant has a change in circumstances and finds the dependent care allocation is too much and medical is too little, can money be swapped between these two categories without a trigger event?

If not, is there any congressional bill in process which would allow a mid-year change in allocations without a trigger event?

Does anyone know of any cases or how to deal with a situation involving a scrivener's error where the drafter of a restated plan document, which is restated to meet the requirements of TRA 86, fails to put in the specific effective dates (e.g., certain TRA changes had to be effective 1/1/89) and instead has everything effective as of the date of restatement (e.g. 1992)? Thanks.

In calculating the 1999 Top Heavy test for a plan with a 12/31 plan year end, I have the following calculations in which I am confident of the calculations:

12/31/98 Balances for Key EEs = 3,096,677.97

12/31/98 Balances for ALL EEs = 7,193,148.80

Withdrawals made from 1994 to 1998 Plan Year

Key = 80,303.40

Non Key = 118,353.20

Which calculation below is correct?

1)

3,096,677.97 / (7,193,148.80+80,303.40+118,353.20)

OR

2)

(3,096,677.97+80,303.40) / (7,193,148.80+80,303.40+118,353.20)

Since it passes no matter which is used, it is not critical in this example but where the ratio is close to the 60% thershold, it could make the difference.

I personnally believe that formula (2) is correct but would appreciate others input.

Thanks

John Armknecht

I am 75 and now into my 403(B) grandfathered money. VALIC is using a "50% Rule" [taking 51% (yes, 51%) of the pre-'87 money and using the annuity due formula with my single life age (as time) instead of joint with my wife as the divisor]. TIAA/CREF has never heard of this. Is there such a thing (i.e. 50% Rule)?

I am contemplating moving my 403(B) from VALIC to TIAA/CREF and would like the same benefit and if I could locate the citation, etc., I might have some foot to stand on.

HELP.

------------------

Al

I am in the frequent position of accompanying many life insurance agents on their pension sales calls. I try to limit this because I'm afaid I won't be adequately compensated for my time.

I can see it two ways:

1. If we sell the case, I get the administration. Many times, I leave a bill for the administration or the plan document and they pay immediately.

2. Lawyers and other professionals charge for their time. We are professionals (although lawyers like to think of theselves as THE ONLY professionals on the planet.

If I am charging $500 on a case, and it takes me 2 hours each way travel time plus an hour meeting with the client, I have not made any money. And, if the agent blows the sale, we have all wasted our time.

Steve

What is the usual practice, if there is one?

What has anyone experienced in requiring a year-end bonus to be paid back if the employee leaves within 6 months? Thanks

An employee's spouse has been deported. The deported individual is expected to return in three to six months. The plan covers dependent spouses as long as they are not legally separated, (this will be defined as a domestic agreement to be separated) but the author of the plan could not foresee an illegal immigrant qualifying as a dependent. Is the deportation and non-US residency status enough to terminate coverage? What if the person in question never returns to the US, can coverage ever be terminated?

I administer a 401(a) defined contribution plan for a public college system. We are prohibited by law from using current funds to provide compensation (including benefits) to former employees including retirees).

I would like to set up some method for taking current contributions to the governmental 401(a) defined contribution plan to be used in the future to subsidize the plan retirees' health insurance premiums.

At first it seemed that a 401(h) account was the way to go, but I am not so sure now.

What about a Retiree Lives Reserve or a Voluntary Employees'Benenfits Association.

Have any of you made such an arrangement? If so, how do I find out how to do it and the pros and cons of the various mechanisms?

Dan Gould

Is there any reason a sole proprietor cannot have a SIMPLE IRA plan? She is the only employee.

Assuming she can, and she defers the max $6000, does she still get the company match or is that considered part of the deferral?

There seems to be a large difference of opinion among CPA's I have spoken to. Any help would be greatly appreciated.

What is the consensus on how to report hardship distributions on Form 1099-R after 12/31/99? Since hardship distributions coming from certain sources (i.e., elective deferrals and earnings) will not be eligible for rollovers, but hardship distributions coming from other sources (i.e., employer matching or profit sharing contributions, and) will still be eligible for rollovers, should two 1099-R's be used (one to report rollovers and one to report other hardship distributions) or should only one be used? If only one is used, how is the hardship distribution reported?

Is employer stock an allowable investment in a Simple 401(k) plan? If so, could the match be made only in employer stock?