I have a client who sponsors a SEP and now wants to add a new 10% Money Purchase Plan. The SEP came first, the company uses a 5305-SEP, which cannot be used once the MPPPlan goes in. I cannot locate a prototype SEP from any vendors or other providers. Can anyone help me find a non-model SEP document?

If a plan terminates and purchases annuities with an insurance company, what is a participant's recourse if he believes that his benefits are incorrectly calculated? Would the insurance co. be on the hook? Or is it too late by then? Any thoughts out there? Any citing? Thank you.

Gary.

Is there any reason why a 5500 could legally not be filed (long or short form), such as less than a certain # of employee or participants. Thanks.

The IFEBP recently held a forum for multiemployer and public sector coalitions and some of the discussion focused on myths and misperceptions about coalitions that keep some funds or employers from joining. Among the myths and misperceptions identified were the idea that funds or employers lose some autonomy in joining a coalition and the thought that coalitions are no different from PPOs. Has anyone been confronted with these or other misperceptions and how did you address them?

I am researching what helps to retain employees, ex. what should be in the benefits package. this is a high tech. company, new, will grow rapidly. there is alot of competion for the best employees. what have people found helps to keep them. thanks

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LMP

I am researching what benefits are wanted and will help to retain employees. this is a technology company. any suggestions would be greatly appreciated.

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LMP

Does the following idea work (or what's wrong with what I have in mind?)

Company X sponsors a DB plan for its one employee. Both the business and the plan are 12/31. 1999 minimum required contribution is $60,000 and maximum deductible is $80,000, similar to prior years.

The business owner would like a small deduction for 1999, around $25,000, and then return to his "usual" deductions (60-80K) in future years.

Let's assume that changing the plan formula, assumptions, funding method, etc. are not options.

I propose that he make a $25,000 contribution on or before 3/15/00, NOT go on corporate tax extension for 1999, and make the remaining $35,000 contribution between 3/16/00 and 7/31/00. With this approach, he will have made his required 1999 minimum contribution by 7/31/00 (and met minimum funding standards), but only $25,000 would be deductible for 1999 (since the other $35,000 was made after the corporate tax deadline).

I think that works for 1999.

But what about 2000?

Assuming the min/max for 2000 is again 60-80K, I would suggest him contributing $45,000 on or before 3/15/01, NOT going on tax extension for 2000, and contributing the remaining $15,000 between 3/16/01 and 7/31/01. In this case, the minimum funding requirement of $60,000 would be met for 2000 (the $45,000 contribution and the $15,000 contribution). $80,000 would be deductible for 2000 (the $35,000 contributed in early 2000 for 1999 but not deducted because it was contributed after 3/15/00, plus the $45,000 contributed before 3/15/01 for 2000).

The $15,000 contributed before 7/31/01 (which was used to meet the 2000 minimum funding requirement) would be deducted for 2001.

2001 and later years would be treated similarly.

Did I miss anything?

[several points. I recognize that the contribution timing is extremely critical and must be coordinated carefully with the tax filing deadline. That's OK because the client is very sophisticated.

Also, I don't think there is a 10% excise tax for any nondeductible contributions as long as these contributions are made in the same year as the deduction. For example, there is no excise tax on the $35,000 contribution made in early 2000 that is used for 1999 minimum funding and is deductible for 2000.

Finally, I recognize that starting in 2000, we might have to do two actuarial valuations each year because there are different asset values (one for 412 minimum and one for 404 maximum).]

Thanks.

would like to deduct

It has always been my understanding that a plan that contains a six months of service requirement for purposes of eligibility to participate could not also attach an hours of service requirement. For example, while it is ok to require six months of service, it is not ok to also require 500 hours of service. Where is this limitation specifically found (ie, regulations, revenue ruling, etc.)? I have found two resources that state you cannot do, but they give no citation. I have also found several prototype sponsors who seem to think attaching an hours requirement to a six months of service requirement is acceptable. Thanks in advance for any responses.

Section 4.04 of Rev. Proc. 95-51 addresses the takeover situation where the firm and enrolled actuary have changed & Rev. Proc. 98-10 adds Section 4.05 to address a change in software;if the enrolled actuary for a plan joins a new firm & gets the plan back, what now? written request for approval? also,is 4.05 intended for the situation where the EA and firm servicing the plan remain constant but the firm just decides, for example, to start using new software; and suppose the EA above who got the plan back is using new software but is unable to utilize the former firm's software? request for written approval?

A plan with age 21 and 1 year of service for making salary deferrals has a 2 year service requirement (and age 21) for profit sharing and matching contributions. No union employees in the picture.

When doing the (a)(4) test, am I correct in saying that I have to include all the employees with a year of service, even though they weren't eligible for a profit sharing contribution?

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No one responded on the other message board, so I thought I would try this board which seems to be more popular. Is anyone aware of rules analagous to the QSLOB rules for Code Sections 105 and 125?

Not everyone who is eligible to defer does. The plan sponsor is not going to make a discretionary profit sharing contribution but will make a match. Is the compensation of those who did not defer and will not share in the match (i.e they get no allocation) considered in computing the 15% of pay limit of 404(a)(3)(A)(I)? This considers beneficiaries of the plan, are eligible employees who do not defer and get no allocation a beneficiary under the plan for this purpose and if so, under what code section, etc?

I am the recordkeeper for a 401k plan which adopted the safe harbor provisions for their match. Previously, they reallocated forfeitures as a non-elective contribution. Is that money now considered 100% vested along with their prior match? Or, is this an issue that the employer decides when drafting the appropriate additions to their document?

Assume a "qualifying trust" (meets the five requirements) is beneficiary of an IRA, the IRA owner is deceased, so the IRA is paying out over the life expectancy of the sole beneficiary of that trust. The trust terminates upon the 45th birthday of the trust beneficiary. Can that beneficiary elect to keep the IRA open past the age of 45 allowing the IRA to continue paying out over his life expectancy directly to him, or must the IRA pay out in a lump sum upon the trust's termination?

My inclination is to say that the IRA must pay out in a lump sum, since the named beneficiary is no longer in existence. Prop. Reg. 1.401(a)(9)-1, D-5 states "...distributions made to the trust will be treated as paid to the beneficiaries of the trust...", but that appears to only relate to the calculation of required minimum distributions, not who may receive them.

Has anyone run into this before? Has anyone seen a private letter ruling in this area?

I am looking for information on percentages on distributions from retirement plans or programs on a national level. Specifically, employer related retirement plans or programs distributions vs. non-employer related plans or programs (IRAs and Rollover IRAs). If anyone has information on this subject, I would appreciate any assistance they can provide. Thank you.

An employee with over 15 year of service with a qualified organization would like to make the maximun catch up deferral contribution. Is it caculated as:

20,000 * 25% + 4,000 = 9,000 for 415 purposes?

I have an employee who is currently having her medical and dental premiums taken on a pre-tax basis. She had a baby in August. She now wants to drop coverage 3 months later. Is there a time frame of when the change of family status to make a change in premium only plans?

Any help appreciated --

Employees are promised company stock as part of compensation to be distributed/granted in 9/00, 9/01 & 9/02 this is before our ESOP was established - can that stock be part of the ESOP plan?

Thank for your help.

A client has excess contributions of $1,800 for the plan (calendar) year, and refunds are being made after the 2 1/2 month deadline. One of the participants requiring a refund also deferred $11,000 for the year and received a refund of $1,000 in excess deferrals before 4/15/99. Is the 10% excise tax based upon the excess contributions of $1,800 or the $800 remaining to be distributed?

Can a governmental or tax-exempt sponsor request a determination letter for its 403(B) or eligible 457 plan? If not, can a PLR be obtained for either plan?

Any cites to rev procs or other references would be appreciated.

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