Do you provide medical benefits for part- time employees? If so, what is the criteria for being eligible (i.e. minimum number of hours worked, etc.) and what premiums are charged (i.e. same as full-time employees). Lastly, what was the incentive to offer these benefits (i.e. competitive reasons, large part-time population,etc.)

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

What are the most frequent methods of providing a plan to make those affected "whole"? Non-qualified lump sum payment at retirement? Annual cash out?, etc. Will the limit be increasing in 2000?

Thanks.

I'm dealing with a plan that did not make RMDs for 1996 and 1997 to two employees who attained age 701/2 in those years. Because of changes made by SBJPA, employees who are still working and aren't 5% owners are not required to take distributions. However, according to the IRS, a plan cannot take away the option to take a distribution at age 701/2 because it is a protected benefit. The Irs published Notice 97-70 which gave employers until December 31, 1997 to offer employees an election to defer. Our employer did not provide the election until December 28, 1998. (Both employees opted to defer).

I originally thought that this was a failure to make a RMD subject to excise tax and so on. However, upon furthere analysis, these employees were not required to take distributions under 401(a)(9) because they were still employed. The failure was that the plan did not follow its own terms and make distributions when the employees turned age 701/2. Do you agree with that analysis?

if so, would the proper correction be to make the required minimum distributions for the 1996 and 1997 years based on the terms of the plan? Would earnings need to be calculated and added into the minimum distributions?

First, I would like to thank Noel for his outline on required minimum distributions (RMDs). I spent part of the weekend studying the outline and I think I have a handle on the calculation.

Unfortunately I'm dealing with a plan that did not make RMDs for 1996 and 1997 to two employees who attained age 701/2 in those years. Because of changes made by SBJPA, employees who are still working and aren't 5% owners are not required to take distributions. However, according to the IRS, a plan cannot take away the option to take a distribution at age 701/2 because it is a protected benefit. The Irs published Notice 97-70 which gave employers until December 31, 1997 to offer employees an election to defer. Our employer did not provide the election until December 28, 1998. (Both opted to defer).

I originally thought that this was a failure to make a RMD subject to excise tax and so on. However, upon furthere analysis, these employees were not required to take distributions under 401(a)(9) because they were still employed. The failure was that the plan did not follow its own terms and make distributions when the employees turned age 701/2. Do you agree with that analysis?

if so, would the proper correction be to make the required minimum distributions for the 1996 and 1997 years based on the terms of the plan? Would earnings need to be calculated and added into the minimum distributions?

Kurt

50yr old, divorced, 700K in property, 300K in investments, 101K in Roth, 3K/mo in child support. All $'s as property settlement so no taxes on them. no other income. Should I be in a Roth?

Can anyone tell me, either from personal experience or from national statistics, at what rate 401(k)plans fail the ADP/ACP tests?

Thanks.

A traditional IRA is converted in full to a Roth IRA at the same custodian in 12/98. The account includes mutual fund shares that are ex-distribution at the date when the custodian records the transfer of assets into the Roth IRA. The distribution is received in January 1999, but would be includible in 1998 income for a taxable account. The custodian omits the value of the distribution receivable from the 1099-R for 1998 and reports the amount of the distribution as a separate conversion in 1999. The account holder may be ineligible to convert in 1999. Is the custodian in error, and should it have reported the full value of the account as converted, including distributions receivable? Thanks in advance for any responses.

I am new to the world of investing, other than my 401K. I am interested in opening a Roth IRA, but am not sure where to start. Any ideas?

I have been offered a sales job with a medical company, and they pay (reimburse) .12 per business mile. Is this fair? What is the industry average? Thanks!

Is the medical premium taxable to the employee if the (so-called) domestic partner does not qualify as an eligible dependent under IRS code 152?

I am working with a client who has a Standardized Profit Sharing Plan. He has approx. 25 employees but 18 of them work only during the summer months. 16 of the 18 consistantly work over 1000 hours but are not employed on the last day of the year. We are looking to convert the plan to a Nonstandardized Profit Sharing / 401(k) Plan with a last day of the year eligibility requirement. The Plan is Top Heavy. If we make a profit sharing contribution, will we be required to make a top heavy contribution to the 16 summer help employees (who work over 1000 hours) who are not employed on the last day of the year? If we make a matching contribution to the 401(k) plan, must we match the summer help employees? If it is important, most of the summer help are hired back each year. Thank you!

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

[This message has been edited by SPollock (edited 08-14-1999).]

I have a client with 30% spanish speaking workers. According to the SPD regulations, that means the employer needs to create a Spanish SPD. Does anyone know of a service that specializes in these. Due to the technical nature of an SPD, I would be a little concerned about using someone who does not have any employee benefits knowledge. Obviously, I won't be able to review the document.

Kurt

A substantial amount of confusion, post-Harris Trust proposed regs, seems to exist in California, relative to what (if any) level of fiduciary liability an insurance company assumes when a separate account is used by a 401(a)qualified plan. If it is possible, could we get some clarification as to whether a governmental plan has any possible recompense in the event a separate account is not invested according to State or federal law? Please address on both a stand alone contract and a trusteed plan basis.

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

Where does one find the "implicit price deflator of the GDP as calculated by the Dept. of Commerce and published by the Survey of Current Business," which is needed to calculate COBRA premiums for self-funded plans under the past costs method??

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

We are an employee benefits consulting firm working with employers with 500 to 3,000 employees located in the NW and in California.

Most of our clients have employees located throughout the US

We have both self-funded and fully insured business. We are experiencing double digit increases in the funding/insured rates. An average would be in the low 20's.

We would like to know what other broker/consultants and employers are experiencing in their locations?

Thank you

What are the ramifications on an employer and its employees if the employer is unable to make its matching (or nonelective) contribution to a SIMPLE IRA due to financial difficulties? This assumes that employees had made salary deferrals during the year, and that an employer contribution is required to be made.

Is there an IRS penalty on the employer if it doesn’t make the contribution? Will the DOL get involved, and what are its remedies? Or is it solely a state law matter?

Further, are there any tax consequences on the employees? (It seems unlikely as long as nothing is distributed.) Thank you.

Does FMLA require an employer to pay holiday pay to an employee while on FMLA if he/she would otherwise qualify for holiday pay?

A Plan has less than $100,000 in assets. It is an S-corportation.

There are two owners (brothers) and several very PT employees.

The only participants in the Profit sharing Plan are the owners.

Can a 5500-EZ be filed?

Or because there are 2 owners (and not owner +spouse) must a C/R be filed?

Employer is experiencing unexpected financial difficulties and can no longer make any matching contributions to the SIMPLE IRA. How does an employer terminate a SIMPLE IRA without triggering the 25% penalty? Can the employer pass a board resolution freezing the plan, wait until each participant was in the plan for two years, then distribute the assets? Can termination/freezing asssets be done mid-year?

If an employee has a lifestyle change due to a new marriage and elects to add the spouse within the 31-day grace period, is the effective date of coverage the date of marriage or the date that the employee makes the election? Is there specific rules in the regulations on this subject or is it by plan design?