Looking for any insights or information on structuring bonus or other "compensation" strategies for LLC members.

Ideally the arrangement would be the LLC equivalent of a nonqualified deferred compensation plan. (Have already posted on that message board, to no avail.)

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What is the correction when an ineligible employee of a single-employer with a 401(k) profit sharing plan is allowed to make 401(k)contributions and receives matching contributions? What must happen to the deferrals, interest on the deferrals, matchin contributions, and interest on the match? Can an IRS self-correction program be used? If so, which one? Can any money be returned as "mistake of fact" if the plan has the proper language? What would constitute a "mistake of fact"? When would the one-year period start? Would any of the answers change based on how long the ineligible employee had been allowed to make 401(k) contributions and get the match (3 months vs. 2 years)?

When an employee is married and changes her name to take her husband's, which is the appropriate form(s) for proof of ID that must be completed?

We have drafted model QDROs for our client to use, in order to ease administration. One issue that we had failed to address is when the participant is not fully vested in any or all of the amounts allocated to an alternate payee under the QDRO. We have proposed that to the extent the allocation includes nonvested amounts, the participant and the alternate payee will share equally in the vested portion of the account balance (in accordance with their remaining interest in the plan after the QDRO). This way, the alternate payee is not able to take a distribution of all vested amounts, leaving the participant with the nonvested amounts.

Also, we propose that if the allocation includes nonvested amounts, that no distribution of any amounts be permitted until the Participant becomes fully vested (or vesting can be determined with some certainty, as in a retirement or termination).

Any thoughts?

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Here is the situation...

Company is self-funded and they base employee contributions on their maximum exposure.

Company has a good year and wants to return a portion of the contributions back to their employees.

How do handle this, given that (a) a company will not know the total medical costs for 6-12 months after the plan year is completed due to claims lag and (B) by the time total costs are known, many employees are no longer with the company?

Thank you for your advice.

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As a benefits broker, one of my clients needs to print a new booklet because we have installed a new TPA and we have convinced them to modify several of their benefits.

Can you provide me with any reasonably priced printers that you have used.

Thank you.

Bob Wolff

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I am familiar that Summary Annual reports are required for retirement plans but not welfare plans. I have a few questions.

1. Are they required for welfare plans with over 100 employees where a 5500 would be prepared?

2. Where can I find the regulations and instructions that cover this? Could you e-mail or fax them to me?

3. Do you have any samples that I could use as a template or direct me to a resource that has a sample form?

Thank you for your help!

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Calendar Client with Target Benefit has closed up shop and wants to terminate plan, say 9/30/99, but make a final contribution for the year.

Question bugging me is, do I have to pro-rate the compensation limit of $160,000?

Is the intent of question 27(B) of the 5500, asking if any loans by the plan are in default at the end of the plan year, to identify loans to participants that are in default - meaning repayment has not been received within the Plan's allowable grace period and required to be considered a deemed distribution?

We received a private letter ruling that our plans are governmental plans under 414(d). However, for various reasons, we may withdraw our request to the DOL that our plans are governmental under ERISA Title I. If we are governmental for purposes of 414(d), but not for ERISA Title I, do we have to file a 5500 with the DOL. My impression is no, but I cannot confirm this. Help!!

Sorry for the question, but I haven't been able to find any info on this topic. Situation: I have converted my Traditional IRA to Roth in 1999, and then recharactized it back to a Traditional IRA. Now, I think I might be under the MAGI of $100,000 for the year, and would like to convert back to a Roth. I was told if I'm over $100,000, I will be able to recharacterize back to an IRA next year. I'm afraid, however, that I've used my 1 recharactization.

I'm fairly sure I can convert to a Roth, but am uncertain whether I would be able to recharactize back to a traditional IRA if I'm over $100,000, thereby subjecting the conversion to penalties. Any help would be appreciated.

Control group consists of parent A with health plan A. Subsidiary B in control group spins off and would like to cancel its health plan B. The employees of B will get COBRA notice benefits for plan A (which is comparable to plan b). For those in Sub B already on COBRA before the spin off, may they switch into plan A for the remainder of the COBRA period? If so, may the premiums go up if plan A is more expensive?

Does anyone know if there is somewhere on-line that has the complete text(not the yearly summaries) for Internal Revenue Bulletins prior to 1996? In particular I'm looking for the 1994-3 bulletin that further defines the requirements for a "qualified transportation fringe" benefit in Notice 94-3. Thanks!

An individual receives a lump sum in 1995. The plan requires 50% female and 50% male PBGC mortality. In 4044 of regs the PBGC mortality table is the GAM83M table. This appears to be as a result of GATT. Do you think this is the referenced mortality table, even if the plan has not amended its lump sum provisions for GATT? ANy thoughts?

Can a target benefit plan continue contributions for a participant once the normal retirement age is reached? Also, can a target be amended to a MPPP?

In plain language, what is the purpose and scope of the multiple use test? What effect does the proposed repeal of this test have?

Plan owns non-employer real estate as investment. Realtors typically charge a 10% commission to sell such property. Should/may/must the trustee reduce the annual property appraisal by some amount to reflect anticipated selling expenses?? Or should trustee simply ask the appraiser to address expense of sale in appraisal? Would answers change if/when trustee makes decision to sell or actually lists property w/ realtor? Any regs or experiences greatly appreciated.

Does the transfer to a former spouse of a life insurance policy contained in a qualified retirement, pursuant to the terms of a QDRO, qualify as an exemption to the "transfer for value"? I am looking for a citation that specifically references the transfer of a life insurance policy pursuant to a QDRO.

Thanks.

A self-directed 401(k) plan limits fund transfers between funds to up to 25% of the participant's account balance. Only once during your time in the plan can you transfer an unlimited amount between funds.

The reason is the fund liquidity issue with the investment manager. Does this restriction comply with section 404©?

Our Company sponsors a STD Plan that permits an employee to return to work on a part time basis and maintain partial STD benefits. This portion of the Plan has never been used. Does anyone have any experience in this area?

How do you handle pay for exempt and non-exempt employees?

How do you "cut" the STD benefits to account for the part time work hours?

Any problems with FLSA?

Thanks for any help!!