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?

I've seen life insurance transferred from a plan by the participant paying its cash value. Can it work in reverse? In other words, can policies held outside a plan be purchased for their cash value as long as the accrued annual 25%/50% limits are not exceeded? Thanks.

If a participant in a 457 plan receives a lump sum payment of vacation or sick leave upon termination of service, can that participant base a deferral on that compensation assuming an election was in effect prior to the payment? Does it matter if some of the leave was "earned" prior to the person electing to participate in the plan?

Would the answer be the same for a 401(k) plan?

I am trying to decide how to apply the net unrealized appreciation rules in the case of a leveraged ESOP.

My facts are as follows...

The company got a $1,000,000 loan to buy 500 shares from an owner. The loan is paid in 10 annual installments (variable interest rate). Based on the chosen share release method, 50 shares will be released each year.

The possibilities that I am considering are that the basis of the shares is...

1. $1,000,000 always

2. The cumulation of the contributions made to the plan to repay the loan (principal + interest)

3. The fair market value of the shares on the dates that they are released.

I'm inclined to think the #1 is correct, but I wasn't sure from reading the regs if any of the examples specifically applied to a leveraged ESOP.

In addition, there is cash contributed to the plan. When employees terminate employment they are not given the opportunity to take shares from the plan. Their shares are purchased with the cash in the plan and the shares are redistributed to the remaining employees. I am also inclined to think that these shares would retain their original cost basis because they have not left the trust. But again I haven't found concrete information to support this.

Any cites and input would be appreciated.

p.s. I do realize that since the plan does not allow a distribution in shares that NUA doesn't apply. I just prefer to track the basis in case the employer changes their mind about the distribution policy in the plan.

Hi, I am a new user to this board, and looking forward to swapping ideas.

Is anyone familiar with how bankruptcy law might impact assets in a 457 plan? The question has arisen as a result of the SBJPA, which now requires assets to be held in trust, annuity contract, or custodial account for the benefit of plan participants and their beneficiaries. I recognize that this was done as a reaction to the Orange County situation several years ago. Therefore, it would be logical to assume that the change caused assets now to be truly no longer reachable by creditors of the entity. However, does anyone who is familiar with bankruptcy law have any comments on that? Also, it is my opinion that assets of the plan are not reachable by creditors of a participant until those dollars are actually distributed. Prior to distribution, the participant has a mere expectation rather than a present interest. Does anyone have a comment on this? Thanks very much!

When a C corporation pays a dividend on stock held by an ESOP, which the ESOP uses to make payments on an exempt loan, the C corporation can take a deduction for the dividend. Does the dividend or the corresponding release of shares by the payment on the loan count towards the Section 415 limitation?

Would the answer to the above question be the same in the case of an S corporation, which does not get a deduction for the payment of dividends?

I'm considering taking ACA Certification Seminar C11, Performance Management--Strategy, Design and Implementation. I'm new to small organization that needs to completely revamp their PM system. Coming from an HR Generalist background, I need help in this area. Hoping to hear from someone who had completed this course. Thanks!!