Can a US 401k plan accept a roll-over from a UK DC plan? I know I

investigated this many years ago (for a different country). I thought

there were some countries that were able to met the IRS's definition of

"qualified". If so, where is this referenced in the law?

I have a potential client who is a one-man consulting operation (LLC). He employs his wife, and probably won't have any other employees.

They are considering implementing a retirement plan. They are not currently interested in DB and want to be able to contribute 25%. Two arrangements are being considered: 1) Combo MPPP/PS and 2) Combo MPPP/SEP.

The advantage of method 2) is no administration is required for the SEP. I have worked w/ many MPPP/PS combo's but never MPPP/SEP combo,hence below questions.

a) Is there any law that would preclude taking a 25% LLC deduction on the LLC tax return with this arrangment?

b) The MPPP doc would be a standardized prototype. My understanding is that generally if you have another qualified plan aside from the MPPP that is not a "paired plan" with the MPPP, that the employer cannot rely on the MPPP determination letter. Since a SEP is not a qualified plan, probably no issue, just wanted to be sure. My concern is that there wouldn't be any problem w/ reliance on the MPPP det ltr if there is also a SEP being operated in tandem w/ the MPPP.

c) My understanding is that a sole participant of a qualified plan does not really afford the participant protection againist creditors, etc. (hence use of a PS doesn't help us out here). Is there any disadvantage in this regard of using a SEP over a PS when the only participants are the owner and his wife?

I appreciate any input.

What is the rule for time to file for a determination letter request for an amended plan? (Non-legistlative change)

An employer is funding the matching provision of a defined contribution plan (this is not an ESOP plan) with company stock. When this happens, should the stock be categorized as issued and outstanding, as Treasury Stock or perhaps something else? Also, should the shares attributable to a participants matching contribution be assigned to their account? Or, should the value of those shares at the time the match is funded be assigned while the actual shares remain in a "pooled account" of sorts?

Theresa, yes you are correct. The 20% withholding is for Fed tax purposes (for pre-tax monies). The difference would be that the 10% penalty charge would not be applicable as long as the employee's disability is a true 'disability' under the regs. I have had several employees complete a distribution form indicating that the reason for the withdrawal is a disability and it turns out that they only have minor/ short-term disability.

The sponsor of a money purchase pension plan adopted an amendment terminating the plan. The sponsor would now like to put the termination "on hold" for about 9 months to resolve some issues before proceeding. What steps should the plan sponsor take if 1) the participants have been notifed and 2) if the participants have not been notified with a proper 204(h) notice? The sponsor never took any steps to submit the termination for a determination letter. Can and should the plan sponsor adopt an amendment declaring the first termination amendment null and void?

My employer has a company sponsored SIMPLE IRA plan, of which I've contributed the maximum amount ($6,000) for the current tax year. I also have a Roth IRA account established in the previous year. I am single, and don't expect my annual earned income to exceed $60,000. Can I still contribute up to $2,000 to the Roth IRA for this tax year? Is there an income level after which I would not be able to contribute to the Roth IRA?

My employer has a company sponsored SIMPLE IRA plan, of which I've contributed the maximum amount ($6,000) for the current tax year. I also have a Roth IRA account established in the previous year. I am single, and don't expect my annual earned income to exceed $60,000. Can I still contribute up to $2,000 to the Roth IRA for this tax year? Is there an income level after which I would not be able to contribute to the Roth IRA?

What are the regulations regarding the length of time a former employer must comply with upon termination of employment? How long can an employer hold 401k funds before being forced to distribute the money to a former employee?

My child is making a few thousand dollars a year modeling. We have a mutual fund for her and all the money she makes is for her college fund. SHould we put any additional moneys she makes in a roth ira instead?

I am just becoming familiar with Spilt Dollar Life as used in SERPs. Having just read about, I can't see any downsides about using it. Any tips on when it is better to fund SERPs or 457(f) plans without such an arrangement? (Any reference material suggestions would be appreciated)

Employer has a Simple IRA plan in effect for 1999 (a calendar year plan). Employer is on a fiscal year of 4/1 - 3/31. Employer would like to terminate the simple and establish a profit sharing plan on 1/1/2000, with a short initial plan year from 1/1/2000 - 3/31/2000. Employer would like to make the maximum contributions possible to the PS plan.

ISSUES:

(1) § 415: (a) Are the 415 limits prorated for the short initial PS plan year, if the limitation year is defined as the 12-month period ending on 3/31 (i.e. does the short initial plan year affect 415 limits)? (b) Do any of the contributions to the Simple during the 1999 calendar year count as annual additions for purposes of applying 415 to the PS plan?

(2) § 404: (a) For purposes of applying 404 to the PS plan, is the compensation used to calculate the 15% deduction limit based on the period from 4/1/99 through 3/31/2000 (i.e. Employer's taxable year), or from 1/1/2000 through 3/31/2000 (the part of the taxable year the PS plan is in effect)? (b) Do the contributions to the Simple during the period from 4/1/99 through 12/31/99 constitute compensation for purposes of calculating the deduction under 404? © Do deductions taken for Simple contributions between 4/1/99 through 3/31/2000 count against the 15% deduction limit for the PS plan (i.e. could Employer deduct both the Simple contributions and contributions equal to 15% of compensation made to the PS plan?).

Any help you can give me on some or all of these questions is greatly appreciated.

Can an employee who terminates during the plan year and is later rehired during the same plan year, participate in an FSA (either medical or dependent care) when he returns to employment? Does it matter if he elects to continue his FSA through COBRA after the termination?

If they are eligible, do they have to continue the same amount and what happens if he previously withdrew more than he contributed (as can be the case in a medical FSA)? If not eligible, when would he be eligible to again participate? Our plan year is April-March.

[This message has been edited by scm (edited 10-01-1999).]

We have an exempt employee who has exhausted all vacation, personal and sick time taking care of two sick parents.

We have notified the employee that his FMLA "Clock" has started ticking last week.

This employee is exempt and we need to know if we can dock his pay. He is planning on taking 2 or 3 days off per month. The days off are going to be intermittent.

Are we able to dock his pay? I have received conflicting information. I have placed a call to the FEHA three days ago and have called everyday. Comments are welcome. Thank you.

The ee will be taking 2 or 3 days off per month to take care of 2 sick parents.

If you have a controled group of employers who each sponsor equal but separate 401(k) plans, but all the plans assets are invested under one annuity contract which provide for directed investments by the participants, is this considered a Master Trust. The financial institutions does not segregate each plans assets nor do they provide individual plan certification. The certify the contract as a whole. The trustees of each plan are employees of the employer appointed by the employer.

A sole-pracitioner has a Keogh which is held by an insurance company whose investment return has not been satifactory. The practitioner would like to move the funds to a SEP-IRA that he established some time ago. The insurance company will allow the pracitioner to withdraw 10% of the assets each year with out penalty. I have the following questions regarding this situation. First, is a rollover between the Keogh and SEP-IRA is not permitted unless the Keogh plan is terminated? Second, is the the practitioner permitted to take a partial distribution from the Keogh and invest it in the SEP-IRA? If so, would the distribution from the Keogh be subject to the standard 20% tax withholding and early withdrawl penalty? Can the practitioner even "nickel and dime" away his Keogh assets this way? Where is this addressed in the Code/Regs?

An employer has a collaterally assigned split dollar arrangement with several key managers. There are fully executed agreements specifying the extent of the employers interest which, in this case, is the employers' cummulative premium paid. The employee owns the policy and designates a benficiary. The question is : How well is the employers interest protected should a beneficiary or former employee fail to act as specified in the agreement. For example: A spouse beneficiary at death of the employee claims he/she is entitled to the entire policy proceeds. Are there examples that can be cited of where this has occurred and the employers' position was protected.

I am seeing post-HIPAA group health insurance policies and plans with the exclusions like -- no coverage for cosmetic surgery unless it is to correct an injury which took place while the person was covered by the plan. I see this as a permanent preexisting condition limitation. How do insurers justify this form of exclusion post-HIPAA? Or is this a pre-HIPAA provision that some insurers and TPAs have inadvertently carried over?

Insurance premium is expressly prohibited from reimbursement under a health FSA.

Dear Ms. Calhoun: Do you know of any governmental DB plans that offer distribution options based upon ANNUITIZATION FOR LIFE EXPECTANCY (RATHER THAN FOR LIFE) with full earnings participation on the invested reserves?

Thanks, JOEL L. FRANK

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