What are the rules in deducting plan admin fees directly from plan particpants accounts? A client previously paid the fees directly to the TPA but recently switched investments to an insurance company in which the insurance company offered to deduct the fees directly from the accounts.

The loan program requires a $50 fee to be paid by the particpant when requesting a loan. Can this fee be deducted from the particpants account (using pre-tax dollars)?Should the particpant pay for it separately? Can the administrator withhold the charge from the loan proceeds check?

Have you seen my message as posted in the 401(k) message board on 8-27-99 under topic: transfer/rollovers?

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Have you seen my handiwork of 8-27-99 posted on the 401(k)message board under topic: "transfers/rollovers"?

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Can a fairly new plan on a volume submitter document, assuming the plan was effective 1-1-98, request and receive a determination letter for pre-1999 law, and NOT pay the rate for customized plan document review? In other words, can a determination letter be issued for pre-Gatt sufficiency that would be based on parameters as defined in an adoption agreement? Our motivation: We could request via written letter that the determination be made as such for pre-Gatt, and feel that it is important that the plan have a determination letter, as it is a sizable 401(k) plan. It is difficult to justify the expense of submitting as customized document.

Realized capital losses cannot be passed through to the beneficiary(ies) until the final year of a trust. For a Marital trust (Trust A with a QTIP election) does it make sense to recognize losses for tax purposes? Will accumulated realized losses be passed through to the spouse's final return (and be limited to $3,000) or will the accumulated losses be passed through to the heirs of the spouse?

Is a corrective distribution of excess deferrals made after April 15 subject to 10% penalty tax?

Can someone recommend a group that would audit medical claims on a commission basis as opposed to being paid up front? Please call me at 212-833-6189 or e-mail me at sharon_lovy@loewscpx.com

Thanks.

I have an employee who is a 24 year old, hourly employee. His residence is with his mother, who is a 7% stockholder in our company. The stockholder is salaried, making less than $80k each year, and does not defer salary to the plan. Since family aggregation no longer applies in this case, is it possible that family attribution might in determining whether the 24 year old is an HCE? Any help is greatly appreciated.

I am an actuary terminating a DB plan of a county-owned hospital. The assets do not appear to be sufficient to pay the lump sum value on the definition of actuarial equivalent currently in the plan (pre-GATT, PBGC basis). In addition, the assets may not be sufficient even using the GATT basis (say about 6% interest rate).

It has been proposed that the plan be amended to adopt the GATT mortality table and whatever interest rate that will make the plan sufficient.

Anyone seen this? Do you believe that it is permissible under the IRC, since the plan is exempt from IRC 411 and 417? If so, might there be any concern that state laws could come into this gap (that is, the 411 and 417 exemption)?

My perspective is that the plan could be amended to do this. However, the terms of the document contain "vanilla" language about "no amendment will reduce the vested benefit of a participant determined as of the later of the date such amendment is adopted, or the date such amendment becomes effective". This causes me to be concerned that the proposed action may be OK under the IRC but violate the plan itself.

Any other advice?

Thanks

I would like to set up a health fair for our employees, but am not sure of what vendors, activities, displays, etc. that I should have. Has anyone ever coordinated an on-site health fair? I would love to hear the details. THANKS!

Company B maintains an ESOP. Company A buys company B, including the stock in the ESOP for all cash. What is the obligation of Trustee of company B's ESOP to purchase stock of company A? Can the ESOP be terminated and only cash be distributed to participants notwithstanding the fact the ESOP refers to stock distributions? After the sale, can the ESOP be amended to eliminate the stock distribution option and just provide for cash distributions?

One of my doctor clients recently sent me an article touting the use of CICs as nonqualified deferred compensation plans. Apparently, these which allow the employer to take a current deduction for malpractice insurance premiums paid to an off-shore insurer owned by the doctor. The assets accumulate tax -free until the doc retires and then liquidates the insurer at captal gains rates. The arrangement is als being touted as an asset protection device. The only info I can find on CICs has been published by the touts. Does anybody have any experience with these things?

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Can someone guide me in the process of choosing one investment consultant from our current two with regards to interview questions? Or any other insights? Thanks...

Other than the traditional benefits, medical/dental, etc., what other perks do you offer your employees? I am looking to set up some extras for our employees. I've started out with the basics, amusement park discounts, etc. but am looking for other creative ones.

Regarding the MKC (Magic Kingdom Card), has anyone acted as the club director? I understand that the club director gets some 'perks' of their own...tickets? discounts? I'd love to hear more about it-although this doesn't make the difference about me receiving the cards for our employees.

Thanks for any info!

I have two questions 1) if a company only has HC people, is there a discrimination problem with unreimbursed medical plan? 2) Can a multi-state company exclude on the plan doc all but one or two states of employees?

Under Notice 88-53, Q & A 11, employer securities in excess of the minimum amount required under Section 401(a)(28) cannot be diversified to the extent the securities may not be distributed under Section 409(d). However, I frequently see ESOP documents drafted to allow "excess" diversification, e.g. 100% divesification at age 55, even though Section 409(d) provides that the securities must be held in the participant's account 84 months from the date of allocation to the account.

The only explanation I have been able to develop is that Section 409(d) may only apply to the old TRASOPS and PAYSOPS and not to ESOPS. Does anyone else have an explanation for the apparent disregard of Section 409(d)?

I know that most TPAs store documents for seven years. Is this statutory or an industry standard??

Have a 401(k) plan with a plan year of 8/1/1999 through 7/31/2000. One participant (the owner) is able to defer 6.25% out of first paycheck of the plan year (August 1999) and reach the $10,000 maximum deferral. When is the next time that this participant can defer into the plan. Is it after January 1, 2000 since this begins a new tax year for the participant or is it the next plan year?

If it is as of January 1st, and the maximum amount that can be deferred is increased, then what limit should be used (1999 or 2000) for the "second" deferral into the plan? Also, is there anything I should be aware of when doing plan testing?

Your assistance is appreciated and any cite(s) would be helpful.

Say an employer has two plans and a participant is in both plans. His balance in plan I is 2000.00 and his balance in plan II is 4000.00. Can he be distributed under the involuntary cashout rule in both plans or do the balances has to be aggregated (equaling 6000). (Say both plans allow involuntary cashouts for account balances less than 5000.00) Any regulations you have would help. Thanks.