Has anyone established a Pre-Tax parking benefit under the Taxpyaer Relief Act reimubursing employees for parking lots not owned or operated by the company or company affiliated leasing company? I need info. Thanks.

IRC code section 409(h)(2) in part states: "In the case of an employer whose charter or bylaws restrict the ownership of substantially all outstanding employer securities to employees or to a trust described in section 401(a), a plan which otherwise meets the requirements of this subsection or section 4975(e)(7) shall not be considered to have failed to meet the requirements of this subsection..."

Can the ESOP restrict stock ownership to only current employees? Client wants to transfer stock ownership of terminated participants to the accounts of current employees accounts.

The part of 409(h)(2) that bothers me is that ownership can be restricted to employees or 401(a) trust. Stock allocated to a terminated employees account is in the trust until distribution. Does the employer stock have to remain in the account of a terminated participant until distribution?

Does anyone see any problem with a plan document provision that gives all plan participants the following 2 options: 1) take your distribution within 12 months of termination of employment, or 2) wait until normal retirement? Could a provision like this be considered prohibited coercion for participants with balances over $5,000 to take immediate distributions?

A participant in a qualified plan died and their beneficiary is a foreign national (Mexico). How do we report this distribution on the Form 1099? Does it make a difference that the beneficiary isn't a citizen of the United States?

Can someone please tell me what is involved when gathering FAS 106 data?

Two 401(k) plans (Plan A and Plan B)are being merged effective November 1, 1999. Both plans have a calendar year plan year. Further, each plan contains a different definition of compensation (for purposes of testing and benefits). Effective November 1, 1999, both plans will use Plan A's definition of compensation. Is this OK? What implications does this have on elective deferrals, 401(k) and (m) testing, etc.? Obviously, it would be easier to have the merger effective on January 1, 2000, but that is not an option. Any help would be greatly appreciated.

I left a job this spring where I had some assets in a 401(k). I put the assets into a roll-over IRA after I left and within the required window. This was approximately 5-1-99.

What I would like to know is:

1. Now that I have opened a Roth (8-1) and contributed my $2,000 for 1999, when can I convert the rollover IRA to a Roth? For some reason, I think I have to wait 12 months...is this correct?

2. When I do 1., will I be able to combine the coverted Roth and the Roth account I opened in August? There is no particular need to combine them, just simplification of record-keeping, etc.

I am aware that I may need to pay taxes on the conversion from the Rollover to the Roth, but that is a relatively small price to pay and it won't be a concern in this case.

Guacamole

Does anyone know who assisted IBM with converting their DB Plan into the cash-balance arrangement? Was it a big consulting house (Towers, Wyatt, etc.), accounting firm, etc.

Are there any recent trends in the presentation of information in employee benefits manuals to make them more reader friendly? Would be interested in tips -- what works, what doesn't.

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Susan

Know of any? If so, maybe we should work up a list of them in the BenefitsLink "library" -- http://www.benefitsattorney.com/links/Bene...d_Associations/

A US citizen and employee of a US company is currently working at the company's location in England. He will stay there for several years. Apparently, he is not able to contribute to the company's 401(k) plan while employed in England. Is this an permissible exclusion? If so, any ideas on what he can do for retirement savings?

I'm new to ESOPs.

A client recently paid off ESOP loan, and now has a new document combining ESOP and money purchase plan.

At the ESOP session of the 1994 ASPA annual conference R. Grant Williams has in his written material: "An ESOP that includes a money pruchase plan in conjunction with a stock bonus plan may have a combined deductible limit of 25% of payroll. (Two separate plans are necessary for a 25% limit if no credit carry overs are used.)"

Does this mean that a money purchase - ESOP combination is considered 2 plans? Two 5500s?

Also, can the money purchase part purchase employer stock from the ESOP part of the plan?

A profit dharing plan establishes 3 categories of employees, Category A, who are INELIGIBLE for the plan, and Categories B and C.

The plan is Top Heavy.

Do Top Heavy minimum contributions need to be provided for employees of Category A?

Variation on this question.

A defined benefit plan excludes employees of Category A. The plan is Top Heavy. Does the plan need to provide Top Heavy minimum accruals for employees of category A?

Thanks

Does an employer have an obligation to inform a fellow employee whose status is about to be changed from a non-exempt to an exempt position that his/her accumulated sick leave will be forfeited with the switch?

This company also allows its employees to exchange unused sick leave for cash.

We administer a 401(k) plan for a client that is a 501©(3) entity. This client has just informated us that they also just began participating in the IPERS plan (the Iowa Public Employees Retirement System I believe).

Does anyone know what kind of plan this is? I would guess either a 403(B) or a 457 plan, but really don't have any idea. I was told the employees are required to contribute a specified percentage of pre-tax pay and the employer is also required to contribute a specified percentage of pay for each employee. It sounds like it is a defined benefit plan (no account balance but benefits each month at retirement).

My main concern of course, is whether I have to coordinate the contributions and or benefits from the IPERS plan with the 401(k) plan.

Any help would be greatly appreciated.

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that looks good.

I don't even think you need steps 3 and 4.

the 415 limit is probably covered elsewhere in the document.

step 3 only makes sense if HCEs at 160,000.

what if you want to give an hce 25% of pay (e.g. he only make 100,000.

also, it looks like next years comp limit will be 170,000. (If I understand how the limits increase according to the regulations)

Both ADP & ACP Tests fail. Must return excess contributions and excess aggregate contributions (this is in accordance with terms of plan document). Excess contributions have related match contributions to return/forfeit. Question: What impact does the "correction" of the related match contributions have on the ACP Test? Specifically, can you potentially reduce the amount of excess aggregate contributions to return based on the amount of the match related to excess contributions that is "corrected"? Any written guidance on this?

I have a prospect that has a Profit-sharing plan that is Top Heavy. They want to start up a 401(k) Plan. Two of the Key EE's are over 65 (one is 70). They have not made a contribution in over 3 years. Is there any hope here for the Key EES's being able to contribute without having to make an Employer contribution. (other then having the two Key EE's past 65 taking their money and then waiting for the 5 year look-back running out)

Do the COBRA guidelines require that you extend Employee Assistance Plan (EAP)benefits?

I am trying to find something that discusses these plans and I am not having much luck. Anyone know of any good, comprehensive resource?