What is the legal authority for vesting service and credited service for employees who transfer from company in a control group to another? (Regulations, PLRs, cases, etc.) For example, Co. A does not participate in pension plan, and transfers to Co. B which does participate in pension plan. Both cos. are in same control group. Plan document is silent on this issue.

I am looking for an IRA Distribution Software that can calculate 72t distributions using ALL approved methods, as well as RMD at 70 1/2 and offer some graphics that I can show to clients. I am looking for a program under $400, if possible. I would like to be able to download a demo version of the program before I purchase it and would like to be able to get the program off of the internet. I have looked at a few of the offerings over the internet and have not found anything I like so far. We have two large organizations that are doing massive layoffs and many of the people are under 59 1/2. I would greatly appreciate any help in this matter!! Thank you!

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Individual rolled 401k account into existing IRA and now would like to roll it back into a 401k plan.

Am I correct that he is now unable to do this based on the above?

I understand some states have provided a means for indexing deferred benefits for all or some portion of inflation between the termination date and the benefit effective date.Does anyone have an example?

A 79 year old client passed away this year. He had been using the recalculation method. He had originally started joint life recalc with his spouse, but his spouse died six years and he has been using single life since. His beneficiaries are his four children. They have to take out the remaining balance by the 12/31/2000 because life expectancy will be reduced to zero. The question, for 1999, the accounts have been split with each getting 25% of the balance, does each of the benes have to take 25% of the min. dist. or as long as the min. dist. is satisfied in aggregate, some could take less than others? Any cites to back your answer would be greatly appreciated. Thanks.

If an extension has been filed for 1998 5500 to October 15, can anything be done to extend this?

On behalf of a client (small investment company), who is the directed trustee, we are submitting an "orphan" 401(k) plan to the IRS for a letter of determination on its termination (5310).

The principals of the company went out of business in July of 1997, when the SEC and other government agencies seized corporate records and files. I do not know what happened to corporate assets. Two of the principals are currently incarcerated and the other is on the lam somewhere in South America (just a guess).

The only contributions ever made to the plan were elective deferrals, and there are currently 8 participants (including one of the principals) with account balances.

It has come to light that some of the elective deferrals were never remitted to the trust.

Questions:

Who should pay the 8717 filer fee ($225)for the submission? We are advancing the fee until this is sorted out. Our client is currently on the hook for our legal fees. This seems unfair.

Is there any way of attaching the account balance of the remaining principal prior to distribution or will our client and the other participants have to sue her after her account has been distributed? (She has the largest balance - probably enough to cover the filing fee and all missing elective deferrals.)

We are using a current (9/13/99) termination date on the submission. However, the plan provides that there is a deemed termination upon corporate dissolution. Should we have used a retroactive termination date?

Has anyone had any luck with the DOL pursuing such a situation and suing the principals for missing elective deferrals, fee, etc.? In corresondence, they appear to have given up on the situtation.

In providing records of all actions taken to terminate the plan, our client had drafted a "Record of Action" rather than corporate resolutions. They do not want to be in any position of assuming further responsibility/liability. Will this be acceptable to the IRS, given the situation?

Any thoughts would be appreciated.

In our state the insurance companies have instituted commission schedules that steer business away from them in the small group (under 20 employeees). The commission scale is loaded to reward only those groups over 20 employees. I heard that there is a new regulation that is going into effect October 1 that prohibits this practice. Does anyone have any information on this?

Are there any good reasons to have an early retirement option in a defined contribution plan?

ok, I promised I would do this, along with the usual disclaimers.

I (ok, my assistant) and I have put some crytals reports on our website. mainly the ADP reports (and instructions), though there are a few other reports available at this time. I am working on getting some descriptions for these as well. These are not 5.0 reports.

website is lda-fcpa.com

comments, email,etc welcome. if we can improve the reports, more than glad to try.

Would Code Section 1042 apply if, as part of a C corporation's plan to reduce the number of shareholders and convert to an S corporation, an ESOP sponsored by the C corporation purchases stock from the shareholders? Is there any requirement that stock must continue to constitute "qualified securities" after the sale to the ESOP?

Our company has always followed the regs for "family status changes" and allowed changes to our pre-tax medical and dental plans consistent with a family status change. Recent, I heard about new "HIPAA special enrollment rights" and thought they were the same as family status changes. Then, I got an e-mail from someone who indicated that for marriage, birth and adoptions, if an employee wants to add a dependent not consistent with the family status change, they could - due to the new HIPAA regs. For example, if I get married, under our current policy, I could add my spouse but not another dependent. Now with these regs, it seems I could add other dependents. Any info out there on this? Also, do we have to allow an employee who is about to have a baby, elect medical insurance? Since the employee is not on insurance now, we wouldn't allow her to elect even though she is having a baby.

Has anyone heard if the IRS/DOL plans to delay the new 5500 for 1999? I thought there might be some pressure due to Y2K issues?

Currently, PSP provides only for an annual valuation. Employer wants to amend PSP to provide for quarterly valuations and distribute quarterly benefit statements to the employees. Everything in PSP document is geared to annual valuation. Probably would be necessary to go through whole document and amend every reference to annual valuation. Any suggestions??

Is there any way to leave the same message on more than one message board at the same time???

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How should the distribution of trailing contribution(s) be handled in the event a participant requests a lump sum distribution and the distribution is made before all contributions have posted to the participant's account. Often in a daily processing arrangement a participant may be able to receive a distribution immediately after his or her termination and before all pending contributions have posted. Is it appropriate to distribute the trailing contribution in the same manner as the original distribution was distributed if the trailing distribution occurs no later than 90 days after the participant received the original election and tax notice? (I know in practice that this is often what occurs but is it appropriate?)

I was asked how do you do an MEA for a TSA participant who also is covered by a cash balance plan? Since this is our first time with this combination, I haven't thought about it. I assume you would use the accrued benefit value of the annuity that the current lump sum value could be converted to. Anyone have some thoughts on this and/or references for support. THANKS!!

I need to know what the legal issues are for changing the FSA plan year in the middle of the year. Causing the FSA plan to be a short plan year. The company is a fully insured plan.

We want to set up a retirement plan for an individual (1 participant plan).

The participant receives Sched. C income as an independent contractor that sells mutual funds. This is his primary income.

In 1999, he will also receive a Sched. C for income earned as an independent contractor that sold insurance. He has retired from the insurance company. He was a statutory employee of that company and, as such, was not eligible for their retirement plan.

Can we use both Sched. C incomes in the new plan?

Client of mine was employed by a County Hospital for approximately 17 years until 1974. Client left employment. At time client left, Hospital's retirement plan required 20 years service and age 55 for full benefits. Hospital rehired client two and a half years later promising client that prior years of service would count under new retirement plan. Client worked additional 3 1/2 years and then terminated in 1979. Sometime after termination, Hospital employee told client that "he did not think client was eligible for any benefits". Client has asked me to look into the matter. If this were a current plan issue I would normally request a copy of the summary plan description. However, given the lapse of time, and other than calling the HR department at the Hospital, I don't know how to go about getting information to verify if client was/is eligible for retirement benefits. Any suggestions?

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I am hearing a lot of hype from the investment community about adding a DB plan to the retiremnt program for small closely held businesses for the plan year starting 1/1/2000. This sounds great for owners, another deduction for the DB plan in addition to the current 30k.

However, I thought the repeal of 415(e) was a benefit limit not a deduction limit. Does anyone know where the cross reference to give the needed releif to 404(a)(7) is?

I've not seen it and am afraid most of any new plans sold by these "investment guys" will end up with nondeductible contributions and 10% excise taxes a year later. Am i missing something?