Does the transfer to a former spouse of a life insurance policy contained in a qualified retirement, pursuant to the terms of a QDRO, qualify as an exemption to the "transfer for value"? I am looking for a citation that specifically references the transfer of a life insurance policy pursuant to a QDRO.

Thanks.

A self-directed 401(k) plan limits fund transfers between funds to up to 25% of the participant's account balance. Only once during your time in the plan can you transfer an unlimited amount between funds.

The reason is the fund liquidity issue with the investment manager. Does this restriction comply with section 404©?

Our Company sponsors a STD Plan that permits an employee to return to work on a part time basis and maintain partial STD benefits. This portion of the Plan has never been used. Does anyone have any experience in this area?

How do you handle pay for exempt and non-exempt employees?

How do you "cut" the STD benefits to account for the part time work hours?

Any problems with FLSA?

Thanks for any help!!

Is it possible to take a disbursement from a 401(k) plan direct to yourself? I am willing to pay the IRS penalty. My company states that I am not eligible for loan or hardship distribution. I saw your discussions earlier regarding an event to trigger a distribution and further clarification would be beneficial.

Following on 8/16 exchange on this topic. Individual account plan has unitized employer stock investment option. Stock is publicly traded but float is very thin. Promptly implementing Plan purchases/sales in public market would create price volatility. Employer typically makes treasury stock available for purchase at price "not less favorable than price paid by a independent person." But employer will not now meet all Plan needs. Any experiences or suggestions on how plan trustee should proceed? Also concerned w/ securities issue of employer's actions indirectly manipulating stock price.

What happens if someone excedded the 10K ee deferral limit for 1998 and was not refunded by April 15. I realize this a disqualifing event.

1.What are the remedies?

2.Is the refund taxable in 1999 or does the part. have to file a 1998 amended tax return.

3.I read a little about SVP (Standardized VCR Program), where and how do this process begin?

4.Is the plan administrator reposible for taking the corrected action?

Any guidance is very much appreciated.

If a calendar year Money Purchase with a last day requirement is merged into a Profit Sharing plan 9/30/99, is there a required Money Purchase contribution or does the last day requirement allow for no money purchase contribution??

It's a good thing IRS issued notice 99-44 and removed all ambiguities - that is, except at least this one -

for plans which do specifically provide the 415(e) limits (w/o reference to the Code) and which, therefore, must be amended to allow the increase (in those cases where they wish to do so), do we have until the GUST remedial amendment period extension to do so?

That is, must we amend before 1/1/2000 (and before the GUST amendments), or can we wait until the last day of the 2000 plan year?

By implication, Q&A 7 suggest we can pay the higher benefits during the 2000 plan year, IF the plan is so amended by the end of that year.

Is my understanding correct?

A 401(k) plan is using current year ADP testing and has semi annual enrollment. If the plan is out of compliance, can the Plan Administrator lower the HCE's deferral percent at this time or any time to help produce a passing ADP test?

How do you find out about their speed, accuracy and reputation? Anyone with bad or good experiences please respond.

Should the church withhold social security and medicare on amounts contributed to a 403b plan?

A non-publicly traded company with an ESOP (Plan A) desires to purchase all of the shares held by Plan A so that Plan A no longer holds company stock and is basically a profit-sharing plan. Plan A will ultimately be merged into the company's 401(k) plan (Plan b), where the participants will be able to direct the investment of their accounts.

After the repurchase of the shares, must Plan A continue to provide that a participant has the right to demand that his benefit be distributed entirely in company stock? My first thought is that this right is a protected benefit under 411(d)(6) and must remain, but this just doesn't seem to be a logical requirement.

Treas. Reg. 1.411(d)-4 Q&A-2(d)(iv) indicates that an employer can eliminate an optional form of benefit by substituting cash distributions for distributions in stock if the stock ceases to be readily tradeable. It seems to me that if stock has never been readily tradeable, the employer ought to be able to do the same.

Any thoughts?

Let me first say that this is not a church plan. However, we are finding that the rules that apply to clergy are a bit different than the norm and it seems that this is the best place to pose a question.

We have an MPP and a 401(k) plan for a client. Most of the participants are clergy (there are also some secretaries). The participants are deferring and receiving MPP contributions based on their W-2 comp plus their housing allowance. It is the only pay that they are providing us (the TPA). When we told them they were failing ADP, they insisted that the housing allowance is not includible for testing. (Please note that one participant had W-2 comp of $45,000 and a housing allowance of $36,000, making the total compensation $81,000.)

Revenue Ruling 73-258 seems to back this up. However, it is very old and pre-dates 415.

Here are my questions: 1)Can the clergy defer and receive benefits on the housing allowance portion of their compensation? 2) Do we include the housing allowance in ADP testing? 3) Do we include the housing allowance in 415 and 404 testing?

Our TPA cut checks to 2 participants in 12/98 for their 1998 MRD's. They never got the check or a 1099 so did not consider it when filing 98 taxes. (The distributions were small, $50-100 range.)

This is just coming to light now and our plan has cut replacement checks and recommends that the participants consult a tax advisor re: refiling 98 tax returns.

Our participants are livid, they don't want to refile taxes for money they never received and had no way of knowing to expect.

Our attorney advises us that even though the checks were cut in 98 if the participants never got the money it's too late to count it as 98 income and that the 1998 1099 should be reversed and issued for 1999. Our pension company says this will put the participant at risk for not receiving a MRD when required. Help.

Does anyone have experience with ADP or Trustar as TPA's for defined contribution plans? Your opinion is appreciated.

I am confused as to how a QTIP works. I have a married client-both she and her husbnd have children from a former marriage and no children of their own-who is the participating spouse of an IRA. We are in CA, so the husband has a community property interest in the IRA. They would like the IRA to ultimately be distributed 1/3 to his kids and 2/3 to her kids. I understand that the only way to do this is through a QTIP trust, because otherwise the surviving beneficiary is free to change the beneficiary desination after the death of the first spouse.

If I make the QTIP trust the beneiciary of the iRA, then if the wife dies first, the IRA goes into the trust, pays out all income to the husband for his life, and then goes to the children as agreed.

Question 1: At the wife's death, does all of the IRA go into the QTIP, or just her interest?

Question 2: What happens if the husband predeceases the wife? She is still the record owner of the account. Does any interest pass into trust, or does she keep the account in her name? If so, couldn't she still change the beneficiary designation after his death (providing he died before the RBD)?

Get in touch with a large no-load mutual fund group. Tell them your story. They will send you the paperwork to effectuate a Direct Rollover of your former 401(k) account to an IRA. I suggest an S&P 500 index fund. ROLL THE MONEY OVER FIRST TO A TRADITIONAL IRA AND THEN TO A ROTH IRA. DO THIS AN YOU WILL BE AN I WITNESS TO THE MIRACLE OF COMPOUND INTEREST.

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I am ready to start a Roth IRA, but I wonder. Is a Roth set up similar to a 401k plan where you decide to invest funds? If so, do you recomend a great place to open the Roth where you have the greatest range of choice, return, and access? Thanks.

We use Quantech for DC administration and Pentabs for DB.

What software is available for aggregating a DB and DC plan for the general test? I could add the EBAR from the DC plan to the normalized benefit from the DB plan in an Excel spreadsheet, but imputing permitted disparity is the problem.

Is there software for doing this?

Can anyone guide me to any information on issues to beware of concerning 401(k)plans when a company with a k plan buys another company with a k plan?