Computation of minimum distribution period

I have a program that will compute the minimum distributions. I am curious, however, how does one compute recalculation for one annuitant and non recalculation for the other participant. I have copies of the IRS tables, but not the q 's. Does anyone have any experience in computing actual distribution periods.

Thanks for your help. Mike.

A company with an existing medical plan wants to establish a new medical plan for 3 of its executives which will provide for greater benefits than those offered under the existing plan. Currently, the company's cafeteria plan allows for pre-tax contributions of an employee's share of premiums. Under the new plan, the 3 executives will have a higher premium than all other employees, who will remain under the existing plan. Assuming that the 3 executives are all highly compensated participants (but not the only ones), will the fact that they will contribute a greater dollar amount in premiums to the cafeteria plan cause the cafeteria plan to be discriminatory? The medical plans are fully insured, so there is no discrimination issue under Section 105(h).

[This message has been edited by Scott (edited 06-07-99).]

I would like to know what certifications are more valuable to an employee or employer, CEBS, CBP, CCP, PHR, SPHR, other?

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L T

Active employees may still defer into a 401(k) plan whether they are over 70 1/2 or not.

As far as the RMD rule, recent legislation had allowed those that reach the age of 70 1/2 and who are not considered a 5% owner to defer taking RMD's until such time as they terminate their employment. However, this should be incorporated into the plan document.

What are the reasons for 401 and 415 limits on defined benefit plans?

 Is it, at least in part, to limit the amount that employers can reduce their tax liability by putting profits into a qualified plan?

 Is it to limit the retirement income available to executives as compared to other employees?

 Is it to limit the tax qualified investment earnings available to employers for the purpose of funding the retirement plan?

A relative of mine has been on COBRA coverage since she left her job to care for her mother. Her last month (18th) month of coverage was May, 1999. During that month, she went for a physical and cancer was disovered. She underwent surgery and had a radical mastectomy. The surgery was performed in May. She will obviously need more medical attention / follow-up and possibly some radiation. Is there any way for her to extend her COBRA coverage - what options does she have at this point?

MPPP has 1,000 hours and last day of plan year requirement. E/er required contribution is 10% of compensation. E/er is going to amend MPPP to freeze contributions and change contribution percentage for current plan year to 0% of compensation. Does anyone see any problems with this?

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I understand that the distributions are tax free (under the qualifying rules of the Roth). However I wonder if the Dividends/Capital Gains paid in, for instance a mutual fund, that are reinvested are taxable. Can somebody answer this maybe simple question for me.

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Bernard Hamburger

Treas.Reg. 3121(v)(2)-1(d)(2)(i)© does not define what is a reasonable rate of interest for taking into account income attributable to an account balance plan (for purposes of the non-duplication rule). What authority could be used to test a rate such as the long-term applicable federal rate or, E.G., 110% of the LT AFR? Considering that the AFR's, especially the mid-term AFR, are relatively conservative, what are the guidelines?

Can anyone advise if a participant who has terminated employment and has an outstanding loan balance can repay the loan after termination? If so, what is the time limit in which he has to repay? The reason is, I have a client who wants to send a letter to terminated participants offering them a chance to pay their outstanding loan amount. Can they do this?

Thanks!

I am a TPA. One of our clients was taken over by a larger parent company. The Flex plan only affects the client. Does their plan need to be restated to be in compliance?

Does anyone have any experience with a 401(k) plan that has eliminated plan loan availability?

I am curious as to what you think would be the reaction if we eliminated plan loans - but adopted a safe harbor plan with the safe harbor match and a discretionary profit sharing contribution. Our current design has a match and profit sharing - together in the last few years if participants contributed 4% they would get about 7% in employer contributions to the plan.

If we went with a safe harbor match, old participants would not care too much about the immediate vesting - would they give much credence to the guaranteed 4%? How about if we added, at the same time, some type of broad-based stock plan - like an ESOP or maybe stock options for all employees? We'll keep hardship distributions available so in a real pinch they can get something.

With a safe harbor we obviously don't need to entice people to participate (although we do want them to) and the loans are just a bear to administer and are the source of lots of complaints (besides being a stupid thing to do - but if people want to do it - its their decision). Besides the screams from the few who abuse the program - how negatively would this be perceived?

Does anyone know if a 401(k) can have direct investments in Drips as a plan investment.

I spoke with one person who said the transfer agent probably would not allow the investment to be held in the name of a qualified plan becaue they would not want to be construed as a trustee.

Any thoughts?

What effect do contributions under other plans mainained by the E/er have on determining whether a cross-tested plan is within the requirements of the Regs?? For example, assume E/er has a 401(k) plan, a new comparability PSP and a MPPP, and the E/er is obligated to make a 10% contribution under the MPPP. How does the 10% contribution under the MPPP affect the determination of the allocation percentages under the new comp. PSP?? Any suggestions??

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Please share with me your ideas on Employee Wellness Programs - (i.e. on site chol. screening/blood pressure/health fair)

I'm reviewing a 401(k) plan that includes a disability retirement provision. Disability is defined as the inability to meet the requirements of the Participant's "customary employment" ... Can this definition be changed to inability to "engage in any substantial gainful activity"... without violating Code Section 411(d)(6) anti-cut back rules? Certainly the inability to perform one's assigned job would result in disability faster than exploring whether the participant can perform any gainful activity. The question is whether disability benefits under a retirement plan are protected similar to early retirement benefits?

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AJM

[This message has been edited by April J (edited 06-04-99).]

I am taking over a plan for a law partnership in which several of the partners are PCs. Should plan compensation for these partners be the W-2 income from the partnership?

I have a paired money purchase and profit sharing plan. For the calendar year, there was a $3000 receivable for the MPP, none for the PSP. Each plan had about $3200 in forfietures. The HCE made sure to have his own $30,000 in cash contributions between the two plans in order for him to reach the 415 limit. What do I do about the forfeitures? Both plans have forfeitures reallocated to remaining participants. There are not enough NHCE's to fully absorb all of the forfetures.

It is generally the case in a gov't hospital 403b plan that when a participant files Chapter 7 that the assets in his account are available to creditors, unlike a qualified plan under ERISA?

Plan may not charge participant nor alternate payee directly for fees associated with determining a valid QDRO. QDRO specifies valid formula for determing value AP's portion of DB plan. Is Plan responsible for the costs and adminstrative burden associated with tracking this portion (actuarial costs, etc.)?