Sometime during the past 2 days this IRA Message Board saw its 1000th posting!

I particiapte in several BBS's in several topic areas and this one ranks right up there with the best.

Thank you to all for your interest and

participation over the past months. Your IRA expertise is appreciated by many, including those who read but do not post actively.

1000 postings---quite a milestone!

Cordially;

David Hammond-SRS

Your Humble Moderator

We are setting up our PS plans to use discretionary amounts contributed for each class, allocated salary proportionate (with required notice to trustee for discretionary amounts). How are forfeitures to be "allocated"? If they are used to "reduce" the contributions, how is that actually applied (to each group?) or worded in the document? Any help here would be appreciated.

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LKP

Is it possible for a TPA doing only traditional r/k to receive the sub t/a fees? It would seem to follow the same logic.

I have an ESOP plan that is a combination of a stock bonus plan and a money purchase pension(MPP) plan. Is it okay to contribute shares of company stock (for a privately-held company)to the money purchase part of the plan or do the contributions have to be in cash? Where can I find rules regarding the ESOP's MPP contribution guidelines?

Ours is a mid-size private special education school employing approx. 200 staff. Due to recent, as well as anticipated growth in the next year, we are reviewing policy related to employee benefits specifically "leave". I'm curious to learn more about "banking days" to be used as a pool for extreme & extended leave. Does anyone have a successful working model to share?

I would like to open a fund and contribute monthly for my childs education(4-1/2)years old. I would like to know if a Roth IRA is the best way. I looking at many angles - a tax advantage, don't want to jeopardize getting college federal and state funding (didn't want account opened in her name), no withdrawal penalties. Thanks......

Comp limits, deferral limits, etc. are all tied into the CPI-U (Consumer Price Index)

The numerator is:The average of the values for the three month period July, Aug, and Sept.

The denominator is the three month average Oct/Nov/Dec 1993 which was 145.7667

You multiply this value by your original limit (e.g. $150,000) to obtain the new limit. The comp limit only increases in increments of 10,000, the deferral limit in increments of $500, the 30,000 limit in increments of 5000.

You can obtain the CPI-U by calling (415) 975-4567 ---follow the instructions and enter code 2110. Its all computerized, you talk to no one, you eventually enter your fax #. (you will also get a CPI-W report - don't know what that is for.)

The value for March was 165.0. therefore, if that figure remains constant the rest of the year you have:

(165.0 / 145.7667) * $150,000 = $169,791

In other words, an early guess says next year the comp limit will probably be 170,000 because chances are that the index will continue to go up.

(unless Congress changes the rules again!)

The value for April should be out by now, I challenge someone to go out and grab it and report their findings!

What are the best companies to use? What rates of interest should I expect? Where can I get a DETAILED prospectus? I would appreciate anyone taking the time to respond. Thanks.

Is there a form or a formal notice that must be sent to the IRS/DOL when discontinuing a partially self-funded health plan and becoming fully insured?

A stipulation of agreement in a divorce settlement divides a defined contribution plan as 50% of accrued benefits. The DRO states 50% of total account balances. There are nonvested employer contributions. Question: Does the phrase 50% of accrued benefits include or exclude nonvested contributions?

I am looking for a good Benefit Communication Software that will help produce Employee Benefits Statements. Our HR software does not accomodate this. Fields like wages, benefit costs, 401k, etc.. I would like to see them all on one statement

I am on an indefinite medical leave from work. I recently inquired about necessary forms to file for short term disability benefits offered in addition to our life and accidental death and dismemberment insurance. I was told the policy had been cancelled in March and no alternative policy was established. We do not pay into any of our insurance; it is a "perk" for full-time employees according to our company policy. Is my employer legally responsible to offer compensatory benefits for his error? He was warned in Oct. of last year the policy would be terminated due to a drop in the number of insured employees; he did nothing about it, just kept sending the checks. In March they sent the premium back and told him our policy was terminated. He did not tell anyone in the company until I attempted to file my claim. What can I do? I have been out of work for 4 weeks without income. I am desperate!

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pam adamski

A client wants what I consider to be a fairly typical IRA beneficiary designation. He wants his wife as the primary beneficiary. If his wife does not survive him, he wants his benefits to go to his issue, not outright, but rather each person's share is to go to the trust for that person under the client's Will.

This seems like it's what most people would want, especially in our practice where most people provide for their beneficiaries in trust rather than outright, except for retirement benefits going to the spouse (which generally pass outright so the spouse can roll them over).

We are having a problem with a major financial institution which doesn't seem to understand this.

I suppose we could have drafted the Will slightly differently, to provide for a residuary trust which, if the spouse does not survive, is divided into equal shares for the children and held in further trust for their benefit, so that the residuary trust's existence is momentary, and then named the residuary trust as the contingent beneficiary. But, notwithstanding PLRs 9012009 and 9004042, the way we drafted it might give each child a slightly better chance of being able to use his/her own life expectancy.

The broader issue here is that it seems that I or fellow practioners have had difficulty (thus resulting in increased costs to the client) with a good many financial institutions.

Does anyone have any thoughts on this?

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Bruce Steiner, attorney

(212) 986-6000 (NY office)

(201) 862-1080 (NJ office)

also admitted in FL

What is the maximum deductibe contribution for the sole proprietor for the 1996 PY?

- The lan is a nonintegrated profit sharing plan effective 1995

- Contribution made on behalf of employees for 1996 is $15,000.

- Self-employment tax is $10,821.

- Net revenue after all deductions except employees' plan contributions and the deduction for self-employment tax is $125,000.

The answer is $13,649. Need explanation. Thanks!

Does anyone have any experience that they would be willng to share regarding what kind of retirement plans an Indian Tribe can establish and the applicable rules for its establishment? The specific question relates to an Indian Tribe run casino which is part of the overall operation of the Indian Tribe. It is my understanding that the Indian Tribe does not pay taxes on the profits from the casino operation, but that the employees of the casino do pay taxes and receive a W-2. The Indian Tribe runs the casino itself and does not franchise the operation to another entity.If the Indian Tribe can establish a qualified plan for its employees, will there be a coverage problem if other employees of the Indian Tribe in other endeavors are not covered or does it fit under some type of exemption such as a governmental exemption?

I apologize in advance if this is an inappropriate topic for this forum. I was not certain where to put the question, and the people responding to the questions on this forum as well as the moderator are excellent. Thank you for any assistance you can render.JDC

A client has asked if his employees purchasing individual health policies can pay the premiums with pre-tax dollars. I have searched CCH, RIA and BNA and have virtually no guidance. I need references or sites. I have spoken with a benefits attorney, a CPA specializing in benefits and a vendor of plan 125 documents and received three different opinions. I have reviewed several documents that don't address the issue. I did find one individual that said it must not be a part of the FSA's. If not, what is the best way to handle reimbursement? What premiums are allowed?

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I am working on revising my company's Short-Term Disability and Disability Leave policies. Can anyone share examples? I'm specifically interested in criteria for eligibility for paid leave, duration of paid maternity leave, percentage of salary paid as STD benefit, and the impact on STD benefits of part-time work during a disability leave of absence (for instance, an exempt employee on maternity leave spends several hours on the phone with clients). Also, does anyone out there have a paid paternity leave policy?

Any information on policies / best practices would be greatly appreciated.

Thanks!

Often times the mutual funds that your plan is investing in are paying fees and commissions to brokers and/or other types of "interested parties" (recordkeepers, etc.) My firm in in the business of identifying these fees and commissions, collecting them, and then rebating the majority of the BACK to the trust. These rebates may be used to offset expenses of the trust, provide for participant education, etc. Many sponsors are very surprised at how much money brokers/etc. are making on their plan, often in return for little or no service. Many sponsors also use "no-load" funds to avoid excessive commissions, but often fees can be found on these funds.

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1-800-693-7800

cfriday@macg.com

Is anyone aware of any law, rule or regulation which limits disclosure of confidential medical information to the executives of the employer which is a third party administrator and administers its own self insured plan?

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A settlement agreement states 50% of benefits accrued. The DRO in process states 50% of total account balances. This relates to a 401k plan with non vested employer dollars. The question is Does phrase benefits accrued include non vested contributions and thus the DRO is not correct?