I was informed on an investment BBS that I am entitled to rollover assets in my 403(B) plan to a traditional IRA by means of a custodian to custodian transfer (no distribution to me, hence no penalty).

I am just about to sign up with my new nonprofit employer's 403(B) plan (a variable annuity) which doesn't thrill me:

(1) Given that it will be a new 403(B) account set up through an insurance company as usual, at what point would I be able to rollover/transfer the assets to a traditional (new) IRA account to be held by a different custodian (a mutual fund family)?

(2) Which IRS provision specifically allows such transfers? (I may need to arm myself with chapter and verse if I meet any resistance.)

(3) My payroll deductions will of course happen monthly. But how often can I make such transfers from the 403(B) to the IRA? Once a month, once a quarter, once a year, once every ten years ...?

Any information or advice would be appreciated.

Lyric

If a 12/31 plan/tax year end company files for an extension of their federal income taxes to Sept.15, can a form 5558 then be filed to extend the 5500 to Oct.15, or is the 5500 C/R automatically due Sept.15?

Can a participant participate in more than one 401(k) plan that is sponsored by different companies?

I am interested in finding a source for PPO industry benchmarks such as Average Length of Stay (ALOS), Days per 1000, Admits per 1000, etc. Any help will be truly appreciated.

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Thanks <b>don</>

Do elective contributions count as "employer provided benefits" for purposes of the average benefits test - "benefit percentage" as defined in 410(B)(2)© - and is there any authority on this?

I recently saw some marketing materials promoting what is called "The Charlie

Plan." This plan uses a Defined Benefit Plan with maximum life insurance and

coordinates that with an ILIT containing a small policy which guarantees the

insurability of the survivor. Looks interesting, but I'm usually a little

wary when a marketing concept looks too good.Anyone familiar with this concept?

What are the chances, in your opinion, that Congress will increase the limit on the amount of money you can contribute an Roth IRA?

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bill white

When an employee reaches age 70-1/2 and starts receiving minimum distribution (either as a 5% owner or for employees not affected by Small Business Job Protection Act), when does he elect his form of benefit?

Is the plan sponsor required to offer the employee the election at age 70-1/2 (and each later year), or can the plan sponsor force the employee to defer the eleciton until actual retirement?

In the first alternative, at age 70-1/2, the employee might elect a J&50, and be locked into that form. Then a year later, he might elect a life annuity for the additional benefit earned. Then a year later, he might elect a lump sum for the additional benefit earned, etc. (Wonderful for plan administration.)

In the second alternative, he waits until he actually retires. If he dies while active, his death benefit is based on the active employee rules (i.e., the 50% survivor benefit if he is married).

What is done in practice? What cites are there? Does this have to do with Annuity Starting Date?

[The situation is that the plan sponsor offers lump sums as a benefit form. If the employee can elect his benefit form at 70-1/2, he can elect a lump sum. If he has to wait until actual retirement and he dies while active, his spouse would get the 50% survivor piece. The plan sponsor would like the latter, to encourage him to retire.]

Help.

An individual is a participant in a 403b and has an IRA. He is over 70-1/2, and has to make minimum distribution payments.

Can he aggregate the 403b and IRA, and make the minimum distribution out of either or both, as long as the total payment meets 401(a)(9), or must he meet the minimum separately from each plan?

An employee is approved for a FMLA however never pays the employee share while out. Can we consider the last day worked as a qualifying event for COBRA?

In 1997 we miscalculated vesting and overpaid a distribution. Now the participant is willing to reimburse the trust for the overpayment. Question is how to handle tax-wise, participant was 1099'd and paid tax in '97. In 1999 does he take a deduction for the returned amount or does Trustee re-issue 1997 corrected 1099 and participant file amended tax return? Anyone been through this before?

I have been manually computing 5% and 20% transactions in order to complete Form 5500 and/or Form 5500-C/R. I feel like I'm in the Dark Ages in this area and am wanting to automate this process.

Per Quantech tech support, Quantech doesn't generate this information based on the various transactions processed. Per Quantech Crystal Reports tech support, they are not even certain they could make a report that gathers the information.

How do you all get this data?

I'd appreciate advice.

We have been asked to submit a bid on a takeover of a 457 plan. We have prepared plan documents for 457 plans before, but we have never administered a 457 plan. What are the pros & cons of administering a 457 plan? Any tricks? Any pitfalls?

Also, what is a common fee structure for administering a 457 plan? A flat fee? A per participant fee? An hourly fee?

Any responses are welcomed and appreciated!

Tres. Reg 1.106-1 states that "..the gross income of an employee does not include contributions that an employer makes to an accident or health plan for compensation(through insurance or otherwise)to the employee ..."

"... on a policy of accident or health insurance covering one or more of his employees,.."

Can new employer pay COBRA premiums for new employee relating to COBRA continuation from their prior employer and have the premiums be excluded from ee's income?

It appears there is no requirement that the employer actually be the sponsor of the plan that premiums are being paid to, only that the plan covers at least one employee, which it does, exactly this one employee.

Anyone know whether this is excluded from income or treated as taxable compensation to this employee? Thanks.

Has it been established that left over monies in dependent and medical reimbursement accounts can be rolled to a 401(k)?

I'm trying to find out what firms are charging to do cross-tested studies. For example, is there a minimum charge? A maximum charge? Flat fee? Hourly charge?

Any responses are greatly appreciated!

We just incorporated our business this year. Last year we used AgriPlan/BizPlan to do Section 105 deductions for our sole proprietership. This year we would rather write a plan and administer it ourselves. Surely, there is some software out there to help us. Since we have only two employees, we need to have something that is relatively inexpensive. As for administering the plan I see lots of software available, but since we have so little to manage, I don't see that we need something so elaborate. Please send any suggestions to smdavis@parkavetech.com.

Thank you.

Employer has terminated a Plan and we are awaiting a response from the 5310 filing. For tax reasons, it is best to liquidate the corporation now. Does anyone see a problem if the Trustee will distribute assets once a letter is received? What if the IRS wants certain additional amendments? We could amend the Plan to give amendment power to someone else, but Plan has been terminated.

There's an interesting article on the AP Wire web site today. This seems to be a hot topic, judging from the number of related queries in this thread. I'll save the article (if I can) for anyone who's interested. The article is titled 'More People Owed Benefits Sought', and is accessible in the US News section via a link in the left margin.

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Our plan states an employee may contribute from 2% to 15% of salary. It doesn't state whether this means annual compensation (salary) or the salary for the period when first eligible. For example, if an employee is eligible on July 1 (employment date was Jan. 2 same year, and the annual salary is 100,000, is the employee limited to 15% of 50,000 (half of 100,000 since not eligible until July 1) or his annual of 100,00?