Company has an existing money purchase and profit sharing plan. They want to establish a 401(k) safe harbor effective 8/1/99.

1. Would the safe harbor be considered a a newly established plan as described in Section X of Notice 98-52?

2. Would it be possible to amend the profit sharing to include the 401k safe harbor effective 8/1/99?

Comments appreciated on how others handle installment payments from PS/401k Plans over period. As account balances change do you adjust installment amounts?

Are retired faculty from an educational institution eligiable for section 125 medical (insurance) reimburesment?

Is there a structure that would provide protection for 457(f) plan assets from the employer's creditors while at the same not removing the substantial risk of forfeiture that must exist for the plan participants to defer current taxation of contributions? And if such structure were available how would it differ in application with governmental entities vs. non-govt. tax-exempt entities?

The IRS recently issued new audit guidelines for 403(B) plans. Although the guidelines have apparently not been picked up by any of the major legal research services, we have been able to obtain a copy, which you can view by clicking here. (Please be patient, though; the guidelines are quite long and take a while to load.)

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Employee benefits legal resource site

The IRS recently issued new audit guidelines for 403(B) plans. Although the guidelines have apparently not been picked up by any of the major legal research services, we have been able to obtain a copy, which you can view by clicking here. (Please be patient, though; the guidelines are quite long and take a while to load.)

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Employee benefits legal resource site

The IRS recently issued new audit guidelines for 403(B) plans. Although the guidelines have apparently not been picked up by any of the major legal research services, we have been able to obtain a copy, which you can view by clicking here. (Please be patient, though; the guidelines are quite long and take a while to load.)

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Employee benefits legal resource site

Ran across a business owner who sponsors a retirement plan covering himself and 5 employees. He has never filed a 5500 and the plan has been operating for 5 years. What should he do to correct situation?

P.S. He would like to terminate plan.

We have an employer who is raising the rx copay on his plan but does not want to change the copay for retirees. The employer wants to set up AND FUND a flexible spending account for the retirees to recoup the copays so they will not (in effect) have the additional copay burden. Can this be done as a traditional flexible spending account? What will have to happen for tax reporting purposes? How shall we correctly apply any pre-tax reductions?

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Are there any limits that would allow an employer to provide credit to certain employeeds for their prior employment, but not to all employees for their prior employment? This is *not* a situation where the employer is a successor in interest to another employer's plan, but a situation where employees from one company have begun to work for another company. the current employer has alreadsy made one exception to its plan to credit former employees of a different company for time served there, and now newly hired employees from another company would like the plan to treat them similarly, but the employer does not want to.

I can only seem to find information on converting to a ROTH IRA. Is investing in a ROTH IRA the first step a 22 year old, new investor, should take? If so,

which avenue should I take to invest in, Banks? Brokerage Firms? or an individual Mutual Fund Family?

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Goodnews

Surviving wife is only 45 and has $100,000 in her IRA (all community property). Husband dies and his estate has interest in her IRA. Is his half of IRA valued at $50,000 on his estate tax return? Or, is it discounted: 1. at least 10% as any withdrawal is subject to the ten percent penalty excise tax; or 2.discounted even more, because wife doesn't have to pull it out for another 25 years. (who knows what will be in it then).

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Jenny E

When does a dependent become ineligible for qualifying expenses? Do the states have different laws regarding the age children must start school? Is tuition for preschool eligible? Is tuition for kindergarten? Is there a set rule for this plan?

What's the correct procedure regarding the 15% max for a self-employed individual when the tax returns for 97 and 98 are being amended and will result in less earned income? This client (with a 401K plan - deferral, no match, the remainder of the 15% is put in as a profit sharing cont. each year) put in the max for both years. He has three employees beside himself who also received a profit sharing contribution.

Is there a 10% penalty since the money wasn't taken out by 4/15/98 (for 97 tax return) and 4/15/99 (for 98 tax return)? Can we take money out of the other employees' accounts if the new allocation shows less or should it all be taken out of the owner's?

Any assistance or advice on the matter is much appreciated!

Two sole props each had their own plan. Sole Prop A had a 401k plan and Sole Prop B had a Profit Sharing Plan. In '98 they became partners and created a new plan sponsored by the partnership. All employees were paid from the partnership in '98, but employees of sole prop A continued to defer into sole prop A's 401k plan. This doesn't sound kosher to me. How is this corrected??

Looking for a complete HRIS system(HR, Benefit,payroll), wondering if someone is using one they love? (midsize company and up)

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RJ

rliegl@ldmtech.com

Individual M has a traditional IRA, a dormant sole proprietorship plan and a corporate plan (all plans have a 12/31 year end). M attains age 70-1/2 during 1999. M proposes to terminate the two qualified plans during 1999 and transfer the qualified funds to the IRA. Since M attains age 70-1/2 during 1999, it is my opinion that M must make the Required Minimum Distribution separately from each the Keogh and corporate plans, prior to rolling the balance of funds to the IRA.

Does anyone believe that M is entitled FIRST to transfer the qualified funds to the IRA and then take a single RMD from the IRA prior to April 1, 2000 (RBD).

Thank you for your comments.

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Individual M has a traditional IRA, a dormant sole proprietorship plan and a corporate plan (all plans have a 12/31 year end). M attains age 70-1/2 during 1999. M proposes to terminate the two qualified plans during 1999 and transfer the qualified funds to the IRA. Since M attains age 70-1/2 during 1999, it is my opinion that M must make the Required Minimum Distribution separately from each the Keogh and corporate plans, prior to rolling the balance of funds to the IRA.

Does anyone believe that M is entitled FIRST to transfer the qualified funds to the IRA and then take a single RMD from the IRA prior to April 1, 2000 (RBD).

Thank you for your comments.

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Are employees required to submit an original receipt in making a claim to a FSA account? I have been told that the IRS "implies" that original receipts from an independent third party be submitted. I have also been told that original receipts are not needed. If the employer is ultimately responsible for non-compliance, wouldn't it be prudent to require originals to minimize fraudulent or altered claims. I would like to be able to tell employees that this is an IRS requirement.

Is anyone in the Phila Metro area interested in a CEBS study group? I would like to join a group in progress or help start one.

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Jean K