Employee terminates while eligible spouse is confined in hospital. Can plan terminate spouse's coverage (subject to any COBRA rights) without violating HIPAA's rules against discrimination based on health status?

I would like to know where to find the rules for penalty-free withdrawals from a Roth IRA for a home purchase.

I am in the process of terminating a 401(k) plan which had previously been maintained as a prototype volume submitter plan (the "sponsor" insurance company went bankrupt and no longer sponsors the plan as such). The plan has been amended through OBRA 93 with the last determination letter from the IRS dated 6/9/94. I need to bring plan into compliance prior to termination. Other than GUST, are there any other required amendments?

If a participant in a salary reduction-only 403(B) plan takes a hardship withdrawal, is the participant then prohibited from making any salary deferrals to his/her 403(B) account for at least 12 months after receipt of the distribution?

If so, who is responsible for making sure that salary deferrals are not made for the required time period? The employer? The custodian? The participant? The 403(B) is set up as a Custodial Account, provides that the Participant is responsible for determining whether a financial hardship exists, and is not subject to ERISA.

My client's former TPA did not complete the testing for the Plan year ending 12/31/97 until March, 1999, and the client had an ADP/ACP failure. Rev Proc 98-22 provides that the client may correct the failure by 12/31/99 through the use of a QNEC allocated to NHCE's, which is one of the prescribed correction methods under SVP for this type of failure.

My question is whether it is sufficient for my client to correct the deficiency under APRSC by depositing the QNEC by 12/31/99, or if they must correct under VCR using the SVP rules and request an SVP compliance statement and pay the reduced compliance fee.

APs are in pay status. Most of the company QDROs have language that specify payment to AP for the Participant's employment years. COLA occurs after employment ends. Does AP's portion increase when P gets COLA?

My understanding is that no audit is required for pension plans with less than 100 participants. (Any cites to confirm?) No audit is required in subsequent years unless the count goes over 120. At what time of the year is the participant count determined (end of year)?

Under the 403b7 plan in effect, the employer contributes 8% of each participant's salary to the plan. One employee has elected instead to receive the 8% in cash. First, can this be done? Second, are there any documents that need to be filed in addition to the 5500 to report this?

Sub-S company (1 person company) establishes an SEP. SEP contribution goes to brokerage account.

Brokerage firm is advising that participant can take immediate distribution & rollover to IRA held at the brokerage account.

Is this proper? I don't deal with SEP's very much - and I know the rules are different from qualified plans.

Thanks!

An employer allows for immediate distributions when a participant quits. Its plan also reallocates forfeitures to participants, rather than using them to reduce employer contributions. This results in forfeiture allocations to former employees after the end of the plan year and many times the forfeitures are less than $5.00. Rather than issuing checks for such small amounts, the employer would like to establish a policy where it would not reallocate "de minimis" forfeitures (e.g., less than $5.00) to former employees. Can this be done? Has anyone had to deal with this issue?

A colleague has a small Church that is looking to set up a low-cost 403(B) Plan and needs assistance. Any recommendations for TPAs in the Bay Area? Prefer a small firm with considerable experience in the 403(B) area. Thanks very much.

Can anyone give me a range of the fee customarily entailed with respect to setting up a safe-harbor 401(k) plan?

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Under HIPAA, what is the definition of "termination" of employment? Is employee resignation considered termination of employment, or does this strictly pertain to dismisal of an employee?

I am looking for surveys, etc where I can review cost per participants, employee contributions, etc.

Any thoughts?

If the beneficiary of a 403-b (150,000) disclaims it so it passes to a

credit shelter trust (contingent. benef), what taxes will need to be paid and at what rate? Will the entire account be paid out to the

trust at once? Because this beneficiary (age 62) does not need the money, the other thought is to do the needed roll overs to convert it to a Roth and naming young adult children as beneficiaries. Any reactions to these considerations would be appreciated.>>

If UBI is in excess of $1000.00 the UBI is taxed ( the IRA custodial is required to debit the taxes from the IRA and pay it over to the IRS) My question is, since this $1000+ is already taxed, how will the IRA holder avoid those funds being taxed again when it is distributed?

Thanks

Africa

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AFRICA6796@AOL.COM/email]

Do you kkow anything about the CRSP course offered by the College of Financial Planners?. My coworker is currently enrolled and will be doing the exam soon, but I am afraid to as I do not know if it is recognized industrywide.

Their web adsress is www.cfp.edu

Thanks

Africa

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AFRICA6796@AOL.COM/email]

If an employee participates in more than one SIMPLE for two very different employers, what is that employees deferral limit? I am tempted to think $10,000.00 but the CODA limit states clearly that the deferral limit for a SIMPLE is $6000.00 per year. I understand that it is different if the employee participates in a SIMPLE and also another type of plan the limit would be $10000.00, but I think the multiple SIMPLE rule may be different.

Thanks

aFRICA

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AFRICA6796@AOL.COM/email]

How does a 401(k) plan interelate to an ESOP???? How are the 415 limits on the "Annual Additions" computed? How does a 401(k) plan affect those limits when the employee is also a participant in a company ESOP???? What contribution "counts first" towards the 415 limitation??

In Feb of 1998 I converted a traditional nondeductable IRA valued at $7470 to a Roth thinking that's all that would be affected. I also had other IRAs (per-tax rollovers worth about $49,900) which apparently must be included in the 8606 calculations. This would result in a much larger tax hit than I expected. I filed a 4868 extension and must finalize (recharacterize the conversion ?) Any suggestions?