To provide for the accumulation of funds to meet retiree healthcare deductibles, groups representing our retirees have requested that the annual deductible be withheld from their monthly pension check over 12 equal instalments. Can a Section 125 plan be established to meet this? Can a Section 125 plan be established when there is no employer/employee relationship but rather retiree and plan sponsor?

As controller of a small company, where can I go to find out about ERISA compliance? It was my understanding ERISA only applies to companys with more than a certain number of employees. If anyone can point me to where I can locate a guide, pamphlet, etc. with an overview of ERISA requirements and/or guidelines would be greatly appreciated. Anything on the Web would be great.

[This message has been edited by Robert Engle (edited 08-06-99).]

[This message has been edited by Robert Engle (edited 08-06-99).]

I am currently reviewing the addition of the Voice Response Unit and web site software sponsored by Corbel. If you have had any experience with either of these please e-mail me or post a message to this board regarding your satisfaction with these systems and any pitfalls that you may know of. Thanks.

[This message has been edited by Alan Simpson (edited 08-06-99).]

We are looking to audit our healthplan for claims and administrative procedures. Any suggestions on any good vendors?

We are a group of Physicians and Pysicians Assistants. Our current group has terminated the contract with the hospital. This termination is for October 13, 1999. We are forming a new group with a new name and new govern-ship and Management, with the same hospital. Our current plan is fully vested at 5 years. I have perticipated for one year in the 401k. Should I Stop my contribution now or let it terminate with the contract.

If the beneficiary of a 403-b (150,000) disclaims it, and it passes to a credit shelter trust (contingent. benef), what taxes, if any, will need to be paid and at what rate? Will the entire account be paid out to the trust at once?

THE SERVICE STATES AT IX A (3) ROLLOVERS THAT: "UNLIKE TRANSFERS, THERE MUST BE A DISTRIBUTABLE EVENT UNDER THE PLAN OR CONTRACT TO HAVE AN ELIGIBLE ROLLOVER DISTRIBUTION."

WHAT TYPE OF EVENTS ARE THEY REFERRING TO OTHER THAN THE TRIGGERING EVENTS FOR EARLY DISTRIBUTIONS ENUMERATED IN SECTIONS 403(B)(7)(A)(ii) and 403(b)11?

RECOGNIZING THEIR OWN INFORMATION LETTER OF MAY,1995, WHERE THEY TOOK THE POSITION THAT POST-1988 SALARY REDUCTION AMOUNTS TO A 403(B)1 contract are subject to the events of 403(b)11 in order to be an eligible rollover distribution UNDER 403(B)8 and 402©4; don't you find it strange that they don't re-state their position and that of the ruling in FRANK V ARRONSSON; COURT OF APPEALS FOR THE 2ND CIRCUIT; 96-9456?

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[This message has been edited by jlf (edited 08-05-99).]

I have read that the IRA needs to be split before the owner's required beginning date. Is this correct? My widowed client is over 70 1/2 and has had her children named as beneficiaries since prior to her RBD. If she splits an IRA and designates a charity on the new IRA and her children remain beneficiaries on the original, is there any potential problem? (I understand that the minimum distributions on the new IRA will be based on her single life expectancy.) Further, may she choose from which IRA annual distributes are made?

A company of 25 employees has 5 that are HC. They currently pay all the health premiums for all employees. They are changing this so that the NHCE's have to pay a portion of their own premiums. But the HC's will still be paid by the company. Now, the company wants to also pay all unreimbursed medical expenses for the HC's but not for the NHCE's. Question: Can this group set up a 125 plan for the NHCE's and a 105 for the HC's? The 105 would then reimburse the HC's for all medical expenses not covered by insurance. If this isn't feasible, what alternative does this company have, when what they want to do is continue to benefit the HC's fully, but not the NHCE's?

Can anyone offer me so guidance where on the web I can find the % of retirement income for executives that comes from qualified and non-qualified plans.

Probably the past 10 years data would be all I need.

If the employee declines medical coverage, then he/she receives a cash credit. This credit cannot be taken as income but must go into the employee's 401(k) account.

Is that a valid design for a 125 plan given that the employee does not have the option of taking it as cash?

Also, do these contributions count against the employee's $10,000 annual deferral limit?

Does anyone have info on vacation practices for employees paid strictly by commission? Are the policies the same as for administrative employees or do they get vacation at all?

After I get verification to transfer my biweekly 401(k) contributions, I make a electronic transfer to our provider the evening before or the morning of the paydate. It is taking 5-7 days before the money is showing up in employee accounts to invest. How long do they have to credit my employees accounts? Is this spelled out in any reg. or ruling? Can anyone recommend a provider that will be able credit the accounts faster? Thanks.

Due to computer system glitch, many of a client's HCEs (no non-HCEs were affected) were not given their full matching contributions as prescribed by the plan. Upon investigation, this problem goes back quite a few years. The client now proposes to make corrective matching contributions to the HCEs who were "shorted" but desires to know whether non-discrimination testing will have to be performed for each year. We've already explored 415 and 404 issues, but any helpful comments would still be appreciated.

My firm handles marketing and administration of 401(k) plans, currently offering a selection of nine funds to our participants. The funds are not publicly traded. We are considering the addition of some publicly traded mutual funds. Can anyone offer some guidance on the different areas we should concern ourselves with during the planning phase? Of course, I understand that we will now have to comply with requirements regarding prospectus availability, but what about required certifications or licensing for any of our staff? Also, if we replace an existing bond fund with a new bond fund, what kind of notification and disclosure requirements are we looking at? Are there compliance issues that I should consider when eliminating a fund option and moving all assets from the eliminated fund into a newly selected, similiar, but not identical, fund. Any references suggested would be extremely appreciated.

I am struggling with what appears to be an issue not addressed under 457 or the regulations thereunder. Specifically, how do you value an ineligible non-account (defined benefit) plan for FIT purposes when plan benefits are no longer subject to a substantial risk of forfeiture and where such benefits are not "reasonably acertainable" as the final benefit is based upon final pay and years of service with the sponsoring employer. There is a delayed accounting rule for FICA and FUTA purposes set forth in Reg. 31.3121(v)(2)-1(e)(4) which provides that benefits are subject to FICA or FUTA until they are "Reasonably acertainable." Unfortunately, there is no counterpart for FIT purposes. Any ideas?

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Tom

Under a cafeteria plan if part-time employees are eligible but the major medical coverage excludes part-time employees, can the part-time employees pre-tax any other benefit for which they may be eligible.

I understand there is a senior citizen ID card that I qualify for at age 60 but have been unable to obtain any information on how to get it. Any info on this will be very much appreciated.

Thank you in advance for your replies

my e-mail is... breeze@usmo.com

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Frank

An Employer want to shut down their DB Plan. It is currently underfunded by 75,000. Current 412 deductible limit is 40,000. Can the Employer fund the plan with 75,000 take deduction for 40,000 and close the plan? Is there any carryforward deduction of the additional 35,000? Any other thoughts.

I'm trying to analyze the 7 factors under Rev. Proc. 98-22 that determine whether an operational failure is insignificant for purposes of APRSC. Two of the factors focus on the number of participants "affected" by the failure.

Here's the issue: Because of an error in payroll processing, certain items were erroneously excluded from compensation for purposes of calculating accrued benefits under a defined benefit plan. As a result, a number of participants' accrued benefits were less than they should have been. Of those participants:

(1) some terminated and received distributions before the error was discovered;

(2) some terminated without a vested benefit before the error was discovered;

(3) some terminated before the error was discovered, but the error was discovered while processing their distributions, and they received the correct amount;

(4) some are still active, and their accrued benefits will be adjusted to reflect the correct amount; and

(5) some are still active, but the period of time during which the failure occurred would not constitute their "high 3-years pay," so their compensation for that period would not be considered under the benefit formula, and thus would not affect their accrued benefits.

The question is, which of these groups of participants is "affected" by the operational failure? Would it be all of them, since the failure affected the determination of compensation for everyone? Would it be only those who received an erroneous distribution? Or would it be something in between?

My thought is that group (1) is clearly affected, while groups (2) and (5) are not. Groups (3) and (4) are somewhat iffy. These groups may have been technically affected because their accrued benefits were wrong for a time, but the failure has not caused them any harm because they have received (or will receive) the correct amount.