Sorry this is out of the norm for this message board. If I gift stock to my church, can I purchase the same value of that stock on the day of transfer, or do I have to wait 31 days (wash rules). My intent is to receive a stepped up basis. Thanks ! !

A company which is a member of a controlled group terminates its 401(k) plan and distributes the accounts to participants. However, another member of the controlled group also maintains a 401(k) plan which constitutes a "successor plan" with respect to the terminated plan. Thus, the distribution from the terminated plan violates Code Section 401(k)(2)(B)(i). What, if anything, can be done to correct this?

An employee made a temporary waiver of a QPSA and then terminated employment. Under 1.401(a)-20, Q&A-35, must the individual complete a new waiver within the first year following his separation for the waiver to be valid? Any difference if first waiver was made within one year prior to employee's separation? Thanks. Ed

Have you heard whether the IRS will finalize the new Table I rates for GTLI with the July 1, 1999 effective date?

A small not-for-profit needs a 403(B) plan document and adoption agreement. Investment companies aren't interested in providing a document because the participants' money goes to a variety of investors. The not-for-profit is hoping to avoid the expense of going to an attorney or accountant for their document. Does anyone know alternatives to obtaining a document? I'd appreciate any advice.

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staceym@elmore-cpa.com

a plan credits hrs of svc based on actual hrs an ee is paid or entitled to payment. If a salaried ee works overtime, say over 40 hrs in a week, is he credited (for benefit accrual and vesting purposes) with all the hrs worked? That is, is he credited with the hrs above 40 also?

3 HCEs have $34,000 in contributions including $10,000 in elective deferrals & $9,600 match (match formula is 100% up to 6% comp). After returning $4,000 4k to pass 415 testing, discriminatory rate of match exists. Do regs allow returning less 4k to maximize match. For example, return $2,200 4k & $1,800 match, resulting in $7,800 allowable for each 4k & match. If regs allow, is it still a document issue?

I cannot locate a refernce that discusses the Scheudule C or SSA. Part I and Part III of Schedule A tie to question 25 of the 5500 and this 5500 Questions is not answered for a 403(B) plan. Part II deals with trustees and 403(B) plans are non-trusteed. Thus it seems that the Schedule C is not needed. Is this true? Is there an IRS or DOL reference on this topic?

Alas, it seems that that the SSA would still be required. Does anyone have a reference that states SSA's do not apply to 403(B) plans.

When do the affiliated service group rules (414(m)(2))come into play when you are dealing with service organizations such as law firms? We have a situation where law firm A is opening a new law firm B; ownership in B is 50% by firm A, 25% by unrelated individual, 25% unrelated individual. The firms will not refer business to each other. I thought there would be no affiliated service group issue, but an example on some materials I have makes me question that since there is ownership between the two.

this is a nongovernmental plan, do they have to file form 5500? I know governmental 457 plans are exempt, what about nongovernmental?

I love these message boards as I think that they provide a useful interchange of information. However, for the second time I have been told, essentially to research the topic myself!!

I have thoroughly searched all old messages, benefits link itself and the IRS through BNA, CCH, etc.

Is anyone familiar with the current IRS position on orphan plans--plans with no sponsor. In 1985 the IRS indicated that they might be issuing some TAM's on this issue. Did they?? Anyone have a cite??

Thanks--and excuse my frustration!!!

A client posed an unusual problem. He contributed $2,000 to his $7,700 traditional IRA in January, 1998. In November, 1998 he converted the entire account to a Roth. No election to recharacterize the contribution was made before the transfer. The broker sent him a 1099 showing the entire account balance as a distribution. He thinks he can deduct the original contribution to the traditional IRA and then pick up what the broker showed on the 1099 over 4 years.

I would have thought that he would not take the contribution into income under Section 408A(d)(6)(a) and that the broker's 1099 was wrong, but then there was no election to recharacterize. To get the deduction I would have him elect to recharacterize the contribution as one to his traditional IRA by the time he files his return (I put him on extension).

He (retired lawyer) suggests that 408(d)(6)(B)(2) implies that he could deduct it.

Any thoughts on how this should shake out?

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As a new subscriber to BenefitsLink, I am interested in knowing if there are any working or ad hoc groups of HR/Benefit professionals that have an interest in and regularly discuss issues relating to Integrated Disability and Absence Management. In paticular, are any members migrating to the full integration of WC, STD and LTD benefits and what "best practices" and benchmark standards have you set for your organization. Lastly, what other internet based resources might you recommend that I explore. Thank you.

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Robert J. Ayers

Regional Director

Integrated Disability and Absence Management

GatesMcDonald

800-423-1846, ext. 3581

Is anyone familiar with the current IRS position regarding plans with no sponsor, sometimes referred to as orphan plans?

In order to be a participant in the plan, an employee does not have to contribute to the Plan, UNLESS his/her job classification is covered by a collective bargaining agreement between the Plan Sponsor and one of the unions that represents some of the participants.

The reason I ask is that our client wants to offer an early retirement window benefit, but Treas. Reg. 1.401(a)(4)-3(B)(2)(iv) states "no employee contributions. The plan must not be a contributory DB plan." Does the fact that some of the participants "contribute" to the plan due to a collective bargaining agreement cause the plan to be a contributory defined benefit plan? I have tried to find a definition of contributory defined benefit plan, but have been unsuccessful.

I would appreciate anyone's guidence.

If I gift stock to my church can I purchase the same amount back & receive a step up in my basis, or do I have to wait 31 days (wash rules) to purchase it ? Thanks !

If I remember correctly, there are ERISA rules surrounding how many days an employer has to respond to a participant's request for a benefit calculation, an SPD, or a plan document.

Can anyone point me to where I could find the details on these timing requirements?

Q&A-6 states that in an asset sale, "the sale" is the qualifying event. What if the employee doesn't actually terminate employment until later? The buyer is buying the operating assets and hiring the employees at these locations. Some headquarters employees will continue to be employed by the seller for several months to wind things up. The seller has terminated its health plan, and the HQ employees are claiming that buyer must offer COBRA to them as of the date of the sale, even though they have not terminated employment yet. The statute says that "termination" is the qualifying events. Are the regs just sloppy language? Any thoughts?

Is it true that religious non-profits can "noncomply" with IRS regs on for example, a defined benefit plan, with impunity. Or, can they be brought to the DOL like any other for-profit for noncompliance??

Participant X died w/ $1,000 plan loan outstanding. X's account ($10,000 including the $1,000 loan) distributes equally to two beneficiaries. Should the 1099R to each bene be (A) for $5,000 or (B) for $4,500 w/ a third 1099 for $1,000 going to deceased taxpayer/estate?? Thanks