Can a plan allow for rollover money to be withdrawn as a hardship distribution?

Back on 6/8/98 an employee took a loan and it slipped through at 7%, but should have been 9.5%. I'm sure we should go back and adjust it. Can we recalculate it and spread the additional interest over the remainder of the loan payments, or do we require the past due interesdt to be paid to-date? These or any other suggestions will be appreciated.

In reading the IRC regulations on controlled groups, the focus seems to be on 5 or fewer shareholders. In a situation where there are two companies and the ownership is identical, and you can meet the effective control test (5 shareholders who own 50%+), but you can not meet the controlling interest test (the group of 5 does not have 80% ownership), do you have a controlled group? I am getting confused with the situation of identical ownership (21 owners), but there are not 5 who meet the tests. Please help. Thank you.

This question has two parts. Has anyone heard of the fresh start calculation concerning after-tax contributions? How is it used? What plans could use it?

I have a plan that allows in-service withdrawals from the volunary post tax source but does not allow them from the mandatory. When calculating the taxable portion of the in service distribution should all post tax contributions be included in the calculation or only those associated with the voluntary source?

Thanks!

Must the plan pay for distribution fees or can the participant be charged the fee?

If a plan sponsor has an old 403(B) plan and a new 401(k) plan, must the 403(B) plan have a seperate trust from the 401(k) plan, or can they have one trust for both plans?

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Rob Morgan

Pension Plan Administrator

Employee eligible as Part Time worker for Health Benefits under a quasi cafeteria arrangement. At same time, in school. Opts for Health coverage from school rather than from company. Graduates and loses school coverage. Can she pick up company coverage or does she have to wait for open season.

A 401k plan has both a small employer match feature and a discretionary nonelective employer contribution component. Plan allocates discretionary contribution equally among all current participants. Plan enrolls new participants quarterly. Assume employer’s matching and discretionary contributions during the 1st two quarters of year equal, say, 90% of its contribution limit, so that only the matching contribution is made during the 2nd two quarters.

(A) Is there a discrimination problem?

(B) Can the employer require that a portion of a discretionary contribution made, say, June 15 be allocated equally in quarters 2, 3, and 4?

Thanks for any help.

An employee declined our health insurance when first eligible, and later had a health problem and found out our insurance was better than her husbands, so she signed up for ours, and she became the primary insured. Since the husband hadn't lost his insurance, were we obligated to insure her?

I am referring to the profit sharing allocation. If I read you correctly you agree that this can be done in the allocation formula but the cash bonus issue must clearly be an agreement outside but indirectly tied to the plan(except for the 401(k) deferral potential).

TPA firm in Upstate New York. Been using Datair (DC only) for ten years. The bad thing is the lack of downloading capability. Stops us cold in downloading investment data from a variety of investment houses. The good thing is it's all paid for. Quantech seems to be the standard in the industry, but I had a heart attack when I saw the costs. My question in a nutshell --- is QT worth it? We've GOT to get away from manual data input and start downloading FBO accounts. But the thought of writing the kind of checks Corbel wants is scary. I would appreciate any comments, in general, about Quantech. Any former Datair users who changed to QT, your help would be especially appreciated. Thanks very much.

I am collecting data on Flexible Work Options (i.e. telecommuting, job share) and would like to hear from anyone that has had experience in this area or who also has done research and can share their findings with me. I work for a non-profit, christian relief and development company in Washington

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Norene

[This message has been edited by norene (edited 06-16-99).]

This was posted in a Q&A column on BenefitsLink, and I wanted to get the ball rolling here:

Has anyone had any success in getting a plan approved (or believe you will) where the 3% non-elective safe harbor is the only employer allocation to the NHCES and additional Profit Sharing is allocated only to the HCES? Seems to me as long as the general test is passed it should be fine, however I do wonder about the wording in the document.

O.K. We give up. We have been looking for over one hour, in both the 401(k) Answer Book and the Pension Answer Book, for the Q&As regarding the timing of deferral deposits (e.g. 15 days and asap). Appreciate any help you may be able to give.

An employer has two defined contribution

plans (401k and money purchase) and would like to administer them under a

single TRUST. This would simplify some audit and filing issues, but create

some new accounting and compliance issues. Is there a practical article, rules of thumb, or first-hand experience on the pros and cons of this type of master trust?

I have a question for anyone who may know the answer involving the HIPAA special enrollment rules. If I understand correctly HIPAA requires that certain individuals be given special enrollment rights in the employer's health plan if they previously declined enrollment because they had other coverage and they subsequently lose that other coverage. Suppose employee terminates employment and loses coverage under his employer's plan because of such termination, fails to elect COBRA because he has other coverage under his spouse's plan, and then subsequently loses that coverage because spouse loses her job. I would assume that no special reenrollment rights must be given to him by his former employer since he is no longer an eligible employee with respect to his former employer. I believe this view is consistent with the statute and regs but would appreciate any other views.

The definition of "matching contribution" in 401(m) states that "a matching contribution is an employer contribution made to a defined contribution plan...." Does that include a money purchase pension plan? I know the 401(k) piece may not be included in the money purchase pension plan.

Hello! I'm the moderator of the Miscellaneous Benefits area of this fine, fine message board. Now I'm in charge of looking for info on internet recruiting. Does anyone have any experience in this area? Please e-mail me at aburnsafcu@earthlink.net or reply to this post if you can help me out.

Thanks so much.

Sheila K

Okay, now it's my turn to ask for assistance. We are in need of a new network administrator and I wonder if any of you have done any internet recruiting??? If so, please contact me at aburnsafcu@earthlink.net to discuss..

Thanks...Sheila K