Help! I have to turn in a 1000-word article for our company newsletter Friday titled "Employee Benefits---Is It Worth the Hassle?" This is not my area of expertise. Any HR folks out there with comments, suggestions where I might find info, anecdotes you'd like to share? I'd appreciate any ideas.

[This message has been edited by Lynn (edited 04-05-99).]

Last year I converted a regular IRA to a Roth IRA. When my spouse and I computed our taxes, we get a higher return (by about $140) if we file separately rather than jointly. But this would mean I would have to recharacterize my Roth back to a traditional IRA. Any advice?

I am unclear on the type of life insurance would be classified as group term. The problem I am having, is that we do not pay any premium (the employer) all premiums are paid by the employee. IRC Sec 79 has one paragraph that deals with coverage that can be taxable for employees paying all of the premiums. This is where I believe we fall and I need some clarification. Any help would be greatly appriciated. Thanks Steve

I have a question on how to proceed with an ACP test as to provide the best results possible. The plan has an immediate eligibility for both 401(k) and after-tax contributions. The plan provides for a matching contribution after 1 year of service, monthly entry dates. The compensation being used for testing purposes is eligible compensation, which is entire year due to immediate eligibility of after-tax contributions. Therefore, the ACP results are lowered for individuals eligible for match later in the year due to using entire year compensation.

The question - Can both contributions be tested seperately (using different compensation figures) and then weight the two individual tests together for a final ACP result?

Thanks for any input!!!!!!!!!!!

I am trying to find information regarding customary benefits in hospitals, either for profit or not-for-profit.

ie Do most Hospitals use the formula:

'final average earnings x 1.2% x years of service'. Or do they use a higher %?

Also what is the percentage of hospitals

that offer a 401K/403B match?

Would much appreciate any info anyone could provide..

I am in New York. Thanks

------------------

Julia

A client is due to renew their ERISA bond. The insurance agent called to ask whether the bond could be subject to a deductible. I have never been asked this question before now.

My initial thought was no, a deductible is not acceptable. It almost seems that a deductible would defeat the purpose of the bond, at least in some small way.

But, I have been unable to find any guidance on this question. Any insights or thoughts would be appreciated.

------------------

Dan Smith

I do not administer non-qualified plans but a client of mine has one, drawn up by an attorney. A terminated participant wants to take a distribution but we have no distribution forms. Does anyone know where I can go for such a form?

Thanks.

A church is interested in establishinf a defined contribution plan, with a 401(k) element to it. The Church desire to make a one-time "past service" contribution. This past service contribution equals approximately 22% of payroll. While we can overcome the 415 issue by establishing suspense accounts, does 404 apply? Thanks. Ed

You may be confusing the "rollover" between IRA custodian and a rollover of a maturing CD. You have an unlimited number of allowed rollovers of IRA to IRA (not involving IRA -> Roth which is a conversion) as long as you never touch the funds and it is processed strictly by the two institutions. If institution A cuts a check for you, then you have 60 days to rollover the funds to another institution. I always suggest that you use the first option, which some call a direct transfer.

If you have an existing CD, you probably do not want to incur the "substantial penalties" of early termination. Therefore, if you plan to switch institutions, time it to your maturity date. Your bank probably charges an exit or termination fee on transfered IRAs.

If you are staying within the same bank and your maturity date is close, talk to the customer reps. A small bank or thrift will probably want to be good to their customer. With large (or out-of-state) institutions, you may not get such a positive response. Some banks may allow you to upgrade a CD, but this is based upon their marketing program not US law or regulations.

The March-April 1999 issue of the ASPA newsletter "The Pension Actuary" has an article beginning on page 4 which explains the various types of hybrid plans, including both the cash balance and the pension equity plan. Maybe that will help you.

I rolled my ira into a roth this year. the ira was 100% the result of a 401-K rollover into the ira many years ago. By definition the basis in a 401-K plan is zero...is this correct? That is, there is no way to have had a basis in dollars that went into a 401-K plan?

Need sample written notification from employer to truste as of the $amount of contribution to each group. Also need sample language to be incorporate in the plan doc to require such notice.

Please E-maiL to

Alexcalin@netscape.net

or fax at (818)992-6134

would appreciate any input re above. Thanks.

------------------

[This message has been edited by Alex Calin (edited 04-04-99).]

If an employer offers a vision plan to their employees, must they offer them Cobra for the vision plan? The final regulations do not make this clear, (to my way of thinking any way). I have a client who will be laying off about 5 employees and they asked this question and I wasn't sure if it was at their discretion or if it is now required.

------------------

S. Ostrowski

Can anyone give me information/advice on whether retirement benifits can be withdrawn early due to medical hardship. I am 48 and have been medically disabled for 10 years. I am currently receiving SSI and long term disability, since workers comp. benifits ran out. Thanks in advance-DWest

I'm reading contracdictory definitions for the vesting computation period when plan year end is amended thus creating a short plan year (my case is 10/1/98-12/31/98). Does VCP for short PY run from 1/1/98-12/31/98 (overlapping with 10/1/97-9/30/98 plan year) or does VCP for short PY run from 10/1/98-9/30/99 (overlapping with 1/1/99-12/31/99 plan year? Situation is that I have an employee who terminated in 5/98--credited with a YOS @ 9/30/98; I say vesting as of 9/30/98 is it!--do not increment for short plan year (terminated prior to beginning of short plan year).

I found the answer.

Thanks!

[This message has been edited by cgc (edited 05-12-99).]

Within the past year I have had to deal with several p/s plans in which forfeitures were returned to the plan sponsor to offset plan expenses. To me this appears to be a prohibited transaction, plain and simple. Is there something I am missing?

Employee terminates but employer fails to terminate health coverage with the insurance carrier. The employee is rehired, does not reenroll or waive health coverage and no deductions are taken. However, the old coverage is still in force. Employee says she wanted coverage all along and had assumed deductions were being taken (they were not). Do you make the employee make up the deductions (5 months worth)? Are there any pre-tax rule problems with catching up retro deductions or allowing a mid-year "change" to elect coverage even if it's retro'd to the start of the plan year.

Could you give me the basic low down of VEBA's. Like what one is, how you set one up? Maybe an e-mail address where I could get specifics so I don't take up too much of your time. Thanks.

Can anyone recommend a good source for newsletters? We currently use West Lawn - they write it and put "compliments of ABC Company" on the quantity you order - but we wondered if there was anyone else we should be looking at. We aim these at plan sponsors rather than participants so a small degree of technical info is okay. Thanks!