If a plan sponsor using a nonstandardized regional prototype restates on to a standardized regional prototype (current restatement date), is it necessary to file for an approval letter? Will this be sufficient for the GUST amendments in 2000 (current prototype not updated for GUST yet) when the final prototypes are available due to the retroactivity involved?

MY EMPLOYER SENDS IN MONEY TO MY SARSEP ONLY SPORADICALLY, AND WHEN I TRY TO RECONCILE MY NUMBERS (DEDUCTIONS) AGAINST THEIRS (ACTUAL CONTRIBUTIONS) THEY ALL RUN FROM THE LIGHT LIKE A BUNCH OF COCKROACHES. BASICALLY, MY EMPLOYER HAS TOLD ME, ANY LOYAL EMPLOYEE WOULD BE WILLING TO "LEND" THE COMPANY MONEY IN ORDER TO ENSURE ITS FINANCIAL HEALTH. I, FOR MY PART, HAVING NOT BEEN ASKED TO BE A "LENDER", CONSIDER THIS MISAPPROPRIATION TO BE THEFT. AS IT STANDS, MY EMPLOYER KNOWS I AM SO FAR BEHIND IN UNPURCHASED SHARES THAT I DON'T DARE LEAVE AND THAT IF I COMPLAIN THEY WILL HAVE A LABOR LAWYER (ALREADY SHADOWING ME)ON MY CASE IN NO TIME FLAT....SO, THE BOTTOM LINE: HOW LONG IS THE ESCROW PERIOD, ANYWAY? CAN THEY HOLD MY MONEY FOR A MONTH, TWO MONTHS, HALF A YEAR, HOW LONG? AM I ON THE SHORT END OF THIS, AND MAY AS WELL KISS MY MONEY GOODBY?

[This message has been edited by Kronenberg (edited 07-09-99).]

Can a 403(b) tax shelter annunity be included in a salary reduction Sec 125 cafeteria plan avoiding social security tax on the employee TSA contribution.

An underfunded defined benefit plan is sponsored by a company that is in Chapter 11 bankruptcy proceedings. The PBGC is proceeding to have the plan terminated and to have the PBGC appointed as trustee. The PBGC has requested the bankrupt employer to sign an agreement to the termination of the plan and to the appointment of the PBGC as trustee. This agreement was drafted by the PBGC.

The company agrees that the plan should be terminated. However, the company would like to negotiate the scope of its responsibility and liability with respect to the plan after the PBGC has been appointed as trustee. Does anyone have any experience they can share about negotiating with the PBGC with respect to the terms of such an agreement? What are the issues we should be concerned about? Thanks for your responses.

We are trying to find the IRS Cite for the Uniform Coverage Rule pertaining to Health Care Spending Accounts. Specifically, we want to find the Code Section where it indicates that an employee has the right to claim up to the annual contribution in expense reimbursement at any time during a year and that the employer may not deduct any amounts which had not been contributed at the time of termination, if it occurs prior to the end of the year.

Company A sells off a division. As a result, about about 35% of Company A's 401(k) plan participants terminate with Company A and are employed by Buyer. Their plan assets are transferred to Buyer's plan. Buyer's plan will count the service of former Company A employees for purposes of vesting and eligibility. Is there a partial termination of Company A's plan such that the affected employees must be 100% vested, or does the continued counting of service suffice? Does it matter that Company A and Buyer were related before the sale such that the affected employees remain within the same control group after the sale? Citations helpful. Thanks.

[This message has been edited by Anne D (edited 07-12-99).]

Who's using long term care insurance as an employee benefit? Please share your experiences.

I believe the computer scanable formats are available at PWBA's internet site which is http://www.dol.gov/dol/pwba

We are a public small cap corporation that offers Auto Allowance to field personnel. Where can I find comparative data to determine if our Auto Allowance is in line with similar companies?

This is the first time I've had to renew the health coverage and the rates have drastically increased. What is the best way to shop around for health benefits packages???

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S.Padua

Can a plan allow an employee who is rehired in the same plan year to change the elections he or she had in place prior to termination? The proposed regs indicate that this is permissible for health and life benefits but not for dependent care spending accounts.

I manage a newly formed nonprofit organization and am working on putting together a benefits package for employees. At the top of this is of course health insurance. What my board has asked me to do is to find a common industry "standard" for the shared costs of paying health insurance, especially for an employee's family. Is there such a standard, and if so, how can I find one as it relates to the nonprofit sector? Thank you very much.

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Keith D. Wolfe

International Affairs Laboratory for Research and Education

www.intalab.org

We are a 650 emp organization. We'd like to start a program that allows people to donate their accumulated sick days to people in need who may not have enough to carry them through to std. Anyone familar with this type of arrangement? What are the potential problems?

Thanks.

Is it possible or has there been VERY RECENT legislation stating that 403(b)plan participants can now have access to separately managed accounts or individual brokerage accounts?

Does anybody have any info regarding story in recent Wall Street Journal that IRS will release PLR that permits individual to set up a single IRA with different subaccounts (each with a different beneficiary)that would permit distributions to be made over each individual beneficiary's life expectancy. Thanks. Ed

Hi Everyone,

I have a customer who converted a Traditional IRA into a ROTH IRA and then immediately withdrew money from the ROTH Conversion.

Within 60 days of the withdrawal these monies were successfully rolled back into the ROTH IRA.

Will the successful rollover back into the ROTH waive the application of the 10% penalty on the withdrawal of converted funds within the 5 year non-exclusion period OR does just the fact that the money was accessed during the 5 year period for this conversion cause the 10% penaly to be applied despite the successful rollover back into the ROTH?

Customer does not meet any other penalty exclusion cricumstances.

Am I confused? Must be the heat.

Thanks,

Dave H.

Suppose an Employer sets up a SIMPLE IRA Plan. Before two years have passed, the Employer sets up a 401(k) Plan. Does the exclusive plan requirement apply to SIMPLE IRAs? Assuming that it does, then what happens to the SIMPLE IRA when the Employer sets up the 401(k) Plan? Is it terminated? Is it frozen? Does it convert to individual IRAs? If the Employer does not "officially" terminate or freeze the IRA, is he obligated (or even permitted) to continue making contributions to it after the 401(k)plan is in place?

Part two of this scenario: Suppose that the above occurs before the SIMPLE IRA has been in place for two years. What can the participants do with respect to their SIMPLE IRA accounts? If they roll them into individual IRAs, are they still penalized the 25% (because it is being rolled over earlier than two years)? If so, can they leave the money where it is until two years have passed, and then roll it over and avoid the penalty?

Thanks for any help you can provide.