Has anyone seen any statistics on the pass /fail ratio for the C-2(DC) test? or any of the other QPA tests?

A 501©(3) hospital is considering changing to a municipality for many reasons, UBIT being one. If the 501©(3) starts up a 401(k) plan, what happens to the plan if subsequently the hospital becomes part of a government agency? What are the potential pitfalls and options for the retirement plan.

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John A. Stoffel, CPA

Thank you to all those who helped me with the questions. I took the test today. It was a difficult test for me considering I work strictly with governmental plans. I feel like I was well prepared and could not have studied more. However, I am believe that because I do not work with most issues on a daily basis, it was a disadvantage. Some of the questions were more on a administrative level than a technical level. I can study for the technical stuff, but you have to do the administrative. Anyway . . we will see - you never know how everyone else did on the same day. Thanks again. Hopefully you can help me with the C-2(DB) in a couple of months.

Currently have a volume submitter PSP which is integrated with Soc. Sec. Want to amend PSP to allow for allocations based on classification of employee, e.g., Class A = participants who are physicians and shareholders, Class B = participants who are physicians and non-shareholders, Class C = participants who are neither physicians nor shareholders, ..... The percentage allocated among the participants in each class will be determined depending on cross-testing towards the end of the plan year. Is all that's necessary is to amend the allocation provisions of the PSP document before the end of the current plan year?????

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I started participation in a 403(B) plan in 1976. I no longer work for that employer, or for an employer eligible for a 403(B) plan. I recently tried to transfer my account to a custodian to continue to administer my investments in a different group of Mutual Funds. The carrier, TIAA/CREF has refused to release the funds for transfer, stating the plan does not allow it. I am fully vested in all of the account value. I am 52 years old, and not eligible for distribution until 55. Can TIAA/CREF hold my account hostage in this way?

I am writing an article on ESOPs and would like to use some quotes from someone who has established an ESOP in his/her company. Only a couple questions needed and I can email them to you. Please contact me ASAP (by 6/4.)

Spouse holding IRA has abandoned wife (4+ years). No beneficiary listed, no divorce, legal separation papers or QDRO. On 3/99 she received statement for the IRA at her home address. What are her options as abandoned spouse? If anything? My understanding is that he can't close or remove funds from the IRA without her signature. Am I out to lunch?

Is there a deadline to provide participants in a pension plan ( 401(k & MPPP) a statement of their account balance. PYE 9/30/98. I thought there was a 256? day requirement for SAR. Is there any day requirment for statemnts and what are the penalties for noncompliance?

Does anyone have any ideas on how to close out a terminated Money Purchase Pension Plan if there are lost participants who cannot be found by the search firms? What do you do with the residual assets?

How is your company reacting to the Microsoft case ruling on retroactive liability for employee stock purchase plans under company's benefit plan?

Ron

Contingent Employment Online

www.contingentlaw.com

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www.contingentlaw.com

The May 14 Microsoft case ruling provided the company's common law employees with the right to participate in the company's Employee Stock Option program. Already another group of temporary employees at Pacific Bell has filed a suit for retroactive benefits. Its this starting a trend?

Ron Wainrib

Contingent Employment Law On-Line

www.contingentlaw.com

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www.contingentlaw.com

I am looking for a turn key program for use with an independent contractor sales force. Can anyone point me in the right direction? You can email me at ebarkel@skyfi.com

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Ed Barkel

One of my employees signed up for Dependent Care Reimbursement Account effective 1/1/99 (beginning of plan year). He has just informed me that he thought he could use this money for medical expenses for his spouse, which he can clearly not. The problem arises because the employee does not have any dependents in a day care environment that he can get reimbursed for the money he has already contributed. Has anyone had this situation happen before and if so, how did you handle it? Our open enrollment paperwork goes into extensive detail about how the Reimbursement Accounts work, plus, the employees also receive a confirmation statement which clearly states the elections they have chosen for the year.

Has anyone had any experience with ordained persons participating as employees in a full cafeteria plan?

If they are considered "self-employed" in most situations, are they eligible to participate on a pre-tax basis?

Hi,

I have recently started investigating

retirement plans for our company and have found out there are quite a few options!

I would appreciate any info/links/advice on "How to Choose" the best retirement plan for our business.(i.e.,advantages/disadvantages) We are a family run small business,LLC taxed as partnership, 7 employees (4 partners, 3 employees).

Thanks for your help!

My mom works for a company which offers a PTO, where she earns 0.075hrs vacation time per 1.0 hour worked.

The employee handbook states that if an employee terminates his/her employment, they forfeit time earned. Is that legal ?

This is a Michigan location.

I have a question concerning a safe harbor 401(k) plan with a new comp feature. If a plan elects to use the 3% Qnec to satisfy the ADP safe Harbor how does it effect the new comp calculation. I believe that the Qnec is used in the average benefit percentage calculation to determine top-heavy but is not used in the rate group calculation. However, if the Qnec is classified as a fully vested profit sharing contribution can it be used in the rate group calculation.

All responses are greatly appreciated.

Read all about Roth IRAs at the Roth website but have a question which was not addressed....

I converted my IRA to a Roth IRA at the end of '98. I plan to marry soon and our combined income will then be over $170,000 p.a. Does this mean I can contribute to my Roth IRA up until the wedding date but not after? Or am I supposed to do something else with it?

Thank you for any brief answer to this....

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Brit

I am wondering what vendor provides documents for a Money Purchase Pension Plan that uses the "tiered" or "classification group" allocation method. Thanks for all input.

There is a new service available that uses an automated process to gather obituary information daily. This information is compared to your client list and any resulting matches are sent to you each business day for the final determination if it is a match. The service can be used for both spouses as well as other applications. I would like to hear back on how organizations are presently handling this issue. Are their other applications for this timely, accurate, and complete service that you can see? JIM Burke