A client of mine wants to transfer his IRA from Bank A to Bank B. He is over 70 1/2 and began minimum distributions several years ago. Bank A will not transfer the account to Bank B without giving him the minimum distribution for 1999, even though it is not required to be made untill 12/31/99. What is Bank A's authority for this? Thank you.

My understanding is that the employer's required match on a SIMPLE IRA plan must be dollar-for-dollar on the 1st 3%, but can be reduced to no less than 1% in any two out of five years. If this is correct, I have two questions. 1) Can the employer use the 1% match in the first year? 2) What happens, if anything, if the employer uses the 1% for the first two years then terminates the plan?

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What are the distribution rules for a 403b plan with pre and post 1989 contributions in a comingled account?

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Bradlarsen@Adelphia.net

A plan changed it's vesting schedule effective 1/1/98, amendment adopted 8/15/98. The schedule was changed to a quicker more lenient schedule. What happens to the terminated participant who was terminated 6/15/97, but not paid out until 9/14/98? Must he get more of a distribution based on the increased vesting? or since he was terminated in 1997 does his vesting stay under the old schedule?

I have found much information on going from favorable to less favorable schedule, but not alot on the reverse??

Any info would be appreciated.

thanks!

Would anyone consider allowing a hardship withdrawal for a participant who would like to build a garage for his disabled wife so that she did not have to be "subject to the elements" when getting to and from her car?

A Mercer publication reports that the IRS has issued a private letter ruling on governmental excess benefit plans, but that the PLR will not be released until mid-June. Does anyone have any detailed info about the ruling?

I'm confused about the exemption for disabled former employees on Group Term Life over $50,000. I'd like to know about ways to certify the disability, whether disability needs to be re-certified annually, and whether it applies to retirees or those on long term disability. The plan administrator is sending out a survey on this topic, but would welcome thoughts from any readers of this board.

I have been asked by a local Chamber to research the possibility of developing a multiemployer plan for their small business members. My understanding is that multiemployer plans are mainly for unions and trade organizations. Could a local Chamber establish a multiemployer plan for their members? Could a local Dental Society establish a multiemployer plan for their members?

If the answer is YES, are there any limitation? Thanks for the assistance!

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The field directive concerning cross tested plans (issued approx. March 1998) states that the plan must provide that the trustee be given written notification from the employer as to the amount of the contribution to be allocated to each group.

QUESTION: When must the notice be given and what authority is there on the timing of the notice?

How to restore long-term disability benefits after 24-month mental health cutoff, when there are prior undeclared physical disabilities, which, hopefully, should change the category of benefits.

I'm trying to find a cite that addresses deferrals from severance. I'm not sure if deferrals are allowed from severance pay received after the employees termination, since the participant is no longer actively employed. Any help would be appreciated. Thank you.

A dental plan that is part of a self-funded health/dental/flex arrangement excludes coverage for preparation of dental devices (crowns, dental appliances, etc.) in instances where the device was partially prepared (e.g. where impression for prosthetic device was made, or tooth prepared for a crown)before coverage under the self-funded plan began. Presuming that the prior work was covered by a group health plan and there has been no break in service for purposes of HIPAA, would the pre-ex. condition exclusions prevent application of these restrictions?

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What has been your experience with respect to your group medical costs as a result of the mandated mental haealth parity?

I am looking into implementing 401k negative enrollment or automatic enrollment. I understand that this may improve my ADP testing. I am tyring to obtain feedback regarding the pros and cons of negative enrollment. I am hoping to avoid "re-creating the wheel" by gathering information from other organizations who have done or been through the process. I encourage anyone who may have already implemented it to conact me.

I rolled from a 401k to an IRA this year. (which have earned nicely since then, mingled with other rollover and IRA funds).

I have just received a note from a "consultant" who is the plan recordkeeper for my old employer that the amounts were about $3,500 too much due to end of year error where that capital gains were double counted, and directly preceeded when I rolled out of the plan. The "consultants" want me to write the current institution and request a return of these monies they no longer have control of.

What are the implications of this error, and what should I do to ensure that this will not haunt me down the road, and what should I expect to happen as a result of this, as I assume that I am indeed obligated to pay back these monies.

[This message has been edited by Dave Baker (edited 05-02-99).]

I rolled my 401k into a rolloever IRA. I have just received a letter from "consultants" (not my original employer, or the fund for which the monies were in) that the distribution was thousands (about 3k) too much. They say they are obligated to submit a form 1099-r in the year 2000, and I should write the current financial institution to request a return to these consultants of the "ineligible" earnings. (Error was double counting of a capital gain dividend that was declared at the end of 98). What further documentation should I request before I instruct them to do so, and what should I expect as a result of this happening, either tax related or ? (made monies off funds since switch)

Amending my question of last evening: Does COBRA apply only when separated from employment other than by retirement with benefits? If one retires with monthly annuity for which the company paid ALL, AND the company provides Medicare supplemental health insurance with minimal retiree cost, is the spouse entitled to COBRA under the supplemental company provided coverage?

Employer started a 401(k) Plan a number of years ago. Since then employer started a number of other businesses that are members of the same control group but Employer failed to have the members participate in the 401(k) Plan. There probably is a 410(B) violation for 2 or 3 years. Any creative suggestions?

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Marjorie A. Rogers

Sutin, Thayer & Browne

Albuquerque, New Mexico

mar@sutinfirm.com

I am consultant to an insurance company. I have done businees with some of the agents for 5-10 years who know me and refer me to other agents, as well as to clients.

The insurance company has product which has an administrative arm to it, and they charge for administration. The fees are competitive so if I want the business, I know I will have to lower some of my fees, which is OK. The company calls it "recordkeeping services." We all know there is a world of difference between "pension administration", "employee benefit consulting" and "recordkeeping".

I am frequently asked, and not by the experienced salesmen, "why should we use your services when the Company offers their services?"

I have thought of a comparison chart, but does anyone have anything put together already? The scenario would be the same for a fund house administration or for a bank that does administration.

Obviously we stress the value of our personal service, we will be there for the client in 3 years, we are specialists, one on one relationship, etc., etc.

Thanks,

Steve

A client has a 401k plan (001)and a separate ps plan (002). Would I effectively merge plan 001 into 002 via an amendment. we have determined that we do not need to file a 5310.