Company is transferring its 401(k) plan to a newly formed holding company, with no changes to plan. The plan and SPD will be amended for name change. Any other considerations administrative or otherwise?

A plan incorrectly calculated a 1997 money purchase plan contribution because it thought the plan had terminated. In fact, the plan was not terminated because 204(h) notices were never sent to employees. The plan allocated contributions only through 6/30, the supposed termination date. Now the plan is allocating contributions for the whole plan year. But since the contribution is late, what is the interest rate on the late contribution that must be credited to employees? The plan earned over 30% for 1998. Must we use that rate or is there some other nominal rate?

We are planning to merge two 401(k) plan that allow cash and in-kind distributions into a third 401(k) plan. The merging plans are participant-directed in various mutual funds. The in-kind provision would allow, for example, a mutual fund to be retitled into an IRA upon severance. Is this in-kind distribution option a protected benefit under 411(d)(6)? Must we offer in-kind distributions in the new plan? The new plan will offer mutual fund options but not the same ones as the merging plans.

Some of our employees take unpaid leaves of absence, and during the period of their leave, do not need dependent care. Is it possible to allow these employees to elect out of the dependent care plan during their leave? If this is not permitted, any thoughts on whether the plan could be amended to provide that any employee who goes on paid leave becomes ineligible to make further contributions?

Does anyone know where we can find Software for Cafeteria Plan Administration? Keeping up with the plan and writing the checks. We need it in Windows environment for Win '95.

Any advice or recommendations will be helpful.

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CCH used to publish (still may(?)) the popular names of legislative acts in its Pension Plan Guide, e.g. P.L. No. 104-1888 - "Small Business Job Protection Act". It was at Paragraph 29,005 in the paper edition of the Pension Plan Guide. Our office has gone to the online service and CCH has not seen fit to include this section in its on-line service (after repeated requests). Does anyone know of another source for this information. It is very helpful when researching the source and background of particular Code provisions. Thank you in advance for any help you can render. JDC

Please advise how I can locate IRS Regulations when I don't know the CFR site. I'd like to either enter a regulation number, code section or key words and then be able to view the proposed or final regulation.

I hope you can help me. I will be leaving my employment within the next 6 months. I was wondering if there is a way, that I can put a lock on my retirement fund. What I want to do, is withdraw some money to pay for expenses now, and keep the rest of the moeny and have it be inaccesible to me until I reach reitrement age. That is, put a lock on it. I called my company, but they said there wasn't a way to do that.

Another point, which I didn't know about, and I think it might apply to me. Can I receive distributions because I have recently become disabled? How do I go about obtaining this? I was diagnosed as legally blind in Nov., 1998.

My plan, was to use some of the money to pay off my debts and then use the rest to attend school. I want to obtain training in a different field and return to work until I hit retirement age.

I am writing with regard to a two-fold problem that I am experiencing with my former employer, The New Haven Register. It was there that I worked as an advertising sales executive.

The first problem is one regarding paid vacation. The company policy is to give two weeks of paid vacation upon completion of one year of service, which must be taken by the end of the calendar year in which the anniversary date falls. They also have a policy that does not allow advertising dept. employees to take vacation time during the months of November and December.

I began work for the Register during the month of November 1997, and completed one year of service in November 1998. Because my anniversary with the company fell during the "blackout", I had to request that a special exception be made for my vacation time to be taken. I was granted special permission by management that allowed me to take one week of vacation a few weeks early, in October. I was also given special permission to carry one week of vacation into the first week of 1999. I have documents signed by management to verify this.

I took the first week in October as scheduled, but decided to leave the company effective December 31, 1998. I was never paid for the second week of vacation, which I would have taken the first week of January 1999. I feel that I am entitled to this weeks pay of $450, as it was not my fault I could not take vacation time by the end of the year. Their policy is not to pay vacation time upon separation, but they had already made one exception to their policy, due to the circumstances, why not another?

I filed a complaint with the CT Board of Labor, Wage and Workplace Standards Division, but they said they could not help me, as it was a matter of fringe benefits, not wage. I have been told that there have been similar complaints filed with the Massachusetts Attorney General, and the Journal Register Company (parent company of the New Haven Register) had to pay the vacation.

The very same handbook that contains the "nonpayment of vacation upon separation" says absolutely nothing about the "blackout" period of Nov/Dec.

That brings up the second problem. I was married in May 1998, and had gone to the Human Resources office of the New Haven Register to make arrangements to have my wife added to my medical insurance, and adjust my wage deductions accordingly.

On my last day of employment, I was paged into the Human Resources office, and told that the Payroll Department made an error and had never made the adjustment to my wage deductions to account for my wife being added to my insurance. They had calculated that I owe the company $888.30. I was then told that I must sign a waiver that would allow them to deduct that amount from my final commission check. I refused because I did nothing to mislead or defraud the company in any way. And even if I did sign the waiver, why should I be forced to pay them back in one lump sum. They did not "pay" this money to me in one lump sum. I asked if a payment arrangement could be made, and they said no, as I was leaving the company. I had already given my two weeks notice.

Needless to say, I left on bad terms. In the following weeks, I have received several letters from their attorney stating that they intend to take legal action unless I pay them in full.

Is it the law that I need to pay them the money they are seeking? And if it is, do I have to pay it back in one lump sum?

If they bring this to the point of litigation, can I bring a counter suit for the disputed week of vacation?

Please feel free to email me at

markf@megahits.com

Thanks!

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I am an HR Director at an educational institution looking for some insite on transportation benefits for faculty and staff. In particular I am interested in hearing what other's provide in the form of parking benefits. We provide a small subsidy for full time and an even smaller subsidy for part time. Costs are increasing and it is getting tougher to consider this a benefit. Any ideas out there?

I have 2 401(k) plans from previous employers. I am trying to decide whether I should roll them into my new 401(k) from my current employer or can I put them into an IRA. If I put it in an IRA I want to know if the Roth is the best way to go.

Since I missed the deadline for spreading the taxes out over 4 years would I be taxed at the end of next year for my income taxes or could I have the taxed money come directly out of the money that is being transferred? (ie: if I have $30,000 can I take that and only transfer over the $21,600 which is left over from the 28% taxing?)

Can anyone help with this. If I need to clarify please let me know.

With regard to non-exempt employees, is the employee's signature required on each time record? Where can I obtain legal cites to this requirement, if any?

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M.Elena Hogan

I have two questions. Is there a maximum number of different employee categories we can established for a tiered P/S plan. (I have a company that would like to have 10.) Can we categorize employees by years of services; such as Tier #1 - employees with less than 5 years of services, Tier #2 - employees with 5 years to 10 years of services and Tier #3 - employees with more than 10 years services and so on?

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I own an annuity, and I have some questions.

1. Is my annuity safe from Creditors? 2. If I get sued can they take it from me?

3. I can transfer it to my wifes name, if I do that I will have to pay taxes on the earnings.Any other ways to get around this?

4. Any suggestions or help will be greatly appreciated.

If a plan sponsor fails to remit 401(k) contributions to the trust within the limits imposed by the DOL Regulations (the earlier of the date they can be reasonably segregated or 15 days after the end of the month in which they were withheld), has the plan sponsor incurred a prohibited transaction?

Assuming that the 401(k) contributions were later deposited to the trust, how is the 15% prohibited transaction tax calculated?

I currently have a client who wishes to amend a regular Profit Sharing Plan to a Safe Harbor 401(k) plan. Since we missed the March deadline for the notice, could we still amend the plan because it never had a 401(k) provision? What about an existing 401(k)? Can you still amend them later in the year provided the plan year is at least 3 months. Would I have to amend the plan year and create chort plan years to accomplish my task? I would appreciate any feedback.

I would like to introduce this benefit to the employees of my company (approx. 175) and am currently researching the best way to implement the policy. Because we are small, I will be handling the administration in-house. Any advice from those who also administer would be greatly appreciated. How much time per month does it take? Problems/concerns I should be aware of as I launch? Thanks very much for your help!

The owner of a business sponsoring a 401(k) plan for which he is the trustee segregates his account balance and direcst investments. Now he wants to purchase his mother's farm as a directed investment. Sounds like a violation of 4975 to me. Any other opinions? Thanks.

Taxpayer names Spouse 1 as beneficiary of IRA. Taxpayer divorces Spouse 1 but does not change IRA beneficiary designation. Taxpayer dies. Apart from any divorce decree or property settlement agreement which may have addressed Spouse 1's rights to the IRA, is there anything in §408 or Regs thereunder such that beneficiary designation is void by operation of law? Does answer change if taxpayer remarried prior to death? Pretty sure that Spouse 1 gets it, but just wanted to see if anyone else had run across anything different.

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We are in desperate need of finding training for an existing employee for in-house Cafeteria Plan Administration. We have an existing plan but are lacking an Administrator. Where do I find classes/seminars for Cafeteria Plan Administration?

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