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.

Can the opinion letter date be entered on line 22b of the 5500? I heard that a plan is more susceptible to audit if line 22c is no and 22b is blank?

I know it is not logical to do this, but is there something that dictates that only pre-tax contributions can be accessed for the purposes of a 401(k) loan? If there is, what are the implications if loans have been granted & the after-tax money was included?

I know that the Simple 401(k) plans are not subject to the ADP/ACP tests. Could someone tell me what non-discrimination tests they ARE subject to? (i.e. the 415 limit).

I have a 401(k) plan at a company which was recently purchased. The original company was a subsidiary of a larger compnay. I am now an employee of the new company. Part of the acquistion was the dissolution of the old 401(k) plan. I have been told it could take 6 months to a year to roll my money over to my new 401(k) or an IRA. Can this be right? I should be able to move my money when I want. Thoughts?

The company I work for has a 6 month introductury period. After working for only 6 weeks I was diagnosed with lupus and my doctor requested that I go on 2 months disability to recover assuring me that my job status could not be affected. However, I just got a letter from the company to say that I was terminated and that they could do that as I was still in the introductory period. What can I do and what are is my legal position. What resources can I refer to

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Sorry this is out of the norm for this message board. If I gift stock to my church, can I purchase the same value of that stock on the day of transfer, or do I have to wait 31 days (wash rules). My intent is to receive a stepped up basis. Thanks ! !

A company which is a member of a controlled group terminates its 401(k) plan and distributes the accounts to participants. However, another member of the controlled group also maintains a 401(k) plan which constitutes a "successor plan" with respect to the terminated plan. Thus, the distribution from the terminated plan violates Code Section 401(k)(2)(B)(i). What, if anything, can be done to correct this?

An employee made a temporary waiver of a QPSA and then terminated employment. Under 1.401(a)-20, Q&A-35, must the individual complete a new waiver within the first year following his separation for the waiver to be valid? Any difference if first waiver was made within one year prior to employee's separation? Thanks. Ed

Have you heard whether the IRS will finalize the new Table I rates for GTLI with the July 1, 1999 effective date?

A small not-for-profit needs a 403(B) plan document and adoption agreement. Investment companies aren't interested in providing a document because the participants' money goes to a variety of investors. The not-for-profit is hoping to avoid the expense of going to an attorney or accountant for their document. Does anyone know alternatives to obtaining a document? I'd appreciate any advice.

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staceym@elmore-cpa.com

a plan credits hrs of svc based on actual hrs an ee is paid or entitled to payment. If a salaried ee works overtime, say over 40 hrs in a week, is he credited (for benefit accrual and vesting purposes) with all the hrs worked? That is, is he credited with the hrs above 40 also?

3 HCEs have $34,000 in contributions including $10,000 in elective deferrals & $9,600 match (match formula is 100% up to 6% comp). After returning $4,000 4k to pass 415 testing, discriminatory rate of match exists. Do regs allow returning less 4k to maximize match. For example, return $2,200 4k & $1,800 match, resulting in $7,800 allowable for each 4k & match. If regs allow, is it still a document issue?