There are a number of states which provide more generous continuation coverage than COBRA e.g.,California. It is unclear at this time whether these laws are preempted by ERISA. I am interested in knowing how people are addressing this issue.

I am trying to find clarification on the funding and time limit of 457(f) plan. I have been told that this plan has unlimited funding, up to 100% of salary. And the deferral period can be as little as two year time frame.

Does this sound right and where can I find the guidance. I vied the IRC 457 code but found very little on the (f) section.

Thanks for any assistance or guidance.

Miguel

You are most likely using the older version of Crystal (4.5). This was

a limitation in Crystal, but has been

resolved in the newer version of Crystal (6.0)! Hope this helps!

What are the required amendments for a 457 Plan.. (other than the The Trust requirement for Government plans) For example.. do you need to incorporate any changes to 401(a), those being due before 1.1.99 ????

What happens to a cafeteria plan that is not operated properly, that is, a plan in which medical expenses are reimbursed to participants only as the amounts are received by the plan?

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RB

If a co has a defined benefit plan what can be done should they not generate a profit for the year? Are there any outs in this situation? were a little leary to start a plan in case we hit a downswing sometime. also, if employees leave the company and later return, is there a way to hold the plan and re-enter? there's a frequent turnover in employment and many return later.

Has anyone worked on the ADEA (age discrimination) issues raised by a disability plan that reduces the duratation of the benefits that are available to employees who become disabled at older ages?

I am aware of the general "cost justification" concept under ADEA (at 29 USC 623(f)(2)) and the special safe harbor rule for certain disability programs that is described in the Regs (at 29 CFR 1625.10(f)(ii)).

I am particularly interested in any experiences/opinions that anyone has regarding a provision in a disability plan that would flatly state, for example, that if a person becomes disabled prior to age 60, the benefit would only run until age 65, and if the person becomes disabled after age 60 the benefit would only run until the later to occur of age 65 or two years.

Any thoughts would be appreciated.

If a plan has a pre-determined layoff, for only a specified period of time, would it be acceptable for the participants to make one lump sum (pre-tax basis)contribution after returning to work at the end of the layoff? Or, must they continue to make the scheduled contributions on an after tax basis? Thanks

Is there any reason why a 401(k) Plan cannot terminate mid-year as long as the proper notices are given to participants, etc. If it's ok, can anyone fill me on any "catches" or problems to look out for with deferrals already in progress. Thanks

Corporation was 2/28 fiscal year-end for tax purposes and calendar year-end for ESOP. In 1998, elected S-Corp status. The S-Corp filed a short year (3/1-12/31) tax return for 1998. Does this have any effect on the ESOP regarding their deductibility limits? Do we use 3/1-12/31 wages or 1/1-12/31 wages for the ESOP?

Does any one have answers to the June 97 or Dec 96 exam that can be sent by email or fax?

Just wondering if anyone is using the NSCC/DCCS to do their trading. Would like to get more information on how this is working for you. How long have you been using it and who do you use to custody the assets?

A Plan has just discovered that its employer contributions to the Plan for the 1998 Plan Year will exceed 15% and that the excess will not be deductible under 404(a). The Employer is willing to retroactively amend the Plan to eliminate the one year of service and last day requirement and make the 5% profit sharing contributions for the new participants. Does anyone see any problem with making these amendments in 1999.

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Marjorie A. Rogers

Sutin, Thayer & Browne

Albuquerque, New Mexico

mar@sutinfirm.com

Can a successor company that has eaither a: acquired a predecessor company or b: merged with a predecessor company adopt their SEP plan that was adopted by the predecessor company. As I understand the only vehicle available a new company is a SIMPLE plan or a qualified plan as the SEP's have been repealed.

Note: I have been doing alot of research regarding this topic in RIA and have not found anything. Can anyone give me code section? I need to find an answer

Thanks

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JDGlenn CPA

[This message has been edited by JDGlenn (edited 02-24-99).]

[This message has been edited by JDGlenn (edited 02-24-99).]

I am currently a college student and am working on a project for effective ways of communicating benefits to employees. Besides the internet and intranet, are there any alternative ways companies are communicating this information? Any insight would help. Thank you.

I understand 5498 and 1099R reporting is changing from 1998 to 1999 for Roth conversions . . .

If I convert my traditional IRA to a Roth in 1999, is the conversion amount reported as a contribution or rollover on the 5498 for the Roth?

Is the conversion amount reported as a regular withdrawal on the 1099R for the traditional IRA.

Does anyone know what the new forms will look like?

I have an employee who worked for a hospital from 1977 to 1982. She left her money and since then the hospital merged with another. They have a new plan now. She wants to take that money and roll it into our plan, but she can't find anyone who can give her information. She is getting major run-around. Any ideas of who can help her? Someone must be held accountable for the money. The employer, or the administrator? Any ideas would be helpful.

Overview:

Company A sponsored and maintained a DB pension plan (originally effective 1953). Company A was acquired by Company B (after 1970). After the acquisition, Company B assumed the liabilities of Company A and began to maintain the beforementioned pension plan.

At that time, there was a federal statute, the Welfare and Pension Plans Disclosure Act, 29 USC 301 et seq ("WPPDA") which imposed disclosure obligations on employers, but did not provide federal jurisdicition for benefit claims. WPPDA was repealed upon the enactment of ERISA, but continued to apply to any conduct and events which occurred before January 1, 1975.

Questions:

1. What other pertinent law would govern a pre-ERISA pension plan? State common law of Trusts?

2. I do not have a copy of the original plan document (effective 1953). The plan has been amended twice ('59 restatement, '66 amendment). I have copies of the amendments (which were received from Company b), but they are unexecuted -- If a employee participated in the pension plan since its original effective date, is that pre-ERISA plan required to preserve benefits, rights, and features in subsequent restatements prior to 1974?

the c-1 exam is fairly comprehensive-as important as knowing the basics of defined contribution and defined benefit plans is that you carefully read the questions. The questions challenge your attention to detail, which of course is an important aspect of plan administration. Spend lots of time reviewing the old tests. Look for words like "NOT", "MUST", "MAY" etc.

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A self-employed individual started an IRA when he was young, went to a SEP as his practice grew and finally set up MPP and p/s plans. Things are slowing down now, and he would like to consolidate everything into a single plan, the SEP. I assume that the IRA can be rolled into the SEP. I can find nothing that prevents the qualified plans from being terminated and the proceeds rolled into the SEP. However, the client has been advised by another consultant that rollovers from the qualified plans to SEP's are not permitted. The client is not concerned about losing the ability to re-roll back to a qualified plan. Am I missing something?