What sections of ERISA are 403(B) plans established at public universities subject to? Are these plans subject to discrimination testing (i.e. ADP testing). Are there other tests that are requirred as with 401(k) plans (i.e. minimum coverage/participation).

I beleive that these plans are subject to the annual maximum of 25% or $10k, is this correct? Any other testing requirements I need to be aware of??

Thank you.

today on benefitslink there was a link to a CIGNA website that summarized state income tax withholding rules. I found it very useful. We do business in just about every state. Does anyone know of other sources or links to "official" information about the withholding rules for the various states?

I know, I know. The “I” in IRA stands for individual. I have told that to clients a million times - no matter what the attorney who drafted your trust tells you, you can't "transfer" the IRA to the trust (before your death) without creating a taxable distribution. I have always thought this to be the gospel according to the IRS (Treasury, Congress, whom ever...)

But, I have recently had 2 different clients tell me they read somewhere (where they can't remember) that you can move your IRA to your trust prior to your death without causing a taxable transaction.

What have I missed now?

As usual, I am thanking you in advance for your assistance.

Kathy

Can a bonus plan that vests performance bonuses 20% per year for seven years avoid ERISA coverage? Intended recipients are in mid-30s and are not necessarily in "top hat" group.

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What are the fiduciary rules for investment of plan assets applicable to church plans? Where may such be found? Any input is appreciated.

We currently use HyperPrep to do 5500 for about 4,000 small plans. Most of the data needed is already on our databases. In the past we had a special program that imported data for a large number of plans right into HP all at once and then we printed those records using the batch print feature. That program is no longer supported, forcing us to import the data one plan at a time, form by form. It gets pretty tedious after about 3,000 plans. Does anyone else process 5500s in large batches? If so how do you do it?

A colleague has contacted me with concerns re: TPA fees for his self insured plan. He wants to know if his fixed costs for Pre-cert and case management are in line with the industry. Also, he is wondering if his managed care PPO access fee is in order. Where might I find such information? Thanks!

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Stover

An employer stopped payroll deferrals for several months for an individual. No deferrals - no match. After the end of the plan year, he complained. What's the remedy? Have the employer deposit equivalent deferral and match money, just match money, or say sorry - won't happen again.

In 1997 a terminated employee "intended" and requested that the vested balance in his 401(k) plan be rollovered to an IRA. Due to confusion over the way the participant completed the "distribution request" the trustee misinterpreted his intentions and split the distribution between two different financial institutions and sent funds as a direct trustee to trustee rollover.

The trustee of IRA "A" established the IRA and issued a Form 5498 for the amount that they received. The trustee of IRA "B" cashed the check from the 401(k) trustee, but did not establish an IRA. The trustee of the 401(k) issued a 1099-R for the full amount of the distribution in 1997, and then latter issued a corrected 1099-R to reflect the amount that was sent to the trustee of IRA "A".

In 1999, the financial institution holding the IRA "B" funds returned them in the form of an official check made payable to the trustee of the 401(k).

Can the trustee of the 401(k) redeposit this check into the plan for the benefit of the participant?

If lost earnings are added to the redeposit, how should these be reflected in the account of the participant and the 401(k) as a whole?

How does this influence the Form 5500 for 1997 and 1999?

Can a company require an employee to committee to a specific period of employment in exchange for tuition assistance, especially at the master's level? If so, would you share with me your company's policies? Thank you.

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cherylc

I work for a company in the state of Ohio. They offer nice employee benefits, i.e. personal days, vacation, group health, etc, but about a year ago, the board of this privately owned company, changed the "new employee benefit" package. In doing so, they took away all personal days and one week paid vacation from all new hires. Is it legal to make this change and have it only pertain to new hires and not affect current employees?

It seems about 10 years ago, some new legislation passed that made it illegal for an employer to offer one class of employees 100% paid group health insurance without including all classes of employees also....

Can anyone help me with the answer to this question?

Are there prototype documents available for Tiered Profit Sharing Plans and if yes, who can provide them? Thank you!

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A deceased participant in a 401(k) plan named 2 minors as her beneficiaries. Three questions -- 1. To whom should the distribution proceeds be made payable? 2. How will this be reported on a 1099? 3. Who is obligated to pay any tax on this distribution - the estate , beneficiary, or guardian?

Thanks for all responses!

The timing is right to say thank you and more thanks to all of those who have come to my aid and many other's during the past few months. No doubt this has been a learning experience for all of us! I for one do not know what I would have done without you. Treat yourself to something nice on April 15th and tell your friends and relatives that it is a gift from your "Roth" clients. You deserve it!

I received a form 5498 from my broker

reporting the amount in the Educational

IRA for my son. Does anybody knows if I

have to report this amount to the IRS, and if so, on what form?

The infamous question. I don't seem to find a straight forward answer regarding mid-year change for Dependent Care. Employee states that her summer daycare provider has increased her rates. Also, summer daycamp has informed employee that daycamp will be closing the first week in August instead of August 31. Therfore, employee has to forfeit the extra dollars allotted for the remainder of the year. Any suggestions, employee anxious to hear.

Thanks for the e-mail opportunity. I couldn't live without it.

A person was required to take minimum distributions but did not do so. That same person paid the 50% excise tax. Must that person now withdraw the required amounts he should have previously taken out and begin RMD's based on the remaining account balance? Or can that person now calculate RMD on the full account?

Cites would be helpful.

I AM LOSING MY JOB THROUGH CUTS. I HAVE COMPANY STOCK AND MUTUAL FUNDS TOTALING OVER 50K. I AM 30 YEARS OLD AND WOULD LIKE TO ROLL OVER TO A ROTH. CAN I PAY THE TAX, THEN PUT THE DIFFERENCE IN THE ROTH OR HAVE TO PUT 50K IN ROTH AND PAY TAX OUT OF POCKET. DOES THE 2K LIMIT PER YEAR APPLY? IS ROTH THE WAY TO GO. THANX DD

How does one remove excess contributins from a 403(B) plan? Are earnings on the excess distributions removed from the plan? If earnings must be withdrawn, how are they calculated? Cites not required but would be helpful

Does somebody have a good source of information that I could go to to determine EXACTLY what should and shouldn't be included on line 6? (or if you have a good way to explain it, that would be helpful too!)

I have a hard time with the premium side of the reporting. I've been told that if the employer pays 100% of single coverage it is not included on line 6. However, if the employer pays 100% of single coverage and the employee pays the remaining premium for family coverage, the ENTIRE amount is included (even the employer paid single coverage). This means that an employer with single and married employees will have to go through and include nothing for single employees and everything for married employees? Please help!