A church is interested in establishinf a defined contribution plan, with a 401(k) element to it. The Church desire to make a one-time "past service" contribution. This past service contribution equals approximately 22% of payroll. While we can overcome the 415 issue by establishing suspense accounts, does 404 apply? Thanks. Ed

You may be confusing the "rollover" between IRA custodian and a rollover of a maturing CD. You have an unlimited number of allowed rollovers of IRA to IRA (not involving IRA -> Roth which is a conversion) as long as you never touch the funds and it is processed strictly by the two institutions. If institution A cuts a check for you, then you have 60 days to rollover the funds to another institution. I always suggest that you use the first option, which some call a direct transfer.

If you have an existing CD, you probably do not want to incur the "substantial penalties" of early termination. Therefore, if you plan to switch institutions, time it to your maturity date. Your bank probably charges an exit or termination fee on transfered IRAs.

If you are staying within the same bank and your maturity date is close, talk to the customer reps. A small bank or thrift will probably want to be good to their customer. With large (or out-of-state) institutions, you may not get such a positive response. Some banks may allow you to upgrade a CD, but this is based upon their marketing program not US law or regulations.

The March-April 1999 issue of the ASPA newsletter "The Pension Actuary" has an article beginning on page 4 which explains the various types of hybrid plans, including both the cash balance and the pension equity plan. Maybe that will help you.

I rolled my ira into a roth this year. the ira was 100% the result of a 401-K rollover into the ira many years ago. By definition the basis in a 401-K plan is zero...is this correct? That is, there is no way to have had a basis in dollars that went into a 401-K plan?

Need sample written notification from employer to truste as of the $amount of contribution to each group. Also need sample language to be incorporate in the plan doc to require such notice.

Please E-maiL to

Alexcalin@netscape.net

or fax at (818)992-6134

would appreciate any input re above. Thanks.

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[This message has been edited by Alex Calin (edited 04-04-99).]

If an employer offers a vision plan to their employees, must they offer them Cobra for the vision plan? The final regulations do not make this clear, (to my way of thinking any way). I have a client who will be laying off about 5 employees and they asked this question and I wasn't sure if it was at their discretion or if it is now required.

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S. Ostrowski

Can anyone give me information/advice on whether retirement benifits can be withdrawn early due to medical hardship. I am 48 and have been medically disabled for 10 years. I am currently receiving SSI and long term disability, since workers comp. benifits ran out. Thanks in advance-DWest

I'm reading contracdictory definitions for the vesting computation period when plan year end is amended thus creating a short plan year (my case is 10/1/98-12/31/98). Does VCP for short PY run from 1/1/98-12/31/98 (overlapping with 10/1/97-9/30/98 plan year) or does VCP for short PY run from 10/1/98-9/30/99 (overlapping with 1/1/99-12/31/99 plan year? Situation is that I have an employee who terminated in 5/98--credited with a YOS @ 9/30/98; I say vesting as of 9/30/98 is it!--do not increment for short plan year (terminated prior to beginning of short plan year).

I found the answer.

Thanks!

[This message has been edited by cgc (edited 05-12-99).]

Within the past year I have had to deal with several p/s plans in which forfeitures were returned to the plan sponsor to offset plan expenses. To me this appears to be a prohibited transaction, plain and simple. Is there something I am missing?

Employee terminates but employer fails to terminate health coverage with the insurance carrier. The employee is rehired, does not reenroll or waive health coverage and no deductions are taken. However, the old coverage is still in force. Employee says she wanted coverage all along and had assumed deductions were being taken (they were not). Do you make the employee make up the deductions (5 months worth)? Are there any pre-tax rule problems with catching up retro deductions or allowing a mid-year "change" to elect coverage even if it's retro'd to the start of the plan year.

Could you give me the basic low down of VEBA's. Like what one is, how you set one up? Maybe an e-mail address where I could get specifics so I don't take up too much of your time. Thanks.

Can anyone recommend a good source for newsletters? We currently use West Lawn - they write it and put "compliments of ABC Company" on the quantity you order - but we wondered if there was anyone else we should be looking at. We aim these at plan sponsors rather than participants so a small degree of technical info is okay. Thanks!

I've had a couple people tell me that a distribution fee can't be deducted from a participant's account. This is a minimal processing fee to cover the 1099 and other paperwork associated with the distribution. I've looked at 404© regs and looks to me like it would be OK. Anyone have any specific cites or rulings that would indicate otherwise?

Has anyone set up or heard anything regarding pension plans for volunteer firefighters? There is no salary, and the township wants to contribute an annual discretionary amount without the firefighter paying taxes on it? This is new to me. Any ideas?

(1) My wife, who is a resident (british) (non-US citizen) and I (a US citizen) am planning to open a joint-Roth IRA account for me and her? Is there any IRA caveats for resident aliens??

(2) Is there any advantages or disadvantages in having a joint or individual IRA account??? I noticed that some answers on the board indicated "No" but it appears to me that having the option to "violate" one account is better than not having any choice at all???? or am I not making any sense???

(3) Are there any hidden charges to promotions claiming no-fee IRA's??

(4) Can I trade my funds in an IRA account as if it is a brokerage account?? Trade in stocks??

(5) Should I be concerned with whom I open my IRA account with?? Seem like anyone with a well-known name would do??? or is there more homework to do than I realize??

(6) Given that retirement accounts are so important in one's life...it boggles my mind that the government has made this area into one of the most difficult to understand and to navigate especially with so many traps!!! Am I the only one who feels this way??

Thanks for any replies

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andrew

A proposal is on the table at our company, which essentially would work as follows:

For administrative convenience, the company would pay ALL expenses relating to our 401(k) plan, pension plan, and ESOP from the general assets of the company as these expenses became due. Shortly thereafter, the plan administrator would determine which of these expenses were properly allocable to the various plans. Subsequently, each plan would be required to reimburse the company for its respective expenses.

Assuming we overcame the fiduciary hurdle of determining which expenses are properly payable by the plan, does this proposal run afoul of the prohibited transaction rules?

Anyone seen a decent publication on the tax (or other) rules associated with domestic partners participating in cafeteria plans?

I have a question on a possible new 401K plan. A corporation (temp agency) has 16 permanent employees plus about 50 temp positions. The temps do normally work over 1,000 hours. If the owners of the corp (as the only HCE) elect out of the plan, can the temps be excluded? Point me in the right direction and I can do the research if this is feasible.

I am interested in proposing a pilot wellness program for our company. I've always had a hunch that this must be where the real healthcare cost savings lie. There are reams of anecdotal evidence to support the notion that wellness programs drastically reduce health care expenses (and increase employee productivity). Many companies now do the obligitory wellness thing (a cholesterol screening here, a blood pressure check-up there. . .), but no real follow-up or commitment to longitudinal success. But where are the examples of companies that have succesfully rolled out more intensive programs (and have been able to capture their success in dollars)? Can anybody point me to a solid body of evidence and/or best practices? Your input is greatly appreciated.