We are a 200+ employee manufacturing firm looking to implement HR vantage software in the near future. Any advice on forms or policies that would be adaptable to the software?

Unrelated rollovers are not included in the account balance for Top Heavy determination. However, should the earnings on the unrealted rollover that accrue in the receiving plan be included in the account balance for top heavy? For example, the unrelated rollover amount of 5,000.00 is deposited to the plan. The unrelated rollover earns $500.00 in the receiving plan. Should the $500.00 be included in the account balance for top heavy calculations? Any code sections that you know of would help. Thanks!

Is an Employer obligated to notify an Employee of conversion rights in the event he is terminated and the employer sponsors a group life insurance plan? Would this be covered by COBRA or by the terms of the contract? In other words, Is there a legal obligation to notify and permit a terminated employee to continue his life insurance... Please help

As of 4/1/99, enrolled actuaries must use their new EA numbers on any Schedule B they sign, but cannot use such number until they receive official notification from the Joint Board that their enrollment has been renewed.

I haven't received my new number yet and as far as I know, no other EA has received their number either.

Has anyone received their number or know of any extension on using the old numbers?

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A university allows its employees to accumulate up to 800 hours of sick time. At retirement the employees are paid the accumunlated sick time in cash and are taxed on this payment. Is there any way that the employees/retirees can use this accumulated sick time to pay for post retirement health insurance or pay eligible medical expenses without incurring a tax liability? My research indicates that this cannot be done through a cafeteria plan. Are There any other tax deferred vehicles that can be used to avoid immediate taxation of the accumulated sick time?

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Does anyone have experience trading with BHC Securities? Do they provide Trust Accounting Reports? Are you utilizing them for Daily Valuation?

Other general comments?

I am not happy with the Agent of the financial company that manages my company's 403 b plan. Do I have an option as an employee to choose a different financial company and still have the company match my contribution?

Or I do not have a choice.

Employer is a corporation, with a calendar year tax year. Employer sponsors a defined benefit pension plan, also on a calendar year.

Employer's tax filing deadline for 1997 is 3/15/98. Employer extends the deadline to 9/15/98. Employer makes required contribution to pension plan on 8/15/98. However, employer DOES NOT file corporate tax return until after 9/15/98 (oops!).

Is the employer's pension contribution deductible for 1997?

Related question: safe facts except that the employer has a profit sharing plan instead of a pension plan. Is the result different?

Please help! I'm having a hard time understanding where to put the conversion amounts on the tax forms

(8606/1040).

Ex. $10,000 non-ded converted to Roth

Ex. $10,000 trad IRA converted to Roth

and these conversions were done with the 4 year payment terms in mind.

Please help, need replies by April 7, 1999. The county hospital my mother has worked at for approx 17 yrs is being sold to a for profit organization. Her personnel dept has informed her that she has to "cash out" her 457 plan and pay taxes on the amount, then re-invest in another retirement account. She is currently 61 and 3/4 and plans to retire at 65. Here are her questions:

1. Does she have to cash out the Valic 457 plan or can she freeze it or rollover into another account?

2. Is there a time limit to rollover (if possible) into another account?

3. If rollover is possible, what investment agencies carry 457 accounts?

4. Can She voluntarily contribute into a frozen 457 account?

In replies please include any references to federal or state codes. Valic has been unable or refuses to answer questions or return phone calls concerning this situation.

thanks in advance

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Johnny

Has anyone not received a notice of sufficiancy from the PBGC in connection with a plan that proscribed the use of the 1963 Buck Motality table? In other words, is this still "reasonable" in 1999?l

Company A (a construction company) and Company B (a bank) were originally part of a controlled group. Company A is owned 100% by owner X and Company B is owned partially by owner X (formerly in excess of 80%, current status being researched, presumed to be less than 80%).

Each had their own 401(k) plans, which were originally drafted identically (subsequent amendments have changed that to some degree). Each had identical investment funds for individual participant direction - 5 mutual funds plus one "Bank Fund", which consisted of CD's and money market passbook savings accounts of Company B. The companies have since potentially (pending research) ceased to be a controlled group, but both still offer the "Bank Fund". IF the companies are no longer a controlled group, is the "Bank Fund" now a collective fund as it stands? What if they add Company B stock or obligations to the fund - now a collective? What if Company B stock or obligations were added to the fund while still part of a controlled group and then they ceased to be a controlled group? Given the ownership structure, is/was it feasible to put Company B stock or obligations into the fund at all? (Company B stock is publicly traded on a national exchange.)

Must sponsors using non-standardized prototype document file for IRS Determination Letter? Have gotten conflicting answers from administrator regarding circumstances for which filing is neccessity/encouraged.

Thanks

Mark Manning

A client converted a rollover IRA in 1998 and elected to spread the income over 4 years. He now wants to make contributions to a Roth for 1998 & 1999.

Is is necessary or advisable to keep these two accounts seperate? ...or can the contributions be added to the Roth Conversion account?

JP

Can a Money Purchase Pension Plan be amended to 401(k)? Non-profit organization currently has MPPP to which employer makes contributions and a 403(B) to which employees make contributions. They would prefer the less restrictive investment options under the 401(k). Instead of terminating the MPPP can it be amended to a 401(k) to avoid full vesting? There are currently 34 participants in the MPPP only 2 are fully vested. It has a 5 year graded schedule and most of the employees have been there 2 or less years. The 401(k) plan would provide either a fixed match or a fixed profit sharing contribution equal to the same % currently going to the MPPP. Since COLAs are not permitted in a MPPP, I have serious doubts that it can be done but I'm looking for a yes answer. Thanks.

I have both a contributory IRA as well as a Roth IRA that I just opened. I recently made my 1998 contribution of $2000 in the Roth IRA. I will not be making any contributions to the contributory IRA. Is there anything I need to put on the 1040 in regards to either of these IRA's since my contribution is not tax deductible?

We returned contributions to HCEs on 3/15/99 (failed ADP test). We've received conflicting advice on timing of 1090-Rs to participants.

1. Must the 1099-Rs be sent to participants in Jan. 2000? Permissible to send earlier?

2. Must participants wait until 2000 to amend their 1998 returns?

3. Why does the IRS require refunds to participants by 3/15 to avoid the excise tax to employers if 1099-Rs don't go to participants until end of year?

has the irs released anything re: safe harbor match and whether it can be used to satisfy th minimum contributions?

i heard that it was pending and read that it was "anticipated that they would allow it".

i have set up a safe harbor 401k for a small dentistry and only 1 out of 3 staff ee's have deferred. i am hoping that the one person that deferred will not have to be given the th min in addition to the match she will be receiving.

thanks

What should be done in the situation of a nonqualfied deferred comp plan where none of the amounts have been included for FICA wages?

The first retiree under the plan is now retired and going to receive annual payments. This is a non-account balance plan, so the actuarial calculation should have been done in the year in which he became vested. It was not. How to correct for this - is there a difference for certain years? Do we go back and calculate his vested amount each year and amend returns for the open years? What about amounts that should have been inlcuded during closed years? Or do we calculate the present value now and include that amount as FICA in the current year?

If anyone has suggestions for correcting this I would appreciate it. There are also other employees covered by the plan, earning benefits, none of which have ever included any amount as FICA wages.

We are looking for a detailed class to teach/refresh the entire 401(a)(4) testing material: cross-testing, rate group testing, imputing disparity, etc. and how they all relate to each other. Has anyone attended anything that they would recommend? Thanks.