Does anyone know if the IRS has approved language for the above legislative changes? Also, has IRS formally stated whether plans may be amended using model language or whether plans must be restated entirely? The deadline is the last day of the plan year beginning on or after January 1, 1999.

thanks...

If an employer has a standard defined benefit pension plan and wishes to convert the plan to a cash balance plan, is there any 411(d)(6) concerns with reducing an accrued benefit if the employer provides each participant with an opening balance in the cash balance plan equal to the present value of the prior plan's accrued benefit in accordance with 417(e)? Is there ever a concern that by converting the prior plan benefit to a present value sum, and later, when the employee is ready to retire under the cash balance plan, reconverting the sum back to an annuity, that the benefit might be reduced? Also, when converting to cash balance, can the employer eliminate early retirement benefits?

Is anybody aware of the ramifications of converting a KSOP to a more traditional 401(k) allowing only the investment of only matching amounts in employer securities?

I have been a church musician since 1968 in the Archdiocese of Detroit.

I haven't been playing for the same church all this time. There has been some off months, but I have performed during almost all the years since I started. Was it my responsibility to keep track of my senority? Is there such a benefit status for part-time employees?

A single person with $20,000 Annual Gross Income is contributing $600 per year to an employer-sponsored SIMPLE plan. He wants to open a Roth IRA. Must $600 be subtracted from the amount he can put into the Roth IRA? Or, can he contibute a max of $2,000 to the Roth in addition to the $600 into the employer-sponsored plan?

I want to retire from an auto company, but do not want to wait until my 30yrs.

Is there anyway to get a reduced union pension, not loosing everthing?

I have a great 2nd job and want to make a go of it! The auto company job has not provided the psychological happiness in recent years; too much stress and anxiety!

Many co workers want to know - thanks!

I am being advised by counsel that the Pre-ex condition exclusion in our self-funded health plan may be a violation of HIPAA because it includes a health status related factor. My understanding is that the maximum PCE is 12 months from the enrollment date (or 18 months for late enrollees.) Our plan provides that the PCE is 12 months, however, it can be reduced if the participant remains treatment free from the condition for 6 consecutive months. It would appear that our plan, even though it DOES impose a health related status factor to the PCE, that factor serves to reduce the length of time that the PCE will be in effect.

The advice that I am given by the attorney for our TPA is that ANY imposition of a health related factor is a violation of HIPAA. Would you agree? I am of the mind that since the limitation imposed only will serve to reduce the otherwise statutory 12 month period, it should not be a violation. Of course, this exclusion is only applicable when there is no creditable coverage (or not enough) to reduce or eliminate the PCE. Any input would be greatly appreciated! Thank you.

I hate to reveal my ignorance, but Quantech's help files are not helping me answer this question. I am in the ADP/ACP test window, and I have selected the "Year to Date Only" option. Under the "Testing Options" tab, I am using prior year NHCE data. My question is, What is the "apply statutory exclusions" (listed under Testing Methods)? I noticed that when it is turned on, the allocation received by two part-year participants is not included in the testing. Your help is much appreciated.

If my wife and I want to contribute $4,000 annually to a ROTH, do we setup one joint account or do we need to setup two accounts for $2,000 each? Actually, *CAN* we contribute $4,000 annualy or is the limitation actually $2,000 regardless of filing status? Also, can I still contribute $4,000 for 1998 tax year up to Apr 15 1999 plus $4,000 for 1999 tax year?

My current situation that may affect the answer is this:

-- Married filing jointly

-- Contribute to 401K

-- Have an existing roll-over IRA from prev. employer 401K

-- No other IRAs

-- Do not intent to convert roll-over IRA to ROTH

-- Income appx. $100,000

thanks

joel

I've determined that the Concentration Test has failed for 1998 (125 POP Plan). Since the Key employees must include the benefits as income for 1998, is this income reported on IRS Form 1099-R? How is FICA adjusted for the inclusion of this income?

http://www.cnn.com/ALLPOLITICS/stories/199.../expanding.iras .ap/

[This message has been edited by peterpeter (edited 01-16-99).]

company puts in 25% of pay.

shares to be released is principal/(principal + future principal)

I am using original share price for allocation purposes because it is smaller. This would result in 26% contribution being allocated to participants. Ah, a clear violation of 415 limit.

Which of the following is permissable:

1. Release the shares anyway, but don't allocate them. Hold in 'suspense', but not same 'suspense' as unreleased shares.This would seem to me to imply a penalty for overcontribution.

2. Only release enough shares to cover the 415 limit, and consider the remaining contribution as loan payment for next year.

Plan is 6/30 Year end, and last loan payment was made 6/22, so it is within a week of year end.

Would like to know what one can invest Roth funds with and the potential for delaying capital gains taxes?

The DoL interpretation of what should be included in a SPD calls for a foreign language notice if a threshhold number of participants are literate only in "the same foreign language". 29 CFR 2520.102-2©.

If an employer's regular hiring procedures do not include any inquiry about what language (if any) an employee reads, how does the employer/plan administrator know whether an employee is literate in any foreign language? Assume that literacy in any language, even English, is not a job requirement for the foreign-speaking employees.

Then, if an employer concludes that it might be deemed to have implied knowledge that the applicable number of employees may be literate in a common foreign language, does it make sense to use the DoL-suggested foreign language notice?

That notice is supposed to explain the procedure for obtaining foreign language assistance. A typical sentence in wide use in many SPDs says "ask the plan administrator".

What happens if the plan administrator's human resources office has NO employee who speaks the foreign language? Assume that the only employee who speaks both English and the foreign language is the workers' foreman, who is unprepared and unwilling to attempt to explain the plan.

Is it MISLEADING to use the foreign language notice if the plan administrator has no way to provide foreign language assistance?

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This question relates to the tax treatment of NUA in a NON LUMPSUM distribution. I'll receive a distribution, partly in kind (employer securities with a HUGE NUA), partly cash. I'll rollover the cash into an IRA (I'm aware of the 20% withholding issue). That rollover makes the distribution a non LUMPSUM (pub 575, 1998, page 21, item 12). What is the tax deferral status of the NUA in this case. Page 22 (top) says "this tax deferral applies only to the extend the NUA in employer securities results from EMPLOYEE CONTRIBUTIONS". This last term is undefined and unclear. It does not mean "deductible voluntary employee contributions" a term used for contributions made between 1981 and 1987 (page 20). Does it refer to employee contributions versus matching employer contributions? Does it mean anything else than the deferred compensation used to fund the 401K?

It seems as though an employer which doens't timely make 401(k) deposits (i.e., 15 day rule) is a fiduciary who has engaged in a prohibited transaction. Is that correct. Does the IRS actually assert the excise tax in those situations?

What if, as in my client's case, the employer hired an employee to do this job, but that employee botched it, unbeknownst to the employer (i.e., the owner of the business).

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Matthew B. Newman, P.A.

ERISA Law Firm

<http://www.erisapro.com>

Is interest required to be paid on back benefits if an ERISA appeal is granted? The policy itself does not speak to this. If they don't pay, is that a proh. trans. or a fiduciary breach? Any case law on point?

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Matthew B. Newman, P.A.

ERISA Law Firm

<http://www.erisapro.com>

Does anyone know of any change in the IRS's position (formally or informally) on this issue since the release of several PLRs issued in 1994?

I'd appreciate help in locating a free source of survey information concerning health benefit costs by employee.