Do not process loan payment transactions unless you have downloaded all the fixes from the web site. Posting loan payment transactions before downloading fixes may cause some of your loans to jump forward to the first payment in 2000. If this happens, do not reverse the transaction. Call Quantech support first.

I want to find a plan that shows how to determine profit in a manufacturing firm. This plan needs to satisfy employees and be simple to determine amounts. If you have a formula you are currently using please e-mail me at asichuck@ismi.net.

Is there a requirement for employers to continue to provide health benefits at the employer's cost where the employee is on an employee-initiated leave of absence?

Generally, contributions to a 457(B) plan are subject to FICA and FUTA taxes when the contributions are deferred (not when distributed from the plan to the participant). But, suppose an employer fails to withhold payroll taxes at the time the contributions are made. Is there a way for the employer to correct this now -- e.g., go back and calculate the amount that should have been withheld and pay this amount to the IRS now? I'm thinking of course that the employer would pay its share from its general assets, but would take the employee's share out of his or her account. Any thoughts, comments? Thanks.

I have a small client with a 401(k) plan. The 100% owner retired back in 1994. Her son is the President of the co. now with no ownership. For 1998, he is the only employee who deferred any salary into the plan. With Family Aggregation gone, is there any problem with this? He is listed as a NHCE in the ADP test results, and there are no HCE's according to the way the test printed out. Is this correct?

It's clear in the code that a more than 50% owner of a business who also works for a 403(B) plan sponsor must aggregate contribtuions to the 403(B) plan and the outside business' defined contribution plan into one combined 415 limit.

Question: does this aggregation also apply if the outside business maintains a SIMPLE IRA with a 3% match? On the SIMPLE, neither the deferral nor the match by themselves are subject to the 25%/$30k 415 limit. Do the SIMPLE contribtions still count against the combined 415 limits on the 403(B) plan?

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We are terminating a qualified plan and have approximately 20 people with whom we have lost touch. We have used the IRS and SSA locator services but as yet have not had one person respond. Looking for other low cost ideas on how to make contact with these people.

I have a potential client on 10/31 fiscal year. The company has a SIMPLE Plan . It wants to terminate it and start a P/S effective 11/01/98.

Can he? Can a SIMPLE be terminated prior to its 12/31 y/e?

For a takeover plan, where the prior administrator cannot provide cumulative deferrals contributions since 1988, how are you calculating the maximum available for hardship?

Generally, a trustee or custodian for an IRA must prepare a disclosure statment. Does this rule also apply for SIMPLE IRAs? I could find no carve out for SIMPLE IRAs under the disclosure requirements. If there is one, please provide cite. Thanks.

How are investment losses paid for if participant is due to receive a 415 refund? Does participant still get refund and if so who makes up the loss?

The $64,000 question: is it 10 years since one became a participant in the plan, or ten years of service (1,000 hours or more?) for the employer while a participant?

401(a)(28) requires that an ESOP must grant a "qualified participant" the right to diversify 25% of his or her account into something other than employer stock in the year in which the employee has "completed at least 10 years of participation under the plan and has attained age 55."

ESOP is established in 1988. Some employees leave during the 90s, before being in the plan for 10 years. But their accounts in the plan now have been in the plan for 10 years (not yet distributed). Some of them are age 55 or more and want to exercise the diversification option (or a distribution right, in lieu of diversification). What result, assuming the plan document parrots the language of the tax code in this regard?

[This message has been edited by Dave Baker (edited 01-07-99).]

What are the rules relating to withholding from distributions in such a Plan?

1)Is withholding mandatory?

2)Is it optional?

3)What is withheld? (e.g., it's generally 20% from a qualified plan)

ERISA Tech. Rel. 92-01 seems to indicate that if you meet the plan assets regulations (15-day requirement) the DOL will exempt you from the reporting requirements for POP-only cafeteria plans. Does anyone agree? Also, if this is the case, then do you still have to file with the IRS?

Does anyone know how I can obtain copies of certain Prohibited Transaction Exemptions? My research service only gives summary information on each, and cites the federal register that contains the PTE. How can I get the full detail of the exemptions on the web. I am looking for PTE 86-128 and PTCE 79-1. Any help is greatly appreciated.

What are the rules relating to withholding from distributions in such a Plan?

1)Is withholding mandatory?

2)Is it optional?

3)What is withheld? (e.g., it's generally 20% from a qualified plan)

Employee (and co-owner)has severe multiple sclerosis. He had medical coverage under a policy paid for by the corporation of which he was part owner. The union sent a letter indicating he could now be covered under the union policy, with cheaper rates. He called the plan administrator(union trustee)and told him he had MS. The plan administrator assured him there would be full coverage for his MS. Based on this representation the employee cancelled his existing policy and joined the union policy. He found out later that there is a $5,000/year limit on pre-existing conditions, which he was never informed about. He now owes over $40,000 in medical benefits. Does ERISA cover an misrepresentation such as this which induced him to get inferior coverage, or is this a straight state law misrepresentation claim?

Does anybody know off-hand - where is the model language to be used to draft a QDRO? Thank you

The government and courts have stepped up their investigations and audits of benefit plans to determine employee classification for tax and benefits plan purposes. I am researching this issue, and welcome input, first hand information, and other sources. Please contact me if you have, or need to know, such information.

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www.researchoncall.com

Are there any limitations to distributions for terminated participants of SIMPLE IRA or SIMPLE 401(k) plans?