Does anyone have information regarding 401(k) billing software for allocated servicing? I am looking for a PC version that will run on a LAN based environment. Highly desirable features include time tracking and custom report capabilities. Please respond if you're aware of any software that may meet these needs.

Thanks

TAM

An employer maintains a profot sharing plan with an 11/30 year end. Is an adult child with compensation less than $80,000 treated as a highly compensated employee by reason on the family aggregation rules? Family aggregation was repealed for plan years beginning after December 31, 1996. The first year without family aggregation would be December 1, 1997. In determining if the child was a highly compensated employee, the Company would consider the look-back year. As the look-back year was before the repeal of family aggregation, is the child considered highly compensated for a plan year after the effective date the repeal of family aggregation.

Background:

plan document (502 plan number)adopted 7/1/95 to include voluntary options: dental, accident, cancer, intensive care, long-term disability and life insurance

7/1/96 plan amended for affiliate employer

7/1/97 employer removes long-term disability and life insurance (never formalized by amendment)

part-time employees exclusion never added plan but employer never allowed part-timers to enter plan

NOW, we are in the process of amending and restating the plan. Can we amend the plan to add the part-time exclusions and to take off the LT Disability and life insurance? They offer the latter but not on a pre-tax basis anylonger since 7/1/97.

NEXT, the employer stated that the short term disability has been paid 100% by the employer all of this time and should not be in the voluntary plan.

The employer also informed me that he has NOT filed 5500's on this Plan. Thoughts??

With current company incentive stock options I'm holding, I expect to have to pay AMT every year for the next 8 years (even spreading them out!). Does it make a lot of sense to convert some IRA money to Roth which will increase my income and reduce my AMT? I think this effectively saves me taxes...true???

1. I retired 6-1-98 am I eligible to continue putting into a Roth IRA.

2. If I have to have so much earned income, How much?

3. If I am not eligible, Is my wife who has no earned income?

Please e-mail your responses to me as well as posting them to the message board. Thanks to Kerry and nac for responding so far.

A friend is apparently being harrassed by her ex-employer, who went from accepting personal checks for continuing coverage, to requiring money order or bank check, to demanding cash and for three months in advance; all of it with little or no notice. Please reply today if at all possible: what gov't agency covers this situation, how does she file a complaint/claim, and should she retain an attorney right now or should she wait?

The second aspect of this is my question: the ex-employer apparently (from my point of view) terminated the employment to avoid the expense of continued coverage during a FMLA leave of absence. Should my friend be pursuing that aspect of the situation?

Her coverage is being threatened at precisely the wrong time for her current health care needs. I'd like to at least ease her mind about her recourse.

Thanks to all.

[This message has been edited by Franklin Evans (edited 01-19-99).]

What is the tax treatment of health benefits provided to domestic partners (the partner of the ee)under a self-funded plan structure?

Can I open ac****s for each of my three children and put the maximum in? If allowed, I would expect to lose control over them legally, but do it have to give notice to my children that they exist?

I am a salaried physician in a small group practice. After 1 1/2 years of employment I am now eligible to

participate in a Profit Sharing plan. If I were to participate, my monthly check would be reduced (?15%). My employer would contribute by this amount to the plan only at the end of the plan year. There is no "matching".

There is a 7 year vesting schedule.

My employment contract defines my annual "total compensation" as $xx,000 = salary + profit sharing.

Employer (& his accountant) state that despite my salary being reduced, it is an employer contribution, and that ERISA 29 CFR 2510 doesn't apply.

Is this profit sharing plan method allowable?

Is it truly an employer contribution despite my paycheck reduction?

If I participate, am I giving up the right to 15% of my annual compensation - i.e. forfeited were I to terminate

(or be terminated) prior to 100% vesting.

Please help.

Thanks, Oppy.

Can a retired individual roll a deferred compensation balance from a previous employer(from an exempt employer plan) into an IRA? The individual will turn 62 this year and the balance is $26,000.

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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?