How does one terminate a SEP (not a SARSEP)? Can a SEP be terminated on the last day of a plan year effective as the first day of the plan year, or do employees have an accrued benefit which must be funded? Thank you in advance.

I am looking for a way to gather information (as much as possible) on TPA in PA, Ohio, WVA. I am looking for those that may be interested in a merger/acquistion. Any ideas?

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Proposed Regulations 1.414(o)-1 deal with "Avoidance of employee benefit re-

quirements through the use of separate

organizations, employee leasing or other

arrangements." CCH commentary on these regulations indicates that they have no effect and that "there are no rules of which a court could take notice." I have a situation where 5% owners are hired by a leasing company (which they do not own) and leased back to their respective

companies. They are covered by a safe harbor money purchase plan and a 401(k)

plan sponsored by the leasing company. Do I have to worry about the proposed regulations and, if so, what testing do I have to perform to convince the IRS that there is not a nondiscrimination issue?

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When starting up a new 401(k) plan, which fees can be charged to participants?

In our first year we expect fees to include:

$2000 Set Up

$28 Per participant

$2,000 annual administration

$2,800 annual Trustee

$2250 non-discrimination tests

We expect 200-400 participants, assume $1.4million in assets

The 5307 schedule Q attachment for application for a determination letter must be 410-b compliant with it's coverage testing. Does the new 5500 coverage testing need to be compliant with 410-b regulations?

I know this has been addressed before. What does one do if a participant has left the company, has a vested balance, and cannot be located?

The employer has already tried to locate him, and has sent letters to the IRS and SSA to be forwarded according to their procedures.

One suggestion was made awhile ago that the trust obtain a cashier's check so that the funds are out of the trust (rather than having an outstanding check). If the cashier's check remains outstanding, what does the bank do? Will the trust eventually be credited back with the money and if so can it be absorbed rather than held for the missing participant.

Why can't this $ just go to the State as unclaimed funds? Other ideas?

Has the SS integration rate for DC plans increased above 5.7%? I've had several people tell me it is 6.2%, which corresponds the the OASDI rate, not the OA rate called for in the Code. I'm assuming they are looking at the wrong rate, but thought I would first check with others.

Please note that I have edited and closed the thread pertaining to the

chain letter that appeared here this morning.

I will attempt to keep this reflector centered on IRA and IRA related topics. This is growing into a very active BBS and your participation is appreciated greatly.

Hope that you agree. Thanks to all.

Dave H.

If a practice has a Section 125 plan for health insurance only (employees pay 100% of premium), how much advance warning is required before the employer can cancel the plan?

I WOULD LIKE THE NAME AND ADDRESS of a Federal agency to write expressing the safety of the 457 deferred compensation plan

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What you see is all you get. You didn't miss a thing. Either/or and no more.

if a plan is amended to no longer provide for participant loans, what happens to loans outstanding at the time of the amendment? Do they become due and payable as of the date of the amendment or does the participant just keep paying as usual until paid off?

In terminating a 401(k) pension plan there are restrictions in setting up a successor plan within a 12 month period. Is a Simple IRA plan a successor plan for this purpose. A SEP and ESOP are not. A Defined Contribution is.

We have a client who has a medical spending account limit of $2000. They have asked about increasing the limit because an employee wants to be able to defer more than $2000. Is there anything that states the maximum dollar amount that the employer can allow an employee to defer for a MSA like the dependent care's $5000 or is it any dollar amount that the employer chooses?

Also, if they want to change this dollar amount mid-year, do they have to do a re-enrollment to allow all employees to defer more money or should they only make this kind of a change at the beginning of a plan year?

Company A spins out all of its employees to a professional employer organization (PEO) and leases them back. Company A wants to adopt an ESOP covering the leased employees and purchase stock from the owner in a leveraged transaction. Is the Company A stock "qualified employer securities" with respect to PEO's employees controlled by A?

I am just curious if anyone is taking advantage of IRS Notice 99-5 by treating hardship withdrawals as eligible rollover distributions in 1999. Thanks in advance.

What happens is an employer makes a mistake and contributes too much to one employee's SEP account? Is it a deemed IRA contribution? Who is eligible for the deduction, if any? The SEP provider returned the money to the employer and issued a 1099-R to the employee. I can't believe that this can be correct. Any help is appreciated.

A small employer(less than 50 ees) is a wholly owned subsidiary of a larger corporation (8,000 ees). The larger corp. maintains a DB plan but does not plan to cover the small employer. Can the small employer establish a DB plan and pass 401(a)(26)? There are HCEs in the small employer. Is the only way to apply for a QSLOB determination? We think so, but someone else has advised that they can maintain their own plan as long as it is identical to parent company plan.

I am wondering how FSA administrators typically handle the usual lump sum payment to an OB/GYN for prenatal care & delivery. Do they reimburse the portion for prenatal office visits as they occur or must the participant wait until after the baby is delivered to get reimbursed anything at all? It is a fairly large sum to be out of pocket for six months or so...

I would like to find an educational resource for someone that has no experience in HR benifits. The information would be a very basic overview of how benifits work and laws regulating required benifits. I would perfer to find an online university. Can anyone help me out?

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jstyer@gt.com