A taxpayer who has been receiving minimum distributions for several years from his keogh, rolled the keogh into an IRA. Can he make new elections as to how the minimum distribution will be calculated from the IRA that is differenct from his earlier election for the keogh?

An employer puts a certain dollar amount toward each employee's cafeteria plan. They can either use it in a spending account or toward their employer sponsored health insurance premiums. If an employee elected to use the employer dollars for her health insurance premiums during the enrollment period but now wants to change to her husband's health insurance, can she move the employer dollars to a spending account? The husband has had health insurance coverage for the past 6-8 mos. but was unsure about the stability of the job, so the wife had kept her insurance with her employer just in case he lost the job. The wife has also been notified that her health insurance with her employer will be moved to a different carrier within the next 6 months.

I'd appreciate some help, recommendations, etc. for developing a "request for proposal" to potential 401k plan vendors. We are looking for a "turn-key" vendor for our plan and wish to formalize the search process.

A privately held corporation that is winding up its operations wishes to compensate certain executives with stock in a separate, privately held corporation. The executives may ultimately be working for the separate corporation. Are there any ways to plan the gifts of stock so as to defer taxes?

Seeking information on coordination of vacation trading in flex plan (which prohibits carryover of unused vacation time from year to year), with state labor laws such as California's which prohibit "use it or lose it" policy regarding vacation time.

union portion of the plan should be tested separately from the non union. (In other words, for all practical purposes, you have 2 plans) ACP test is deemed to pass (see 1.401(m)-1(a)(3)Thus no multiple use test for the union portion of the plan.

if ee shifts status, only include that portion of the year ee was union / non union.

see 1.410(B)-7©(4)

Based on your example, if I understand your message, last year you had 200 ees.

My prior years tests are as follows:

150 NHCE nonunion ADP and ACP average

compare to this years HCE nonunion ees

50 NHCE union ADP and ACP average copmare to this years HCE union ees.

at least that is the way I understand it.

no problem. most documents allow anyone to stop deferring anytime during the year. As far as changing or reducing the amount, check document. some changes are only allowed quarterly or whatever.

We are searching for beta testers for our Windows based Profit Sharing/401(k)/Money Purchase Plan administration software. This software will be made free to all who agree to beta test. Software is designed for plans with less than 100 participants. Please email me at samanthaprince@plansoftcorp.com or post a reply here! Thanks!

Is there any limit on timing and payment terms of a company's vacation policy that affect the taxation of the amounts? Here's my real question...

If a company has a policy of paying out unused vacation pay once a year or allowing the employee to leave the amount in the "plan" or vacation bank, does that create some type of constructive receipt that triggers taxation to the employee? With other areas of the IRC it could, but what about with vacation pay? There is basically no forfeiture provision for the vacation pay that is left in the vacation bank.

Can partners participate in a SEP? I seem to remember that they can (as employee-partners), but are they subject to special contribution limits due to their status as partners? For instance, are partner-employee contributions limited to the 402(g) limit ($10,000 in 1998) and NOT the limit otherwise applicable to SEPs (15% of pay up to the maximum contribution of $24,000 = 15% of $160,000). I need help and can't find the answer anywhere.

If anyone has recently dealt with the effects of Social Security integration/offset on an existing State or Local governments plan funding status, I would like to hear about it. Since all existing proposals include mandated coverage which "rescues" Social Security for two years--exchanging 20 billion of income for $3 Trillion in unfunded Social Security liability, I'd like to get opinions on whether State and Local plan funding is effected negatively or positively when Social Security is added.

Working with an indian nation in Oklahoma. I realize they can have 401(k) plans since Small Busines Job Protection, however am having trouble find out about their status - do they file 5500 Series, audits, etc. Would appreciate any help with indian nations.

I have recently been advised that my divorce is invalid in the Dominican Republic and in the U.S. because the law in the D.R. was not followed. On the day I informed him of this, he allowed a QDRO to be entered and approved by the court in Illinois giving 100% of his pension benefit to his first wife. What does his employer have an obligation to do if I inform them that the participant is still married?

I have only been covered under the One Health plan since October 1st and already I'm finding that an important part of my medical care is not covered. I was diagnosed with gestational diabetes and the doctor prescribed a glucometer and testing strips to be used 4 times daily until I deliver. Cost was over $110 and it's $20 per week for the strips!! Could it be a mistake that they are not covered (I just received the turn-down letter today)

Can anyone direct me to a case where a party was seeking discovery of an acquisition agreement pursuant to Sect 104 or any of the 502 sections?

Govt. ER (a unit of a county government) sponsors a traditional DB plan. County is "selliing" the function to a non-profit organization (a university). The county will retain the plan. EEs will be employed by a division of the non-profit. EEs will cease benefit service accruals but will get the benefit of future salary increases while employed with this division (but not if they transfer to any other division of the non-profit). EEs will continue to earn service for vesting and eligibility under the same rules, while employed by that division.

1. Is this going to be a termination of employment? If so, EEs may be able to continue working and receive a benefit. This is especially a problem due to a very generous early retirement provision. EEs are already talking about it. If so, is there any way to avoid this problem? I don't think that we can amend the definition of "Employer" to include the non-profit because that would "muck up" the "governmental" status of the plan.

2. Since this is plan is not subject to IRC 411, there should be no problem with a "partial termination". Is that correct?

3. What else am I forgetting?

Thanks.

Under Code USC 1058 - The benefit a participant received after a pension plan is merged must be equal to or greater than benefit she was entitled to receive before the plan merger.

In Jan. 1996 a terminated participant requested his lump sum pension using PBGC rate and 1984 Mortality table, his amount to be distributed is $58,000, without his knowledge, in Feb of 1996 his plan is merged and the successor plan is using the code 417 accurrial assumption as amended by Gaat-RPA 1994 to determine lump sum values. In March he received his lump sum distribution of $48,000 from the successor plan sponsor.

Is 1058 violated? Does 411(d)(6) protect the lump sum amount due prior to the merger?

My firm employs approixmately 10,000 ees with about a 20% participation rate. We are with Fidelity but are not convinced that they meet our needs. Anyone have great experiences with any other companies?

At last week's ASPA meeting, Jim Holland spoke on Rev Ruling 98-1. All of those I spoke to who attended the session, including myself, are just as confused as we were before about exactly what options are available, how to select which option is best for a particular plan or participant, how to calculate the benefits described and how to write these rules in a document. I would like to hear from others, whether or not you attended the session, about how you are addressing this issue.

I work for a small TPA and we are cosidering entering into the daily val arena. I'm looking for some feedback form individuals downloading daily trade information perhaps on a qtrly basis to produce client reports. Some of the providers in the market that I am aware of are Nationwide, Aetna, Corbel.

Looking to find out what the administrative pitfalls are, and other concerns.