I would appreciate any comments on what loan documents, if any, successor trustees are receiving for takeover plans which provide paperless loans. Are cancelled checks, which consititute the loan note for many paperless loans, the only loan document received by new trustees?

I have a client who has its own 401(k) plan. Client recently acquired a subsidiary that has one also. In addition another subsidiary has a Simple IRA. Do these plans HAVE to be merged or the subs' plans terminated? If not, are there good reasons to terminate or merge them? Appreciate any help!!!

The IRC requires full vesting upon termination of a qualfied plan...must you grant full vesting on termination of a non-qualfied plan?

The IRC requires full vesting upon termination of a qualfied plan...must you grant full vesting on termination of a non-qualfied plan?

What is compensation for partners in a partnership 401(k) plan? A partner defers during the calendar plan year, apparently from draws. At year end, the K-1 for each partner shows a loss. Must the deferrals be refunded?

Has anyone tried to quantify the impact that the new, accelerated vesting rules under multiemployer plans will have

on withdrawal liability?

Might it pay to hurry up and withdraw from a multiemployer plan before the new rules take effect, on January 1, 1999?

Thank you for your time and response.

Is any quantec user concerned with Peak one cost for 1999

I was asked by the client's accountant to take over the administration of the client's retirement plan back in June.

The client doesn't know where any of his pension material is, the accountant does not have copies, and I know the previous "administrator" by reputation and with dealing with him over 20 years ago. The fellow is a pension attorney doing administration.

I wrote my standard takeover letter to the administrator back in June asking for the information, and have called the guy 3X since then.

I got the client to write him a letter telling him his services were no longer needed and that he should forward all information to me. Of course, he hasn't sent me anything.

This is a calendar year sole prop and it is geting nearer to the end of year.

Normally when I am in this position, I look to see which professional orgs the guy belongs to, typically ASPA, etc. and he gets a call from ASPA. This guys doesn't belong to ASPA and I need the information.

Who could I complain to about this guy in order to get the needed info to takeover the case??

Steve

Do amounts coverted from regular IRAs to Roth apply towards satisfying MRDs?

Example: $300,000 IRA account balance, $50,000 converted to Roth IRA in 1998, MRD for 1998 is $30,000.

Is the 1998 MRD for the regular IRA satisfied? Thanks.

[This message has been edited by Fredman (edited 12-01-98).]

does anyone know where one can find GATT 30 yr treasury rates prior to 1996, and PBGC rates prior to 1994? These are for single employer plan lump sum distributions. Thanks

What are the main differences between 403(B) erisa and 403(B) non-erisa?

Facts: an employer terminated retiree medical benefits, while at the same time giving the retirees a fixed monthly pension increase pursuant to a new CBA. Retirees sued for benefits. If the employer loses, can the employer offset costs/damages by amount of pension increase (or can employer charge the retirees the amount of the pension increase for the medical coverage)? Are there any cases that may provide an argument that this can be done?

Before the plans are merged some employee are told they will be terminated. Before their severance pay period is up the pension plans are merged. This causes a reduction in lump sum values.

Does this violate 1058? Or is it protected by 411(d)(6)?

The plan before the merger always paid lump sums on termination.

An employer maintains an ESOP. The Plan provides that the trustees will vote shares in accordance with participants' directions. While I'm aware of requirements set forth under the NationsBank case, what authority exists that permits trustee to vote unallocated shares under "mirror-voting" or other optional strategy? Any thoughts? Thanks. Ed

An employee leasing company (i.e. a company who hires employees, is responsible for all payroll taxes, workers compensation premiums, etc. of employees who actually work at companies which pay the leasing company a monthly all-inclusive fee) maintains a 401(k) plan for all employees it hires. There are several companies that utilize this service and all employees are covered under the plan.

One business decides to terminate the services of the leasing company. They, of course, want the 401(k) contributions (which they have paid for) to be turned over to them for rollover into their plan. The Plan Administrator takes the position that the employees have resigned (they signed forms to that effect) and that their contributions are forfeit, as per the plan documents.

Assuming their has not been a partial termination, does anyone have any thoughts as to which is the correct position?

Plansoft Corp. needs Beta Testers who administer DC plans with less than 100 participants OR Small businesses who want to try to administer their own plans at a low cost. PlanMagic is a Windows based program and VERY user FRIENDLY! It is complete with help text, forms and reminders to aid the Administrator. We will provide all testing and complete software for free. Please contact us as soon as possible to take advantage of this opportunity!

I know that there has been much discussion re the "safe harbor" match and Notice 98-52.

To the practitioners, are many of your clients considering the safe harbor match?

To the plan administrators, are your plan sponsors interested?

The removal of the last day rule threw a lot of people for a loop. I'm just curious what the fallout has been.

Thanks.

Plansoft Corp. needs Beta Testers who administer DC plans with less than 100 participants. PlanMagic is a Windows based program and VERY user FRIENDLY! It is complete with help text, forms and reminders to aid the Administrator. We will provide all testing and complete software for free. Please contact us as soon as possible to take advantage of this opportunity!

Roth IRA holders can commingle Contributory and Conversion Roth IRAs in a single Account. Recently I was advised that we may wish to require customers at least to maintain a separate account for any amount converted from a Traditional IRA to a Roth IRA in calendar year 1998, as IRS guidelines require a withdrawal from a 1998 conversion Roth IRA within the first 5 years to be reported on Form 1099-R with a "special letter code." I'm advised that all other withdrawals from Roth IRAs are reported on Form 1099-R with a different letter code. Thus, requiring a separate account for 1998 conversions may help comply with this requirement.

QUESTION: Are separate accounts in this situation necessary, or hasn't TTCA-98, by reason of ordering distributions, done away with the advisability of separate accounts for 1998.

A DB plan was frozen in 1993. In June 1998, the sponsor adopted resolutions to terminate the plan. At that time, the GATT interest rate would have required the sponsor to contribute approximately $90,000 to fund the plan upon termination. The sponsor gave participants the Notice of Intent to Terminate as the first step of filing the termination with the PBGC.

Neither PBGC Form 500 nor IRS Form 5310 has been filed yet (both would be due at the end of December 1998). The plan's actuary has informed the sponsor that the GATT interest rate has dropped significantly since June, which will now require the sponsor to contribute approximately $180,000 to fund the plan upon termination. Because of the unexpected increase in the cost of terminating the plan, the sponsor desires to reinstate the plan on a frozen basis and wait for the interest rates to go back up.

Can the sponsor do this? If so, what steps would be required?

One thing that comes to my mind is that, as a result of the sponsor's resolutions terminating the plan, all participants became fully vested. Even if the plan can be "unterminated," that vesting probably can't be taken away. Other than that, I can't think of any reason the plan can't be placed back into a frozen status.