Can anybody direct me to some good benchmarking survey information (free) regarding vesting schedules under 401(k) plans?

A check was sent to a participant in 1997 and a 1099-R was issued for 1997. It now turns out the participant never cashed the check. What should the Plan Sponsor do with respect to the 1099-R which has, of course, already been submitted to the IRS?

The chart of maximum limits subject to inflation indexing at my employee benefits legal resource site has now been amended to include the newly announced 1999 limits. Among other things, the chart shows limits under sections 415, 403(B), 401(k), and 457, as well as the Social Security wage base and Social Security and Medicare tax rates, for 1996, 1997, 1998, and 1999. It also includes the 401(a)(17) limits on compensation taken into account, both under the general rules and under the special rule for grandfathered participants in governmental plans which, on July 1, 1993, followed the 401(a)(17) rules.

[Note: This message was edited by CVCalhoun]

i would like to know where should i get information about creating a new web search engine

I work for a non-profit organization which is very generous with employee benefits. My benefits manual has a warning about failing to communicate and administar employee benefits under federal law. Does this fall under ERISA? If a benefit was denied even by ignorance of law, what recourse would employees have and where can I get a copy of these laws?

A plan provides for act increases for late ret.

The plan changes act equiv in 1994, from an interest and mort table to a table of act increases w/ no reference to specific assumptions.

A participant reaches age 65 in 1991 and retires in 1999.

My feeling is that his act increased benefit s/b on old basis to 1994 and then perhaps on new basis (less generous) from 1994. The Plan just uses less generous new basis.

Any thoughts on what is acceptable approach. Perhaps the old basis is only basis that s/b used since his entire age 65 pension was accrued before 1994.

gary

I am working on a plan in which one of the employees went from full-time to part-time work. She was a participant in the plan, then she quit for about 4 months, and now she works once or twice each month if needed. Because she was a participant and did not incur a break-in-service, can she still defer? If she defers now (the document does not specify a minimum number of hours that have to be worked after the 1000 hour eligibility requirement has been met) will she incur 5 breaks in service after 5 years and then have to stop deferring? Please Help!

I am also working on a plan that has a participant who cleans the kitchen monthly. She gets an extra check for $100 each month for this cleaning and it is counted in her W-2 wages. The document defines compensation as W-2 wages; however, this lady doesn't want deferrals taken out of this extra check, only from her regular employee checks. Can she do this?

[This message has been edited by JCONNER (edited 10-23-98).]

I have called my plan admn.-and/or 3rd party admn's office- three times since August 26th, 1998. After the third time I was informed by the company 401K plan admn. that all correspondence must be in writing. From that point I have sent three requests for hardship withdrawal forms and twice I have asked in writing for input on plan information and instructions (sent via certified mail). I received a copy of the plan, which I did not have prior to the requests, and three forms for things like salary reduction (% amount to deduct) etc. but no form for a hardship withdrawal. I have contacted the Dept. of Labor, Pension and Benefits Admn. with carbon copies of all the written requests this week. I do no know what to do to motivate my former employer to release hardship withdrawal forms and information beyond what I have done. Any suggestions? Is there a legal limit on responding to these requests?

I am curious what the time limit (in days) is (maybe from the IRS) that an employer can hold onto the 403(B) money withdrawn from employee paychecks before they send it to the investment vehicle. Is there a different time limit on the 403 (B) employer's match portion?

We have a 403(B) now for our 9-1-1 District but we wonder if we can get as good a plan for less expenses and fees?

If you can supply such a program in Alabama please email john@shelby911.org and we will furnish particulars.

Thanks

A client is terminating an ESOP. May the employer eliminate stock as a form of distribution and instead elect to pay everyone in cash? Any thoughts? Thanks.

On Jan 7, 1998, 6th CCA decided the above

case concerning the issue of whether an

employer may cancel life health care offered

to prospective retirees as an inducement for

them to retire. Does anyone have knowledge

as to status of this case before the USSC,

the schedule for briefs and oral arguments,

and whether there is any organized retiree

cooperation supporting the position of

retirees. Respond to rwseas95@ccnet.com

How do you handle the situation if someone overfunds their SIMPLE IRA (put in $12,000 of deferral instead of $6,000)? How is the money refunded? 1099?

Company has a service based restricted stock award that lapses after a straight 6 years of service. Exec covered in plan goes to sub after 4 years of service. Plan defines participation to continue if he moves to sub (no forfeiture). Parent wants to be reimbursed for 2 years of service from sub for time exec spends there. Parent wants to condition the distribution of the shares at the end of six years on reimbursement to the parent for the 2 years of service at the sub. Market price of shares may only be determined at lapse. Parents tells sub to pay market price on day of lapse, or no shares for exec. Any issues under Section 83 restricted property? Is it a non-lapsing condition?

The IRS has indicated a concern that although all governmental section 457 plans must be amended on or before January 1, 1999 to meet new trust requirements, many employers are unaware of this requirement. An article from the October 19 RIA Pensions & Benefits, which discusses what the requirements are and pitfalls in implementing them, is now available online by clicking here.

Re:FRANK V. AARONSON et.; al. CA 2nd 96-9456 decided July 18,1997

The Congress has recognized that key points of law were overlooked or misapprehended in FRANK V. AARONSON. The Court of Appeals decison in this matter has prompted a specific legislative "clarification" that the early distribution triggering events of paragraphs (7)(A)(ii) and (11) of section 403(B) DO NOT apply to eligible rollover distributions. Section 1601(d)4(A) of Taxpayer Relief Act of 1997 as amended by Title VI Section 6016(a)(2)(A)(B) of Internal Revenue Service Restructuring and Reform Act of 1998.

Why are 403(B) carriers still requiring an early distribution triggering event before one may effectuate a rollover.?

Does anyone know of a resource I could look at or have an answer to the following?

FACTS:

A Professional Employee Organization (PEO) is in existence to lease employees to other companies and handle the benefits of those employees. Let's say the PEO leases employees to company A and to company B. A and B are unrelated companies and neither A nor B sponsor a qualified plan. The arrangement prevents A and B from having to worry about providing benefits and administering those benefits - the PEO handles those issues. The PEO wants to install a profit sharing plan with a 401k provision for it's employees that it leases to A and B. A wants to fund a 3% of pay profit sharing contribution to A's people leased from the PEO. However, B does not want to deposit profit sharing for B people.

QUESTION:

Is the plan of the PEO a multiple employer plan? If so, then it would be no problem for A and B to do their own thing with regard to profit sharing because testing is done separately.

Any advice would be appreciated. Thank you.

I just got the Quantech 5.0 mailing this week. There were some good surprises on the features list, like "unlimited money types" ans "internet access for participants". However, there were some bad surprises: divisionalized NDTs was not on the list. Anyway, I'd like to know if there are any "beta" testers out there for Quantech 5.0 that have some feedback on the new features.

Does anyone know of any reason that a rollover from a qual. plan to an ESOP can't be used to purchase employer securities?