Are SEP's required to be restated prior to December 31, 1999 (for SBJPA, etc.)?

Thanks-

rob

If an employee participates in two separate Simple IRA plans of unrelated employers, my reading of the rules is that the employee can defer up to $10,000, with no more than $6,000 going to either plan. If anyone's still here, is this accurate?

thanks-

rob

What approaches are people taking (or hearing about)when an employee signs up for health benefits, and he/she asks to sign up a spouse to whom they are not formally married but who is believed to be a valid "common law" spouse under the law of their state?

Suppose you were a municipal sewer authority, and were looking to create a 403(B) plan for your employees. Would you need to file for not-for-profit status, or are you exempt under some other section of the IR Code? Is this even an option for such an entity? Thanks!!!

From reading Notice 98-1, it states that an employer can make a change in method (from current year method to prior) during the remedial amendment period. I take this to mean I can switch from current to prior during 1998 or during 1999, but if I am on current year for 1999, I am locked in for five years. Is this correct? What about the anti-abuse provision in Section VIII? Does this provision also apply to switching methods during the remedial amendment period? What if a plan used 1997-prior, 1998-current, 1999-prior? Is this acceptable?

A prototype document uses the IRS deemed standard reasons for hardship withdrawals. If an employee in a factory applies for a hardship withdrawal for pilot training lessons, is this permissible? The regulations don't define "post secondary eduction" and I can't find anything more definitive on the subject.

I have a client that wants to contribute a fixed dollar amount per employee $500, regardless of compensation. Because they also have a hard time passing their ADP test, they also want to designate this as a QNEC. The selections available in their prototype document read to allow the employer to contribute QNECs as a percentage of total compensation of all participants, a percentage of profits, or an amount needed to met the ADP test. It will allow for language to then allocate that amount on the basis of compensation limited to $1.00 per participant, which will enable me to end up with the same dollar amount per participant. My problem is: Am I violating plan terms then becasue I am not limiting my QNEC to what is actually needed to pass the ADP test? Another alternative may be to allocate only what is needed as a QNEC as such, and the remainder as a traditional nonelective contribution. It may be difficult to explain to employees why some employer contributions are 100% vested, and other employer contributions are subject to vesting though? Any suggestions? Thanks.

We are a small company with 20 full time employees. We write our name on a calendar when we want a day off. The office manager checks the calendar periodically, but does not need to approve time off. However, we had a situation where 5 people were off. It seemed (on paper) that all departments were covered. However, the phones were crazy and we all departments could not be covered adequately. I need to come up with a policy of "writing your name on the calendar". Do we set a limit of number of people off on one day, or do we take on a case by case basis? (i.e. workload requirements, etc.) I can see a lot of trouble (favortism-- perceived or actual) ahead. I feel that all time off should be approved ahead of time. Does anyone have any suggestions?

I need to define our current sick time policy. We earn one sick day per month worked, accumulative up to 65 days. This sick time is our short term disability program. This was intended for employee only, but with work/family issues, we would like to extend it to include spouse and children as well. However, some employees have sick parents to care for. Can I say immediately family and not include parents? I also need to state that the time is for illnesses only and not for doctor appointments. However, if a doctor appointment (i.e. multiple tests, scans) takes all day, should sick time cover that day? I need some direction and guidance. Thanks in advance!

I have recently been asked by a very small employer (6 fulltime employees) what are the implications of starting a program to reimburse employees for medical expenses not paid for under their existing health plan up to a dollar limit of $700 - $1,000 per year. I'm aware of many of the administrative challenges, but not the regulatory issues (e.g., does the program needed to be approved by DOL, IRS or others in order to qualify the reimbursement as a benefit and not taxable compensation). Any and all insight would be greatly appreciated. Thanks

Does anyone know which Mutual Fund companies will sign the Standardized HH agreements developed by ASBO & NTSAA?

A money purchase plan can be amended into a profit sharing plan. When this is done, there is a potential for reversion to the employer if full vesting is not applied. Specificaly, if the plan provides for the employer to use the forfeitures to reduce contributions, and full vesting is not applied, a reversion will occur.

If a money purchase plan is first amended to allocate forfeitures to avoid this reversion issue, and participants continue to earn vesting credit under the same schedule in the profit sharing plan, do these dollars retain their money purchase character after forfeiutre. For example, if an employee later has a forfeiture of $2,000, and this is to reallocated to eligible participants under the plan, is this $2,000 reallocated still as a money purchase type of money, subject to the distribution restrictions, or does this money lose its money purchase distinction when the participant forfeits it. If it does not have to be retained as money purchase, it could be added to other forfeitures from profit sharing or match, and allocated as one. If it retains its money purchase character, then I will continue to allocate these money purchase forfeitures until the last 100% vested participant finally leaves the plan. Any experience with this type of situation? Thanks.

I have a church client with a relatively large annual budget. The client was interested in enhancing its current retirement program and wondered how much of their budgets other churches used for purposes of providing retirement benefits. Any thoughts. Thanks.

Ten years ago county government adopted a 457 deferred compensation plan prepared by a variable annuity life insurance company and also entered into a annuity contract with the company to allow employees to make contributions from wages/salary to fund the program. Pursuant to then existing Internal Revenue Code provisions, the plan expressly provided that the county is the owner and beneficiary of the annuity contract (even though all the contributions are made from employees' wages/salaries) and that the annuity contract is held as a general unrestricted asset of the county available to the county's general creditors. In 1996 (P.L. 104-88) and 1997 (P.L. 105-34) the Internal Revenue Code was amended to require government employer 457 plans to be held in trust for the benefit of employees and not be available to the government employer's general creditors. Additionally, the plan established a $7,500 annual contribution maximum which has now been increased to $8,000 and is tied to an index. Is there a checklist somewhere (other than the Internal Revenue Code and regs) to indicate the specific changes the government employer needs to make in the 457 deferred compensation plan set up by the insurance company ten years ago and also what changes, if any, that need to be made in the annuity contract with the insurance company to insure that the plan will continue to be a tax deferred eligible plan?

I am looking for information about how DB benefits are typically adjusted to account for the choice between individual and joint benefits. The specific question: Take 2 males with identical work histories, earnings, pension plans, etc. The only difference is that one is married, one is not. Do most DB plans calculate the benefit difference between the two individuals so that the actuarial present value of benefits are the same? Or is there cross-subsidization, i.e., implicit transfers from singles to married couples?

I need this information for some academic research I am conducting.

Thanks for any help or references on this.

Has anybody seen a well-written article about the same-desk rule. I have been looking for something to send to a client (a bright client who knows nothing about the same-desk rule).

I am interested in finding out what others are preparing for participant benefit statements for plans with participant directed accounts with such companies as Aetna an ManuLife. Are you preparing only a statement of vested benefit and an SAR? How complete are your reports to the plan sponsor?

You should obtain a copy of the Plan's Summary Plan Description. This document is required by law to be given to all Plan participants. It should spell out when you may take a distribution. Some plans allow for distributions only after the "anniversary date following termination" has passed. For example, if the Plan year end is 12/31, and you terminated on July 2, 1998, and the Plan has the anniversary date requirement, you would not receive your distribution until some time in 1999. Generally, the Plan sponsor should comply with distribution requests within a reasonable time from request, and also in accordance with the terms of the Plan document. Without knowing the terms of your Plan, it is difficult to give advice to your specific situation. Good luck!

My feeling is that 401(k) loans must not exceed the maturity date unless re-amortized. Am I being too strict or on track with understanding loans?

In a spinoff of a sub, the "same desk rule" applies. Asset sale where ees are termed but sit at the same desk. Spun off sub (New Co.) offers comparable health benefits. So no loss of coverage. But what if New Co. offers an option to waive out of benefits. Is this a loss of coverage if ee waives benefits. If so, who gives notice? Certificate of coverage? What if beneficiaries lose coverage under new plan because New Co.'s coverage costs more for family members, and ee drops their beneficiaries' coverage? Guidance? Rulings?