looking for a reliable source of information regarding ira fees charged by custodians. Any ideas?

Is anyone aware of any circumstances when pre-tax elective deferrals under a 401(k) plan may continue after an employee's (otherwise) eligible compensation has exceeded the 401(a)(17) limit for that year? For instance, a highly-compensated individual who elected to defer 2%, would hit the 401(a)(17) limit prior to hitting the 402(g)

limit. Are you aware of any rulings (PLRs included) that speak to this issue?

I would like some information about D C Exchange. How do vendors and fund companies interact? How many funds and fund companies are available? What are their charges. Do the trade on the new DCC&S platform?

We are a small to medium size compay in GA and wishing to create a policy for exempt employees that would keep these employees on the payroll for a period of time before going on STD or LTD. I would appreciate any text of policy your company has on this matter. Thanks

I have a client with a 401(k) plan (no hardship distribution provision). One of the participants just missed his second quarterly loan payment in a row. The loan policy in place for years wasn't followed -- it provides that the plan administrator is to provide notice and an opportunity to cure. If we don't use the proposed regulations (1.72(p)) is it possible that when final regulations are issued that this will be treated as a deemed distribution, regardless of how the plan administrator handles this file? Any advice on this whole situation would be appreciated.

I have a client that is starting up a new 401(k) Profit Sharing Plan. They do have some employees that fall under the Davis Bacon Act. They are wanting to exclude these employees and cover under a separate benefits package. These employees are not collectively bargained, therefore to exclude the 401(k) Profit Sharing Plan would still have to pass 410(B). My question is how would you word the exclusion statement under the plan to exclude those employees that fall under the Davis Bacon Act and no others. Once again they are going to set up a separate benefits program for Davis Bacon Employees, which as of yet I have not seen.

Any help here would be greatly appreciated.

We have three sisters who each own 33.3% of company a & company b. They do not work for either company, but their husbands work for company a. They want to set up a new plan for a but not b. Company a has 13 employees, company b has 50. I am assuming they have to offer a 401(k) to company b. Right? Any plan design ideas here?

Thanks for any input.

Facts: A spouse is the designated beneficiary of an IRA owner. Owner dies when both owner and spouse are over age 70 1/2.

If the spouse elects to treat the account as her own or to rollover the account to an IRA of her own, can she have a designated beneficiary?

If her required beginning date is April 1 of the calendar year in which she attained age 70 1/2 (years ago) she would not have had a designated beneficiary on that date. Thus, only her remaining life expectancy (owner was recaluculating) can be used for determining required minimum distributions. The spouse can designate a beneficiary, but that beneficiary would not be a designated beneficiary.

Can anyone confirm that this is the right analysis or point me to a Code or regulation provision that would permit a spouse beneficiary over age 70 1/2 to have a designated beneficiary? Thanks.

Can an employee make a salary deferral contribution 1n 1998 for the tax year 1997 up to due date of his employer's tax return, including extensions? If so, how would the employee report and deduct the contribution on his 1997 1040? Code sections 404 & 408 and commentary indicate that a contribution after the close of the tax year is allowed but I can find no guidance on how to report it. It can't be reported on 1997 W-2 because contribution was made in 1998. HELP! NEED AN ANSWER BEFORE OCTOBER 15 1040 DEADLINE!

Employee has an agreement with Company A to receive 1,000,000 (not to exceed 280G limits). Employee has second agreement with Corporation B, a shareholder of Corporation A to pay the difference between 1,000,000 and amount paid by Corporation A. Is agreement with B a golden parachute? Please note not sure Corporation B is a payor under 1.280G-1, Q&A-10. Any thoughts? Thanks. Ed

Does anyone know of a good consultant in the Chicago area that specializes in Work Family initiatives and the cultural changes surrounding these benefits? Look for help in putting together a work plan for my company.

Our firm has a large public company which bought significant amounts of COLI (corporate owned life insurance). The broker appears to have committed fraud, unfair sales practices, etc. Our client has filed a law suit.

Has anyone else been involved in any fraud or unfair sales practices cases?

Our firm has a large public company which bought significant amounts of COLI (corporate owned life insurance). The broker appears to have committed fraud, unfair sales practices, etc. Our client has filed a law suit.

Has anyone else been involved in any fraud or unfair sales practices cases?

Does anyone have experience using this web based management system? I'm considering it...

Thanks. Peg

Our company will experience increased activity with mergers and acquisitions, and I'm looking for learning tools, seminars, etc. relating to benefits during M&A work. Specifically, topics relating to due diligence, communications for integration, legal issues, avoidance of common problems, etc. Please let me know if you know where to obtain such information. Thank you.

In the September 14, 1998 issue of "Pension & Benefits Week", the following was stated - "Subject to certian pre-1987 carryforwards, the maximum contribution which an employer may deduct is 15% of the aggregate eligible plan year compensation (Code Sec. 404(a)(3). Because of this deduction limit, many plan sponsors wrongly conclude that the maximum contribution which can be made to a profit sharing plan is also 15% of eligible compensation. For tax exempt employers, a profit sharing plan that adheres to the 15% limit may unnecessarily preclude the employer from providing larger contributions during years of greater financial support or unduly restrict elective deferrals from employees where the plan contains a section 401(k) feature. However, the design of a profit sharing plan maintained by a tax exempt entity need not be limited by the Code Sec. 401 limits on deductible contributions."

Am I correct to assume that since a tax exempt employer does not take deductions, that is why they are not subject to the 15% limit - and we only need to worry about 415 limits and 401(g) limits for individual employees?

Has anyone dealt with an abandoned 401(k) plan? The Employer disolved the business in 1997. He did not terminate the 401(k) plan. He also did not provide participants with any distribution options. Participants are calling the investment company and Trustee to withdraw balances. The protoype document states that the Employer serves as the Plan Administrator. Further the Trustee is a "directed" trustee and can not process benefit payments without direction from the Employer. Finally, the TPA firm resigned from the account because the employer did not respond to any inquiries. It is assumed that 1997 deferrals were never deposited and form 5500s have not been filed for either 1996 or 1997. Any experience or guidance that you can share would be helpful. Also, are there any DOL guidance on this issue? I have found several cases were the PBGC stepped in to terminate the plan but nothing for 401(k) plans.

Plan defines service by 1000 hour rule and accrued benefit by fractional rule; no special definitions.

Situation: EE hired at (say 25) works full- time for 6 years (total projected service is 40). Terminates employment with more than 500 but less than 1000 hours, is rehired two years later and again works 1000+ each year. when he finally terminates, is the denominator of his fraction still 40? Or is it reduced by the "missing" years in which he did not work (or may have worked a fraction of the year, getting between 500 and 1000 hours)? My point is that the definition of the fraction refers (numerator and denominator) to the defined (and capitalized) term "Years of Service".

We have a difference of opinion in our office on this. Some say that because the EE did not work 1000+ hours, it does not meet the definition of "Year of Service" and should be ignored. Others say that this does not make sense because it means that an accrued benefit can increase merely because an EE worked parttime, thus reducing the denominator by one each year. Taken to an extreme, this means that an EE who works several years full time and then changes to partime for the next 30 years will end up with a fraction of 1 at NRD.

Any comments? Thanks.

Under VCR, will the IRS accept a QNEC based on the testing results of separating the plan into two component plans under Reg. 1.410(B)-6(a)(3)?

We have an integrated profit sharing plan (integrated on the taxable wage base), but use compensation only for the period in which a new participant is eligible for the year. If a person is onlly eligible for 3 months of the year, should we be using 1/4 of the wage base for his integartion level, or do we use the whole wage base for everyone?