I am not sure that this is the correct message board but I am posting here because it seems to receive the most traffic.

I have been asked to quarterback a client's search for a new retirement plan service provider. Has anyone out there drafted a request for proposal to be sent to plan service providers (both bundled and unbundled)? Any thoughts and/or model proposals would be greatly appreciated.

Also, any thoughts on who should receive such a request would be warmly received. The plan in question has about 500 participants and $20 million or so in assets (some of which are publicly traded employer securities). To make matters more difficult, I am only interested in high quality (lots of hand holding) low cost (no wrap fees or surrender charges) alternatives.

Question: Suppose you were a municipal authority interested in establishing a 401(a) plan in conjunction with a 457 plan. With respect to the 401(a) plan, could both the employer and employee make contributions? What would be the most that any employee could contribute in any given year?

Any information on this topic would be greatly, greatly appreciated!!!

Thanks!!!

Two companies merged on 1/1/98 (a small company came in under the larger holding company umbrella), both not-for-profit, where one company has a 401k plan and the other does not. Based on control group issues, the 401k plan needs to be put out to the smaller company by 1/1/2000. Question: how can the ADP test be done? Using 1998 results without the small company data. What's the best allowable option?

Would like to locate software to assist in writing plan documents and summary plan descriptions for a Defined Benefit Plan and a 401 k nonprofit plan?

IRC 408(p)(2)(A) provides that salary deferral contributions are employer contributions for purposes of a Simple plan. IRC 404(m) and Q.I-7 of IRS Notice 98-4 states that contributions to a Simple plan are deductible in the taxabble year of the employer in which the calendar/plan year ends. This would seem to indicate that for a fiscal year taxpayer (non-calendar) the empoyees salary deferral as well as matching/base employer contributions are not deductible until the end of the fiscal year in the following year. This result seems to be substantially different from the result in 401(k) salary deferrals. Is there a different result than outlined above either based on rulings, notices, etc. or through informal discussions with the IRS? Any guidance would be appreciated.

THANKS JDC

Please see question under Miscellaneous topic under the Dependent Care title.

Is anyone out there charging transaction fees, such as Distribution Fees, directly to the participants that make the transaction? If so, what types of distribution fees are you charging (i.e. in-service, but no QDRO or Retirement)? Can you provide authority for this?

Currently, we have a profit sharing plan and we are being acquired. The company that is acquiring us has a 401(k) plan. What can we do with our profit sharing plan?

Our company's management is allowing the employees to formulate a 'sick leave' bank policy. We would be extremely grateful for any information or suggestions from anyone who has experience in this area. Thanks.

Participant has a loan outstanding at time of termination. Payments were behind but not to the point of default, i.e. not 90 days behind. Participant requests distribution of his account upon his termination. Is interest accrued on the loan until distribution actually occurs? If so, is the amount of cash distributed to the participant reduced by the accrued interest on the loan or is the distribution amount grossed up by the amount of the accrued interest? The Plan states that a participant loan is a self-directed investment.

What can I do for this situation?

I left a company before the end of a calander year that had a non-contributory profit sharing plan in place. The contribution for 1997 was less than 10% of what was expected, but cash bonuses were given out on 4/15/98.

The employer also stated to a collegue he wasn't going to make contributions because half of it would go to people who left the company, but still met the requirements to be included.

Do I have recourse?

Are there any states remaining that do not

recognized Roth IRAs?

I'm interested in knowing if companies are crediting "New Hires" for their years of experience in their profession as a recruiting tool. Example: An employee receives 3 weeks of vacation after 5 yrs. of service. If a "New Hire" has 5 yrs. experience prior to being hired, does he receive 3 weeks of vacation?

Does anyone know of any IRA trustee that will accept land as an investment? An associate is having trouble find one, and I have no prior experience regarding this matter. (Assuming there is not a prohibited transaction issue reagrding self-dealing)

Suggestions?

Question Posted by HOCKEYAMY:

Do you think you can charge term vesteds account maintanence fees but pay for them (not with plan assets) for actives. Since it is not in the plan I dont think we have right benefits and features to worry about.

Question posted by HOCKEYAMY:

I am getting differenting opinions and of course I can not get a clear read from the code regs

Do you think the QNEC and or QMACs are eligible for hardship withdrawal?

an employee elects $50 per pay period, there are 2 pay periods per month. thus, his total annual deduction is equal to $1200.

he makes a claim in august for the total amount of $1200. he resigns on october 15. he has 2 paychecks due (one is vacation pay unused) and the employer deducts $150 from each of the paychecks to make up for the difference between his claim and the amount deducted year to date. is there an IRS rule/reg which prevents employers from doing this? deducting more than the amount he elected, is that against DOL rules? please cite any references.

Does anyone know of a software package that can be used by an employer to track and bill health insurance premiums directly to employees? (Not deduct from payroll.)

Does Erisa govern the legal standards and language of self insured group health plans? There is a employer sponsored self insured group plan that will not provide any coverage if a covered person was not wearing a seatbelt and sustained injuries during an auto accident. Is this legal? And what governmental resource can I consult to verify the answer? Thank you!

What benefit options do you have to offer a terminated or retired employee who has already received (or is receiving) a benefit if the benefit amount is revised upward due to a calculation error?

What is "legally required" and what is "done practically."

For example, let's say an employee terminated or retired. He has elected to receive his benefit as a lump sum (over $3,500 or $5,000) and it has already been paid. It is discovered that the benefit was understated (due to erronious earnings, for example). Do we give him his additional benefit in the form of a lump sum (based on his previous election) or do we offer him the full range of benefit options as before (life annuity, J&50, etc.) based on the increased benefit?

Does it make a difference if he originally elected his benefit as a life annuity or J&50?

Does it make a difference if the additional benefit amount is "material" (of course, subject to the definition of "material").

Does he need to get addditional spousal consent, if applicable?

Thanks.