nancy

We are taking over a 403(B) plan that was drafted with eligibility requirements of age 21 and 1 year of service for the salary deferral and the employer contribution. Does the eligibility on the salary reduction portion cause the plan to lose it's 403(B) status or merely subject them to ADP testing? Can this be corrected in EPCRS?

IRA owner dies in 2001 at age 76. Spouse is sole beneficiary and elects to treat IRA as her own. She is age 71. For the 2002 minimum distribution, is the calculation based on her single life expectancy or may she base the calculation on the Uniform Lifetime table since she has now designated beneficiaries on the account?

Is it possible for an employer to establish a line of credit (on a short term basis) to purchase stock? And then once the final purchase is accomplished, convert the loan to a traditional loan with an amortization schedule?

If an Employer maintains both a DB and DC plan and the DB plan was frozen as of 1/1/02, is the DC top heavy minimum for 2002 3% or 5%? Are you considered as participating in both only if you receive a benefit accrual?

Can funds in a trusteed IRA account be used to purchase a single premium deferred annuity?

What happens if a terminating defined benefit plan satisfies retired lives liability with the purchase of annuities and the insurance company subsequently goes bankrupt? Do the payments to the retirees continue at some level?

This is a consultant who is retiring. He/she is not an HCE and will be drawing deferred compensation for 5 years (in effect a buyout of accounts) and will receive a W-2.

If an employees terminates service as of 7/31/02 but continues to receive a W-2 for deferred compensation for several years, is he/she eligble to defer into the 401(k). There are actually no services being performed. Also, if they attain age 70 1/2 should mininum distributions begin?

Does this mean that if takeover a plan now and they do not have a GUST restatement but were on another vendor's M&P or VS document, they can adopt our Prototype with no problem?

A SAR-SEP fails the 1.25% test for 2001 and must return money to the HCE. Does this return count against his 15% limit for 2001? Or can the employer make a contribution sufficient that the HCE would receive 15% (ER plus salary deferral)?

Must leased employees be covered under a SEP? i.e. a medical practice that leases all of its employees? If yes, can you offset for contributions made by the leasing company?

May a plan with more than 100 participants whose RPA current liability is more than 90% funded or meets the volatility requirements deduct the difference between the assets and the RPA current liability? Or do you have to be actually subject to the AFC?

What happens if a hospital service district loses its 501©(3) status due to taxing authority? Do they simply stop making contributions to their 403(B) plan and replace it with another type of plan?

An employer has opted out of Social Security and is currently providing the required retirement benefits through a thrift plan. Is there any reason why a 457(B) plan would not satisfy the requirements of Section 3121. 3121 says it must be a defined contribution retirement system and that employee contributions can be used to satisfy the requirement.

An employer has opted out of Social Security and is currently providing the required retirement benefits through a thrift plan. Is there any reason why a 457(B) plan would not satisfy the requirements of Section 3121. 3121 says it must be a defined contribution retirement system and that employee contributions can be used to satisfy the requirement.

Plan sponsor (an LLP) has several partners which are a mixture of PCs and Sole Props. What happens when the only employee of the PC (a doctor), leaves the LLP but continues to maintain his PC. It doesn't appear that we have a distributable event since he is still an employee of the PC. Same question when a Sole Prop. partner leaves. Since there is no "separation from service", how can you justify making a distribution to these participants?:confused:

Thanks for your help.

I hate to rehash this again, but I want to be sure I have it straight. If I have an employer that has a DB and a DC plan and they both cover all employees, pass coverage independent of each other then I have to aggregate for discrimination testing if I am testing the DC plan using a benefits approach? In addition, I would need to look at the gateway requirements for combo plans?

I think the compensation is what is shown on the doctor's W-2. Since the individual PA's and the Sub-S are taking the tax deduction, not the partnership you need to base it on the W-2. I've seen cases where the K-1 may have income but once it flows through the corporation, the W-2 is very small. Also many times they will pay wives a salary and issue a W-2. It's not fun to find out about this after the fact.

It is a derivate instrument that has a value that is derived from the underlying security (i.e. common stock). It's like a call option but with a longer expiration period.

I have a profit sharing plan that is in the process of terminating. The plan holds warrants that do not expire until April, 2002. All assets have been distributed except for these warrants. Any ideas on what to do about this asset or are we just stuck until the expiration date comes up?

In a merger situation, the plan being merged into our clients plan used elapsed time for purposes of vesting calcuations. Our client uses the 1,000 hour rule. How do we calculate vesting service on the employees coming into our plan? Do we calculate their elapsed time credit as of the merger date and then begin to use the 1,000 hour rule? or do we completely recalc using the 1,000 hour rule? The old plan had 5 year cliff and our plan has 3-7 year graded. We do have some participants who have elected to stay on the 5 year cliff schedule.

What do you think about starting a SIMPLE IRA in 2001 and then starting a new 401(k) in 2002 once the 12 month period has expired?

I just need some validation on the termination of a 401(k) plan. Client terminates 401(k) plan effective 3/31/00. No elective deferrals are made after that date. In my opinion, they cannot start a new 401(k) plan until 12 months after final distribution of assets of old plan, irregardless of the fact that they made no deferrals for the last 12 months. Am I correct? If they start a new plan 4/1/01, it becomes a successor plan and no distributions can take place from the old plan.

We currently have an ESOP client (bank holding company) that we just discovered also has a SIMPLE IRA. Both plans were established in 1999 and contributions allocated under both for 1999 and 2000. What happens in this situation? Are the SIMPLE contributions disqualified?