Christine Roberts

I retract the question. The definition in Sec. 402©(4) of an eligible rollover distribution is clearly limited to distributions from a qualified trust, and I don't believe that distributions pursuant to a LTD policy meet that description. Sorry for any confusion! ------------------

Doest the term eligible rollover distribution include lump sum payouts of long term disability benefits pursuant to an LTD insurance policy, or is it limited to distributions from qualified retirement plans due to a participant's disability. ------------------

Gentlemen, would your responses be the same if the original question posed were, "can a contractual right to purchase real estate be assigned (contributed) to an IRA?" I am guessing that the answer(s) will be in the affirmative. ------------------

If an employer fails to terminate health coverage when an employee goes from full- to part-time, and later discovers the oversight, is it okay to cancel coverage retroactively and allow the employee to pay COBRA premiums for the retroactively terminated months? Or would the COBRA notice be deemed late, since not within the statutory period from the retroactively cancelled coverage? ------------------

In a non-contributory, non-ERISA 403(B) "arrangement" (i.e., individual annuities)what is an employer's potential liability, if any, for deferrals/contributions in excess of 402(g), 403(B)(2)(A) (MEA), or 415? ------------------

What protection from creditors, if any, do long term disability payments enjoy? ------------------

Departing employee is to receive $250,000 in severance pay, to be paid over five years. Because the severance pay is based on past service, and the money is nonforfeitable, wouldn't the entire $250,000 be includible in his gross compensation in the year of termination? ------------------

What are some of the main issues to be concerned about in determining whether to take a lump sum payout of LTD benefits? ------------------

What are some of the main issues to be concerned about in determining whether to take a lump sum payout of LTD benefits? ------------------

Can a non profit employer (nongovermental) establish an eligible 457(B) plan for a top hat group? Contributions will not exceed amount for which ineligible, 457(f) plan is required. Is this practical, where employer intends to make contributions as percentage of income, rather than to allow deferrals?? ------------------

Are SIMPLE plans susceptible to self-correction under APRSC/EPCRS?? E.g., an under-contribution for the 1998 plan year. Employer contributed flat $300 per participant in lieu of 3% matching contribution. ------------------ [This message has been edited by Christine Roberts (edited 03-15-2000).]

Yes, I just heard back from the Cincinnati Key District Office on this; they stated that they have two tack on amendments for GUST - one for plans terminating in 1998 and one for plans terminating in 1999 - they advised using the 1999 amendment for post -99 terminations. ------------------

Can a terminating plan still use the tack on amendment for terminating plans that the Cincinnati office issued in 1998? Or is something additional required for full GUST compliance? ------------------

Can a very small company still have a top hat group? An employer with 4 full time employees (increasing seasonally to approx. 8) wants to put in a NQ deferred comp. plan for the key employees - the salesperson and the fulfillment person - who essentially run the company and earn more than the rest. However as a percentage of total employees this group is no where near the 5% safe harbor. Seeking any comments from persons with experience in similar matters. ------------------

Perhaps Pax is suggesting that citing to the applicable plan provisions may be the best route - although in the particular case I am working on the benefits will be distributed very shortly as the participant spouse is over age 65. ------------------

Is a DRO under a DB plan approvable as a QDRO when, in defining how the present value of participant's accrued benefit is calculated, the DRO incorporates by reference the applicable terms of the Plan? Or must the DRO actually recite the mortality and interest assumptions? ------------------

Governmental employer wants to participate in state DB plan that generally requires employers to contribute between 7.5% and 9.5% of each eligible employee's compensation. However employer wants to effectively cap its potential contribution at 7.5% by requiring employees to pay back, via payroll deductions, the amount of any employer contributions made on their behalf above the 7.5% threshhold. Can they do this? ------------------

A participant and alternate payee desire a lump sum distribution to the AP from a DB/DC plan arrangement - participant spouse has attained NRA and DB plan allows LS distributions at NRA or actual retirement. Is there any reason why DB plan QDRO can't simply state the dollar amount to be distributed to the AP? ------------------

I was just about to post a message on this identical arrangement, except in my case whatever portion of the 10% that employees did not allocate towards nontaxable benefits went to a 403(B) plan - cash was not an option. In cleaning up this arrangement (i.e., installing 401(k) and flex plans)employer wants to limit the cash benefit to a small portion of the $$ amount that would be available for nontaxable benefits - what has been your experience in structuring plans so as to greatly limit the cash benefit that would be available (e.g., to 10% or 5% of the nontaxable benefit budget)?

Have any of you heard of a "rule" that allows an employer to terminate an employee after three days if she/he refuses to provide a Social Security Number? I seriously doubt this is enforcable, but am seeking any information out there on this concept. ------------------

An alternate payee is planning to roll her share of assets from a MPP/PSP arrangement to an IRA or IRAs, pursuant to a QDRO. Is there any reason she shouldn't combine the assets from the two plans into one IRA, or conversely is there any reason she should keep each plan's assets in separate IRAs. The assets in each plan are roughly similar. ------------------

Any comments on adapting a self-funded medical expense reimbursement plan (Code 105(h)) to permit reimbursement of retiree medigap insurance premiums, only (not medical expenses themselves)? If you are aware of any other documentation options please comment. ------------------

Seeking advice/experience on handling participant loans in accounts that are subject to QDROs - e.g. plan provisions treating the loan as in default to the extent necessary to make a distribution to an alternate payee under a QDRO. ------------------

Any comments on adapting a self-funded medical expense reimbursement plan (Code 105(h)) to permit reimbursement of retiree medigap insurance premiums, only (not medical expenses themselves)? If you are aware of any other documentation options please comment. Note: this message also posted in Health Plans Bulletin Board ------------------

Any comments on adapting a self-funded medical expense reimbursement plan (Code 105(h)) to permit reimbursement of retiree medigap insurance premiums, only (not medical expenses themselves)? If you are aware of any other documentation options please comment. ------------------