Theresa Lynn

We are looking at software to prepare benefits adminstration forms and to assist with the applicable filing requirements. What are your thoughts on Accudraft? How does it compare with other administration/filing software?

President Bush says that if we don't fix social security, there will be 30% cuts in benefits because the fund is inadequate. Yet, under the Bush proposal, the cuts will be approximately 27% for the middle class and all but the very poor. The wealthy already are capped, so they probably would not be affected. So, perhaps my background as a math teacher, a CFP certificant and tax lawyer is inadequate....could someone explain why this is a FIX? I don't follow the logic. Thanks! Theresa Lynn

When you are developing your own benefits administration forms for participant communications and elections as well as other reporting and disclosure requirements, what sources do you use for getting sample/model forms to develop? Any recommendations?

According to her website http://www.form5500help.com/ it is now available through Aspen/Panel. http://www.aspenpublishers.com/product.asp...cookie%5Ftest=1 Theresa Lynn

As you know, only a profit-sharing plan, a stock bonus plan, a pre-ERISA money purchase pension plan, or a rural cooperative plan can include a 401(k) feature (CODA). Are any of you aware of any pre-ERISA money purchase pension plans that include such a feature? Although not indicate in the IRC, Announcement 93-105 indicates that the plan had to include a CODA when ERISA was enacted. Do you know of any that have been amended to other types of plans to provide increased flexibility to the employer (and in some ways to the employee) and thus are dwindling in numbers? Thanks!

Banality, The following is an excerpt from an email that I received from Bedford, Freeman & Worth. I thought of you when I read it, based on what you shared about your experience. I hope it is of some help. Theresa Lynn ----snip SEEKING CONTENT REVIEWERS! Are you or anyone on your staff involved in the teaching or decisionmaking in the areas of English/Communications, Testing/Assessment software, Psychology or History? Then consider becoming a Bedford, Freeman & Worth reviewer! You typically receive an honorarium for your feedback and input on our products and you have a hand in helping shape and create better products for your classroom. If interested please contact George Cook at gcook@bfwpub.com ----snip George Cook National Accounts Manager Bedford, Freeman & Worth Publishing Group tel: (800) 470-4767 x 595 fax: (773) 935-4926 Faculty Services: (800) 446-8923 Tech Support: (800) 936-6899 Website: http://www.bfwpub.com/nationalaccounts

For what it is worth, I don't hear the negativity that jsb, GBurns, and WDIK seem to read in Banality's ability to "let down her guard" and reveal herself--flaws, gifts, and all. Perhaps we all need to be more open to listening without judgment when someone has the self-confidence and honesty to be oneself, like Banality. Perhaps we could all learn from her that we need not put up false walls and show false egos for fear of being criticized for one's honesty and candor. When we re-directed the discussion to looking at what Banality's goals were and how her gifts fit with those goals and actually listened--yes listened--we got to know a very gifted person. If we continue to make quick judgments based on words and not the messages that we explored behind them, we lose out on getting to know a valued individual who is now exploring opportunities ahead. We need to listen with an open mind, not with our own value judgments. For example, I confuse a lot of people because I am driven by how a project makes me feel (is it exciting, does it involve creativity, does it help others), not how much it pays...If you judge me based on "money" I am a failure in your eyes although I feel very blessed. Thanks for letting me share. Theresa Lynn

I follow with great interest the releases from Treasury, DOL, and other agencies on the efforts to assist individuals with financial education (and as I call it, financial empowerment through education). However, I am an individual, not a nonprofit. I keep looking for ways to assist and become involved in this effort in a professonal manner-this is a passion of mine. Any ideas on how to get involved with the federal, state, and local governments with these efforts? How do I lose my invisibility and let the powers know that there actually is an individual who is a financial planner (CFP certificant), lawyer, and financial educator/writer (and thus qualified professionally) who wants to do this professionally (for modest pay) and is not interested in the multi-millionare client. thanks! Theresa Lynn

banality, I have found this thread very interesting. I struggle with much of what you discuss. I have worked for a number of employers with ethical standards that do not measure up to my own. I also have turned down jobs where I felt that the ethical and moral code was lower than what I could accept. I also have worked with co-workers that abused me and others and the management refused to acknowledge the improper action, much less do anything about it. After many months of prayer for her to leave, she got an offer at two to three times my pay, but it was bliss. Those who abuse and use are rewarded for their assertiveness and lack of ethics and those who live their ethical standards are punished. I would love to continue this discussion here or off line, as you might wish. Theresa Lynn

You are very welcome...

Banality, You also might want to look at http://www.thejournal.com/ as a source for some good resources and educational providers. Univerisity of Phoenix is a major educational provider. Also check out ETS, now Chauncey Group, and I hear soon part of Thomson Corporation (Thomson Learning). The companies that administer and test the validity of the SATs, GREs, etc., might be able to use your talents. Good luck! With your many talents, you should be able to find something that fits with your interests, talents, and needs. Theresa Lynn

Banality, I was wondering what topic or instructional areas in which you might be interested in teaching. Since I am involved in a number of professional groups, teach online, and am married to a faculty member of a conventional institution, I might have some ideas of where you might direct your efforts. We all need people who are content experts in certain areas. With the push to get more degrees and certifications, the teaching profession is a booming place to be. I have high confidence that the past obstacles will be in the past and that the rainbow of opportunity is just ahead! I look forward to hearing more from you and brainstorming together. Theresa Lynn

Banality, I don't know anything about instructional design. I am a former public school teacher, turned lawyer, CFP® certificant and graduate/law faculty member in tax and benefits. I agree that a positive attitude is helpful, but sometimes it is hard to do at the time. We all have obstacles along the way, except that it seems like yours may be a bit more than the average. Perhaps getting a distance education position and then exploring instructional design consulting opportunities might be a good plan. You might want to check out these sites: Higher Education Directory of Online Schools Teachers Support Network Chronicle of Higher Education If you wish to converse further, feel free to email me privately. Best wishes with your new endeavors (I think positively--the number of distance learning opportunities is mushrooming currently, so I believe that you will find the right one). Theresa Lynn

I know that this sounds like a cop-out. (I don't mean it to be. I am petite and people think I am much taller than I am until we meet. I then get questionable comments and questions in interviews about my mental ability as if being short affects one's brain.) But have you considered doing any distance education teaching? You mentioned that you used to teach. I am a distance learning teaching for a fairly large distance education institution, and there are 100s now in the business. The pay is not too good, but if you combine it right, it might add up to something you can do until or on top of whatever else you can put together. I wish you much luck. I also can understand your frustrations with physicians as well. Theresa

I am trying to locate a person willing to be the administrator for a one-person FSA for a retired clergy person who has no employees. His accountant was willing to provide this service in the past but no longer is maintaining the administrative software license after 2004. Thus, the clergy person needs to find another independent person to provide this minimal service. Where do I look? Do I look to other accountants, a TPA (which is unlikely to want to deal with a one-person situation in a cost effective manner), a financial planner, an insurance broker, an enrolled agent, or what? The clergy person is exceptionally thrifty so any charges will need to be minimal (as an example, he always does take out food and orders only one meal to share when traveling with his spouse, and it is never at supper time). Thank you for any suggestions. Theresa Lynn

I started this thread long ago, and it appeared to me that there is little interest in deemed IRAs. Seemed like the risks of disqualification to the whole plan exceeded any benefits to the employees and participants. Does anyone feel differently now that the final regulations are out? Does anyone feel differently about the qualified Roth contribution program under IRC Sec. 402A, which will be effective for 2006 through 2010 (unless the sunset is lifted)? Does it look any more attractive? If so, why--is it because of the nontaxable distributions?

NCS/Pearson has only an initial five-year contract for the EFAST submissions and processing. That is 1999 through 2003. The 2004 forms are to be out in September 2004, I hear. Looks like the EFAST2 requirements might apply as early as 2004 (i.e., 2005/2006 calendar year filing dates).

The forms may be worded that way because they were not updated when the rules on graduate level courses were changed in 2001 This is from RIA Checkpoint's Benefits Analysis: Educational assistance whose value may be excluded from employee income (see ¶119,210) includes: (1) the employer's payment of educational expenses incurred by or on behalf of an employee, including, but not limited to, tuition, fees, books, supplies, and equipment; 18 and (2) the employer's provision of courses of instruction for an employee, including books, supplies, and equipment. 19 -------------------------------------------------------------------------------- 18 Code Sec. 127©(1)(A). -------------------------------------------------------------------------------- 19 Code Sec. 127©(1)(B). Excludable educational assistance does not include tools or supplies (other than textbooks) that the employee may retain after the course of instruction ends, or meals, lodging, or transportation. 20 -------------------------------------------------------------------------------- 20 Code Sec. 127©(1); Reg § 1.127-2©(3). Education for this purpose means any form of instruction or training that improves or develops an individual's capabilities, whether or not job- related or part of a degree program. Education may be furnished directly by the employer (alone or in conjunction with other employers) or through a third party such as an educational institution. 21 -------------------------------------------------------------------------------- 21 Reg § 1.127-2©(4). Education involving sports, games, or hobbies does not qualify for exclusion 22 unless it involves the business of the employer or is required as part of a degree program. Education that instructs employees how to maintain and improve health may qualify for exclusion so long as it does not involve the use of athletic facilities or equipment and is not recreational in nature. 23 Although excludable educational assistance did not include graduate level courses begun after June 30, 1996, that lead to a law, medical, business, or other advanced academic or professional degree, 24 the exclusion (up to the dollar limitation; see ¶112,212) for educational assistance for graduate level courses is restored for courses begun after December 31, 2001, 24.1 and before January 1, 2011. 24.2 -------------------------------------------------------------------------------- 22 Code Sec. 127©(1). -------------------------------------------------------------------------------- 23 Code Sec. 127©(1); Reg § 1.127-2©(3). -------------------------------------------------------------------------------- 24 Code Sec. 127©(1) after amend by Sec. 1202(b), PL 104-188, 8/20/1996 ; Sec. 1202©(2), PL 104-188, . -------------------------------------------------------------------------------- 24.1 Code Sec. 127(b)(1), as amend by Sec. 411(a), PL 107-17, 6/7/2001 . -------------------------------------------------------------------------------- 24.2 Sec. 901(a), PL 107-16, 6/7/2001 .

It also does not apply unless the particpant fails to make a contrary election, like a single-sum distribution or a rollover election. So, for practical purposes, it may not have such a broad effect--most participants will submit an election for a single sum distribution or choose an IRA if they know that it will be rolled over to an IRA of the employer's choosing...unfortunately for those of us who are advocates for financial education and savings education, it may just mean more cashouts and money spent! Theresa Lynn

Right. It looks at what the employer filed the previous year, so if it continues to file as a small plan while in the 80-120 employee range, it should be able to continue to do so. Once it falls out of the range or for any other reason files as a large plan, however, it must again qualify for the under 100 employee eligibility requirement. Theresa Lynn

I also found that earning the CFP® certification was helpful. It provides a good continuum of experience and exposure that allows you to fit in with and gain respect from both lawyers and financial planners. It also provides a different vantage from which to advise clients, since most lawyers in the area focus on big corporate clients and financial planners are more typically advising executives, owners, and other individuals. The certification also is increasingly valuable as more and more planners are expected to become certified, despite the low pass rate. Further, the Es of being certified--education, experience, ethics, and examination are well respected. Theresa Lynn

According to the following Ballard, Spahr article (http://www.ballardspahr.com/press/article.asp?ID=668), "deemed IRAs encourage employee savings and facilitate coordination of pension and IRA investments. More importantly, deemed IRAs will provide ERISA protections and will shield deemed IRA assets from creditors' claims in bankruptcy proceedings." I have not seen any other helpful articles on the subject... Thanks for sharing about your own experience. Theresa Lynn

Also try Planet ERISA at http://www.planeterisa.com/

I doubt it. In Virginia, a nonprofit must not only meet one of the listed categories of eligible entities but also be listed as one of the 200+ named entities that have received legislative approval for exemption from state sales tax. Although I don't think Virginia is typical (because of statements I have heard about other states), and most services are exempt from sales tax in the Commonwealth of Virginia, I doubt that many states do what you are asking. Theresa Lynn

According to Revenue Procedure 92-93, section 3.02, employee deferrals are taxable in the year received (and employee contributions of course are not taxable in any event). (Rev. Proc. 92-93, 1992-2 CB 505) Excerpt: 3. TREATMENT OF THE DISTRIBUTION OF ELECTIVE DEFERRALS 01 The distribution of elective deferrals pursuant to section 1.415-6(b)(6)(iv) is a corrective disbursement rather than a distribution of accrued benefits. Thus, it is analogous to distributions under sections 401(k)(8) (distribution of excess contributions), 401(m)(6) (distribution of excess aggregate contributions), and 402(g) (distributions of excess deferrals). As with those distributions, it is inconsistent with the purpose of the regulations to subject this distribution to the spousal consent rules of section 417 of the Code, the requirements of section 72 of the Code, and various other sections governing distributions of accrued benefits. Thus, a distribution pursuant to section 1.415-6(b)(6)(iv) will generally be treated as a corrective disbursement rather than a distribution of accrued benefits. The subsections below describe the treatment of such distributions for certain tax and reporting purposes. However, for ease of administration, distributions under this section will be reported to plan participants and the Internal Revenue Service in the same manner as distributions of accrued benefits (see section 5 of this revenue procedure). 02 The distribution is includible in income in the year distributed. No part of the distribution may be treated as a return of investment in the contract under section 72. The amount distributed is not subject to the additional tax on early distributions under section 72(t) and is not treated as a distribution for purposes of applying the excise tax under section 4980A. 03 The distribution is not wages for the purposes of the Federal Insurance Contributions Act or the Federal Unemployment Tax Act. 04 No notice or consent is required under sections 411(a)(11) and 417 with respect to the distribution. 05 The distribution may be made without regard to the restrictions on distributions under section 401(k)(2)(B)(i). 06 The withholding requirements of section 3405 of the Code apply to the portion of the distribution that is includible in income. 07 The distribution may not be treated as a required distribution for purposes of section 401(a)(9). 08 The distribution is not an eligible rollover distribution within the meaning of section 402©(4), as amended by the Unemployment Compensation Amendments of 1992. 4. TREATMENT OF THE RETURN OF EMPLOYEE CONTRIBUTIONS 01 Like the distribution of elective deferrals under section 1.415-6(b)(6)(iv), distribution of employee contributions to correct an excess annual addition is treated as a corrective disbursement. Thus, many of the requirements governing normal p1an distributions do not apply to the distribution of employee contributions pursuant to section 1.415-6(b)(6)(iv). 02 Employee contributions returned as excess annual additions pursuant to section 1.415-6(b)(6)(iv) are not includible in gross income, and are not included in the employee's investment in the contract. 03 Allocable gains distributed pursuant to section 1.415- 6(b)(6)(iv) are includible in income in the year distributed. They may not be treated as including any return of investment in the contract. 04 The distribution is not subject to the additional tax on early distributions under section 72(t) of the Code and is not treated as a distribution for purposes of applying the excise tax under section 4980A. 05 The distribution is not wages for the purposes of the Federal Insurance Contributions Act or the Federal Unemployment Tax Act. 06 No notice or consent is required under sections 411(a)(11) and 417 with respect to the distribution. 07 The withholding requirements of section 3405 of the Code apply to the distribution. 08 The distribution may not be treated as a required distribution for purposes of section 401(a)(9). 09 The distribution is not an eligible rollover distribution within the meaning of section 402©(4), as amended by the Unemployment Compensation Amendments of 1992. 5. REPORTING REQUIREMENTS FOR 415 ELECTIVE DEFERRALS 01 A distribution of elective deferrals from a plan pursuant to section 1.415-6(b)(6)(iv) is reported on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 02 A separate Form 1099-R must be used to report this distribution. In general, no other distribution may be reported with this distribution (including a distribution of excess deferrals, excess contributions or excess aggregate contributions). However, a distribution of employee contributions and allocable gains pursuant to section 1.415-6(b)(6)(iv) may be reported with this distribution. See section 6 of this revenue procedure for instructions on the reporting of such a distribution. 03 Box 1 and Box 2a of the Form 1099-R should each show the total amount of the distribution. Box 2b of the form may not be used for reporting a distribution pursuant to section 1.415-6(b)(6)(iv). Box 5 of the form should be left blank (unless the distribution is being reported with a distribution of employee contributions pursuant to section 1.415-6(b)(6)(iv)). Box 7 should show a Code E. 04 The distribution should be included under “Total Pensions and Annuities” on Form 1040 or Form 1040A.