Theresa Lynn

Is it all one plan, with a single plan number? If not, looks like you would need to file two separate Forms 5500 since they are separate plans with separate plan numbers. Of course, this is assuming that neither plan fits another exception from filing (for example, fully insured or unfunded small plan).

A further consideration is that, if you file a late return and do not check Item D on Form 5500, indicating that you obtained an extension of time or are filing late in compliance with the terms of the DFVC Program, you are essentially "flagging" your return for audit and further review. Regardless of whether you conclude that the directions regarding attaching a special statement annotated with the words "Form 5500, Box D-DFVC Filing" no longer apply since the DFVC Program was revised, filing a later return without checking D arguably would be an "edit check" that may cause your return to be "kicked out" for manual review and clarification. Does any one know if the annotations still apply--since they technically are not on the return to clog the EFAST processing? Any thoughts on my guesses about checking or failing to check Item D?

Not knowing more about the proposal, this reminds me of the old floor-offset arrangements using 401(k) plans to provide an offset against defined benefit plan promised benefits, before the nondiscrimination rules were amended to provide that you cannot condition another benefit on a person making deferrals. Is the old FOPA idea being resurrected?

Sorry for being so vague. I meant to say that the IRS staff person taking the order might misunderstand that you wanted last year's forms. I have learned that you need to be specific, particularly where the inventory is changing and multiple years may be involved.

Just a thought--You may want to make sure that the individual who is ordering the forms is requesting specifically the 2000 Form 5500 filing package and not the recently released 2001 package. While the 2001 package is backordered, the 2000 forms should be in stock. The person taking the order may be misunderstanding the order unless it is specifically noted that the 2000 version is being requested.

I must be missing something. I don't follow why the employee must be able to re-enter immediately. Why doesn't the cashout of his vested benefit (and his failure to repay the distribution), along with the break in service, result in a one-year wait as if a new employee?

http://www.freeerisa.com recently started adding the 1999 EFAST filings for plans. It also reorganized and updated the website to provide additional types of submissions.

I would think the telecommuting employee would call in sick (or do whatever is customary for that work location) the same as a worker who works on site. If you cannot trust the telecommuter to be honest about his/her state of health, then the person is not an ideal candidate for telecommuting. If you permit other employees to "call in sick" and you don't require a doctor's note for their illnesses, I have problems with seeing why you would not have the same rules and standards (and level of respect) for the telecommuter. A boss should know that a telecommuter is working and available for work-related needs unless he/she is ill and notifies him of that situation. This is the same as if he/she were to work in a different location from a direct supervisor, which is not all that uncommon these days. Sorry. But I guess I just don't see the problem.

I guess I am unclear why you would want to apply different rules for a telecommuter than to an in-office employee. Does the person work flexible hours? Is he/she able to work whenever he/she wants and not have to be available (and work) the same hours (and days) as those at the office site? Although many telecommuters might be able to work more easily when sick (and are tempted to do so), I think the same rules should apply to them in determining sick leave and annual leave. If the office is closed because of weather or a natural disaster, however, telecommuters generally are expected to continue to work because they are not affected by the same uncontrollable event. I work for a company that permits telecommuting on a formal and informal basis. The same leave applies to all employees, except for possibly office closures for weather, natural disasters, etc.

Social Security Administration has announced that it will accept other proofs of death for its purposes, since it may take some time for many to receive actual death certificates. Here is an excerpt from a recent SSA eNews: --------- RESPONSE TO THE TERRORIST ATTACKS Social Security has activated special emergency handling procedures for Survivors claims resulting from the terrorist plane crashes at the World Trade Center, the Pentagon, and in Pennsylvania on September 11, 2001. The agency's disaster/emergency procedures allow for alternative proofs of death in Survivors claims. In some cases it will take months to receive a death certificate. The proofs of death we will accept include airplane manifests, lists of employees furnished by employers, and other statements placing a worker at the scene of the tragedy. For more information on Social Security's response to last week's events, see our news release. http://www.ssa.gov/pressoffice/releaseattack.htm ---- I hope this helps.

Does anyone have any recommendations for financial education presentation materials for use in making presentations to employees or the general public (for example, through community college or cooperative extension programs)? Also--any recommendations for running time-value of money and simple investment calculations, which can be used as part of a group or individual presentation?

According to RIA's Checkpoint (and print compliance products), you would file corrected Forms 1099-R with IRS and provide corrected copies to the recipients of the distribution. You would check "corrected" at the top of each Form 1099-R and then attach or submit them with a Form 1096 if on paper or follow the electronic/magnetic media filing rules if filing by that method (i.e., Form 4804 or electronic procedures). [quote: ¶2,206. Correcting Form 1099-R. If the payer makes an error in completing and filing a paper Form 1099-R, the payer may correct the error by filing a corrected return. The official IRS instructions ( ¶50,001 ) include detailed guidelines on filing corrected returns. The procedures vary according to the type of mistake made. On filing the corrected return, the payer must provide a copy of the corrected Form 1099-R to the affected participant, along with an explanation of why the form is being corrected. Payers may file corrected returns electronically. To obtain information about filing electronically, telephone the Electronic Filing Coordinator at the Martinsburg Computing Center at 304-263-8700. If the payer will be filing at least 250 corrected returns, it must file the corrected returns either electronically or via magnetic media, the same as if filing the initial returns ( ¶2,208 ). If IRS approved a waiver of the requirement to file on magnetic media ( ¶2,210 ), the waiver also applies to the corrected returns. If the payer filed the initial returns electronically or via magnetic media, the payer must submit the corrected returns electronically or via magnetic media, unless IRS approves a waiver of the electronic/magnetic media filing requirements or the filer is submitting fewer than 250 corrected returns. For example, if the payer is required to file 400 Forms 1099-R but is filing only 75 corrected returns, it is not required to file the corrected returns electronically or via magnetic media. ---snip--- If the filer makes a mistake in completing and filing the forms attached to Form 1096, it may correct the mistake by filing another return. The official Form 1099 series instructions ( ¶50,001 ) include guidelines on filing corrected returns. The procedures vary according to the type of mistake made.]

Since the policy is not an ERISA-covered plan, seems like you would look at the state insurance laws to determine what the policy must provide.

My understanding is "yes." This is normal. In fact, that is a primary reason PBGC extended its premium filing due date one month to coincide with the typical actual Form 5500 filing date.

You might look at RIA (http://www.riahome.com), both Checkpoint (http://www.riacheckpoint.com) or RIA's Employee Benefits Compliance Coordinator in print. Both discuss how to complete Forms 5500 and include sample filled-in forms.

I am researching the market for providing financial education services (versus financial counseling or financial advisory services)--i.e., whether there is an interest by employers, associations, nonprofits, etc., to provide these types of services to their employees, members, or the public at reduced or no cost, with the employer, association or nonprofit paying the difference between the education service providers' fees and the amount paid by the recipient. Alternatively, if the public would pay for these services, seeing it as an alternative to the debt counseling and financial planning services that serve a different need. Is there an interest in this type of service (we probably all agree there is a need!)? If so, any suggestions on charges, how to reach the payer or recipient groups for providing such services, etc.? Any thoughts on a dedicated part-time arrangement with a church, employer, etc., would be helpful as well. Any thoughts??? Thank you!

Another thing to consider is that you can use an outdated form only if the appropriate one is not available. Because the 2000 forms are available now (and IRS is beginning to mail them out), you should use the appropriately-dated form and schedules if at all possible.

Because IRS does not have a prototype or similar program for reviewing educational assistance plans or tuition reimbursement plans, it is unlikely you will find a provider that has obtained any rulings on their model plan. (Although Section 127 is not listed as a "no rulings" area.) You might look at RIA's Checkpoint (its WEB/online publication) or its Benefits Coordinator (a print publication) for model plan documents that you can modify to suit your needs. Both publications include sample plan documents for both types of plans.

RIA (http://www.RIAhome.com/) publishes a print benefits compliance (reporting and disclosure) publication called Employee Benefits Compliance Coordinator. It also has an online pension and benefits publication on its Checkpoint website that includes compliance guidance (http://www.RIAcheckpoint.com).

Try COBRA Administrative Manager by COBRA Solutions. http://www.cobra-solutions.com/products/cobra.htm It used to provide a COBRA tracking and notification software program on West's Compensation and Benefits Advisor CD-ROM. I do not know the current status of the West product. I believe the above Website may provide some information about the COBRA Solutions software. Several of the providers of other benefits software programs also offer COBRA-related products.

I am a little confused by your fact situation. A state or local government cannot sponsor a 401(k) plan. Is this instead a 457 plan or is this why you are talking about taxable matches? I also am confused by the statement about the matches being taxable to the company and then later that they are taxable to the employee. It also appears that you have some vesting issues as well. Could you provide a few more details? I think this might help us provide more useful guidance. Theresa Lynn

Carl Walston (during the ASPA conference) indicated that the changes would be minimal--essentially only those needed to reflect any recent changes in the law (and perhaps correct any confusion with the 1999 versions). This comports with the comments by DOL representatives. Some changes will be needed but don't expect any major surprises. Perhaps the biggest change will be that the transition flexibility for accepting nonstandard forms this year arguably no longer will be available.

But remember that FreeERISA does not have anything more recent than 1997 in most cases. It takes a while to get more recent filings through FOIA and then posted.

Paragraph 2,473 of RIA's Employee Benefits Compliance Coordinator says: "The plan administrator or plan sponsor must file a Schedule B for any defined benefit plan that is subject to the annual reporting requirements as well as the minimum funding requirements under IRS section 412 and ERISA Title I, Part 3.(fn 69, ERISA section 104; Code section 6059(a).) The number of plan participants does not affect this requirement; a Schedule B filing is required even if the plan administrator may file a Form 5500-EZ instead of Form 5500.(fn 70, Schedule B.) No Schedule B filing is required if the plan is a one-participant plan and no Form 5500-EZ submission is required; however, the administrator still must continue to maintain a funding standard account." --- The instructions to Schedule B specifically say that a Schedule B does not have to be filed if a Form 5500-EZ is not required to be filed. The last sentence in the RIA product tracks the instructions' language.

I would like your thoughts on this-- Have any of you had an employee request a loan under a 401(k) or other retirement plan specifically (and exclusively) to pay qualified higher education expenses? If so, have you been requesting a Form W-9S and then maintaining and filing the loan information normally required for those types of loans? Do you provide a special rate for the loan since often student loans are offered at a lesser rate? Should it make any difference if the loan is an allocated investment of the borrower (so the lower interest rate is fiduciarily more appropriate)? What about any other special requirements relating to student loans--what else should we be concerned about? Thanks Theresa Lynn