JanetM

We address rehires for vesting and eligibity in docs. But not specifically the issue of distribution being allowed or not allowed after rehire. LOL I don't think saying "your doc's suck" will put them in receptive frame of mind. Knowing them they will double hourly rates for the meeting. What the hell, maybe I will tell them the doc's are candidates for the short bus.

What type of doc do you have? Our plans were drafted by local law firm.

My vote is no. You have contracts only. Just because you share one doesn't make for master trust.

No one can force you to liquidate, but a qualified domestic relations order (QDRO) can award an ex-spouse a part or all of your account. This is usually decided during property settlement.

I don't think any plans directly address rehires. You would have to look at what triggers distribution. Usually they are termination, disability, retirement and death. I interpret the language to mean if any of these conditions do not exist at time of distribution there can be none.

jenadams99, why not ask the employer to pay the fees since this is burden to participants. Instead of thinking of this as being totally negative, look at it as fresh start. You will be locking in losses, but from the sound of your post it might be good idea to dump the dogs.

Max out your employers 401(k) plan if you can, you can defer $13,000 in 2004. If you are self employed you can do 401(k) profit sharing plan to set funds aside. After you max out tax deferred savings, invest all you can in taxable investments. Find a financial advisor you feel comfortable with and trust to help you.

Get your hands on copy of AICPA audit guide for employee benefit plans. I don't have the latest and greatest - mine is 2001 version.

Look for exemptions, are you sure they are covered by PBGC?

Ditto Tom's comments. This is one of the best sites for pension geeks like me. Checking the boards is an important part of my day. Keep up the good work Dave!

Why didn't someone tell him to take cash and send the amount is as estimated tax payment.

Have searched and can't find anything similar on the boards. Scenario is this - company A has 401(k) plan and company B has 401(k) plan. A and B are control group. Employees job is to be eliminated at company A in next couple of months. Employee takes job with company B. I need site that says employee can not roll funds from company A plan to company B plan. Can anyone help me out here?

Can you present draft reports to board?

Not if the previous employer is unrelated to current employer. Careful on this one, if you don't include his rollover you don't include NHCE rollovers.

If the HCE did not exceed a plan limit what can you recharcterize? I understood that you can only recharacterize contributions the exceed plan limit (like 8% or 10%) or 402(g) limit.

If he was married for more than a year, the old beneficiary designation is void. When was the marriage and divorce?

What does the plan say? Should define disability. All mine say "become disabled while a participant". Just curious, if termed what is the issue? Participant can take funds at termination.

Ask him how we amassed any money in the plan, corporation does not receive W-2 income, nor can it defer into CODA.

I had this come up kind of sort of. Told the atty to have client get PO Box. Was not going to get in the middle of domestic dispute. Don't think I would change my QDRO policy or process to include what you suggest.

There is no exact format. Just write and ask the fund for the estimated amount. (that is all have ever done to get numbers from the MEPs)

What if you used top 20% as HCE group? Would that help?

If receiving workers comp isn't this person on some kind of medical leave? Medical leave allows for suspension of payments for up to one year.

To keep taxpayer legal seems the only rememdy is to file amended tax return without deduction for contribution and pay tax immediately. After contribution is made file amended one to take deduction and receive refund. Long time ago in CPA land, clients usually didn't want to do anything when this sort of thing happened, they just prayed they didn't get caught.

DQ - maybe If ER gave EEs the promise in writing they can sue. If oral they don't have much chance of case under ERISA. Why not just come up with specialized severence agreements to keep it legal without changing the plan?

You may stretch it - if the promise is in writing that the plan will pay these benefits. But I don't think a promise to pay or change the plan is any good unless in writing. You will get into BRF trouble if you promise these benefits under the plan only for this group and no one else. What if one of the unintended decide to leave? If this is plan amendment the same benefits are available to all at the time.