We have a plan Company A that just purchased Company B through an asset sale effective 7/1/2013, the decision during the purchase was that Company B's plan would be merged in to Company A's plan.

Company B's plan year is 6/1/2012-5/31/2013. Company A is calendar year.

Company B's plan was merged in to Company A's plan effective 7/1/2013.

Company B wants to fund a Profit Sharing Contribution to their plan for the calendar year ending 5/31/2013 prior to the assets being merged in to Company A's plan.

Is there anything wrong with this? Also does this affect the contribution limits for the year? I know we have to take in to consideration Company B deferrals for all employees from 1/1-5/31/2013 but what about the PS contribution. I do believe we have to take it in to consideration since they are funding a contribution to the old plan and it is prior to the merger.

In reviewing the old filings for a client for which we have taken over administrative duties, I noticed a strange thing......

All Schedule B and SB filings were stamped and not signed.

I always thought a stamp was not allowable to be used for a Schedule B or SB.

Am I mistaken or is a stamp in lieu of an actual signature a problem?

Sponsor has been allowing hardship distribution of safe harbor match and earnings for a few years now. IRC 401(k)(12)(E) prohibits this. What is an appropriate course of action?

Also, what is the govt. reasoning behind this? Is it because an employer match is discretionary while safe harbor is required?

I'm looking for chapter & verse citation for what penalty might attach if an employer fails to provide the 10/1 "Marketplace Coverage" notice to all employees.

I'm thinking it should be the now familiar $100/day/person for general ACA violations but since it originates under FSLA I can't seem to get it there.

Thanks

I have a Union employee for my test year who has prior year compensation as Non-union > HCE $ limit. Do I consider the NU comp for purposes of determining the Union HCE status? Or do I use $0 as my lookback comp because the EE was not Union in the prior year?

Feedback appreciated. Thank you.

Are there any regulations for a time limit for self-finded health insurance plan to process their claims and issue a check?

Finally got the insurance provider to implement the QMCSO, now it's taking forever to get a reimbursement check. Been advised that they issue check to policy holder first and then have to void that check and reissue to alternate recipient. There are some claims that finalized in late June/early July and I've yet to receive a check payment..

Looking for guidance on pre 59 1/2 in service withdrawals from a profit sharing plan. The plan document gives the option to allow the withdrawals with limitations to money that has been "seasoned" (2 years), to indicate an "attained" age, plan participation for 5 years. My question is around the "attained age" option. Traditionally, I've seen this indicated at age 59 1/2, however is there any restriction on the "attained age" used in the document. For example, could it be possible to use age 21 which would effectively allow any participant to take pre 59 1/2 withdrawals (understanding this could cause other plan issues). Any input and references would be appreciated

Under the IRS regulations, the expected investment income for a year for asset averaging purposes is to be based on the lesser of the prior year's third segment rate or the enrolled actuary's best estimate of the rate of return on assets. Last year's third segment rate (under MAP-21) was 7.52%. Are people using that or a lower rate when averaging assets for a plan year beginning in 2013?

A floor-offset defined benefit plan will be terminated with excess assets. The plan is covered by PBGC so priority categories 1-6 must be followed.

The allocation of excess will pass 401(a)4 on its own.

Question: Must the excess allocation be provided before offset or after offset?

For example, suppose a participant has PVAB of $10,000 prior to offset and an offset of $15,000 resulting in $0. Now he receives an excess allocation equal to $1,000. Is his distribution:

A. $10,000 + $1,000 - $15,000 = $0

or

B. $10,000 - $15,000 = $0, + $1,000 = $1,000

Thanks.

We have a plan that requires and audit the plan has the Met life Stable Value Fund, it is considered a Collective Investment Trust so I know we are required to file the schedule D. My confusion is whether we have to file a schedule A and where to enter the balance on the schedule H.

I believe we have to enter the fund's balance under line 1©(9) for CCT under assets and not line ©14 for insurance co. as I originally had thought?

I also believe we are required to file a schedule A along with the D.

Any advice would be helpful.

Thank you!

A small plan that hasn't been funded since 2000, is it a requirement to fully vest participants since the sponsor has no intention of ever funding the plan? The plan was established in the 90's to buy out ownership of a partner.

We're a registered investment advisor to a credit union (credit union A) acquiring another (credit union B). A is acquiring B on 10/1 and plans to terminated B's 401k plan effective 10/1 as well.

Since A currently maintains a 401k plan, is A's plan considered an alternative defined contribution plan to B's participants? If A moves the termination date up to 9/30, would A's 401k plan still be considered an alternative DC?

Any help is appreciated!

Company A has acquired Company B which both have 401-k plans and well under 100 total employees. Company A would like to move the assets of Plan B into Plan A. What communication is required to be given to the participants of Plan B and what options do they have? Presumably Plan B will be terminated, can they be mandated to move their accounts into Plan A or would they also have the option of taking a distribution or IRA rollover? Thanks for any help.

Assume company A is the group policyholder on Insurance Company L's medical insurance policy. Employee E participates in Company A's cafeteria plan, elects medical coverage under L's policy with A paying 60% of the total amount due and E paying 40% on a pre-tax basis. During 2014, L issues a medical loss ratio rebate to Company A in the amount of $10,000. If Company A elects to pay the rebate to those who were participating in the plan for the year the premiums giving rise to the premium were paid, even if they no longer participate in such plan or are no longer employed by A, on what tax form would A report the taxable rebate paid to E if s/he were a former employee during 2014? An active employee during 2014?

For the 1/1/2014 Plan Year, the Plan Sponsor wants to exclude all doctors from the 401(k) Safe Harbor PS Plan.

At this time all doctors are currently in the plan and receiving employer contributions and deferring.

Can the Plan Sponsor now ( 2014) say these participnts are excluded?

Coverage would be met since they are all HCEs.

If they can exclude them, do you continue to include their account balanes for top heavy determination?

edit. They are removing the safe harbor in 2014, if the doctors are excluded

Can anyone expand upon my thoughts regarding PEO-sponsored 401(k) plans. From my perspective, they seem to serve a purpose for a smaller company (under 20 EEs or so), but become less attractive as an employer grows larger. Any direct experience with terminating such a relationship and the particulars of that process would be appreciated.

Now that implementation of the employer mandate has been delayed, if an employer plan defines an eligible full-time employee working 37 1/2 hours or more per week does the ACA maximum 90 day waiting period only to employees working 37 1/2 hours or more or does the 30 hour rule still apply?

Hello,

I'm stumped and just need a reality check.

Here's the pretty simple fact pattern:

A public School District and a local Community Clinic (a health care provider) have entered into an arrangement whereby the Clinic will provide a day of health screenings for students in the District.

The Clinic has asked the District to sign a Business Associate Agreement.

The Agreement identifies the Clinic as the Busniess Associate. The District is referred throughout the agreement as the 'Facility' (where screenings will occur). And the Agreement refers to services provided on for or on behalf of a Covered Entity (which is not defined). I asked them to identify the CE, and the Clinic to me it is the District?!?!?!!? (That must be incorrect - District is not a health care provider, and not a CE).

Just to clarify, the District's Health Plan has no involvement here. This is just a Clinic (a CE) coming in to provide student health screenings. It is not clear to me why a business associate agreement is even needed, in that the District won't be providing services for, or on behalf of, the Clinic that require the use or disclosure of information.

Do you agree?

If the parties insist on having an agreement in place, I want to ask them to clarify that the Clinic is the CE, and that the District is a BA, but only to the extent that it should provide any services for or on behalf of the Clinic. Thoughts?

Thank you!

Seeking information about health plan coverage for dependents in active military service. Do you exclude for eligibility purposes or have exclusions for coverage of military service related diseases, injuries or illnesses or none?

Thanks.

A plan participant completes beneficiary forms for the company's retirement plans, then dies a couple of years later. The company says that because the validation form that was sent to confirm the named beneficiaries was not returned, the plan assets must go to the participant's estate. I suppose the named beneficiaries can hire an attorney and appeal. Is getting a second form to validate the first form becoming a trend, or is this company out of line?