Plan language uses the reg safe harbor definition for hardship withdrawals.

Employee has requested hardship, just submitting an 'estimate' for cost of breast reconstruction surgery that has not yet been performed. Due to a high deductible re the medical insurance the employee has ($10,000 per year), the hospital and surgeon want payment up front, before the surgery and thus before the expense is incurred.

Any thoughts on whether this can be the basis for a hardship withdrawal of 401k benefits in advance of the medical services being performed?

----- Original Message -----

From: whoknows@whodo.com

To: andytheactuary@whoknowswhere.net

Sent: Wednesday, May 02, 2012 5:37 PM

Subject: question

hi andy

the employee that i terminated in jan wants her pension check now. her name is bonnie x. can you figure out what i owe her til the end of 2011 and i will have my investment guy cut her a check.

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-----Original Message-----

From: <andytheactuary@whoknowswhere.net>

To: whoknows@whodo.com>

Sent: Fri, May 4, 2012 10:00 am

Subject: Re: question

What was Ms. X's compensation paid for 2011?

Thanks and regards,

andy

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----- Original Message -----

From: whoknows@whodo.com

To: andytheactuary@whoknowswhere.net

Sent: Friday, May 04, 2012 10:05 AM

Subject: Re: question

28k

===============================================================================

-----Original Message-----

From: <andytheactuary@whoknowswhere.net>

To: whoknows@whodo.com>

Sent: Fri, May 4, 2012 10:09 am

Subject: Re: question

Please confirm: $28,000.00 (exact dollar amount reported on W2)

Thanks and regards,

andy

==============================================================================

----- Original Message -----

From: whoknows@whodo.com

To: andytheactuary@whoknowswhere.net

Sent: Friday, May 04, 2012 10:10 AM

Subject: Re: question

i'll check her w2 when i get home. but it was right around 28k.

I know this question may have been posed before, but...

Does ERISA preclude retirement plans from purchasing plan assets without available funding? In other words, trades to buy mutual funds are made today, but plan sponsor does not send in funding until a week later. It "smells" like an indirect margin loan from the financial institution to the plan which may be a PT but I cannot find anything which would confirm or refute this logic.

Any thoughts?

I got this money type from one of my plan list. They have asked for a participant distribution who has money in "ER Non Qualified Deferral Comp". What type of money is it? Employer or Employee? I need to determine the vesting depending on the money type.

I could really use some opinions on this!

Here's the situation:

Employer A is part of a controlled group of employers with Employer B and Employer C. All three employers contribute to a multiemployer welfare plan on behalf of their employees. Employer A does not have collectively bargained employees, but is allowed to participate in the plan. Employer A sells its assets to Company X and most of its employees are employed by Company X and enrolled in Company X's health plan (any remaining employees are terminated). Employer A stops making contributions to the multiemployer plan because it no longer has any employees; however, Employers B and C continue to contribute on behalf of their employees.

Who is required to provide COBRA coverage for the people who were on COBRA with the multiemployer plan before the asset sale and for the people who are terminated because of the asset sale??

Is the multiemployer welfare plan responsible for COBRA for these people under 54.4980B-9, Q&A-10 (which says that if an employer stops contributing to a multiemployer group health plan, the multiemployer group health plan has the obligation to make COBRA continuation coverage avaible to a qualified beneficiary who was receiving coverage under the multiemployer plan on the day before the cessation of contributions, UNLESS the employer that stopped contributing makes group health plan coverage available to the employees formerly covered by the multiemployer plan)?

Or is Company X responsible for COBRA for these people under 54.4980B-9, Q&A-8 (which says that in the case of an asset sale, if the selling group ceases to provide any group health plan to any employee in connection with the sale and if the buying group continues the business operations associated with the assets purchased from the selling group without interruption or substantial change, the buying group is a successor employer to the selling group, and therefore responsible for COBRA)?

Or is there some other authority that addresses this issue??

I have 3 plans in the controlled group. Plan A, B, & C. (Plan C is a Puerto Rico Plan) 2011 Plan Year Test

If I apply the under 21/Less 1 YOS option to testing (disaggregation). Plan A does not pass this portion of the test-since those from plan b & C in this category are not benefiting. The plan has 23 HCEs that were hired in after July 2010-(plan has semi annual entry). Plan B passes coverage for this group.

My question is: Can I run plan A on a non-disaggregated basis therefore running the ADP/ACP non-disagg basis (not separating the under 21/less 1 YOS)? Then run Plan B testing the under 21/less 1 YOS separately for coverage?

If I can do the above, how does it impact how the BRF test would be completed? Plan A has a service based match? Would that then be completed in the same manner for each plan? (running each group applying the under 21/less 1 YOS differently)

Any thoughts would greatly be appreciated!

I could be forgetting something here, but I think a safe harbor plan's withdrawal and vesting provisions must be spelled out in the safe harbor notice itself, and not just covered by a cross-reference to a relevant section in the SPD. The section of the regulations regarding this SPD cross-referencing fails to include the withdrawal and vesting provisions as an available cross-reference.

In other words, the notice content requirement of 1.401(k)-3(d)(2)(ii)(G) is not listed in 1.401(k)-3(d)(2)(iii).

I thought this might have been discussed at an ASPPA annual conference or other conference years ago? Or maybe something was said or done concerning this? Is there a place where we can electronically search the conference Q&As?

I see an November 2006 reference to this issue (thanks Tom):

http://benefitslink.com/boards/index.php?s...st&p=140633

I understand that a cross-reference must be more specific than just saying to look at the SPD, the regulation states it must reference the "relevant portions" of the SPD. However, it's not allowed at all for withdrawals and vesting. Can I get an amen confirming that still the case?

Gotta be a slam dunk...

2 businesses, A and B

Wife owns 100% of each

Totally unrelated businesses... (nothing to do with each other at all )

Wife only works A, she is the only employee

Husband works B, 4 employees - Husband and 3 workers

Wife technically makes no $$ from B

Doesnt matter does it... If wife wants to open a solo plan using A she has to include B... correct?

thanks

The instructions for the Line 11a of the 2011 Schedule SB refer to Line 38a of the SB for the prior plan year. The 2010 SB has no Line 38a.

I haven't found any prior discussions on this point. Any comments?

I'm pretty sure I've just inherited a disaster from a co-worker who up and quit yesterday. A client (XYZ Corporation with 0 employees) has fives subsidiary's and each subsidiary currently has their own cafeteria plan. The client has mentioned that they want all of the subsidiaries to be covered under the same plan document, so only one Form 5500 has to be filed. I know a wrap document can be used to bundle the various benefit plans offered under each cafeteria plan; but is there a way to group all of the cafeteria plan's under one plan document and only file one 5500? If so, do the eligibility requirements and benefits offered have to be the same for all plans?

Basically, what I'm trying to do is create a single plan document named XYZ Corporation and Affiliated Companies Cafeteria Plan and file one 5500 that covers all of the plan's without having to change the benefits available or eligibility requirements of each subsidiary's plan. Any help would be greatly appreciated because I'm at an absolute loss as to what to do

What notices are required upon termination of employment for a participant in a defined benefit plan for a vested participant and a non-vested participant? What section of the code/regs/ERISA require such notice?

A former participant in one of our retirement plans passed away two years ago and the family is just calling to inquire about his account. The participant never completed a beneficary form for the account. What is required to pay the funds out properly - a court order?

Am interested in thoughts / experiences of other companies that have used company intranet or websites to provide copies of an SPD. My understanding has always been that we cannot simply post the SPD there and tell people where it is and they can go look at it at their convenience. Instead, I've always understood that compliance requires more direct delivery or notification. The majority of our team members work in offices with their own computers and company email accounts so I think the additional step required for these TMs is simple--we just send them an email with a link to the SPD and follow the same email notification procedures if the SPD or other documents are updated. My concern though is what is required for our other team members who work in the field and distribution center and don't have a company computer (or at least don't routinely use computers or get daily emails to a company email account, etc.) Is there any way other than getting a personal e-mail address for these individuals and having them consent to delivery / notices at that address to satisfy the SPD rules? For example, we have computer stations and terminals with free access to the intranet (and internet) at all of our work-sites so these TMs can easily get to the SPD or other documents (and can print out or request a print copy. Could we provide them written notice of the intranet access and ability to log on from company work sites and provide regular written notice of any changes or additions to the items posted on the intranet and still comply? It seems that in order to track the DOL rules simply providing written notice of the documents (and written notice of any future changes) is not sufficient and they need to receive an email at some personal email address they have consented to use for such information if the actual documents are going to be housed electronically. My boss thinks this is too complicated and says her old company used to just post on the intranet for all employees and did not send notices at all really but definitely not to anyone's personal email address.

Someone once posted on here a blurb from their plan termination resolution that "Amends" the plan to allow for rollovers for non-responders in the event of plan termination. I tried to find this through the search engines but had no luck. Can anyone post this language or find the post?

Company sponsors large group health plan. Company pays 50% and employee pays 50%. For several years, some employees were paying 50% of the premiums based on family coverage (when only enrolled as single coverage) and some were paying 50% of the premiums based on single coverage (and were enrolled in family coverage). Is there a correction program for this? VFCP perhaps?

Hi,

I am assuming that a (3 year cliff vesting schedule), (a 20% after 2 years and 100% after 3 years vesting schedule), a (2% after 1 year, 40% after 2 years, and 100% after 3 years vesting schedule), and a (25% after 1 year, 50% after 2 years, and 100% after 3 years vesting schedule) would be considered equivilant such that Benefits Rights and Features testing would not be required.

Any thoughts?

Seems like an absurd question, but I ask because I have now seen this done on more than one plan. When completing the ADP test, can the first $5,500 of deferrals for a participant over 50 be considered catch-up, or must the participant first reach the “deferral limit” or “employer provided limit” before any additional deferral is considered catch-up?

If a corporation has a "stock split" that results in a greater number of outstanding shares, does the aggregate number of shares available for issue under the ISO need to amended to reflect the split if they want to have the option of issuing more shares based on that split? Can they simply award from ISOs based on the split?

Assume 100,000 shares were approved for issuance under the ISO. Two years later there is a stock split and there are now 2 shares to every 1 share there was at the time the ISO was approved. Do we need to amend the plan if we want to be able to issue 200,000 shares under the ISO plan?

What if over 100,000 shares were awarded under the ISO but the plan was never amended to reflect the greater number of shares available due to the split?

Small Cash Balance Plan is considering terminating. One of the owners retired in 2011 and has not been able to take her lump sum because the plan is restricted by the 110% test. If the Plan were to terminate and the assets are not sufficient to cover the payouts, the 2 remaining owners are willing to forgo benefits. However, the question is, does the one retired prior owner, who is no longer an owner, fall into the rank and file employee group in terms of who gets paid out how much? Typically how we handle underfunded terminations is the rank and file are paid out their benefits in full, and then the owners are paid out with the remaining assets (pro-rata if there is more than one).

I am interested in knowing what a male who has a high income (400K for many sequential years) would have for a value (today) if he had supposedly previously "maxed out" his own single employee corporate DBP and now is 65, assuming todays maximum benefit (195K).

i ask because I am only 50 but my DB plan administrator has told me that I can't make any more DBP contributions because my value is 1.4M. I don't see my current value paying out 195K/year when I am 65 but maybe I am wrong and in 15 years this actually would cover my retirement assuming a 6% return...

Secondly, if I may inquire, I was corporated several years ago with a corporate Defined benefit plan that because it was supposedly maxed out, I closed and rolled into an IRA. That company was later closed. Now I am starting a sole proprietorship business and wanted to open a sole DBP. Is it true that if I maxed out the first DBP, I can't use a new one, with a different company, or now as a sole proprietor, as a retirement vehicle with this new venture? Didn't the last DBP "belong" to the last company?

I apologize upfront if this are naive questions, but I am a busy physician and my "people" never seem to be able to give me layman's answers...