Can there be more than 1 Privacy Officer for an employer's health plan?

Employee A works as an employee of Company X and participates in the Company X 401(k) Plan.

Employee A also works as an independent contractor (receiving a Form 1099) for specific contract work performed for Company X.

The 401(k) plan uses the simplified 415 definition of compensation with no additional exclusions. Should the pay received as an independent contractor be included as 415 compensation under the 401(k) plan?

Company has 40 employees during the determination year. There are two 5% Owners that are also officers and 4 other employees that have comp over $160,000 that are officers. There are no exclusions that I can use in the determination of Key Employees that would reduce the 10% number of includible officers.

Are there 4 or 6 Key Employees in this example? Thanks.

Has anyone used phantom stock as an employer matching contribution?

If so, any restrictions.

Advantages? Disadvantages

Thanks

Alexa

I am working with a financial advisor who sells insurance for one company. He is classified as a "statutory employee". He also sells other products but I think insurance and annuities are his principal business activity. (Code Sec. 401©(1))

He receives payment through both a W2 and a 1099. Because of the 1099 he files a Schedule C and pays SE Tax. He is under the assumption (he is going to get back to me) that only his W2 compensation is eligible for the insurance company's retirement plan.

Here is my question: Can he open up a DB plan for his 1099 income if this income is not eligible for the other plan?

If he got this 1099 income for any other profession than a full-time insurance salesman (at least I think he qualifies as such) this wouldn't be so confusing. Has anyone seen this situation before? I would really appreciate any help I can get. I have researched and researched but haven't found anything too concrete. I was told by an accountant that he thinks it's okay but his confidence, or lack their of, didn't make me feel better about it.

Of course, so I can stay ahead of Mr. Rigby, I will be following up anything I tell the client with "but you'll want to check with an ERISA attorney on that".

Good afternoon. We are sorting out some random issues and one question came up: is it possible to apply a vesting schedule to post retiree medical benefits funded by a VEBA? Assuming the establishment of separate acounts within the VEBA.

On a semi-related note, if a client wants to set up notional accounts with the VEBA as the "funding vehicle" for the post retiree medical benefits, can the notional accounts be subjected to a vesting schedule? We are well aware that we are over our heads and want to get some issues streamlined before we present them to an attorney. Thanks in advance.

This question involves a private medical practice with a small number of practitioners, all of which are stockholders. As is common, the docs have stock repurchase agreemetns so that when they retire, the corporation buys their stock back. The stock price is based on book value minus debts, which I think is ok. But there's a "floor" on that formula so that the doc gets at least $100,000. I know of no reasonable valuation method that would put the stock price at anywhere close to that (it's currently in the range of $20,000-$30,000).

This situation seems to clearly implicate the basic 409A provisions. My question is whether there is an exception that might apply or, if not, how to make this sort of arrangement 409A compliant.

I'm not sure if this matters, but the docs all bought their stock for $100,000. The purchase price was paid for by salary deductions over 3 years.

I'm new to this, so....speak....slowly.....

Thanks in advance for any help or insight anyone can offer.

The instructions for VCP (11.01 of EPCRS) says the request "consists of a letter from the Plan Sponsor...that contains..." descriptions of the failure(s) and correction(s), etc.

It later states that Appendix D can be used as a format.

Do I have to do a letter and then attach Appendix D, too? (We cannot use the streamlined submission under Appendix F in this case)

Can an individual with a SEP, aggregate net income from a Schedule F (farm) and an unrelated Schedule C (directors fees) in order to calculate the maximum SEP contribution that can be made for the year?

I just received a call from an Investment adviser that suggested using Voluntary after tax contributions.... distributed in service to an IRA... then convert the IRA to Roth.

I have not worked with voluntary after tax contributions in years.

Please confirm my memory regarding voluntary after tax contributions:

1. Are they subject to 415? I think yes

2. Are they subject to 402(g)? I think no

3. This plan has an enhanced Safe Harbor Match? Am I still free of the ACP test?

4. If the owner is the only one to do this, do I have any coverage or discrimination problems or tests to run? How about benefits, rights or features?

5. Any other amendments needed other than allowing voluntary after tax and in service withdrawals?

6. Other?

Hello all - I can't find any guidance on this issue so I am hoping there is someone out there familiar with it. It is clear that in a straight money purchase pension plan, you cannot adopt the in-plan Roth conversion feature. What is not so clear to me is that if your existing profit sharing/401(k) plan contains assets that were merged from a prior money purchase pension plan that was maintained by the employer, and you have the in-plan Roth conversion feature in your K plan, whether the conversion could include the merged MPP assets.

All I could find on this topic was some mention of the fact that spousal consent is not required for the conversion, but I could not verify whether those merged MPP assets could even be included in the conversion.

Thank you so much for any assistance you can provide.

I am trying to determine what type of testing would have to be performed for a plan that lets one group of employees in after 90 days of service, and the other group in after 30 days of service.

It seems like I need to do some sort of coverage or current availability testing. Would I use a safe harbor percentage? Would the otherwise excludable employees group come into play? I am having trouble thinking this through as I have never seen it.

Can any one point me in the direction of a discussion of how to "correct" a 409A operational violation that is outside of the formal correction program.

An employee (insider) was awarded restricted stock units that vested and should have been paid no later than March 15, 2009, but were not paid until 2012. How does he pay the penalty/interest? Does he need to amend his 2009 tax return or does he just include the income/penalty/interest in his 2012 tax return?

Thanks.

The excise tax for late deposit is less than $100.

The VFCP Program states if the amount is de minimis ( less than $100), the excise tax is deposited to the Trust and allocated to the impacted participants.

Question:

If the Plan Sponsor is NOT filing under VFCP, does the di minimis rule still apply?

If so, what happens to the filng of Form 5330? Since the tax was deposited to the plan, does the Plan Sponsor just maintain the form for future reference in the evnet of an audit, or doed the form still get filed with no payment?

Can we change employer contribution matches based on hours worked?

For example, employees with 20-30 hours per week get no match

30-35 get a 3% match

36+ get a 3% employer contribution and a 3% match

Hello. I have a client who inititated a 401k plan effective 1/1/12. The client sponsored a DB plan, which they intend to terminate sometime in 2012. If there are rollovers from the Defined Benefit Plan to the 401k plan, are the rollovers considered 'related rollovers'?

Big Co closes down small co it's wholly owned subsidiary on 4/30/12. The Plan (what's left of it) will be merged into Big Co's plan.

Do I need to pro rate the comp limits?

I own a small business employing 5 seasonal full-time employees and 4-6 seasonal part-time employees. For the full-time employees, they generally come back year after year.

The 3 most-senior employees have asked for a 401k. At a previous business, I was the 401k administrator (as well as one of the owners) and I personally would prefer not to institute a 401k now because of the testing requirements (= time spent, not the results of the test, as I probably wouldn't contribute) and cost to set it up, perform the testing and file the annual reports, etc.

My primary question to all of you is this: Could I essentially set up a 'plan' wherein I agree to match any contributions that they make to a personal IRA with a bonus, paid to the employee, which is then sent in along with their check to their IRA custodian? I would include the 'match' amount in their W2's and they would take the full deduction on their tax return. They would of course be subject to annual contribution limits which would include my matching funds. I understand that the money would be instantly theirs and would not have any 'vesting'. They are not sophisticated employees and would not question how this works. I just don't want to run afoul of any laws....

Please help with an answer to whether or not this scenario qualifies us for the HIPAA exception.

Small church, 9 employees on payroll.

Five employees participate in the insurance plan (four families, 2 employees from same family) with Kaiser

Counting all family members covered in the plan, total is 15

Church leadership would like to set up an HRA to fund it in-house (self-administered) when the plan renews in May 2012

Our bank would issue the debit cards (we'll craft a card agreement for each employee to sign and the cards will have a limit). New account would be set up to hold the funds for all cards.

Our in-house HRA will reimburse via the debit cards the 11 cardholders [employees+spouses+young-adult-covered plan members] for out-of-pocket expenses, which according to the Kaiser plan we selected will only be prescriptions and co-pays

Does this scenario meet the qualifications for the "self-funded" AND "less than 50 employees" HIPAA exception?

If it does not, we will use a third-party administrator. But that is not what the church wants to do as of now UNLESS it will obligate us to comply with HIPAA security and privacy regulations, which would clearly overwhelm the in-house plan administrator = ME.

Thank you!

Is extended due date for filing the 5500 for the 6-30-11 PYE, April 17th?