I continue to struggle with the differences between 401(k) and 403(b) plans. I would think that there has to be a compensation cap, but I've put my foot in my mouth enough times when it comes to 403(b) plans because I keep applying 401(k) logic. Thanks to anybody who chimes in.

An employer maintains a medical plan as one of the options available under a cafeteria plan. Under the plan, the children of a domestic partner are considered eligible dependents under the plan. Under pre HCERA law, there were many hurdles which made it difficult (if not impossible) for a child of a domestic partner to qualify as a dependent for purposes of Code Sections 105 and 106. Under the law as amended by HCERA, a dependent includes any child (as defined in Code Section 152(f)(1)) who has not attained the age of 27 as of the end of the taxable year. The child definition includes a stephchild. Since it is likely that the child of a domestic partner will be a stepchild to the employee, would the employee's coverage of such individual be tax-free?

We have not been able to get a satisfactory answer from Relius as to whether Relius Administration 15.0 works under the Microsoft Windows 7 operating system. Any input would be helpful.

Is anyone currently running Relius Administration 15 standalone version on a computer with MS Windows 7 as its operating system?

A client has a 457 Plan with Employer contributions. The client is a governmental agency (local township office). The contribution is a Matching contribution that is given as a flat percentage of compensation (4%) to any one who is making salary deferral contributions, regardless of their rate of participation.

Does a 457 plan have to perform ACP Testing for this match?

Is anybody else involved in the submitting for approval letter from the IRS on IRAs/SEP/SIMPLE documents? I currently have applications that are over a year old and I can't even get somebody to answer my calls/emails. I am just wondering if this is a wide spread problem?

Thanks

Plan has a termination date of 3/31/10. It is considered Top Heavy for 2010. The company has not closed down, so, most everyone was still employed on the Plan Term Date.

Do I use comp through 3/31 for all those employed on that date? (There were a few people who left the company in Jan & Feb.)

I'm looking for a good explanation of why I would pick an R6 share, over a R1, R2, R3, etc. I know there is a difference in the expense ratio and operating expense. Is there anything else?

Are governmental money purchase plans required to offer annuities as a form of distribution?

What % of pension plans reduce normal benefits for alternative payments (ie. 50% survivor) by the same % for every retired employee vs. based on PBGC interest rates. For example. a 89% reduction for 50% survivor no matter when you retire.

After December 31, 2010, will medical supplies such as blood pressure monitors, reading glasses to correct far-sightedness, fever thermometers, etc. still be reimbursable under an FSA?

Thanks.

An Employer went to all the work to establish a 401(k) plan with a 4% Safe Harbor matching formula but never announced the plan to their employees. Now they have decided they don't want to proceed and the plan has been in effect since the beginning of the year. Do they need to file a 2010 Form 5500? Would your answer change had they elected the 3% Non-Elective Safe Harbor formula?

Custodial accounts that are investe solely in mutual funds are one of the permisisble funding arrangements in a 403(b) plan. If a target date fund in the 403(b) plan is unitized may it still be considered a mutual fund?

Money Purchase Pension Plan - how do you correct an RMD if participant was required to begin receiving and never received. This happened in 2007. In late 2008, he passed away and the plan has been sitting ever since. I understand it is an orphan plan and you go under VCP - but what about the RMD? I know you can correct RMDs under VCP, but not sure how to go about it in this case.

Thank you!

Can the trustees of a Taft Hartley trust alter the trust document to prevent the employer and the union from removing and/or choosing trustees?

my employer (in California) recently switched health insurance plans. previously, we had a choice between an HMO and PPO. now, there is only one plan. benefits are the same to everybody who enrolls, however, the employee's contribution is based on what plan they were enrolled in previously with the old insurance provider. if you had the HMO before, you pay less than employee's who had the PPO before (even though the benefits are exactly the same).

can they do this? are there any discrimination laws that are being violated? how can you make different employees pay different amounts when they are receiving the same benefits? I can understand if it was based on something like date of hire, but this seems rather arbitrary. I had no idea that my plan choice for the last year was going to effect my payments for the future.

Schedule MB filed in November showed the fund is at 70% funding. When should the participants have been notified and when should the recovery plan have bee put into place?

As a participant am I allowed to ask for and receive the minutes of the trustees meeting? Do I ask the trustees or the administrator for the minutes?

I can't seem to pin down whether the exclusion from income for accident and health plans applies to dental and vision benefits. We are self-insured, and considering early implementation of dependent coverage to age 26, but we want to apply the same rules to all benefits and want to make sure we're not setting ourselves up for overly complicated administration. What am I missing?

Corp 1 is owned 100% by Person A (only employee)

Corp 2 is owned 50% by Person A and 50% by Person B 50%

Corp 1 establishes Solo 401K for Person A (only employee)

Corp 2 establishes Simple IRA for 3 employees (Person A and 2 others).

Since Person's A interest in Corp 2 is not greater than 50% , it does not

fall under classification of Controlled Group.

Do you guys see any problem(s) with this arrangement?

Please advise.

Thank you

Can I report 403(b) elective deferrals and 401(a) matching contributions on the same 5500? Does it matter whether I treat them as the same plan?