Individuals could complete an HRA in 2009 for a "rewards" (either cash or deposit to an FSA) to be paid (or deposited) in 2010. Is this still allowable under GINA? The information, which includes genetic information, was collected in 2009, it just will be paid out in 2010?

A plan that is exempt from ADP testing incorrectly issued ADP refunds for the 2007 and 2008 plan years.

They are contacting the HCE's and asking them to return the funds to the plan as after-tax monies.

One of the HCE's took a distribution and rolled his funds over.

Any idea what the plan sponsor should do in this situation? I can't imagine the refunds should come back to the plan as after tax and then distributed.

Thoughts?

I have been contacted by an advisor representing a bank that wants to offer closely held stock as an investment option in its 401(k) plan. I haven't seen this in awhile. In fact, I have only had three plans with company stock, it was publically traded, and they got it out of the plan in light of current fiduciary conditions. I have never had a plan with privately held stock. According to the advisor, the bank would like to:

· Develop plan “Policies and Procedures”

· Have plan provisions could include % limits of stock allowed per account, i.e. 10% or 20%

· Limit purchases to purchasing stock through annual deferral elections and matching contribution elections

· Establish bank’s “right of first refusal” for purchasing participants shares who are selling

· Second “right of purchase” could go to existing shareholders

· Provide liquidity for plan participants guaranteed by bank “Re-purchase liability account” established outside the plan

· Restrict rollovers to IRA’s to maintain shareholder voting control

· Find custodian who will serve as trustee/fiduciary

· Establish stock valuation procedures

The assets in the plan are currently about $3,000,000 and daily valued.

1) Generally, does this make sense in todays fiduciary environment?

2) Do any of the bank's goals present fiduciary issues?

3) Would the bank be required to have a fidelity bond equal to the value of the bank stock assets or have an audit (there are under 100 participants).

4) As an investment option in a 401(k) plan, must the stock be registered?

5) Am I missing anything?

6) Any suggestions on resources for me to research this futher?

Thanks.

From a summary prepared by American Benefits Council

http://www.americanbenefitscouncil.org/doc...mmary101509.pdf

The final regulations provide some additional transition relief which could affect funding for the 2008 plan year (for example, contributions made for the 2008 plan year can be taken into account at full value without a present value discount, provided they were made by the deadline for contributions (September 15 for calendar year plans).

Do you think it's a typo and should read "contributions made for the 2007 plan year"?

Two revised notices have been released. How aer folks going to handle which notice should be sent out? Are they going to send both. REview on an individual basis? Combine for their own notice? Just wondering...

Hello,

10 HCE - 2 of them are receiving zero

20 NHCE - all of them are receiving 5%

Can I divide into two component plans as following?

Plan 1: 2 (zero allocation) out of 10 HCE, and 19 NHCE

Plan 2: 8 of 10 HCE, and 1 NHCE with the EBAR that's higher than any HCE

Does each component Plan have to have at least one HCE and one NHCE?

Thanks.

Are SEP-IRAs covered under ERISA?

With all due apologies (haven't seen the sun for days),

Q & A from 6.02 am to 6.02 pm on 10^23

Q: What did Avogadro invent for his wife to use as a night cream?

A: Oil of Molay

Q: What did Avogadro teach his students in math class?

A: Moletiplication

or these:

http://www.moleday.org/htdocs/mole_jokes.html

I have a situation where a state governmental entity would arguably control a tax-exempt (501©(3)) entity under the new controlled group rules. 1.414©-5. The tax-exempt entity, in turn, owns one or more physician practice groups. It seems pretty clear that I have a controlled group as between the tax-exempt and the physician practice group(s). But is the governmental entity also aggregated? I note that the preamble to the final regulations states that these controlled group rules "do not apply to a state or local government or a federal government entity." It seems clear that these rules do not apply to aggregate two or more related governmental entities. But would this also apply in my situation to "break the chain" between the governmental entity and the tax exempt entity? Any thoughts or insights would be appreciated.

The plan's compensation definition = 415 Compensation. An employee receives "settlement" compensation 4 months following their severence from employment and the employer runs this through payroll. The "settlement" compensation represents claims for back-pay, front-pay, and benefits. Would this be considered plan compensation?

I am reviewing a potential customer's calculation and they have the basic SH match/100% first 3%/50% next 2%. If someone contributed 4%, they obviously should have a match of 3.5%. However, they are rounding the deferral percentages to whole percentages. To me, if someone contributed 3.3%, they should get a match of 3.15%, but they are only giving 3% as a match. How many decimal places do you go out? I have never run into this before.

Hi. We are about to add a working spouse premium (spousal surcharge) for spouses of employees that are working and are eligible for health benefits at their employers. However, we have a lot of married couples that work here for our company. For the married couples with both spouses working here, do we apply the spousal surcharge? Some of them have one spouse full-time and the other working on an ESO (enhanced salary option) basis, meaning they have elected to be paid more for waiving certain benefits.

The idea behind the working spouse premium is to encourage working spouses to use their own employer's plan, and not ours. This wouldn't be accomplished by applying the premium to couples with both spouses working for us. But are we violating any laws if we don't apply the premium to everyone with a working spouse that is benefits eligible?

Employer deposited a few weeks ago a ps contribution for 2008 to their 401k plan which has not yet been allocated to participants. Employer now wants to take it back. Can they do that?

It is my understanding that EGTRRA removed the restriction on making elective deferrals under both 403(b) and 457(b) plans. In other words, an employee participating in both types of plans can defer $16,500 under each plan in 2010, for a total of $33,000 in elective deferrals. If the employee has reached age 50, can he also make a catch-up under each plan ($5,500 +5,500 = 11,000)? I have read various restrictions, such as the requirement that the employee must be within 3 years of retirement and that the 457(b) catch-up can only be made if the plan is a governmental plan. Also, there is mention of a "special" catch-up. Is that in addition to the "regular" catch-up of $5,500?

As you can tell, 457 is new to me. Thanks much.

Setting aside the 411(d)(4) and (6) problems (just like the reg drafters did), what is everyone doing re: plan language for benefit restrictions based on funding. Will a bare-bones "If the plan becomes subject to 430/436, it will comply" suffice or do we have to numbingly lay it all out. Pre-regs I liked bare-bones, post I am leaning towards a hybrid. Referencing the statute and regs for all defined terms but spelling out the options. ...

The plan terminated and the short plan year Final F5500 is due January 13, 2010. I'm trying to figure out if I can file 5500 now w/ a paper 2008 return marked up for 2009 or if I have to wait until EFAST 2. The FAQ at DOL makes reference to a short year w/ a due date before 1/1/2010 getting an automatic extension so they can use EFAST 2 (encouraged to use EFAST). So, I'm thinking that means anything due after 1/1/2010 MUST wait and use EFAST 2. Thoughts?

Our executive physical program covers annual colonoscopies and CT full body and angiograms. Do your policies also cover these on an annual basis, or should these services be performed only every other year? Currently those eligible for the plan range in age from mid-40's to 60. I understand why the lab work would be needed every year along with the EKG and stress tests.

Thanks for your help!

Can anyone explain the advantages to a Bank or Bank Executive of Bank Owned Life Insurance in a NQ plan for the executive? Other than deferral of taxation on growth of a life insurance policy (which I am admittedly skeptical about), are there any other legitimate selling points? Are there any advantages due to the banking industry's tax or capitalization rules?

Any contrary arguments?

Is it possible for a physician group to have both an HSA and MERP? Or, is it only permitable as an either/or situation? This would be set up for the physicians in the group- all highly-compensated professionals.

If possible, are there any restrictions or special regulations that govern? Would the MERP have to cover medical expenses first, before the HSA could be used?

I appreciate any help you can provide. Also, if there are any sources or publications that cover this, that would be helpful too.

Thank you!

There are two employers. They are a brother-sister controlled group, but each has it own plan. The plans are identical. Both plans cover union as well as non-union employees. The owners receive compensation from both companies, but only make deferrals to one or the other, but not both.

How is testing handled under these circumstances? Do the plans have to be combined to do ADP Testing?