Hi everyone,

I've perused the forums a bit, and there's a lot of good information out there, but I haven't found exactly what I'm looking for. I participate in an HDHP that is self-funded by my employer. If my emplyment changes such that I have a "qualifying event", and qualify for COBRA, how can I find out how much COBRA coverage will cost me?

I don't pay anything as a permium as part of my HDHP, and my employer only pays claims, they don't pay a premium either.

If you need more information to help answer my question, please feel free to ask. I appreciate any and all help!

Is it true that if a governmental employer who has opted out of social security and has now decided to provide a retirement plan, could adversely hurt the social security of an employee that worked in the private sector and paid into SS for 10+ years?

Does it matter what type of plan is started? SEP, MPP, 401a or DB?

I don't have a lot of plans with insurance, just a handful, but I've had a few insurance guys tell me other actuaries are still doing split-funded plans w/insurance. I would have thought with PPA 06 unit credit type funding we're only left with envelope type funding (insurance policy "value" just part of overall plan assets, pure term cost (only) added to normal cost).

Any thoughts on this issue ? I realize you could still use say Ind. Agg for budgeting purposes but I'm talking about funding that impacts PPA 06 min and max numbers.

If you can still do it, what are the mechanics since you don't really have a projected benefit per se under your valuation.

Are governmental entities exempt from the nondiscrimination testing of a 125 plan? If so, can anyone provide the cite to the pertinent regulation?

Thanks!

As part of a severance arrangement, can an employer make HSA contributions for and in 2010 and 2011 to a former employee who terminates employment in 2009? If so, are there any unique issues that the employer should be aware of (other than whether the employee remains otherwise HSA-eligible)?

We got a notice this week that our actuary (a one-man operation) was raising his hourly billing rate to $225. How does that compare to what other actuaries charge for DB plan work?

What is a typical billing rate at the big firms? tiny firms?

Separate question: Is an annual actuarial valuation report legally required? That seems to be the biggest part of his annual fee. Even if not legally required, are there any bad implications to not having one prepared?

A client has a cafeteria plan that has an option to purchase group term life insurance with after-tax dollars. Would an employee be able to revoke such an election part way through a plan year with no change of status event? I couldn't find anything that would allow that even if it was a benefit being paid for with after-tax dollars, but I wasn't sure if I might be missing something.

I have only a basic understanding of HSAs (I am a cpa) and client is asking me something that is beyond my knowledge base. Any help you could provide is appreciated.

The specific question from my client is:

"We have an employer with an insurance plan year of December - November.

Their deductible was set at $1100 beginning December 1, 2008 through

November 30, 2009. The minimum deductible amount changed to $1150 for

2009. Now, our system is telling us the accounts are not eligible because

the deductible is too low.

We contacted the employer (an insurance company) and they maintain their

plan IS eligible and our information is not correct. Can you provide any

guidance with this?"

I found this quote in an on-line article but unfortunately no citation to accompany it:

"Additionally, a fiscal year plan that satisfies the requirements for a high deductible health insurance plan on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year."

Can anyone tell me if this is true and if so, what is the IRS citation (Code, Regs, Rev Ruling, etc.)?

The participant had named his children as his beneficiaries. He married and died a month later, but didn't change his beneficiary form. We think the new spouse is in favor of having the benefit paid to the children, but it seems that we are required to pay her. Any way we can pay the children?

the plan uses a discretionary matching formula. one of our clients is asking me why he cant contribute the matching contribution to the extent of the vesting percentage. For example if the participant is 20% vested they would only have to contribute 20% of the match. Clearly I know you cant do this but I am having a difficult time explaining to the client the reason other that contributions are allocated according to a formula and the vesting schedule is applied after the fact if and when employees terminate. Is there a regulation or rule that makes this clear?

I work for GE and to my horror, found in my first pay period that for some reason, I was not "re-upped' for my now $5500 Catch-Up contribution. I still don't know how this happened, suffice to say I will make my elections in writing in future years.

Letters to my plan administrators go unanswered. Is there an alternative means for me to take advantage of this $5500 pretax advantage? Any suggestions would be appreciated.

Has anyone been cranking out Schedule SB's on Relius govt forms system? I tried a couple, and seems like the system is rife with problems.

For starters, it carried forward last year's data into Schedule MB, even though virtually all of them had been marked as single employer plans last year. That wasn't very user friendly.

On line 3, the totals aren't working correctly in column 2. I had to override to get the proper result.

Lines 7-13, column (a): How do you enter the FSA credit balance at beginning of current PY? I think you have to override the 13(a) amount, which seems clumsy.

Lines 14-16: Can't enter funded percentages of 100% or higher, even with override. This is a major problem, since these are the AFTAP amounts.

Anyone else having these problems? or other ones?

... S

I would like to know where to find the current Gatt rate listing and how it is calculated into pension plans.

An employer wants to terminate their 401(k) Plan. There are no employees...just the owner.

The plan year is 8/01/08 - 7/31/09

The Resolution says that the plan is terminated effective July 31, 2009.

The plan has already distributed 100% of the assets out of the plan in January of 2009.

This doesn't seem right to me, as the distribution should be made after the effective date of the termination...right? How can distributions be made before the effective date of the termination?

Can someone please help clear this up for me?

Thank you.

This is a Plan I do only ADP and ACP test.

Every year, I get an Excel sheet with about 500 people on it, comp, DOB, DOH, date of plan entry, Soc SEC, NAME, comp, deferral, match paid through out the year.

I have been opening a new plan and using DER gave everyone 0 beginning balance. Then, in census, I delete, everyone with no comp this year or last., one person at a time.

Does anyone have a better way to delete people from the system?

What happens when a plan fails the ADP test and needs to refund ROTH contributions when there is a loss?

Assume Excess Contribution (all ROTH) is $5,000

Loss on excess is $2,000

Check to participant is $3,000

I understand that the taxable amount is $0 in this case.

What I'm not sure of is -

What hapens to the participant's ROTH basis? Is it reduced by the $5,000 excess or the $3,000 refund?

If it is the $5,000 excess, can the participant claim the $2,000 on their tax return? If yes, how?

What does the 1099-R look like in this case?

I've seen this before on regular K and understand how ROTH with gain works (I think) but I'm perplexed by this set of facts. Any IRS cite would be appreciated.

Thanks.

Hypothetical situation; say a taxpayer inputs the wrong plan compensation figure for an employee. The employee's allocation gets made (and, to make things easier, in this hypothetical situation, a money purchase plan figures in, with employees receiving a straight 5% of their compensation, therefore the allocation of the other employees would have stayed the same had the proper compensation figure got used), but since the allocation reflected incorrect information, the employees had a lower allocation than he or she would have gotten. Therefore, the difference between the allocation actually made and the allocation that did get made awaits funding, and the interest or gains that would have come due to this employee must also get restored.

My question; would this fall under the self-correction program? If so, can anyone give me a citation?

Let us say that a coding error happened, that all other employees had their compensation correctly computed as including all of the compensation figures that the plan documents says must constitute compensation for plan purposes.

I have a plan document that doesn't match on catch-up contributions. Don't ask why. If I fail the ADP test and reclassify my refunds as catch-ups, do I have to take away the match that was applied on these catch-ups prior to the test? My guess is YES. Please confirm.

For 2008 an HCE defers the $15,500 and the $5000 catch up, for a total of $20,500. The plan fails the ADP test and it is determined through the leveling process that $3000 is to be refunded to above HCE as he deferred the most. He will actually HAVE to take that refund, correct????????

However, if he had deferred the $15,500 and then only did $2000 in catch up for a total of $17,500 and it was determined the plan failed the ADP and a refund of $3000 was necessary, that $3000 could be classified as catch up and therefore no refund necessary. Am I thinking right?

A DB Plan contributed $100,000 in 2008. When the valuation was finalized the required contribution was only $80,000. They would like to apply the additional $20,000 towards the 2009 contribution. Can they do this? Would it not be reflected on the Schedule SB since it is not a 2008 contribution, but a 2009 contribution?