Volume submitter doc has definition of comp limited to comp while a participant. The match is discretionary. They would like to have the match be the lesser of the salary deferral or x% of full year comp. Since the match is discretionary, can that be done?

Hi. I have a client who is closing his PS 401(k) plan. He has bars of gold (!!!!) and I'm wondering how to 1099-R him. Is it considered a "cash" distribution, to be taxed? He can't exactly roll it over to an IRA.

There may be an obvious answer, but this happens so rarely (no pun meant), that I am doing a double take!

Thanks for any help.

I have an employer with 76 W-2 employees in a "C" Corp. 70 are highly compensated employees (HCEs). They have 6 additional W-2 employees are who are not highly compensated. They want to have the 6 do an FSA and the remaining 70 HCEs do a Medical Expense Reimbursement Plan (MERP). Each of the 70 HCEs fund their own MERP as they go ( if they have a reimbursable expense, the employer takes the amount of their paycheck on a pre-tax basis) and then reimburses them.

Is this kosher? If so, how? If not, why?

I have HSA with limited FSA. Does anyone know if under this type of coverage whether the HSA will cover oral surgery? For example, tooth extraction and tooth implant? What about a new crown? Or do all these fall under FSA?

Can someone point me to some materials that explain the differences between these plans?

Can someone point me to something that outlines the differences between these two plans?

Google's HR department is telling me they think that because they are covered by Federal law, they don't need to comply with Cal-COBRA to extend my coverage after the 18 month Federal COBRA is exhausted.

I don't see what the point of the Cal-COBRA legislation would be if companies are not covered by it.

Any advice on what tack to take with them?

Thanks,

Fred

IRS proposed regs. issued 4/11/2008 referred to 1.430(f)-1© a number of times. For example:

(3) Plan assets equal or exceed funding target. For any plan year in which the

value of plan assets (as reduced to reflect the subtraction of certain funding balances

as provided under §1.430(f)-1©, but not below zero) equals or exceeds the funding

target of the plan for the plan year, the minimum required contribution for that plan

year is equal to the target normal cost of the plan for the plan year reduced (but not

below zero) by that excess.

While I believe this means subtract credit balances (that's what the statute says), it would be helpful to be able to see this reference and this poor old soul can't find it.

Is it acceptable to calculate vesting from date of eligibility rather than date of hire?

A doctor in a profit sharing plan terminated prior to year end. The plan requires end of year employment to receive an allocation. The sponsor had already deposited $44,500 for this doctor.

The $44,500 is within the deductible limits and some of us argue that since it was deposited prior to year end, it must be allocated to the eligible participants. The plan sponsor does not want to allocate the $44,500 and some administrators have taken the position that the $44,500 does not have to be allocated.

Also, how is it reported on the 5500?

Treasury had said they would not enforce Q&A9 of Notice 2007-28 and that they would follow proposed technical corrections. Has that technical correction been put into law yet?

If nonqualified monies are deposited into a 403(b) plan (e.g. participant inadvertantly deposits monies from personal checking account into 403(b) annuity), does that result in automatic disqualification of the plan?

I posted this the other day on the multiemployer forum and haven't gotten a reply, but think it might be more appropriate here....

Our client is a collectively bargained multiemployer health and welfare Plan and VEBA that has limited participation to bargaining units represented by a single local union and non-bargaining unit employees of their contributing employers. It covers participants engaged in a number of industries in a relatively limited geographical range (primarily several contiguous counties).

The client has recently received an overture from a bargaining unit affiliated with an entirely different international union which would like to join the Plan. If the trustees accepted this group, it would be the first unit not affiliated with the sponsoring union. The new group is engaged in one of the industries currently covered by the Plan and within the Plan’s geographic region.

If this new group is accepted, would this jeopardize the Trust’s VEBA status because of the absence of an employment-related bond?. I've been unable to find any IRS guidance on this question. I'm stuck on Treas. Reg. 1.501©(9)-2(a)(1) which reads:

“Typically, those eligible for membership in an organization described in section 501©(9) are defined by reference to a common employer (or affiliated employers), to coverage under one or more collective bargaining agreements (with respect to benefits provided by reason of such agreement(s)), to membership in a labor union, or to membership in one or more locals of a national or international labor union. For example, membership in an association might be open to all employees of a particular employer, or to employees in specified job classifications working for certain employers at specified locations and who are entitled to benefits by reason of one or more collective bargaining agreements.”

On the one hand, the regulation could be read to say that either coverage under any CBA or membership in a labor union will suffice as an employment-related bond. But I wonder if this is too broad a reading and some other employment-related bond (e.g., common union affiliation, common industry) is required. Another way to ask this, is whether any Plan provided for in a CBA will automatically satisfy the employment-related bond requirement? Thanks for any input.

I did not get to take as many seminars as I would like/need this year & need to find some courses to take in the NY area so I can file for my CE credits for my APA. Can anyone direct me to some? Thanks! I thought I could take the 5500 seminar but they are not offering it this year in the NY or Phila. area.

Thanks!

We are looking for "outside the box" ideas to assist employees with gas prices. We are in a rural area and many employees live and drive from other surrounding counties and states. Mass transit benefits are not available for us. Would be interested in flexible scheduling policies or subsidies etc. that other employers have tried.

Can they maintain both plans and the Safe Harbor start up at any time? Or like converting a 401(k) to Safe Harbor 401, does the sponsor have to wait until the beginning of the plan year?

Thanks

Although common place for large multiemployer plans to have co-counsel (one representing employer trustees and one representing union trustees), I cannot find any specific DOL guidance authorizing or discusses the expenditure of plan assets to pay for two attorneys. Is anyone aware of any such guidance discussing the Trustee decision to retain two different law firms to act as co-counsel? Any thoughts are greatly appreciated. Thanks.

May a health flexible spending account include a provision that a participant may not reduce or change the amount that is elected due to a change in status below the amount of the expenses already incurred or below the amount of the coverage received to date?

Citations or other guidance is appreciated - thanks.

Is there a problem with a plan matching at a rate greater than 100% (i.e. 110% of the first 5% of compensation)? This is a nonsafe harbor plan with a discretionary match. No ACP failure problems.

If a 65 year old retires but is not completely vested in the company DB plan, when is he required to begin receiving distributions from the plan?