Corp's fiscal year is 4/30

DB plan is on calender year.

Can employer make 2007 plan year contribution in December 2007, then the plan year 2008 contribution in April 2008, and decuct both in 4/30/2008 fiscal year?

Any different answer if they make 2007 plan year contribution in Jan 2008?

I have gone from a large firm with a high deductible plan with an HSA feature to very small firm that does not provide insurance benefits. My new employer is willing to pay half of my premiums for an individual insurance policy. At this time I am utilizing my COBRA benefits. I would like to continue my HSA. Could I have my employer contribute the portion of my insurance they are willing to pay directly to my HSA account and then I pay my premiums for COBRA (and then my own high deductible plan) from there?

After explaining the HSA to my employer, they are potentially interested in setting it up for themselves. What kind of information could I provide to them and where are the best resources for researching this option.

I am looking for a definitive answer and possible site verification realtive to the cummulative affect of form 5330 as it applies to prohibited allocations.

An individual received a prohibited allocation for numerous years and as of this point in time it has not been corrected. For simplicity purposes, assume the individual's allocation for 2000 was $1,000 and 2001 $2,000.

When completing the form 5330, for 2000, the excise tax would be $500. Would the 2001 form 5330 pay excise tax on $3,000 ($1,500) or $2,000 ($1,000)? What about going forward through 2007?

any assistance would be greatly appreciated.

Tried a search but didn't find this topic.

In a situation where someone dies, and has no spousal waiver on file, but names a child as sole beneficiary...

What sources would you perhaps use to attempt to determine if there is in fact a surviving spouse? This isn't a plan we administer, so I have no idea whatsoever what plan records they have available. One could perhaps ask the child, but I don't know how old the child is - obviously you wouldn't want to traumatize a young child with such questions! Perhaps employer health insurance records, if they had any? Is the existence or non-existence of a spouse required information for health insurance? Just looking for ideas of possible sources. Thanks in advance!

I am so confused!

Employer wishes to establish a VEBA to provide retirees with medical benefits and life insurance. The benefits provided under the VEBA will be fully-funded by an insurance carrier. The trustee provided a trust agreement. However, I am wondering whether the VEBA needs a separate plan document, or do we just need to worry that the benefits provided have a plan document.

Any help would be great!!

Thank you.

Each year, despite sending multiple letters to particpants begging them to spend down their accounts, we have a large experience gain remaining in our health FSA. We added the grace period and that has helped a little, but not enough. We have little to no administrative cost for the plan, so we can't say that we are keeping it for administrative costs.

What are we required to do with this excess since we cannot use it for any other plan benefit? I have read the EBIA books, which are very detailed about the different ways of re-allocating the money back to participants in the plan. I'm having a bit of a disagreement with our consultant - who is saying that the new proposed regs say that the employer can re-allocate the gains back into the general assets without consideration of ERISA. i.e. he says it is employer money - I say it is employee money.

Help???? Any of your thoughts would be extremely appreciated.

We have 403b and 401a accounts: A fully vested employee separates from employment and requests a full distribution. The distribution is made, but some interest or dividends have not been posted to the account at that time. The question is: is the ex-employee intitled to those residual earnings credited to their account after the full distribution?

Our plan document is silent on this topic.

Looking forward to hearing any thoughts on this subject.

I have my own business, and set up a Roth 401K, max $15,500 contribution, and a profit sharing plan, maximum 19K for a total contribution of about $44000.

I just started a State government consulting job, with a 457 plan-- they say my max this year is $15500, and that the 401 K of my business doesn't effect the maximum for the 457 plan. Is the reverse true? In other words, does the $15500 contribution to a 457 plan affect my maximum contributions to my 401K plans with my own business?

I UNDERSTAND THAT IF WE MAKE $100,000 OR LESS INCOME PER YEAR I COULD ROLL OVER MY IRA TO ADD TO MY ALREADY EXISTING ROTH FUNDS AND THAT IT WILL BE TAXED AS REGULAR INCOME. SINCE WE HAD A SLOW YEAR AND EXPECT TO DO MUCH BETTER NEXT YEAR, I WONDER IF THIS IS THE YEAR TO ROLL-OVER...QUESTION...DOES IT PAY OFF IN THE LONG RUN TO DO THIS NOW AND PAY THE EXTRA TAXES AT THIS TIME OR SHOULD I JUST KEEP SOME OF OUR RETIREMENT MONEY IN REG. IRA AND SOME IN ROTH. I AM 52, WORKING AND MY HUSBAND IS 61 AND PLANS ON WORKING AS LONG AS HE CAN...HOPEFULLY AT LEAST TO AGE 70. HIS MONEY IS ONLY IN A ROTH ACCT. DOES THE $100,000 LIMIT INCLUDE THE AMOUNT IN THE TAXABLE ROLL-OVER? DOES THIS DECISION NEED TO BE MADE BY JANUARY OR CAN I WAIT UNTIL APRIL 15 TO DECIDE? ANY FEEDBACK WOULD BE APPRECIATED.

IRS guidance was provided in early 2004. This guidance gave specific details regarding deductions and the valuation of life insurance policies as they pertained to 412i plans.

I began working with these plans during 2004 as well.

My question pertains to pre 2004 412i plan administration.

I have read articles regarding pre 2004 plan administration that presented a technique of handling the incidental death benefit requirement with large amounts of life insurance.

According to the articles, plans were administered so that if a death occurred with life insurance well in excess of the incidental death benefit limit, the plan would pay the beneficiary the incidental death benefit and revert the excess coverage as a windfall to the plan.

The argument made was that the incidental death benefit was not violated, since the benefit paid was not in excess of such limit.

My question is:

What is the general opinion of this approach pre 2004? How common was it?

Thanks.

A 3 member law firm never took advantage of allocating a profit sharing to the 3 members. While NHCE's were receiving a PS allocation, the attorney's did not. Reason unknown, perhaps to keep plan Non Top Heavy. Anyway, they are bringing up the question if it is possible to go back and fund the "x" amount of years that they did not receive an allocation. They are aware that there would be revised K-1's, Form 5500's, etc. I personally see red flags and a possible audit, but if it is permissible, how far back could they go? Has anyone here ever had such an inquiry?

403(b) plan with New Comparability PS. Since the 403(b) salary deferrals are not subject to ADP testing, are they required to be included in the average benefit test with the PS allocations?? Thanks.

Company X is starting a new 401(k) plan effective 1/1/2008. The employees of Y LLC participated in a 401(k) plan for which all future contributions were frozen. Company X and Y LLC are in the same affiliated service group. If Y LLC terminates its 401(k) plan, I understand that the Y LLC participants' account balances could not be rolled over into the Company X 401(k) plan because it is considered a successor plan. However, are the participants of Y LLC precluded from making rollovers into IRAs?

I'm thinking about changing from my current plan to my company's HSA for 2008.

It would be my spouse and myself on the plan. Thus, as far as I understand it, the IRS allows us to contribute up to $5800 to the HSA for the year 2008.

Even so the IRS may allow this, my employer says they will not let me contribute that amount to the HSA. Instead, they are saying that I can only contribute up to the deductible of my plan, in the case of my employer's plan - $2,250.

I would love to be able to contribute $5,800 and not the $2,250, my employer's self imposed limit.

I showed my employer the IRS documents that say a person can contribute more than the deductible, and the employer is aware of it, but told me they decided to not let us do that even so the IRS says we can. The company had this policy in 2007 and continues it in 2008.

So my questions....

1. Can my employer limit my contribution to a limit lower than the IRS max?

2. As far as I know, I cannot contirbute additional post-tax money to get up to $5800 AND take the above the line deduction since my employer allows some contributions pre-tax - is that correct?

3. Can I say zero contributions to the plan and then do post-tax contributions of $5,800 to the HSA and take the above the line deduction?

Thanks everyone for your help.

We have a client that has overcontributed the matching contribution in his SIMPLE IRA for the past 6-7 years. He has matched dollar for dollar, but did not cap at 3%. What do we do now? How do we correct?

Assume an entity purchases the assets of another and a number of employees come over to work for the purchaser. One of those employee's is actually hired as a consultant. As part of the asset deal, the purchaser agreed to assume the liability for paying that consultant's NQDC benefit. A new benefit agreement was entered into between the purchaser and the consultant where the purchaser agrees to pay the consultant a monthly benefit equal to that which he was entitled under the prior employer.

Since this individual was an independent contractor and never an employee of the purchaser, is this arrangement covered by ERISA? The time to file a top hat statement has passed and I'm trying to figure out whether I need to correct this or let it go.

We use the model language for the "Special Tax Notice Regarding Plan Payments" from IRS Notice 2002-3. Some of that language is now incorrect due to the passage of PPA. I am unable to find an updated version issued by the IRS, but am not completely familiar with all of the changes that might be necessary. Does anyone have any ideas where I can get one or when/if the IRS might issue new model language?

We have an individual that wants to add their common law spouse to the benefit plans. The benefit plan eligibility sections for dependents states that only legally married spouses of the opposite sex/gender can be added to the plan. The word legal is tricky because some states "legally" recognize common law marriages.

Here are a couple of questions I have about Common law marriages:

1) In order to add someone to the plan under a common law marriage, would the individual need to provide us court documents recognizing the common law relationship? Or can they just claim it with out legal documentation?

2) Was there a time in Arizona when Common Law Marriages were considered legal?

3) When did common law marriages stop being recognized in New Mexico? Was that in 1989?

4) Are there certain populations (such as native americans) that recognize common law marriages and therefore are recognized by the government?

Thanks

A participant in a Multi-employer H&W Plan got divorced. Under the terms of the SPD, he was to notify the Plan immediately about this event. He did not do so. The Plan did not find out (and had no way to find out) that he was divorced.

His ex-wife subsequently incurred medical bills which were submitted to the Plan for payment. Still believing that the ex-wife was the participant's beneficiary (as his spouse), the Plan made those payments.

It was not until three years later that the Plan found out about the divorce.

The Plan would like to bring suit against the participant for the money it paid out due to his failure to notify (as required by the SPD).

A couple questions:

1) What basis does a Plan have to pursue such an action against a participant; and

2) Should the action be brought in federal or state court?

I have done research on the issue and have come up empty-handed. Just wondering if anyone else has run into this situation and how they addressed it.

Thanks a lot.

I apologize because I am sure this topic has been covered, but have yet to find all the answers to my questions.

I currently have a 401k worth about 50-60k from the company I worked at until 2005, when I went back to school. Since I am currently in school with no income, I want to rollover my 401k to a Roth IRA before the year is over because I have no income this year. A few questions:

1) Could someone tell me the logistics of getting this done; I have the appropriate forms to fill out from my old company and will fill out the forms from my new institution. Will my old company send the money directly to the new institution where the IRA will be held? More importantly how are the taxes paid when this rollover occurs? I would assume I owe 10% of the first $8000 (or so), 15% on the next $20000, etc.... but how do I know the exact amount and can I take this amount owed out of my 401k? Otherwise I don't have the money to cover the taxes.

2) I understand that the rollover must first go to a traditional IRA and then from the traditional IRA it can go to the Roth. When are the taxes subtracted, at the time of the 401k rollover to the traditional IRA, or is that tax free and the taxes are subtracted when the money is transferred from the traditional IRA to the Roth IRA?

3) Does my money have to remain in the traditional IRA for a certain amount of time before it is rolled over to the Roth IRA?

4) Am I allowed to start up a Roth IRA with this amount of money, or can I only transfer $4000 to the Roth IRA?

Any other simple logistical information that you can provide is greatly appreciated. Please contact me if I left out any pertinent information.

Thank you in advance.