I have worked for the same company for 29 years. Just recently we merged with another company and some benefits have changed. The parent company just sent me a letter wanting me to verify my dependent (spouse) listed on my health policies.. I have had her on my insurance for most of the 20 years we have lived together (not married). I live in Louisiana. Would our cohabitation at the same address for all these years qualify her as my dependent ? Their definition of "spouse" is the person of the opposite sex you"re legally married to under Federal INcome Tax law.. Does Federal Law consider us to be married due to the long term commitment we have had ? I'm sure if we decided to split up, legally, what we amassed during our time together would be considered community property etc.. sorry for the long post but getting married at this time would be financially disavantageous to both of us due in part to the credit differences we have (I always pay on time, she doesn't). Thanks

Have an odd situation where an owner has a non-profit charitable org. and a for-profit arm. Each has a DB plan. He has a handfull of people he is currently paying an annual pension to, out of his own pocket (he has lotsa money; they used to do work for him personally).

Question: Can he pay these people out of the "for-profit" pension plan, as long as he funds it? (He thought of just buying them an individual annuity, but was appalled at how expensive they seemed.) Could he, as an owner and employer, simply adopt the plan for the benefit of these former employees? What stands in the way of doing this? Please assume these are all the relevant facts for now.

Thanks!

We have adopted a new, individually designed plan. We submitted it to the IRS for a determination letter. Now some employees who had contributions have terminated and want their distributions. Should we distribute or wait until we get the IRS letter?

Plan document only permits one outstanding loan at a time. A couple of participants were allowed to take out a second loan while their first was still outstanding (within limits for subsequent loans). Can the employer retroactively amend the plan back to the period for which 2 outstanding loans were in existence? Require VCP filing? If not, the alternative?

Participant makes an election to a health FSA for $3000 to cover primarily the spouses out-of-pocket expenses. Spouse subsequently goes to jail and our generous government is picking up the tab on her expenses. Can the participant reduce the election?

I have been denied twice for intermmintent FMLA leave and I have 2 chronic medical conditions I have chronic sinusitis/ear infections and also I have a severe case of Mitral Valve Prolapse which I have been to the hospital for 5 times in the past year. When I have ear infections at there worst I have servere vertigo and having trouble even standing without falling which was all submitted by my Primary Doctor.And since I have been denied I have had to delay treatment because my employer works on a PTO basis and points are given regardless of the situation unless 24 hours notice is given and you have PTO time to take ( if your sick you get a point the 1st day and a MD note prevents you from getting points the days following). We also work a accural of time off system. I get 5.25 hour every 2 weeks, in Oct of last year I had 40 hours to carry to 2007 I have since used all of it and now since applying and being denied 2 times I have had to take time off when I have none and been wrote up for accural of points Ifeel I did my part to insure my job stability while I can get the neccesary treatment to become the employee I was before becoming sick, Before becoming sick I had one occurance point and now I'm at 7 I have had my husband drive me to work because of the vertigo I suffer from and be on the phone caring about other peoples health issues when my employer doesnt care about mine! I have became depressed and feel like I'm between a rock and a hard place because I need my my job/insurance to be treated for my conditions but if I don't care of my health I am having to wait a month to get one day off for my MD appointment which I try to do alot in 1 day but this is now not only effecting me Physically but mentally. Myself and family are suffering is this legal?

Anyone PLease give me a direction I should turn!!!!!!!!!!

Can you borrow money from a D.R.O.P. plan, and if so how should it be handled?

Where does one record mutual fund dividend payments under Part II of the Schedule H?

I am considering cashing out of a JP Morgan 401k account ($10,000) from a previous employer to pay off high-interest credit card debt. I understand that the early withdrawl will be subject to 20% federal tax withholding, a 10% early withdrawl fee and will be also taxed as income at the end of this year.

I'm wondering if there are any other fees that will be withheld at the time of distribution for state and/or local taxes. I live in Massachusetts.

Appreciate any help.

Paul

We have recently implemented some 401k/profit sharing plans for small employers (i.e. less than 25 employees).

WHile I am able to perform non discrimination testing and account balance record keeping with the assistance of excel spreadsheets, I am curious to hear any suggestions as to what software or method to use for preparing client/participant statements of account balances? This can include using excel to do this too; which would even be preferred.

Let's assume that the account balance and census data are maintained on excel spreadsheets and can be used as input data for the statements.

Thanks for any ideas.

Question:

Can someone tell me where I can find regulations on the rules behind a not-for-profit (hospital) employer offering multiple 403b vendors yet only matching to one?

I'm looking at the 409A issues regarding the sale of stock in a professional corporation. Let's assume it's a medical practice.

As part of his semi-retirement, the senior doctor in the practice agrees to sell his stock back to the corporation. The buyout price for his stock will be, for example, $300,000 and 50% of the accounts receivable collections from his work that is received within 12 months after the sale.

A. Assuming he no longer provides any services to the practice after the date of the sale, could the variable portion of the proceeds from the accounts receivable collection fall under IRC 409A? If so, this could mess up the capital gains treatment on the sale.

B. Let's also add to the example that the doctor sells his stock and works part-time as an employee for the medical practice. Would this change your response?

Any comments?

DOES ANY ONE KNOW WHERE I CAN GET OR IF SOMEONE CAN SHARE SOME FSA CLAIM DENIAL LETTERS?

THANK YOU.

SIMON

I am doing a 5500 for a 401 Safe Harbor Profit Sharing Plan.

The plan had a distribution, therefore, Schedule R must be completed.

For Part IV, Coverage, Since the plan is SAFE HARBOR? what box I am checking (If any): The Ratio % Test, Average Benefit Test?

AJM

My plan's valuation date is Jauary 1, and they are subject to Deficit Reduction Contribution. I have a question on the treatment of the change in liab due to the application of the new mort table for Current Liab purposes.

I was told that the change in liab (an increae) due to the application of the new mort table for Current Liab purposes will flow into the additional unfunded old liab (which is part of the unfunded old liability) in the DRC calc. And additional unfunded old liab amount = additional unfunded old liab / 10 year annuity factor at 5.78% (high end of the interest rate corridor). Am I correct? And if not, what would be the correct approach in recognizing this change in liab due to the application of the new mort table?

We have a non-calendar year Dependent Care FSA that was discriminatory at plan year's end. Are we required to impute income for HCEs in the calendar year in which the benefits were provided, or can we report all plan year benefits in the tax year in which the plan year ends?

The Health FSA rules provide that amounts are included in HCEs' income in the tax year in which the plan year ends (Reg. sec. 1.105-11(h)), and so do the cafeteria plan rules (sec. 125(b)(3)). I can't see why Dependent Care FSAs would be treated differently, and yet I can't find any clear guidance on the issue.

Note also that Prop. Reg. 1.125-1, Q&A 18, refers to the nondiscrimination requirement for Dep. Care FSAs in the context of a "plan year," which seems to imply you test for the plan year as a whole.

Any input on this would be much appreciated.

We have a client that is adding a health savings account 07/01.

They currently have an FSA and are considering adding a "limited" provision to the FSA under which only dental and vision benefits would be reimbursable.

Is there a reason that those who are currently in the FSA and want to join the HSA 07/01 could not just become part of the limited FSA? The downside would be that if an employee had elected a large deferral for 2007 for use later in the year, potentially could not be able to access the money.

Thanks.

Does the fact that a profit sharing plan has a requirement that a participant be employed on the last day of each quarter (allocations calculated quarterly) to recieve an allocation of an otherwise uniform formula make it a non-uniform formula and subject it to discrimination testing?? Any reference cite is greatly appreciated. Thanks.

Lets assume an employer sponsors both a defined benefit plan and a defined contribution plan.

Is it everyone's understanding that in the DB plan the client can contribute (and deduct) the greater of:

1) Up to 100% of current liability; or

2) Up to 25% of eligible compensation; or

3) The amount necessary to meet minimum funding (even if it exceeds (1) and (2))

PLUS

Up to 6% of eligible compensation in the DC plan (not including 401(k) deferrals)?

If you read IRS Notice 2007-28 (Question 9), the answer states that the DB plan deduction is limited to the greater of (1) or (2) above.

For example, lets assume the following:

a) eligible compensation is 50,000

b) required minimum contribution is 100,000

c) Current liability is 1,000,000

d) Plan assets are 960,000

e) up to 6% of eligible compensation has been contributed to the DC plan

Can you contribute and deduct 100,000 to the DB plan or is the DB deduction limited to 40,000 (CL of 1,000,000 less assets of 960,000)?

We have a client that adopted a new prototype plan in 2006 with a nonstandardized adoption agreement. If the client wants to obtain a determination letter within the remedial amendment period, do they have to file the application by 9/15/07 or do they have a longer remedial amendment period?