Has anyone received the study guide yet?

1.416-1 M-12, states that the 2% DB minimum can be offset by the DC balance to determine if TH is met. A literal reading is that the cumulative DC balance can be used. Thus, if the DC plan was around for years and years and the DB is new, a large offset is available for many. It's almost as if the DC TH is doing double duty and it doesn't make entire sense to me, but...

Anyone disagree or know of a Gray Book answer either way?

We have quite a few profit sharing plans that have 3/20 vesting and were wondering if the plans had to be amended currently to reflect the 2/20 minimum vesting requirement under PPA, or could that change just be made part of the PPA restatement that will happen a couple of years from now as long as the plan operationally uses the 2/20 schedule from now on? All help is appreciated.

I'm aware than when a major change happens within the medical benefits a new SPD should go the employees within a certain amount of time. Does anyone know what constitues a "major" change? Does changing a plan from paying 90% after deductible to paying 80% after deductible constitute a "major" change? Any information would be greatly appreciated. Thank you,

If I decide to retire and withdraw $50000 in 401k funds at age 59 1/2, I understand that 20% will be withheld for taxes, leaving me $40000 for the remainder of the year. However, If I take out a 401k loan for $50000, then after attaining age 59 1/2 I default on the loan, will I have had full use of the $50000, without any pre-paid taxes or penalties??

Let's say a Corporation with a calendar year Fiscal year and Plan year does not go on extension and files their 2006 tax return by 3/15/07. If they prepare an amended 2006 tax return filing prior to 9/15/07, can they increase the profit sharing deduction that they had taken on the original filing as long as they contribute this increased amount by 9/15/07. Is this allowable/deductible/possible/plausible....?

Hi there,

Just found out that we have a DOL audit headed our way in about a month. We are a Trust Company provider of plan administration and trust services for qualified DC and Non-Qual deferred comp plans. Does anyone have any recent experience with a DOL audit? If so, what were the focus areas? I feel good overall about my department's documentation (plan doc's, procedure manuals, etc.), but what are they possibly going to find that I am not thinking about?

Thanks for any help!

I submitted an on-cycle (cycle A) application for a determination letter. It was an up-to-date and restated plan. However, I received the entire application back, with a letter 1014. Letter 1014 is a form letter that states that the plan was either submitted off-cycle or not restated for EGTRRA and other required changes. I have called the agent, but not heard back yet. Has anyone else had an application returned inexplicably?

Do multi-employer health and welfare funds track or have the ability to determine employer-specific data -- such as the total amount of claims paid out to/on behalf of all employees/beneficiaries of a specific employer, and how many employees have actually received benefits for spouses, children, etc., in addition to themselves ? Is there any requirement that this be done ?

Background:

5 individual unrelated doctors with separate practices entered into an overhead cost sharing arrangement. They created an LLC to pay the overhead costs and bill each practice for their respective share of the costs.

Facts:

1. Overhead LLC is owned 20% each by Doctors A,B,C,D & E.

2. Dr. A owns 100% of his own LLC.

3. Dr. B. owns 100% of his own S. Corp

4. Dr. C. owns 100% of his own S. Corp.

5. Drs. D&E each own 50% of their own LLC

6. Drs. D&E also each own 50% of their own S. Corp.

7. Both practices owned by Drs. D&E are covered under the same plan.

8. Overhead LLC has no HCEs.

9. The doctors are the only HCEs in their separate practices.

Issue:

Currently there are 5 separate plans. One each for:

1. Overhead LLC

2. LLC for Dr. A.

3. Scorp for Dr. B

4. Scorp for Dr. C

5. LLC and Scorp for Drs. D&E.

Assume:

1. The plans are dissimilar

2. The plans will not pass coverage or discrimation testing allowing them to be permissively aggregated.

Question:

Do I have an affiliated service group that needs to be covered under one plan? What regs and code sections do I need to quote?

We are planning for our annual enrollment. We will be unbundling dental from medical and offering full time employees three options - a DMO, a basic option POS and a high option POS. Since we are unbundling dental, we will also be offering dental only COBRA if someone is only enrolled in dental coverage when an event occurs. Also new this year, we will be offering the basic dental POS option to part time employees. Our question is this - when a full time employee who is enrolled in the DMO or the high option POS decreases hours to part time and loses eligiblity for the DMO or high option POS, does COBRA need to be offered due to the reduction in hours? They will still remain eligible for a dental option, just not the one they are enrolled in.

Hi everyone;

I am looking for a recent used copy of the DC-2 book and the first two PA exam books. Is anyone willing to sell or donate their copy? I took a break from the 'rat race' for a while and have recently gone back to work, 2 children later... The last test I took was C-1 back when ASPPA only had one P in the name! Well, the sunset rule is about to take that test away... I MUST take DC-2 (& two of the three PA's) and apply for my designation by December or I will have to take C-1 (or 40 hrs of CE) to finally achieve my QKA. Please help??

Please email me at lschnur@vanfin.com or call 216-642-8033 (day) or 330-461-3187 (cell).

Sincerely

Lana

Hi all,

So glad I found this forum!

Current situation: I expect to have around $3,000 - $4,000 in freelance income for 2007, and wanted to shield all of that amount from taxes.

Other info: I will be employed and contributing to a company 401(k) for the latter half of 2007. I have already maxed out a Roth IRA.

By the way, I've already received $1,000 for freelance income. The thought of having 30-40% taxed sucks.

I want to know - SIMPLE or SEP? I can contribute more money to SIMPLE, but other than that I am confused on the best option for me. Also, can I convert SIMPLE or SEP to a traditional IRA after 2 years?

Thank you for your help in advance!

CN

I have put $10,000 into my Roth IRA through Vanguard for the years 2004,2005,2006. My account is valued at over $12k. I would like to take the $10,000 that I've put in. I believe that I can take this amount out without penalty, however when I attempt to do it on the website, it says that this is an illegal distribution(early withdrawal) and will be subject to penalty. Should I just ignore this and take the money out being that it's only money that I put in.. Thanks.

Hello,

In 2006, I had ~80 shares of VQNPX in a Vanguard Traditional IRA. In an attempt to consolidate to ETrade, I performed a transfer from Vanguard to ETrade. In the process, I moved the shares into a Roth IRA account (assuming that the amount would be treated as income, and that I would owe the tax on it).

Unfortunately, I've discovered that I was not supposed to add anything to my Roth IRA account because I would be (am) in excess. As a result, my goal is to "un-do" the operation and move all of the shares back to a Traditional IRA (this time, using my Traditional IRA account with ETrade).

From what I've read on this forum (and other places), it seems like there's at least 1 or 2 options. I'd hate to make another mistake because it would seem that I don't know what I don't know yet. So, I have the following questions:

1) Is this the correct approach? Am I asking the right questions?

2) I'm assuming that ETrade can help me with this. If I contact them, what specifically should I ask from them? i.e. Am I asking them for a "Recharacterization" of those shares, or am I asking them for a "return-of-excess" ? Are these the same thing?

3) Should I be working with another professional, and not ETrade to help with this activity? If not ETrade, then who would you suggest?

4) The stocks have increased in value, and paid dividends which were automatically reinvested as new shares. Is the increase in value/shares treated any differently, or can I simply move 100% of the shares back to a Traditional IRA?

Thanks in advance!

Cheers,

-Alan

As a SAS 70 auditor for a number of years, i have witnessed the healthcare and benefits industry increasingly coming under the microscope for this audit. There are many misconceptions and myths regarding this audit, ranging from price, to timeframe and many other issues. I wanted to start a forum and discussion where i can help assist and alleviate any concerns organizations may have. I have assisted and issued over 150 of these reports over the years, many in the benefits arena.

-SAS70Auditor

EXECUTIVE SUMMARY: Based on the fact pattern below, I am sure that the SSA we filed with the final filing for a terminated plan was not plugged into the SSA system. How do I go about fixing that?

BACKGROUND: I work for a pretty big controlled group that has grown primarily by acquisition. So I've terminated or merged a bunch (over 40) of plans covering lots of employees. And we hardly ever get inquiries from participants who were paid out but have gotten a SSA-L99 saying that they might be entitled to a benefit. But over the last couple of months I have gotten six or eight inquiries from people we paid out and reported on the 2001 filing as D--previously reported, but no longer entitled to a benefit.

Should I:

Resubmit the original filing?

Submit an amended filing, reporting them again on the current format?

Try to call my way to an official answer? I've already been throguh the IRS, EBSA and SSA websites without any progress.

Thanks for any advice.

Our leadership team has indicated that they would like a full (we currently do premium only) cafeteria plan considered for 2008. While I know this was a hot topic several years ago, I'm wondering who is doing this today and what's working and what's not? Currently about 25% of our population opt out of health care and are not receiving any type of opt out payment. My concern is that while this approach provides greater choice to the employees that it will be a cost increase to the employer.

Any feedback on plan designs that are working in providing choice while minimizing cost are appreciated!

Are Municipal Retiree Health Plans exempt from ERISA?

Are Municipal Retiree Health Plans exempt from MEWA Regulations/Statutes?

GASB43/45 is shifting retiree health insurance plans from a DB to a DC approach. A Purchasing Group is being established to offer Medicare eligible Retirees Health and prescription Drug coverage from several insured plans. The Purchasing Group would establish a trust. The Trust would enter into contracts with the insurers providing coverage. The Trust would contract a TPA, approved by each insurer, to provide Retiree billing and premium payments to insurance plans. The Purchasing group would use their collective member participation to establish the best premiums, net of commissions for the retirees

Many of the Municipal plans are offering the Medicare eligible Retiree the option to continue coverage on the group health insurance plan. The monthly premiums are paid by the Retiree. However, the monthly premium is the same as that of an active employee!! The Retirees are enrolled in Medicare Parts A & B. The Trust can provide this retiree population monthly premiums and very similiar health and prescription drug benefits, PPO or Indemnity Medicare Benefits, with savings of $75.00 to 150.00 a month. Of course if a retiree elects a Medicare Advantage plan or PFFS plan, the savings would be greater.

Would an Association plan acheive the same or better results? Any comments/uggestions would be apprectiated.

sfjfl@bellsouth.net

Profit sharing plans are not required to have the QJSA and QPSA forms of benefits, but many have had in their early history.

The 411d6 regs were changed a few years ago to permit the elimination of certain forms of benefit payout.

Many profit sharing plans have since been amended to remove the QJSA/QPSA forms of benefit, as they may do so without such disqualifying the plan from tax advantages.

But what about the spouse whose REA rights were stripped by such an amendment? Aside from the tax qualification issue for the profit sharing plan, if the plan as amended paid out all of the benefits in a lump sum on just the employee's signature, does the spouse have a valid claim against the plan for the survivor benefits after the employee dies?