I have a client that is hovering right around the 100 employee mark. Sometimes the size of the group dips below 100 employees, and sometimes they are above 100 employees.

As you may know, the 100 employee mark is crucial to determining if medicare is primary for disabled individuals on a group health plan. Over 100, employer plan primary, under 100 medicare primary.

Does anyone know how to determine the size of the group so we can decide if the group plan should be paying or medicare should be paying? Is it month to month? Year to year average? Other?

Thanks.

Form 5305-SEP says you can't use it if the employer is part of a controlled group. Not that you can't have a SEP, just that you can't use the IRS form.

An investment company's adoption agreement has the definition of employer pasted below. Based on that language, it appears that if companies A and B are part of a controlled group, then either A or B could adopt the SEP and both can (must) participate in it. i.e if A adopts it, B doesn't have to do anything else to adopt the SEP other than make the contribution. All service with either company will count.

So...if the owner started company A in 2002 (with no other employess), and then started company B in 2004 (with employees) he can adopt a SEP for company A with 3 year eligibility this year, and contribute from A and B for himself only, of course at the same percentage and subject to 415 limits.

Any arguments against?

Employer. Any corporation, partnership or proprietorship that

adopts this SEP Plan, including any entity that succeeds the Employer

and adopts this SEP Plan. For purposes of this SEP Plan, Employer shall

also mean the Employer that adopts this SEP Plan and all members of a

controlled group of corporations (as defined in Code §414(b)), all commonly

controlled trades or businesses (as defined in Code §414©) and

all affiliated service groups (as defined in Code §414(m)) of which the

adopting Employer is a part. Employer shall also include any other entity

required to be aggregated with the Employer pursuant to Code §414(o).

We have just recently began offering HDHP's w/HSA's. I am trying to fully understand what can be reimbursed through a "limited purpose" and a post-deductible FSA.

I think I understand that the post-deductible FSA can only reimburse eligible medical expenses after the deductible of the HDHP has been satisfied. Don't see any real issue here.

My questions surround how the limited-purpose FSA works. The IRS Notice says that it can pay or reimburse expenses only for preventive care and permitted coverage (eg dental and vision care). Since this limited purpose FSA is able to reimbuse for preventive care expenses, can the FSA reimburse expenses for preventive care, such as well-child doctor visits and immunizations, that would be applied against the deductible of the HDHP?

Also - should the FSA TPA offer a separate plan document or plan amendment for the post-deductible and limited purpose FSA's as opposed to offering only one FSA and with the understanding that those HDHP/HSA participants only submit reimbursement for qualifying expenses?

Did you get this E-Mail. This would be a good designation

Reminder - ERPA Credentialing Survey Due Date: December 14th

The IRS is considering a new Enrolled Retirement Plan Agent (ERPA) designation to permit retirement plan professionals, who are not otherwise approved to represent employers before the IRS, to communicate with the Service regarding retirement plan matters. Announcement of the ERPA designation may effect changes in the professional credentialing and management decisions of individuals and firms within the industry. New challenges and opportunities may also arise for organizations to customize their credential and education programs in response to the changing environment.

ASPPA and NIPA, two noteworthy retirement professional organizations, have partnered in a survey to collect information regarding the ways in which ERPA might affect you and your firm. The link below will take you to additional background information about ERPA and several survey questions that we ask you to answer. Your input will provide a window on how the industry will respond to ERPA with respect to management and professional education decisions.

If clicking on the link does not bring you to the survey, please highlight the link, copy and paste it into your Web browser.

Survey link: http://inquisite.smithbucklin.com/surveys/H48PJR

Your ideas and opinions are important to ASPPA and NIPA as we consider the impact of ERPA and further improvements to our credential and education programs. SmithBucklin Corporation's Market Research & Statistics Group, a third party research group, has been contracted by ASPPA and NIPA to conduct the ERPA Credentialing Survey. SmithBucklin will maintain the confidentiality of all individual responses as only the aggregate results will be released. Please direct your questions or comments regarding the survey to Mandy Frjelich at afrjelich@smithbucklin.com.

The National Institute of Pension Administrators (NIPA), a national educational association representing the pension administration profession, fosters the highest standard of ethical and professional conduct by retirement and benefit plan practitioners by offering comprehensive educational programs; by sponsoring a certification program with professional designation; and by promoting local chapters to provide opportunities for self-improvement to all members and interested parties. 401 North Michigan Avenue, Suite 2200, Chicago, Illinois 60611

National Institute of Pension Administrators - "Education for a Brighter Future"

We have just recently began offering HDHP's w/HSA's. I am trying to fully understand what can be reimbursed through a "limited purpose" and a post-deductible FSA.

I think I understand that the post-deductible FSA can only reimburse eligible medical expenses after the deductible of the HDHP has been satisfied. Don't see any real issue here.

My questions surround how the limited-purpose FSA works. The IRS Notice says that it can pay or reimburse expenses only for preventive care and permitted coverage (eg dental and vision care). Since this limited purpose FSA is able to reimbuse for preventive care expenses, can the FSA reimburse expenses for preventive care, such as well-child doctor visits and immunizations, that would be applied against the deductible of the HDHP?

Also - should the FSA TPA offer a separate plan document or plan amendment for the post-deductible and limited purpose FSA's as opposed to offering only one FSA and with the understanding that those HDHP/HSA participants only submit reimbursement for qualifying expenses?

The question is, since a plan offering safe harbor 3% non-elective contribution is not subject to top heavy testing, if they have immediate elgibility for employee salary deferrals, but a one year wait for safe harbor contributions, does that make them still subject to top heavy for the employees who are deferring who have less than one year of service but 1000 hours of service by the end of the plan year?

Thoughts on whether the following works as a matching safe harbor and/or whether it would require any additional tests: mandatory match of 100% of the first 6%; first 4% is vested; 5th and 6th% is subject to a 6-year graded vesting schedule. Any comments are greatly appreciated.

Assume that you have a controlled group that includes Company A (has a safe harbor match) and Company B (has a non-safe harbor with a modest match). Historically, Company B has passed 410(b) so it's plan can be tested separately. But what happens if Company B discovers in December that they no longer pass 410(b)? It's too late to make Company B's plan a safe harbor plan. Do you simply bump everyone's match up to the safe harbor level with 100% vesting? What about those who chose to limit their deferrals in Company B's plan to maximize the modest match? What a mess!

the question is this: could this ESOP get the 404(k) ESOP dividends invested deduction?

the details are this: we have an ER that has a SINGLE pension plan w/ "moving parts." there is a 401(k) component, an EE match component and a profit sharing component, all under the same pension umbrella. the profit sharing part invests (100% as of right now) in its own (publicly traded) ER securities. the EE choose if they want to participate in the plan. the ER says that the part of the plan invested in ER securities is the "ESOP."

assume that the ER invests only 5% or 1/2% of the ESOP part in the whole pensioit plan, as determined by EE demand. can the ER still get the 404(k) dividends deduction??

what is the authority i should be looking to; thus far, i have struck out on every avenue.

desperate for an answer!!!!!!!

A friend of mine has been on COBRA since her divorce. At about 20 months, still on COBRA (!?!?!?!) she is diagnosed with breast cancer. Another friend, also in benefits, calls and finds out that the COBRA administrator has friend #1 on COBRA due to DEATH of spouse, not divorce.

Having a hard time giving her advise. She has no other group plan to go to, as she is self-employed, so creditable coverage issue doesn't really matter. My biggest concern is what happens when COBRA administrator finally discovers error and drops her coverage. Any ideas about best course of action?

Thanks to all for any advice!

Sheila K

8-)

I have a controlled group with 2 companies. Company A has a 401k plan, Company B does not. For 410(b) testing purposes, if I test the employees in Company B in Company A's plan and they pass 410(B) testing; can I test the 2 company's separately for ADP/ACP or do they have to be tested together for ADP/ACP since they were tested together for 410(b)?

payroll accidentally turned off someones deduction in 2005, he finally 'noticed' and brought it to employers attention Dec 2006. what is employer liable for?

do they owe him any contribution dollars (matching or otherwise) for the period he wasnt contributing but should have been- as he elected????

he does receive a weekly paycheck and quarterly statements for his 401(k)

thanks so much!

Section 223(d) of the Code provides that an HSA must have a trustee that is a bank, an insurance company, "or another person who demonstrates to the satisfaction fo the Secretary that the manner in which such person will administer the trust will be consistent with the requirements of this section."

Can anyone point me in the direction of where to look to determine how the process (of gaining approval by the Secretary to be a trustee) works, what information is likely to be required by the Secretary, and how long the process generally takes?

Is there a more recent Minimum Distribution amendment for Defined Benefit plans, issued after the one in Rev Proc. 2002-29? Thanks.

Hi everyone. I'll admit it, I'm in the dark, but you have to start somewhere and would appreciate any advice offered. I want to start a Roth IRA, using ONLY guaranteed investments like FDIC insured CD's, or similar. I am absolutely NOT interested in mutual funds, etc. I have only about 12 years to go and I want to play it safe and then some. CD's interest me because they pay an interest rate I can live with, currently 4.5 % or better. My question is can these accounts be used in an IRA, and where can I get info on them? I just seem to be going around in circles sending emails that don't get replied to. I would also consider other safe investments like Treasury Bonds, but I could use some advice to get started. Thanks Rick

Is it possible for me to open an ROTH IRA for my 9 year old daughter? I am divorced and do not have custody of my daughter. I do have visitation rights and pay child support (on good terms with ex so I can get my daughter whenever I want).

My daughter has a basic savings account that is in my name but for her (my old savings account before I switched banks). I would like to start her ROTH IRA with the funds that are currently in the savings account since it earns pennies each month.

Is a minor allowed to have a ROTH IRA? Will I have to be on the account? Does it matter that she does not live with me? I want to control the account since I will be making the contributions on a bi-weekly basis.

I've been contributing to my 401k (TSP) for the past 4 years. This will be my first investment outside of the 401k and basic savings account.

What institutes should I look into? I have heard a lot about ING. I bank with Bank of America, Suntrust, and First Georgia Community Bank if that matters.

Thanks for any help!!

if an ER has a new program whereby HCEs in a 401(k) plan make their 401(k) election online w/o a paper copy going to HR, and the ER finds out that the HCE has inadvertently set level too high, could the

ER itself or the TPA go into that HCE's account, w/o the HCE's consent, and automatically reduce the elective deferral so the plan doesn't run afoul of ADP testing?

If not, what other remedies are available to the ER??

thanks in advance for your help.

Plan was cash balance Defined Benefit with a GUST determination letter. This plan was restated on July 2006 to a non cash balance plan using a GUST volume submitter.

The employer EIN ends in 6, so my question is: Since cycle A for individually designed plans is from 2/1/06 to 1/31/07, should this plan have been amended for EGTRRA before being amended onto the volume submitter document?

Thanks

Thanks to the IRS for changing the 2006 1099-R instructions. See the release at http://www.irs.gov/formspubs/article/0,,id=109875,00.html

*** If you downloaded the IRS 1099-R instructions prior to 11/10/2006, junk that copy and download the newest version (http://www.irs.ustreas.gov/formspubs/index.html).

Two big changes for IRA providers - (a) The IRS finally clarified the issue of how to report IRA distributions that might contain nondeductible amounts and (b) the IRS clearly state thats the responsibility of qualifying an entity for a charitable IRA distribution is on the taxpayer. Unfortunately, the IRS hasn't released the 2006 version of Pub 590 to give the taxpayer more guidance on the charitable IRA distribution issue.

Can the beneficiary (of a "Beneficiary IRA") of an IRA owner who was over 70 1/2 when owner died, make a distribution to a charity?