Guys I know many of you know this T9 feature when texting using on your cellphones.it made my texting more faster since it uses only 9 keys.anyone using this on your cellphones?

I've used FreeErisa for a while but have discovered a new site. www.free5500.com. Although the site doesn't have as much content, the free search options are more robust and the 5500's are pdf's which makes for better viewing & printing. Better yet, for prospecting, the premium content has updated sponsor contact information. The premium content also allows searches on 50+ fields including content from all the schedules.

Has anyone else used this site? I think it's relatively new but it's awesome.

We have historically worked mainly with 401k and 401a plans but are in the position to take over a current client's Non-Erisa 403b plan and add an employer match to it. My understanding is that this new plan would no longer be Non-Erisa, would be subject to annual 5500 reporting, would require a Plan Document and SPD and the match would be subject to ACP testing. Is this correct? What else do I need to know about 403bs that differs from the 401k atmosphere?

If my assumptions above are correct, for the 5500, would only the employer portion of the plan assets be required to be reported on or would the entire plan assets, including 403b accounts need to be reported?

Also, can the participants have their matching contributions sent along with their deferrals to the annuity or MF of their choice or do they need to be invested separately? (the contributions will be 100% vested)

Finally, would employee benefit statements be required for participants other than what is given to them by their annuity or MF company?

i just spoke with john hancock and they informed me it is possible to pay your life insurance premiums with your 401(k). however, they did not know the rules, the limits (% of your 401(k) bucket...) or anything in general regarding the regulations behind this. i figure that in order for you to be able to do this, there have to be some sort of rules. anyone know them? anyone know where i can find them?

also, how would i go about finding out whether or not you can pay other bills with your 401(k) money.

I have run into a situation in which I am somewhat stumped from a legal standpoint. As of 4/1/06 I resigned from a Bank officer position in which the Bank was organized as a Sub Chapter S Corporation and therefore provided to it's employees an “ESOP with 401k Provisions (KSOP)”.

I had worked for this Bank for nearly five years and upon departure, I inquired with the HR department who administrates the plan as to how I could roll my vested balance from the plan into my existing IRA with Fidelity Investments. Their response was that I would have to wait until after the end of the company's (Bank) fiscal year end (12/31/06) before I could begin the process of accessing my balance. They claim that distributions based on roll-overs not made as part of fiscal management procedures and that they are acting within the laws and boundaries to do so.

I have no concerns that the Bank is whole and that my benefits are safe but I would rather control my own financial affairs than continue to allow an ex-employer to keep what is rightfully mine and distribute at their convenience.

Therefore, my questions is….Are they in fact acting under the law by stating that they can withhold my vested balances until after their fiscal year end based on their organizational status or are they obligated to roll over upon my request?

Participants in this plan get ER stock under the ESOP part of the plan and they can also buy ER stock with their EE deferrals under the 401(k) part of the plan.

The employer is trying to make sure that there is enough cash on hand when employees terminate and want to cash in their stock. The employer asked the TPA to provide a list of participants holding stock so they could determine how many retirements or other terminations might be coming up so that they could make an educated guess about their liquidity needs. The TPA is reluctant to provide that information.

Apparently, the TPA is concerned about the 404c regs relating to confidentiality and the potential for undue employer influence on participants.

Is the employer not entitled to know which participants in the employer sponsored retirement plan own ER stock?

Has anyone seen a sample of the annual Disclosure Notice to give to employees?

Thank you!

In a multiple employer plan where a participant is employed at 2 or more of the employers can the participant elect salary deferrals at one employer but not at the other?

Would it make a difference if the 2 employers were a part of a control group?

Company A leases most of its employees from a hospital. Company A wants to start its own 401k plan. The owner would like to exclude the leased employees from company A's plan, but would likely fail coverage.

When the owner pays the hospital for the leased employees services, included in that is a portion that is for the leased employees retirement benefits in the hospitals plan. Lets say it works out to be a 5% of pay contribution for each employee.

Question: Can the owner take credit for that 5% in this plan? In other words, if the owner were to make a 3% safe harbor contribution plus an additional 2% PS contribution to Company A's plan, does that mean that since he is already giving 5% to the hospital for the leased employees retirement benefits, he can put 0% in for the leased employees into Company A's plan?

Thanks

I have read and re-read everything I can find on the topic, but I am still confused. Please help!

The Participant was receiving RMD's when he passed away. He was not married.

Is there a time frame as to when the monies have to be distributed to the beneficiaries?

Thank you so much for your input!

If a company changes PFOs in the year, but both PFOs continue to work and the PFO not serving as a PFO at the end of year is one of the three most highly compensated executive officers, how may people go in the table?

PFO1 (the one not serving at the end of the year as PFO, but who still works as an executive officer) is picked under 402(a)(3)(ii) and 402(a)(3)(iii). So do I put in the PEO, PFO2 (one serving at end of year), PFO1 and three other executive officers or PEO, PFO2, PFO1 and 2 other executive officers?

Correct me where I am wrong--please.

As I understand things an employer can use an HRA as a vehicle to reimburse employees for out of pocket medical costs as well as for individual health insurance premiums. An HRA requires a plan document and must treat all employees of a specified class equally.

However, an employee may reimburse individual employees for privately obtained health insurance premiums (section 106) that needn't be done across the board for everyone and no plan document per se is necessary.

Thus you only need the plan document and HRA when expenses are to be reimbursed, above and beyond outside insurance premiums.

Is this correct?

An employer I support has recently hired three new employees and as part of their benefits package has given two of them what he has deemed a $3000 medical stipend, the other gets a $2000 medical stipend.

I'm not sure how to treat the reimbursements (taxable or nontaxable). The employees must provide receipts along with their reimbursement requests. I'm thinking that for premium reimbursement it's fine to do without a plan document and it doesn't need to be offered the same to everyone. However for medical expenses other than premiums, I'm thinking that should be contained in an official plan document and the amounts made available to all employees. (Company has other employees for whom there are no medical benefits provided at all).

Can the employer do what he intends? If not, how can he legally accomplish what he's looking to accomplish?

I know that he could simply pay the reimbursements and make them a part of taxable income and there would be no issues but he'd rather keep them taxfree.

I have a DB plan that has two participants, both HCE's. In addition there is a 401(k) plan that covers 3 particpants, the two in the DB plan plus another HCE. In the past, the two participants in the DB plan have fully funded their required DB contribution (whcih exceeded 25% of pay) and put the maximum 401(k) deferrals in the 401(k) plan. The newest HCE is eligible for the 401(k) plan for the current year, but not the DB plan. The DB contribution for the two other HCE's does exceed 25% of all 3 HCE's compensation.

So, here is my question. Since the new HCE is not in the DB plan, can we make a deductible DC contribution for him. My initial thought was NO, since we have people covered by both plans, the plans would be subject to the 404(a)(7) limit.

I then read a paragraph in the ERISA Outline Book that indicated there must be an embloyee that is a "beneficiary" under each plan in order for the 404(a)(7) limit to apply. The author's thought was that it is reasonable to use the "benefiting" definition under the Sec. 410(b) coverage rules to determin who is a "beneficiary" under the plan (absent IRS guidance to the contrary). He goes on to say "an employee must share in the allocation of an employer contribution ... to be treated as benefiting under a defined contribution plan".

Since the two older HCE's get no employer contribution under the DC plan, only deferrals, would you think a DC contribution to the other HCE would be deductible? Thanks in advance for your help.

Company A matches 75% of first 8 percent of 401(k) deferrals. Employer may make additional discretionary matching contribs. Company B matches 50% of first 8% of 401(k) deferrals, and may also make additional discretionary matching contribs. Company B acquires Company A and merges Plan A into Plan B. Can plan retain Company B matching formula? And does this result in Company A participants becoming 100% vested in their matched contributions as of the merger date? Any other issues?

I am receiving conflicting information regarding how to calculate COBRA rates for a partially self-insured medical plan. The broker and plan administrator have advised that we should use the following calculation:

Specific Premium + Aggregate Premium + Max Aggregate Factor + Administration fee + Network Fee + 2%.

I believe that it is incorrect to use the max aggregate because that represents an inflated rate.

Am I correct? If so, what are the consequences of using the max aggregate in a COBRA rate calculation? Is there any official guidance on this topic?

For a new plan effective in 2006, that has operated in good faith compliance with the statute and regulatory guidance issued to date, is a written plan required now or can we still wait until final regulations are released to draft document?

I alwasy understood the rules for multiple plans- the salary deferral features to be different fehn what's here?

http://www.prudential.com/media/managed/2007LimitsNFP.pdf

Was I wrong? Especially on the 457 limits

While I'm sure I know what needs to be done, I thought I'd double-check with more experienced practioners. A new bookeeper just discovered the $4,000 catchup contribution was not listed on the Dec 2005 payroll report. Thus it was never paid to the investment company by the client. But, the W-2 reports an $18,000 deferral. The correction I propose is 1) Immediately pay the $4,000 with calculated interest, 2) File an amended 5500 and Schedule I a) increasing the ending balance by the $4,000 and b) changing the response to "yes" on Part II 4a, and 3) File a form 5330 and pay the excise tax. Not that it matters, the affected Participant is the owner's wife. I'm not looking to take any shortcuts.

I realize that traditional unit credit funding is associated primarily with non-pay related formulas and projected unit credit with pay-related formulas. That said, is there any argument or ability to still use traditional unit credit with a DB "accumulation" plan where the formula is a certain % of each year's compensation. While I assume I could, maybe should, use projected unit credit in this situation I'd prefer not to due to budget constraints. I realize the ER pays more on the back end if a salary scale is not used.

Anyway, any thoughts on whether I still have a reasonable funding method if I use traditional UC funding in this situation ?

Client wants to terminate s/h 401(k) 12/31/06. He will need to make the s/h match for 2006, but it probably won't be deposited/allocated until 2007. Does this mean client can't have a SIMPLE in 2007 since employee receives allocation in that year? Thanks.