Is an employer required to have a period of open enrollment when there is a rate increase in employee contributions toward the cost of health insurance?

the puzzle does not involve the missing movie people.

instead, this one is all about movies (27 in all) that have some scene with a doll (or more) involved.

well, ok, a couple are cartoons, maybe toys are a better description in some cases, etc.

hey I actually knew one of the movies this time.

oooops. #17 The title begins with 'The'. I forgot to put a space between the word 'The' and the next word in the title, so you might have the correct movie but since I messed up it might not say 'correct'

I am just wondering if my situtation is normal or even legal.

My company just moved from a profit sharing plan to a new 401K plan. They have taken money out of the last two checks (I am paid every other week) for the 401K but have not deposited any money into the 401k account. The first check to have funds taken out for the 401K was on July 30th. After I received the stub for that check I tried creating an online account to view my new account. I was not able to. When I inquired with our HR department I was told they were still finalizing the enrollment forms with the 401K company but they would look into it. I thought it was strange that the employees were not even enrolled yet but money was taken out of our checks. Later that week I was able to create an online login and view my account but there was a zero balance. I thought it may take some time for the money to be deposited so I waited until after the next check was issued, August 13th, to check the balance. When I found it was zero I again contacted our HR department. They said the person who was in charge of transferring the funds was on leave and her replacement did not have the authority to do the transfers. A higher up was getting involved and it should be taken care of by the end of the week. That was August 15th, and I still have a zero balance in the account. I have talked to a couple other employees and they also have a zero balance.

Is there a maximum time frame from when a company takes money out of your pay check until it gets deposited into your 401K account? It bothers me because the money that has been taken out so far is in limbo and I have no access to it. For all I know the company is making interest off all of the so called 401K contributions from all of the employees.

-Mike

401(k) Plan allows an employee to contribute a flat dollar amount or percentage each pay period. Employee A chooses a flat dollar amount of $100 per pay period. Employee only works a few hours one week and does not have $100 in compensation for the pay period. Should the employer:

1. withhold employee's entire pay other than applicable taxes owed; or

2. not withhold anything becuase employee does not have enough pay to cover his election; or

3. withhold nothing under #2 above and make up the difference on the employee's next pay period.

The prototype doc. does not address this specific issue other than to reference the plan administrator can allow for flat dollar contributions. Also, I could not find reference to it in the ERISA outline book nor when I searched this site.

Case.pdf

Cross tested plan

Defined benefit has an eligibility classification by job categories.

2004, 2005, 2006 Lab Assistant A is eligible for the defined benefit plan

2007 Lab Assistant A is not eligible for the defined benefit plan

Since Lab Assistant A is not eligible for the db plan in 2007 does that mean that they don’t receive any additional contributions and their accrued benefit is based on what they accrued for 2004-2006. The plan documents state yes.

However, they would participate in the 401(k) plan now and receive a lesser profit sharing contribution.

Is there some discrimination rules that would apply here? Such as once you're in the defined benefit plan you're stuck unless terminated from the company.

If an employee elects COBRA under her former employer's FSA and then begins employment with a new employer that also offers an FSA, is there anything in the FSA, COBRA or cafeteria plan rules that would make the employee ineligible to participate in the new employer's FSA (as a result of still being on COBRA from the old plan)?

Any guidance is much appreciated!

We have a 401(k)/PS plan. Although matching contributions are made quite often, PS contributions have never been made. Is this plan in violation of 1.401-1(b)(2) (substantial and recurring contribution requirement)?

Company A has 200 participants in 2005. They are required to be audited for 2005. They only have 15 of the 200 who actaully have money in the plan so they decide they don't want to pay for administrative fees and audit fees for a plan for which such a small number of employees contribute.

They cease accrual of benefits on the plan as of 11-01-2005.

They DON'T change the plan year.

They get the audit done for 2005.

The plan is completely paid out 08-01-2006 - so they have a 2006 plan year from 01-01-2006 to 08-31-2006.

My question - does ceasing accrual of benefits as of 11-01-2005 mean that the 185 participants who never contributed to the plan are NOT participants as of 01-01-2006? They no longer have the ability to benefit under the plan in 2006.

Would the participant count on line 6 of the final 5500 show only 15 or 200? This means the difference between and audit and no audit for 2006.

I'm just wondering what everyone is doing with these 412i plans in which the value of the contract is exceeding the 415 maximum lump sum payable. We are looking at the plans on an annual basis to ensure that the value of the contract won't exceed 415. If it appears that it will, we are advising the client to reduce their monthly benefit or considering termination of the plan prior to meeting the maximum lump sum.

Any other thoughts?

The initial plan year for this plan is short 5/1/2004 to 12/31/2004. A valuation date of 12/31/2004 was used in the first year. It is desirable to change the valuation date to 1/1 in 2005. Is this an automatic approval under 2000-40.

The question is whether or not the establishment of the funding method in the first year would start the clock on the 5 year waiting period to change the funding method. Or, do you ignore the first year of a plan for purposes of the 5 year period between funding method changes?

1. If a director in a private company defers his fees (which could be paid in cash or company stock at the director's election) in the form of phantom shares, but the account of phantom shares will eventually be paid to the director in cash, not shares, is the arrangement subject to the '33 Act registration requirements?

2. If a private company pays its director fees in company stock, am I correct in thinking that the shares have to be registered under the '33 Act or meet an exemption like Rule 701?

Thanks in advance!

After reading the Congressional Budget Office report, I was struck how misleading it is.

Their scoring method is the effect on the Federal Budget of tax revenues.

So if Congress forced private industry to pay a huge tax to a non-budget entity (read PBGC),

then more business deductions are allowed and tax revenues are "LOST" to Congress.

Meanwhile, the govt has taken a lot more money. What is not measured along the way is that PBGC is less likely to need a bail-out.

I would like to confirm my interpretation of the new 404(a)(7)©(iii). The way I read this is that if the DC contribution is 6% or less, than the 404(a)(7) limit (25% comp) doesn't apply, but if it is > 6%, the 404(a)(7) limit applies.

When I read some of the summaries I got the impression that you could ignore DC contributions up to 6% of comp, thus increasing the combined limit from 25% to 31%, however I do not think this is correct. Basically the way I read it now is that if the DB contribution is 50% of comp, you would be allowed DC contributions up to 6%, but the penny over 6% triggers this limit and would make any amount over 6% non-deductible. So if your db contribution was 15%, you could only put 10% into the DC without hitting the limit.

Agree?

404(a)(7)© PARAGRAPH NOT TO APPLY IN CERTAIN CASES. --

* * *404(a)(7)©(iii) LIMITATION. --

In the case of employer contributions to 1 or more defined contribution plans, this paragraph shall only apply to the extent that such contributions exceed 6 percent of the compensation otherwise paid or accrued during the taxable year to the beneficiaries under such plans. For purposes of this clause, amounts carried over from preceding taxable years under subparagraph (B) shall be treated as employer contributions to 1 or more defined contributions to the extent attributable to employer contributions to such plans in such preceding taxable years.

When filing a schedule a for a welfare plan, I have always reported the insurance carrier. I just received schedule a information where the TPA is listed instead of the ins. carrier. I have never seen this before. Has anyone else?

I called the TPA and all the person could tell me was that it is their name on the schedule a because the premiums are paid to them and they process the claims.

Anyone else have an opinion on this?

Thanks in advance for any help.

In reading the 2006 schedule B instructions, it indicates

" The Schedule B does not have to be filed with the Form 5500-EZ. However, the funding standard account for the plan must continue to be maintained, even if the schedule B is not filed"

Under What to file (5500-EZ instructions)

Note. Effective beginning with calendar plan year 2005, filers of Form 5500-EZ are no longer required to file any schedules or attachments (including the schedule B) with the Form 5500-EZ. Filers, however, must collect and retain completed and signed Schedule B, if applicable.

Does this mean the "retained" schedule B must be signed by the due date of the filing? It would be great if it did not matter when the B was signed.

Hello. What would be the deadline for a calendar year plan to add 401(k) and safe harbor provisions for the current plan year? If they are able to add these provisions in 2006, what are other deadlines they would have to be aware of - I am thinking of posting a safe harbor notice - does not posting a notice in 2005 mean they can't use for 2006? I am also thinking that I read somewhere that safe harbor has to be in place at least three months in a plan year.

Thank you very much!

I would appreciate a citation as to whether an employee on severance pay can continue making 401(k) deferrals.

Thanks,

Is this repealed effective in 2006 or 2008?

I had always taken it as "gospel" that if a participant terminated employment and wanted to roll over a remaining 401k plan balance, that any outstanding participant loan would be paid of at the time of the distribution. I am now getting a request from an individual who wants to roll over his entire balance, including the plan loan, to an IRA. Will an IRA accept a qualified plan loan and allow for ongoing repayment? Is this possible? If so, that's fine, I don't know enough about IRA regulations.

Thanks.