Maybe I missed this - but was the Roth 401(k) feature extended?

The participant completed a beneficiary form naming his separated spouse as his primary beneficiary. They become officially divorced. No new bene form was completed. He passes away. Is the ex spouse still the primary beneficiary? Does the divorce cancel the beneficiary form? Based on the current plan forms, a new marriage would cancel a beneficiary form. Does the benefit go to the contingent beneficiary, his mother, or to his biological children?

I looked at the plan document. Looks like a spousal consent was necessary. But, by the time he passed away, they were legally divorced.

Thanks.

I just wanted to alert everyone to situation here in our office. We prepared a Safe harbor 401(k) for a client. The clients attorney made some changes to our volume submitter plan and it was submitted to the IRS as an ind doc.

The IRS has said that all non-safe-harbor language must come out. For example the IRS agent wants us to remove all of the language that relates to the ADP/ACP test, as a SH 401(k) is not required to be tested. The IRS said that they do not want employers defaulting to the testing if they dont follow the SH matching.

We called our doc provider and they said that they were told by the IRS Volume Submitter agents that this was not true.

They said that they are going to fight this and I thought every should be aware.

this would cause a real admin problem for people who in a particular year, don't follow the SH rules.

Does anyone know whether a participant in an ERISA welfare benefit plan who has validly assigned his benefits to a health care provider would be able to bring an action for benefits under 502(a)(1)(B) after the provider unsuccessfully did the same (in a case decided on the merits) (and within the time limit for bringing suit)? It would be a rare circumstance, and I imagine that the claim would be precluded (res judicata) on account of the provider/plan litigation. But I don't seem to be able to find any authority on this point.

OK. The new bill (once it is signed) has set the interest rates back to PFEA levels in many cases.

Current liability uses PFEA for 2006 and 2007.

Minimum lump values use 30 year Treasury rates for 2006 / 2007???

PBGC uses what??

415 lump sums use the greater of 5.5% or the plan rate (with one additional kicker about the rate that would have provided a lump sum of not more than 105% OF THE 417(e) numbers - not sure where this one came from)

Is my understanding of the current situation correct?

I asked the following question in the Cafeteria Plan board but have not received a definitive response, so I figured I'd try here:

Can a multiemployer fund sponsor a cafeteria plan for the benefit of the employees of its member employers? Q-3 of the proposed 125 regulations seem to indicate not because a "cafeteria plan is a plan maintained by an employer for the benefit of its employees." Is there any way that a cafeteria plan (with premium payment, FSA, and DCAP features) can be structured to be located at the fund level and with only one Form 5500 filing for the FSA feature? Any suggestions are welcome.

The only "distributions" for my plan are ADP refunds.

Do I need to file the "R"? (Plan is on a standardized prototype, so I'm not answering question 9).

Related: Would I need to file an "R" if all we had were deemed distributions?

Can a SMM which includes all of the information required by the regulation be included on the participant's quarterly DC plan statement (i.e., not as a separate attachment/enclosure with the statement)? The statement includes a "bulletin board" section and the information could be "posted" there.

If there is only one broker who receives TPA Fees of only 694.38, does this need to be reported on the Schedule C? And if so, is it only reported on Line 1 and not broken down? The instructions say anyone who receives over $5000.

Do employers have to offer COBRA to terminated employees who have not overspent their account ?

How do you determine if an employer is eligible NOT to offer COBRA ?

The Multiemployer Pension Plan requires a Participant to provide the Plan with a Social Security Disability Award before that Participant can be eligible for Disability Retirement. In that a majority, if not all, Social Security Awards are retroactive, can a Participant elect to take an Early Retirement until they get their Social Security Disability Award and then come back and change their election to a Disability Retirement? My thoughts are that this practice, if it is legal, should be discouraged, if possible, in that it would cause additional administration and cost to the Plan.

Thanks.

i'm pretty new to the benefits administration field and so far i've only had experience with Relius Administration. Could anyone point me towards any alternative software other than relius? Thanks

What are the consequences of making a lump sum payment to an owner when the current liability is not 110% funded? We took over a plan that we are now terminating and have discovered that this occurred in 2002.

I have asked an attorney to check on this, but would like some feedback from others. A self-funded medical SPD drafted by the claims administrator contains an exclusion for any solid organ transplant if performed as a treatment for cancer. Does this violate HIPAA? If this exclusion is permissible, it seems a plan could exclude any number of benefits for specific illnesses; for example, no blood transfusions if performed as a treatment for AIDS. The second issue is that when I asked to have this removed, the claims administrator refused, stating it was a standard provision. The plan sponsor should be able to remove this, but I suppose then the reinsurer could retaliate by raising rates. Regards to all, Sue T

Husband and wife DB plan, both receiving benefits in 100% J & S form since early 90s. Once had a corp, but has since been dissolved. Now reporting as sole proprietor, as with other case, if plan were to terminate and distribute assets or purchase annuities for each, there would be a reversion.

If both were to die (say in a car accident together), again sicne benefits would cease, would all remaining assets become the reversion? Being a sole proprietor - to whom or what?

I have a one-man DB plan - participant has been receiving a LA annuity for the last 10+ years. If plan were to terminate today, there would a reversion of assets to the corporation after his payout or purchasing an annuity.

If he were to die while plan is still in existence, since benefits would obviously cease, do all remaining assets become a reversion to the corporation?

Is a public university considered a governmental plan in regards to filing a 5500 report? Specifically, this is for a 125 Health Reimbursement plan. They have more than 100 participants, but do not hold their assets in a trust.

Would this university be exempt from filing a 5500 report?

Thank you.

We have plan that upon review have discovered that an employee who took a hardship withdrawl in 2005 continued to defer compensation. The employee also received a matching contribution on that deferral. The plan has been amended to allow a participant to begin contributions after 6 months of the Hardship.

What is the best way to correct this? A self correction or VFCP? Should we correct; Employee was actually benefited by receiving the matching contribtuion.

Any thoughts? Thanks!!

The new 403(b) regs. indicate that a 403(b) plan can be terminated and distributions made only if no contributions are made to an alternate section 403(b) plan within 12 months after the distribution of all the assets. The regs. don't seem to prohibit the termination of the 403(b) and distribution of assets and immediate establishment of a 401(k) for an eligible employer. Is this correct as of the effective date of new regs?

A local governmental defined benefit plan has a discrepancy between the plan definition of part-timers for eligibility purposes and its personnel rules. It has therefore been excluding certain part-timers that should have been eligible under the plan (for about ten years now!). What is the appropriate correction method?