I'm looking for a copy of Prop. Treas. Reg. 1.414(m)-5. These are the proposed regulations relating to management organization affilliated service groups that were repealed in April of 1993. Unfortunately, internet CFR and IRB resources don't go back far enough to accomodate so anyone with the ability to send a .pdf file of same would be a huge help. Anyone out there with time to kill, a scanner and a copy of the regs from no later than 1993?

As we all know, the Mental Health Parity Act requires that group health plans, insurance companies and HMOs offering mental heatlh benefits may not set annual or lifetime dollar limits that are lower than any such dollar limits for medical and surgical benefits. However, a plan may limit the number of visits covered or the number of days of coverage. The DOL has taken the position in an audit of an employer's health plan that the plan cannot impose constructive dollar limits on mental health coverage through a combined limit on the number of visits allowed with a fixed dollar reimbursement cap per visit. I believe this is consistent with the position taken by the DOL on its website. It is my understanding that the New York State Insurance Department reads MHPA to only prevent stated annual or lifetime dollar limits and that a per-visit dollar maximum coupled with a limit on the number of allowed visists is permissible. Has anyone had to deal with the DOL on this issue and if so, what was the result? Thanks for your input.

Hello all,

I'm studying for my DC-3 exam and came across the mandatory distribution exception for those participant who have reached the later of age of 62 or NRA.

I was wondering if anyone could explain what options you are allowed if you become 62/meet NRA as provided in the plan? Do the automatic rollover rules no longer apply? Or perhaps you can take a full cash distribution since you are at retirement age?

Sorry for asking here, but my DC book does not cover what happens when you meet this age in the chapter...

Thanks in advance for any posts on the topic.

Vicki

I have a client who is administering their own retiree benefits and is charging an administration fee onto the dental/health premiums thay are charging the retiree. Is this possible? and where can I find information on this.

I seem to remember a requirement to notify pension recipients of ???? on an annual basis. What is this?

I have heard administrators apply a "2 times loan balance" rule for security for loans, but I don't know if that is in the regulations or their plans/procedures.

We are trying to come up with a formula for determining how much should be available for hardship distributions and want to know if we need to account for loans by doing anything other than disregarding the receivable.

Do we need to make sure that one times the outstanding loan balance is retained in the account (or even two times??) or is that just a rule that has to be met at the time the loan is originated?

I'm new to 403(b) Plans - my prior experience has been with 401(k) and HR10 So I am reading IRS Pub. 571 to learn about them. In Chapter 3, the cost of incidental life insurance is discussed. If an annuity contract includes incidental life ins., the employer must include the cost of that coverage on the employee's W2.

Questions:

1. Does this apply to non-ERISA 403(b) Plans ?

2. Is this also known as PS-58 cost ? (we used to offer whole life as an investment option in the HR 10 plan and had to issue 1099 R's each year for the PS 58 cost of the term life portion of the policies)

Thanks in advance

An employer provides flex dollars to its employees; I'm not sure of the specifics, but dollars not used to purchase benefits are received in cash. This year the employer implemented a matching contribution to its 401(k) plan; the odd part is that anybody receiving a match has his flex dollars reduced by an amount equal to the match. I'm still checking, but it's possible that employees who were receiving flex dollars in cash but in amounts less than their match are having the difference taken out of normal compensation. Is any of this permitted? The situation just came to my attention, and I don't have access to my ERISA Outline.

Plan and Regs permit education expense for next 12 months. Next semester has not been billed yet. Anyone have a problem with estimates used as justification? Maybe it is not IMMEDIATE and heavy financial need if not billed yet, but plan uses safeharbor and this meets those requirements.

1) Can a plan administrator give employees a grid with their individual benefits and distribute the grid to everyone, so in effect, everyone's information would be on view for anyone to see?

2) Is there an easy way to find relevant DOL regs for a particular ERISA act section you are researching?

We have a Plan that has a 1 year waiting period and the employee is eligible on the first of the month following that date. The company has an employee that meets all other eligibility requirements except the 1 year service requirement. The individual's work history with the company is as follows:

Hired August 2004

Laidoff January 2005 (5 months of service)

Hired June 2005

Laidoff December 2005 (6 months of service)

Hired April 2006

When would this employee be eligible?

I have a money purchase plan (Old plan) which I contribute 8% of my salary. I Also have a SEP which I have been contributing 5% . I would like to raise the limits on the SEP , Is this allowed by law?

Calendar year plan terminated 1/17/06 and all plan assets were distributed by 2/28/06.

What do I use to prepare final filing if there are no 2006 forms available?

The plan in question is a DB plan that was frozen with respect to benefit accruals, new participants. In addition, the plan states that rehires cannot resume participation under the plan. However, if a participant left employment and was rehired before incurring 5 break in service years, the plan would have to give the participant credit for past service, but would the plan have to let the rehire continue to earn vesting service upon rehire (even if the person wasn't eligible to participate in the plan going forward?). The plan allows those who continue their employment to continue to accrue service for purposes of vesting.

Can someone tell me how to determine the 20% rule for top heavy testing. If you have 10 eligible particpants of which 5 are key (4 owners and the other a highly paid officer). I think you take 20% of 10 which is two. Then do you choose the two highest paid key participants who are defined as key employees? Or do all of the owners have to be considered (meaning all 5 keys would have to be considered)?.

a 401(k) had an account in the name of a ex-wife of the president of an auto dealership. balance as of 12/31/04 was just over 30K. they had been divorced for a few years and the wife's status was terminated and had been listed on the schedule SSA for a few years as well. in 2005 a check was cut to the still employed ex husband for the full balance of the ex-wife's account. no taxes were with held. ex husband was 55 at time of distribution. in a situation as such were the ex husband is our client, how much should we pry to determine legitimacy of such distribution? seems as if such distribution would be directed in a QDRO. ex-husband has yet to return calls to explain transaction.

There are recent notices going on from the IRS regarding the "period of relief" for Simple IRA plan document to be updated...if a plan was terminated in 2005....do you think there still needs to be an updated plan document? I am assuming so b/c I believe this "period of relief" reflects GUST?

Anyone else seeing these come through their offices?

My institution's attorney tells me that an employee who has requested a hardship distribution to repay/defray credit card debt that her ex-spouse incurred in her name must document how the debt would lead her to eviction to qualify for the distribution. She is newly divorced, has custody of two young children, and has already taken a loan to pay bills that are coming due. Any suggestions for how we should proceed?

Corporations X and Y constitute a management affiliated service group as defined by Code § 414(m)(5). Corporation X sponsors a new comparability plan. Participation in X's plan has not been extended to employees of Corporation Y. Smith is an employee of Corporation Y and owns 7% of Corporation Y's stock. Smith, if employed by Corporation X, would be a participant in X's plan. For purposes of the ratio percentage test, Smith will be treated as a nonexcludable, nonbenefitting employee. However, is Smith an HCE or not? Smith owns 7% of Corporation Y, but owns no part of the plan sponsor, Corporation X. Thanks in advance for your thoughts.

A client authorized his retirement plan to payout a terminated participant who terminated in early 2005. The document calls for payout to occur as soon as administratively possible AFTER plan year end (12/31 for this client's doc). The payout was made in May 2005. Discovery was made by the TPA once the 12/31/2005 valuation was being completed. The plan had earnings for 2005 (not losses). The TPA feels 2005 earnings should not be paid as the distribution was already made. The participant is still due a small payment of the 2005 contribution.

What type of possible problems exist and what type of correction can be made, if any at this point. Should the participant be made "whole" receiving 2005 earnings on his 12/31/2004 balance?