I have a current client that is a real estate firm - they are opening a title insurance company. Which under RESPA must be a completely separate entity - same ownership. Can they both participate in the same plan or do we need to set up a separate plan for the title company?

I read a post from several years ago regarding using refunds to correct a failed ADP test in a plan with a non-calendar year plan year. The question was regarding the 1099-R code to use. The practicioner who answered said that in their experience most off-calendar year plans distribute refunds after the 2 1/2 month period, paying the excise tax, so that personal returns do not have to be amended.

Just curious to know if anyone else has any experience in this type of situation.

Thanks!

We administer a small takeover PSP where the company owner / participant took out a $50,000 loan three years ago. He paid off the loan in full with interest within a year of taking it, however he should have made quarterly payments. As soon as we took over the plan, they received an audit notice. the plan was audited and the loan was determined to be a taxable distribution. I dont believe audit CAP is available because it is not a disqualification issue. Also, it appears no other correction program is available because the plan has been audited. Has anyone had this experience?

While other companies drop retiree health/welfare benefits, we are looking to ADD them to our benefit menu. As the "benefit analyst" here, I'm horrified that the original plan is this:

Must have worked here 20 years

Employee pays premiums (although the idea of employer paid is still being tossed about)

Benefit never ends until employee does (no stopping or COBRA eligibility upon Medicare eligibility)

I am trying to explain how this creates some serious financial liability for us, but seems to be falling on deaf ears. MY proposal is to:

*combine age with years of service, requiring that there be no retirement prior to age 55, with decreasing years of service requirements the older the employee becomes (example 55 + 10 yrs service, 56 + 8 yrs service, etc.) or some combination of age and service

*end coverage upon Medicare eligibility, allowing for COBRA participation at that time

*require employee to pay premiums

Does anyone have any other tips or things I should be thinking about??? Any help appreciated! Thanks.

Is an autopsy a reimbursable expense under a health fsa? If it is, please provide the supporting authority.

Thanks.

Is it ever permissible to amend, MID-YEAR, the definition of compensation to exclude fringe benefits

Can an employer sponsor a legal services plan that is tax favored either to employer or employee?

Reporting company's 401(k) plan held publicly traded common stock until recent (April '06) de-registration under Section 12 of '34 Act, at which time stock investments were converted to cash. Now that company is private, is there an obligation to file a Form 11-K for the plan for 2006?

If a plan sponsor wants to terminate the plan, they can choose to file a 5310 to receive a favorable determination letter.

Upon receiving this letter, they can then distribute the plan assets.

My question - if the assets have already been distributed and there is ZERO money in the plan, is there any reason to file a 5310?

What would be the reasoning for filing a 5310 for a plan term if the assets have already been distributed?

Thanks!

Two participants in a six-life self-directed 401(K) plan have had the correct amounts deposited to their respective accounts and investment choices, but incorrectly allocated between their deferral and matching subaccounts. There's about $2,000 - $3,000 for each shown as deferrals that should have been allocated to the matching subaccount. The plan does not allow loans or hardship withdrawals and all the matching contributions are safe harbor and 100% vested. Between the hassles involved in getting the investment company to make the adjustments, the employer's reluctance to correct the problem due to his perception of a pr issue with the employees, and the calculations entailed in figuring out the exact transfer amounts and earnings adjustments, we sure are tempted to not fix this. What reasons should be given to the employer to have this fixed? As long as money from this point on goes in correctly, and all previous amounts are in the correct investments in the aggregate for each participant, should this even be an issue? All help is appreciated.

participant completed an enrollment form requesting a certain percentage of pay be deducted for 2005. however, employer failed to implement instructions. how can this be corrected? i think you need to follow the VCP method for exclusion of an eligible employee. basically the employer has to contribute at the deferral percentage for her group. do you agree or disagree?

One of our clients maintains a money purchase plan and a safe harbor 401(k) plan that provides that the 3% nonelective contribution will be made to the money purchase plan. The 3% nonelective contribution is currently the only contribution going into the money purchase plan.

They would like to merge these plans in the near future, rather than wait until the end of the plan year (December year-end). They still intend to make the 3% nonelective contribution, but this contribution would now be made to the 401(k) plan instead of the money purchase plan. However, the safe harbor notice states that the contribution will be made to the money purchase plan.

Would this change violate the safe harbor rules since we're changing the plan that was identified in the notice? I haven't seen this addressed anywhere else.

We have a guy that wants to roll money over to an account in Australia. What is the tax treatment of this kind of transaction? I'm thinking it's a taxable distribution subject to the regular income taxes and penalties for early withdrawal, but I can't find anything to support this. Anyone out there know how to handle this, or where I can look for more info? Thanks.

JB

An employee is receiving disability benefits from a governmental defined benefit plan as a result of a work related injury. We treat these benefits as excludable from income as allowed under Section 104(a)(1). We now have a domestic relations order for this same individual. Are the alternate payee's benefits excluded from income as well?

I am an extreme novice when it comes to HSA's and the relationship (or lack there of) with FSA's. So please don't laugh at me . Is speech therapy or acupuncture eligible under the limited purpose FSA? Does participant enrolled in HSA have to prove that they have met deductible before submitting these to the FSA, or can we reimburse before or without this proof?

Could a participant make a loan repayment in the form of stock? My thoughts are that the transfer of stock by a participant to a plan would be a transfer of title, with all attendant income tax consequences, but more importantly could also be a prohibited transaction. Any information or thought?

An employer is submitting under the VFCP to correct the late deposit of employee deferrals. A small amount of money will be deposited to employee accounts as part of the correction process. Is there a requirement that employees be notified of the submission? I know that some employers have sent e-mails or included a note with paystubs, but I'm not finding anything that says an employer MUST notify employees.

This is probably a very basic question but I can't seem to find the answer.

3 months ago I opened a Roth IRA at my bank. I would like to move that to a Roth IRA at a brokerage. Can I move that money? or do I have to wait a full year after I open the account?

BTW I have other Roth IRA accounts that I have had open for 8 months now (those are all ok)

I found an older post (Aug 2000) addressing the question of whether an ESOP may restrict stock ownership to only current employees and transfer stock ownership of terminated participants to the accounts of current employees accounts?

The thread contained very definite and differing opinions on the matter. I am told that this is still common practice. Does anyone know whether any additional authority on the matter has been issued since 2000?

States which do not allow HSA tax breaks can be bypassed by running the contribution thru a 125 plan. Is this a true statement? Doesn't sound acceptable to me but not sure.