A VEBA serves as the funding medium for 2 welfare benefit plans sponsored by 1 employer. There are 3 entities in this arrangement:

1. VEBA (exempt organization) - Form 990

2. Plan 1 - Form 5500

3. Plan 2 - Form 5500

The assets for both plans are commingled in the VEBA trust and can't be divided or segregated. The asset values are allocated, on a fair and reasonable basis, for Form 5500 disclosure. Each plan reports its own interest in the trust's assets.

The sponsor's attorney insists that each plan's Form 5500 should report all of the VEBA assets. He's saying that Form 5500 should, in effect, overstate each plan's assets to include everything held inthe trust. On a publicly-disclosed document, each plan would report misleading information about its resources, financial position, and ability to pay benefits.

I need to put an end to this discussion, but I haven't come up with any substantial authority. Can anyone point me toward a DOL regulation, IRS instruction, or other cite to back up my position?

If an association health plan returns subsidy payments to plan sponsors who participate in the plan, and if subsidy payments are based on utilization of participants, is the payment of the subisdy a HIPAA disclosure of PHI if employer can determine which retirees used the prescription drug program?

I have a client who is a basketball coach and has a 403b plan and 457 plan through the University. He deferred 14k to each of these plans for 2005. He also has a Profit Sharing Plan for his LLC that he runs his basketball camp through. According to IRS Pub 571, you have to combine 403b deferrals with contributions to qualified plans of businesses that you are a 50% or greater owner of to see if you are over the 415 limit. My question is if the 457 deferrals would count against the 415 limit as well. Thanks for any help with this.

If an employer deposits too much match on a per payroll period, and we need to take the match out at the end of the year (because match is based on annual comp), may we then apply those funds to the employer's obligation to pay a profit sharing contribuiton?

I dont beleive these funds would be considered forfeitures, since they were never supposed to be deposited, and am looking for affirmation that the employer can than use those funds for other plan purposes.

Any Thoughts?

Help...

MPPP requires a 3% employee contribution in order to share in employer contributions. A Participant has just returned from military leave. What does the Plan do now? Does it require the employee to make up the mandatory contributions in order to receive the employer contributions (like you would do with a 401(k) plan that has matching provisions) or does the Plan make the employer contributions without requiring the employee contributions?

Thanks for the input!

The eligibility requirements for a non-standardized profit sharing plan are: age 21, 1 year of service

Plan year ends 09/30/05

Dual entry dates 10/1 & 4/1 after meeting the eligibility requirements.

Employee was hired 1/18/00

Works 1000 hours from 1/18/00 - 09/30/00

Terminates 10/1/00

Rehired 02/14/05

Did this person meet the 1 year of service and should they be allowed to enter the plan upon rehire?

I was just wondering if it is possible for one person to fund more then one IRA. Could I set one up thru Vangurad and also have one thru fidelity so that when I'm 60 I can get my money out of both? I am in this for the long haul and would like to be financiall set. Thanks, Jason

p.s. i know with vanguard u need to start witha 3000 dollar investment while with fidelity i can start one with no balance and pay 200 automatically out of my savings. Thoughts on this??

The 401(k) plan document defines compensation as W-2 wages. Question 1: On line 1 of the W-2, should this figure inlcude or exclude deferred compensation amounts? Question 2: This is an S-Corp, so the owners health insurance gets added back into to the Box 1 figure, but is excluded for FICA wages. Should these amounts be added back into Box 1 for plan compensation?

Thanks for any help.

If a person work for Company A and gets laid off but then gets hired by Company B who is under contract for Company A. This person still performs the same work for Company A in the same office. After a few years, the person gets re-hired with Company A.

Is this considered a break-in-service under the ERISA statute?

Our firm is looking into offering an Executive Physical Program for selected individuals. The firm will pay up to a certain amount and the rest would be paid by the employee.

We are trying to determine the best way to administer the program and hopefully eliminate extra work tfor the executive.

If anyone's firm administers such a benefit, I would appreciate any suggestions.

Thank you.

I am dealing with a 401(k) plan that contains a QJSA normal form of benefit. We are involved in a merger & acquisition situation, and we would like to apply a default election procedure under which a participant's 401(k) account balance will be automatically directly rolled over if the participant does not respond to the distribution election form and notice within 30 days (essentially a negative, or default, election). Is this possible, or must the plan obtain affirmative spousal consent for the direct rollover? In other words, can a default election satisfy the requirement for spousal consent of a direct rollover?

I am dealing with a 401(k) plan that contains a QJSA normal form of benefit. We are involved in a merger & acquisition situation, and we would like to apply a default election procedure under which a participant's 401(k) account balance will be automatically directly rolled over if the participant does not respond to the distribution election form and notice within 30 days (essentially a negative, or default, election). Is this possible, or must the plan obtain affirmative spousal consent for the direct rollover? In other words, can a default election satisfy the requirement for spousal consent of a direct rollover?

Could a MP plan that currently contributes 9% of compensation change the allocation formula to allocating 9% of comp to existing participants and 6% to new participants? If so, would a rate group test on an allocation rate basis be the required test to prove nondiscrimination? I realize the rate group test can be done on an equivalent benefit rate basis also, but I would like to avoid this.

I've worked on PS plans that give different allocation rates per divisions and have performed the rate group test as listed above to test nondiscrimination. I'm just not sure if being a MP plan changes things or if the participation date "grouping" matters.

Thank you in advance.

Birdie birdie

in the sky

do that do-do in my eye

me know care

me know cry

cuz me not in a four-twelve-i

so, while you can sort by name, the sort is as follows:

if {PLANKMTEST.EESORTOPTCD}='2' then ({PLANEEKMTEST.LASTNAM} + {PLANEEKMTEST.SSNUM})

so when it sorts you get by name, but if two people have the same last name then it sorts by soc sec number. so my plan with a flock of Smiths is, well....

you would need to modify as follows if you want the first name to be considered in the sort.

if {PLANKMTEST.EESORTOPTCD}='2' then ({PLANEEKMTEST.LASTNAM} + {PLANEEKMTEST.FIRSTNAM}+ {PLANEEKMTEST.SSNUM})

A participant in a profit sharing plan is deceased and so is the spouse. The company does not have a beneficiary designation on file. What options are available to the administrator for distributing the account balance?

Any thoughts on whether you can treat the following as a "newly eligible" participant for purposes of the 30 day election rule? The employee participates in a deferred compensation plan by making deferrals under the plan during 2006. The participant is terminated in early 2006 and 2 months later is rehired. The participant upon rehire must wait 30 days, but then becomes eligible to participate in the same deferred compensation plan.

Note: Under the plan you must receive your account upon termination of employment and in this case the employee is being treated by the employer as a new hire.

Any other way around this issue?

Where can I find more information on the above Safe Harbor 401(K) Maybe Notice, and possibly a sample?

Thanks.

Steve

A participant received and read the SAR and is now asking for all of the information they are entitled to.

What exactly is the plan required to give to the participant other than the 5500 excluding the Schedule SSA?

How frequently is it required to provide this participant with all of the requested information? (Participant is stating that it is required to provide quarterly.)

How long does the plan have to provide this information after the request has been submitted?

Thank you for any help.

I’m hoping someone here is familiar with administrative obstacles after your area has been declared a disaster area by the President. We are in an area that was declared a disaster area due to Hurricane Katrina and are dealing with a lot of odd situations because of it. One question I have is:

Would it be allowed to permit a participant that had to terminate their employment or go on leave due to the hurricane (main reason is because of relocation of either the individual or the company), to submit expenses incurred after the hurricane for reimbursement under their health FSA plan? The participant either had not incurred medical expenses before the hurricane or has lost all documentation in the flood.

Please let me know if you need more information to help with this.

Thanks in advance.