I have someone asking if an electro dermal screening provided by her chiropractor is covered under the Health FSA. It is a procedure that is not covered under insurance. Please give some guidance or thoughts on this.

For some reason at least every 3 years sticks out in my mind. The land in question is actually in a profit sharing plan, so I'm not sure if that makes a difference or not.

Thanks!

Dennis

Trying to figure out ADP/ACP and 410 issues.

Company A has two (k) plans, Plan 1 is merged into Plan 2 effective as of the close of business on 12/31 but Plan 1 participants don't begin participation in the new merged (k) plan until 1/1.

For ADP, ACP and 410) testing, is the company considered to sponsor one or two plans in the year the plans were merged effective 12/31 ?

Does the service have any official stance on this situation ?

do you think it is appropriate to required the parent/guardian of a minor beneficiary to open an UGMA account in order to receive the distribution from a401(k)? the plan allows for this but it also says you can just make the check payable tot he minor?

We are trying to understand the ins and outs of Church Plans and have been unable to find any real guidance. We are making a proposal to a group that encompasses several churches. They would like to set up two plans 1) for clergy and 2) for lay persons. The Clergy Plan would receive a 15% across the board employer contribution and the Lay plan would have either a profit sharing or a matching arrangement at the discretion of each individual parish.

Could someone tell me if:

1) They would be subject to ADP/ACP or discrimination testing, 415 limits, etc.

2) Would HC's be restricted in how much they could defer as opposed to the NHCE in the either plan.

3)Compensation of clergy includes not only salary, but housing & car allowance, schooling etc., What are the guidelines for compensation consideration in a Church Plan.

4) Will a Form 5500 be required since there will be employer contributions.

And, lastly is there a good information site that will help us understanding how church plans work and what is required.

Thanks

A DB plan determines lump sums as the greater of (1) the amount using the "applicable" mortality table and "applicable" interest rate or (2) through the year 2010, the amount determined using the PBGC interest rate at the beginning of the plan year and the "applicable" mortality table.

Assuming that for a particular participant the plan annuity benefit is less than the 415 dollar and comp limits, my understanding of current law is that the 415 Lump Sum Maximum for a current payout would be determined using '94 GAR mortality and 5.5% .

Is my understanding correct ???

This is too much for my monday morning brain.

I have a plan that terminated in January 2005. Employer merged into new company and started participating in that employer's plan in February 2005.

Do I do the ADP test for the single month of deferrals? I thought so, and started to, but something keeps nagging at me...? that the employer would be testing those deferrals on the test for the new plan.

Are there any current Relius users that have past experience with Investlink (TSM) that would be willing to share some general thoughts on Relius vs TSM?

I have been working through some problems with a VEBA. Currently, the

VEBA (a multiemployer plan) allows a person to take his entire "account" balance upon a 12 month severance from employment. This provision applies regardless of the reason for leaving the trade...including retirement.

The regulations seem to clearly prohibit any severance pay that is triggered directly, or indirectly by a person's retirement. 29 CFR 2510.3-2(b). We also found a couple of cases that which held the same.

Am I missing anything? Is there a rule out there that would allow such a payment to be made?

I wanted to know what the process is to form a Roth IRA LLC and how to handle things like a rollover into it. Very little information is available on the net. Can I do it by myself by getting an EIN, what are the annual federal filing requirements for it and can the LLC act as the custodian of the account FBO of my roth IRA. My reason for the information is the prohibitive recurring fees most custodians charge for holding land within an IRA account. Can anyone help or give advice?

Employer maintains SIMPLE IRA at a financial institution. All the accounts under the SIMPLE is at the same financial institution.

Employer sent in checks to financial institution along with breakdown/allocation sheet.

Employer made a mistake (clerical error) and gave instructions to deposit more than the correct amount to one participant’s account, and less than the correct amount to the other participant. (One person got too much, and the other got too little).

These were employer matching contributions

Can the employer just send a letter to the financial institution to make the adjustment?

Is this affected by the irrevocability of IRA assets?

We have come across the case of a cash balance plan that bases it's interest credit off of S&P 500 rates.

The plan does not allow for distributions prior to normal retirement, so generally, the whipsaw effect doesn't affect the plan. However, the clients are interested in terminating the plan, and if that happens whipsaw will have a big effect, and we feel that the plan will be underfunded on a termination basis as a result.

Are there any issues with amending the interest credit rate to match the 417(e) rates? Are future interest credits a protected benefit?

My instinct is no because the 417(e) rate is variable itself, but I wanted to see if anyone has had any experience with this.

Thanks!

We are in a situation that may be unique, at least it is to us. A doctor who practiced until his recent death (age 87 or so) administrered his money purchase pension plan himself. There is approximately $1,200,00 in plan assets at a brokerage firm. He also filed the 5500's himself, but that's another story. It also appears that the plan has been frozen since at least 1994 sice the 5500's indicate that no contributions were made. The last 5500 filed was an EZ. No plan documents can be found.

We've been retained to correct the plan document problem. We're reasonably sure that the plan was never restated for GUST and EGTRRA. There is a good chance it wasn't updated for TRA'86 either, but we cannot tell without documents. Up until 1980 or so the plan was administered by a bank, so we're fairly certain that a document did exist at one time, but the bank no longer has a copy.

We've corrected for nonfiling under VCP, but never without any documents at all. Has anyone been in this situation? I've considered doing GUST and TRA 86 documents and filing under VCP. However, with no prior documents to begin with, I'm not sure this is the way to go. I've considered filing through VCP as a John Doe submission to get a feel for how the IRS would treat the plan. However, the family wants it resolved and time is important. Any ideas? Thank you.

We may have accidentally mailed a Form 5500-EZ to P.O. Box 7043 instead of the P.O. Box 7042 in Lawrence. We won't know for sure until our return receipt postcard comes back, which may not be for a week or two. This is a PYE 12/31/04 not on extension, due on the 31st / 1st.

I suggested that we mail a photocopy of the original filing to the correct address, and attach a memo stating that it may be a duplicate filing, or it may have been mailed to the incorrect address but that we are not sure. I would rather not put the return on extension at this point.

Any thoughts?

Thanks for your input.

LiP

Hello all,

I've found this board to be very helpful in the past, so I'm hoping to try my luck again today.

I'm relatively new to DB plans. I was asked to do some research regarding a small overpayment in a calendar year one participant DB for 2004 (approximately $500.00). The funding was made based on estimates from the actuary, but turned up lower than the expected at year end with actual information.

I've read prior posts and came across one that referenced the full funding limitation and irc 4973 (if I remember correctly). From what I've read, IRC 4973 states an exception to the DB funding where the employer can elect not to include contributions except above the calculated full funding limitation.

Would anyone be so kind as to help me with the following:

1. How to calculate the full funding limitation (hope this isnt asking too much)

2. Explanation of the exception/is my understanding correct?

3. How would this affect the corporate return for the client - I'm assuming if the contribution is limited to above the full funding that is all they can expense on their return?

Thanks in advance,

Vicki

If electing to take the 28%subsidy. How will your company Price their Retiree Medical plans for Medicare part D?

I have a participant who has re-financed two loans that he has in the plan. The maximum number of loans allowed is 2. He is now asking that we re-finance one of his loans again. Is this possible? Should we have even re-financed the second loan? Thanks.....

Articles and studies about plans providing automatic enrollment and automatic deferral increases are constant. Legislation is pending addressing these issues.

Automatic enrollment has been around for a while and is an option in most prototype documents. But automatic deferral increases is a fairly new thought and not contemplated when most prototypes were amended for GUST, etc.

Question - in order for an employer to utilize the automatic deferral increases, do you feel the plan document must specifically permit these increases? Or do you think if it's included in an annual notice (perhaps in the annual auto enroll notice if that too is being used) and in the SPD, that would suffice?

For those who may have employers using the automatic deferral increases, what have you/sponsors been doing?

Husband owns 100% of small business.

Wife is Husband's sole beneficiary.

Husband has daughter (now over 18) from previous marriage.

Wife has never legally adopted Husband's daughter.

Husband dies in car wreck.

Subsequently, Wife is now 100% owner of small business.

Husband's daughter works at small business.

Q: Is Husband's daughter Key, HCE, etc?

Can an office manager that is not an officer of the company sign the front page of the 5500 for the Plan Administrator or the Employer? This is a single company 401K. She is a trustee of the Plan. And I do mean signing her own name.