I am confused on 415 limit and catch-up contributions.

My 401(k) PS plan has a plan year 07-01-2004 to 06-30-2005. I have made the following 401(k) contributions:

01-01-04 to 06-30-04 $12,800

07-01-04 to 12-31-04 $3,200

01-01-05 to 06-30-05 $18,000

Total plan year 401(k) contribution = $21,200

Total 401(k) catch-up contribution applied to 2004 plan year ADP testing=

$3,000 from 2004 & $4,000 from 2005

My 2004 plan year 415 limit is $42,000 - what is the maximum profit sharing I can take for the 2004 plan year to get me to my 415 limit? Note - my comp. is well in excess of the 401(a)(17) limit in effect.

Is it $42,000 less $14,200 in deferrals or $27,800? or is it something less than this?

Any help is appreciated.

Is it a true statement that although an individually designed plan can go in for a dtermination letter now for EGTRRA, it would have to go in again under the six year schedule yet to be announced, so that any filing at this time would not eliminate another EGTTRA filing later????

My former employer, with whom I have health care coverage through, changed carriers mid-way through my COBRA. I was not notified of this change until 1 WEEK before the change over. I had already used 10 months of an 18 month COBRA policy, then it was changed. Would I be eligible for more than 8 months coverage under COBRA, since I didn't even get my Insurance card until 1 month after the new policy went into effect.?

I was declared disabled during the first month of going on COBRA. I was led to believe it was for 18 months only, for an individual person. I did not know that I could qualify for 29 months of coverage if being declared disabled. I am now at the 15th month of my 18 month COBRA coverage and just learned about it. Would it be too late to submit it to my plan administrator, even though the rule calls for it must be submitted within 60 days of determination AND before the end of the 18 month period. I really need the extra 11 months, as I don't qualify for Medicare until May of 2006. What should I do?

Scenario - Employer pays a small portion of health premiums for eligible dependents. Those same premiums can also be paid towards eligible domestic partners, but employer premium for domestic partners is directed back to the employee as imputed income.

Question - How is premium added to employee's gross wages? Is it just added to gross wages at the end of the year? 1099?

Does anyone have a link to a table of non-blended qxs (Male and Female). I develop my own APR tables, but the actuary is saying he needs sex-specific aprs for RPA. Boy, I love acronyms! The only table I could find was a 50/50 blend.

Individuals must have earned income and adjusted gross income less than $110,000 for single, $160,000 for married couple.

Let's say I open a RothIra now my income now 60K. What is in couple years my income will be more than 110K, then I am not eligible anymore for RothIRA and I should close it?

Or I can keep using it even if my income grew more than 110K limit?

Thank you

Employers make contributions on behalf of their employees to a multiemployer health plan. For tracking purposes, the plan provides to third-party service provider SSNs and certain other info of the participants to document the amounts that been contributed on their behalf.

Does the HIPAA privacy rule protect the transmission of this info even though it pertains only to the fact that contributions have been made for health coverage and does not relate to the actual health condition of the employees? In other words, does information pertaining only to plan funding (and not payment for claims) sufficiently "relate to the payment for the provision of health care to an individual" so as to constitute IIHI? If so, this would require a business associate agreement w/ the service provider, right?

hi,

I am a new person and complit dummy in all IRA and RothIRA...

So, if I would like to open RothIRA or IRA and would like to use them to invest in Real Estate, do I have to have a custodian company? Theis fees are pretty high.

Can I just open the account on my own and then invest in Real Estate with it without any custodians and without paying them the fees?

Thanks.

I am taking the C3 exam. Anyone know how to get some practice questions.

A company wants to put in place a self-funded health plan under which only certain costs associated with hospital co-pays will be reimbursed. In general, the company wants to give employees 6 months after the end of the year or after termination of employment to request reimbursement for eligible expenses incurred during employment. However, if the company terminates the participant's coverage "for cause", the employee will lose his right to seek reimbursement after employment terminates, even if the expenses were incurred while employed.

Other than all of the issues regarding defining "for cause", can anyone see any problems with this? I can seek an increased risk for a claim under ERISA Section 510, and possibility of discriminatory benefits depending on how this is operated, but is there any problem with having a benefit being reimburseable unless you subsequently are terminated for cause?

Just a general inquiry:

I enjoy Sal Tripodi's Erisa Outline Book, and also the only RIA Checkpoint Service for most of my Retirement (and, in the case of RIA, some health/welfare plan) research needs.

I'm curious, though, about what resources some of you may find especially helpful in the health/welfare area. I know the EBIA books (at least the ones I've seen) are good.

Any other tips on comprehensive Health/Welfare resources out there?

Thanks in advance for any shared insights.

Is it possible for the ESOP to own stock that would have the greatest voting rights and would also pay dividends, while the other owners own stock that is not dividend paying? Thanks.

If an employer has a SIMPLE Plan and an employee leaves employment (after being a participant), and comes back after 5 years, are they automatically a particpant when they come back? And if so, do they come back in on the next entry date or immediately?

Thank you so much for any advice you can give in this area. I do not do SIMPLE Plans (but the broker is asking).

I have a participant that had laser eye surgery in 2004. The participant makes monthly payments for the surgery. In 2004, he was not a particpant in the employers FSA plan. He is participating in the 2005 FSA Medical plan year. Can he claim the monthly payments for the eye surgery? I would appreciate any input. Thanks!

I know that the Bottom-Up QNEC provisions are being radically changed with the final regulations that are effective 1/1/2006 - but in the meantime I am pulling my hair out trying to figure this situation out...

Let's say that a plan fails their 1/1/2004 to 12/31/2004 ADP/ACP test. The plan document allows a Bottom-Up QNEC to be made as a correction.

According to the ERISA Outline book, in order for the QNEC to be treated as an annual addition for the 2004 plan year, it has to be contributed no later than 30 days past the employers tax filing deadline.

So let's say that we're past that date - so the QNEC will be treated as an annual addition for the 2005 limitation year (assuming the limitation year is 1/1).

Let's say that the NHCE with the lowest salary on the 12/31/04 ADP/ACP test has a salary of $3,200.00 and let's also assume this NHCE did not have any contributions in the 2004 plan year.

If the QNEC was to be treated as an annual addition for the 2004 year - then we know that this NHCE can only get a QNEC of $3,200.00 - because anything more and they would exceed the Section 415 limit.

But in this situation, the QNEC is being treated as an annual addition for the 2005 year, because it's not being contributed until after 30 days after the tax filing deadline.

So how do we know how much of a QNEC to give this NHCE? We won't know their 2005 415 limit until 12/31/2005. Do we just give them the maximum amount as we can until it satisfies the ADP/ACP test(s)? What if that ends up being a contribution of over $10,000.00 ???

Here is the situation:

I have a safe harbor (match) 401(k) psp. The discretionary ps contribution is cross-tested (of course, why else would I be here....for fun?). I know that for coverage purposes, we can exclude terms with less than 500 hrs.

When testing, we failed the rate group test so then we move on to the ABT. Are terminated participants with <500 hrs included in the ABT?

I hope there is enough info for some advice, if more is needed I can supply it.

Any help would be appreciated.

Carson Vaughan

can anyone tell me where I may find a copy of this to review?

I have a plan that tests its divisions separately. During the year, a participant worked most of the year for a division that wasn't top heavy. During the year, he transferred to a small division that is top heavy. Should the allocation be based on full year comp with the company or part year comp with the small division.

Does section 3(a) (2) of the Securities Act of 1933 exempt interests in multiple employer defined contribution plans? The terms relate to a plan "established by an employer for the exclusive benefit of its employees". Does an employer that adopts a plan maintained by an unrelated employer, thereby making the plan a multiple employer plan, "establish" a plan for its employees? Or is it simply participating in a plan established by another employer for the other employer's employees? If an employer allows an unrelated employer to participate in its plan, is the plan established "for the exclusive benefit of its employees"?

Would this be a good subject for the next update of the BNA Tax Management Portfolio on Securities Law Aspects of Employee Benefits Plans?

How about the exemption from the definition of investment company under section 3©(11) of the Investment Company Act of 1940? Is a multiple employer plan an "employee plan"?

The securities laws speak a different dialect than the tax laws and ERISA.