Can anyone provide or direct me to some written QDRO procedures for Plan Administrators? All qualified plans should have these, but I know many don't.

Certainly, different plans and different circumstances could lead to diferent procedures,

but it's much easier to improve or modify than to have to entirely reinvent something.

An employer wants to give an incentive to attend nutrition and other "wellness" classes (no health standards are required in order to receive the benefit, so the proposed wellness regulations would not apply). The incentive would be additional employer flex credits under the cafeteria plan.

As a result, some employees will receive say $100 per month in flex credits, while others, who attend the classes, may receive $110 per month. My question is whether, under the cafeteria plan rules, a plan sponsor can give some employees higher flex credits than others (based on attending wellness classes).

EBIA's Consumer-Driven Health Care & Fringe Benefits outline implies that this is possible, stating that "Employers may give employees a financial incentive for participating [in a wellness program] (e.g. a small gift certificate, an extra vacation day, or additional flex credits in their cafeteria plan account)." The treatise does not address the cafeteria plan issues.

Does anyone know whether this could run afoul of the cafeteria plan rules?

We are looking at converting 51% of the shareholder's common stock to preferred in order to pay a dividend to amortize the acquisition note in a 1042 transaction. There is one Rev. Rul. that talks about a situation where the common was converted into another class of "common" with a dividend preference, and the holding is the new stock is not 306 Stock. However, in the state at issue here, state law says if stock has a preference as to dividends or liquidation, it is "preferred stock." Should state law matter here. If all the facts are the same as the Rev. Rul. except that the new stock is "preferred" under state law, should 1042 treatment be allowed. Have you ever seen such deals done prior to a 1042?

I am doing an e.o.y. 12/31/04 val for 2004. The instructions for Schedule B say to use Beginning of year numbers for line 2b. I noticed that my software system is including current liability amounts for participants who entered the Plan 7/1/04. This seems strange. The instructions for Schedule B does have this passage for line 2b instructions:

"If the current liability figures are derived from a valuation that follows the first day of the plan year, the participant and beneficiary count entries should be derived from the counts used in that valuation in a manner consistent with the derivation of the current liability reported in columns (2) and (3). "

I find the wording to be very confusing in this passage. But, anyway, my question is whether my software is on solid ground with adding in current liability amounts for 7/1/04 entrants for line 2b? And, if so, is it the above passage that justifies it?

A follow-up question is: Would it be a problem if I don't include in amounts for the 7/1/04 entrants?

For purposes of paragraph (3) , an organization described in paragraph (2) shall be deemed to include an organization described in section 501©(4) , (5) , or (6) which would be described in paragraph (2) if it were an organization described in section 501©(3).

Can anybody top this for incomprehensibility?

Please post anything that you think might rival or even overtake this model of complete unfathomable text produced by our beloved Senators and Congressmen. Let's start a list!

We recently adopted a Wrap Plan encompassing health, dental, long term disability, short term disability, and other benefit programs. The SPDs for the individual benefit programs are attachments to the Wrap Document and more fully explain the benefits.

Are the individual booklets for the benefit programs considered part of the Plan Document because they are attachments to the Wrap Document? Or are they considered SPDs?

The reason I ask is because the Wrap Document established one plan number for our welfare programs. However, the booklets for the individual programs still each had its old plan number (different for each program). Obviously, we want to update them so they all show the Wrap plan number. We are not sure if this is an amendment to the plan document or merely a small change to the SPD.

Any thoughts?

Thanks.

My company currently has several retirement and health plans. Whenever a change to a plan needs to be made, a board resolution must go to the Board of Directors. It is very difficult to get on the docket for the Board meetings. And the Board members often don't think they need to deal with certain ministerial plan changes. Most of our plans currently state that amendments to the plan are to be made by the employer. We have interpreted that to mean the Board of Directors. So all plan changes, major and minor, have been going to the Board for approval.

So I have been assigned to work on putting together a document that lists all types of plan changes and who has the authority to make them. Then we will try to get the Board to formally delegate authority to subcommittees or individuals (Finance Committee or VP of HR) to make those changes. Knowing our Board, my document and the types of changes permitted to be made by someone other than the Board will need to be finely defined.

Has anyone tried to put anything like this together? Any recommendations on sources or websites?

I know that if I say that "minor plan amendments" can be made by the VP of HR or Finance Committee, the Board will ask what "minor" means. So I will likely need to come up with a list of all types of plan changes. Has anyone seen this type of list?

Please help.

Thanks.

My company currently has several retirement and health plans. Whenever a change to a plan needs to be made, a board resolution must go to the Board of Directors. It is very difficult to get on the docket for the Board meetings. And the Board members often don't think they need to deal with certain ministerial plan changes. Most of our plans currently state that amendments to the plan are to be made by the employer. We have interpreted that to mean the Board of Directors. So all plan changes, major and minor, have been going to the Board for approval.

So I have been assigned to work on putting together a document that lists all types of plan changes and who has the authority to make them. Then we will try to get the Board to formally delegate authority to subcommittees or individuals (Finance Committee or VP of HR) to make those changes. Knowing our Board, my document and the types of changes permitted to be made by someone other than the Board will need to be finely defined.

Has anyone tried to put anything like this together? Any recommendations on sources or websites?

I know that if I say that "minor plan amendments" can be made by the VP of HR or Finance Committee, the Board will ask what "minor" means. So I will likely need to come up with a list of all types of plan changes. Has anyone seen this type of list?

Please help.

Thanks.

A group health plan that provides benefits though an contract with insurance issuer or HMO is still a covered entity but is exempt from most HIPAA Privacy rules if it only receives summary health information or enrollment/disenrollment information.

Use of a ZIP code would be considered summary health information if the first three digits of a ZIP code according to current publicly available data from the Bureau of Census:

(a) the geographic unit formed by combining all ZIP codes with the same three initial digits contain more than 20,000 people; and

(b) the initial three digits of a ZIP Code for all such geographic units containing 20,000 or less people is changed to 000.

If carriers wanted to use 5 digit ZIP code ids for evaluating claims experience for marketing (getting bids from other carriers at renewal time) is that information subject to Privacy and Security?

If yes, I assume the Privacy/Security rules will apply to the health plan and also filter down to a broker. if involved.

Scenario

One employer

Plan A- covers all employees including union employees. This plan was set up in addition to whatever plan that union employees may have through their union.

Plan B- covers non-union employees only.

All of the employees in Plan B are in Plan A.

Can I exclude the union employees from the coverage test when combining both plans?

Thank you for any suggestions.

An excerpt from one of the 3/25 Benefits Link Newletter articles states:

At its board meeting on March 23rd, the Financial Account Standards Board (FASB) board voted to issue a proposed FASB Staff Position (FSP), tentatively titled Proposed FSP EITF 00-19-a, "Application of EITF Issue No. 00-19, 'Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock' to Freestanding Financial Instruments Originally Issued as Employee Compensation".

I wonder if they get paid by the word.

Profit sharing plan owner died in Oct. 2004 after his required beginning date. His RMD for 2004 was paid to his estate, not his spouse, even though decedent had designated his spouse as beneficiary. The distribution check has been deposited in the estate checking account. Is there any remedy for this situation?

Thanks for any help you can offer.

Just discovered a plan for which, reasons unknown (yet), the Schedule P has used an incorrect Trust Identification # going back at least 10 years.

Question - would you go back and file amended returns for all years, or just correct on a current basis? (EIN on the 5500 itself has been correct every year.)

I don't know if a P with incorrect TIN will fail to start the Statute of Limitation running for those years?

I've asked before about the differences between using a brokeridge for a coustodian or contributing directly to a fund family. I've read replies and read other posts on the subject but am still wondering which to use, as I don't quite understand what the differences would be. I know it depends on my situation but is the main diff that using a fund family limits you to that family only, unless you choose a different family for custodian, whereas using a brokeridge for custodian lets you have a variety of fund families in your Roth, if you choose to do so. I do understand that fees would vary depending on which family or broker I use.

I have accounts at Scottrade and Edward Jones and am thinking of using Scott for custodian, I'm 55 and would like to get a Roth opened before April 15 so that my holding period will start in 2004. Any advice or good/bad experiences with custodians will be appreciated.

Thanks A Lot,

mrcharols

For purposes of the source of injury rules in DOL Regulation Section 2590.702(b)(2)(iii), if a plan generally provides benefits for a type of injury, the plan cannot deny benefits for treatment of the injury if the injury is a result of an act of domestic violence or a medical condition. Does this rule apply to both the victim and the perpetrator? The regulation does not specifically state that both the victim and the perpetrator must be afforded benefits, but it doesn't state that a plan can deny benefits to the perpetrator as well. Any thoughts and/or insight?

assuming a last day rule and 1000 hours, our plan document says the match must be allocated by the last day of the plan year. the question is when does the money actually have to be put into the plan?

Greetings,

I am planning to open a ROTH IRA for the first time and I plan to make my investments in stocks via mutual funds.

Question:

For this kind of investment, which may be the better option for opening a Roth:

a) a mutual funds company (e.g. Fidelity, Janus, Vanguard, etc)?

b) a brokrage firm?

c) other?

Thanks,

Marc

My organization offers a pre-tax parking program under the 132 regs. I am trying to get more information on qualifying events that would allow participants to make or change their elections mid-year. For example, if an individual previously did not own a vehicle and used public transportion (subway) to commute to and from work, would purchasing a car mid-year allow them to enroll in the pre-tax parking program?

In your opinion, is sick pay (other than payments to a decedent's estate or beneficiary) ever reported on Form 1099?

Employer pays the benefits -- report on Form W-2, filed by the employer

Employer's agent pays the benefits -- report on Form W-2, filed by the employer

An independent third party makes the payments -- report on Form W-2, and the third party may or may not transfer the filing obligation back to the employer

I'm working with a VEBA that provides sick pay benefits, withholds no taxes, and reports the payments on Form 1099. I can't think of any reason why this approach could be correct and acceptable.

HELP!

Can a Local Union, who is a noncontributing employer, pay into a multiemployer health & welfare plan for one employee of the union only, excluding all other employees of the union?

Can the union, as a contributing employer, pay into the health & welfare fund on behalf of the union office employees as a subgroup with different benefits?

Can the union, who is a contributing employer paying into a pension plan on behalf of its employees, exclude a part-time employee because of that individual's status as a part-time employee?

If you have cites to regs., statutes, cases, etc. ALL THE BETTER!

Thanks sooooo much for your help!