Do Local Government Agencies need to file a form 5500 for their pension plans?

The only deferrals not deposited were those of the HCE. Anyone know if DOL looks "more favorably" on this type of late deferral than one where all deferrals are not deposited timely?

May a sole proprietor who no longer operates his business, but intends to receive self employment income from consulting, continue to contribute to his SEP-IRA that was established in connection with former business?

I have a plan failing coverage. The adoption agreement does provide for Discretionary Non-Elective and does not provide for a Discretionary QNEC (only a QNEC to pass adp/acp testing). If I want to make a QNEC, as an employer contribution to increase the total benefit to pass the average benefits test, can you make the QNEC even though the document does not allow for a QNEC? Also, if I wanted to make a profit sharing contribution istead of a QNEC to assist the average benefit test, can I do a retroactive amendment to add a profit sharing option to the plan or does the option already have to exist in the plan and I can only do a retroactive amendment (permissible for a demographic failure within 9 1/2 months after plan year end) to INCREASE the profit sharing to get the AVB to pass?

This question is skirted around in a few older threads. Thanks in advance for any opinions.

A new LLC w/ 4 partners is looking at adopting an SEP. Longest service w/ company is one year (prior plus current year), shortest is zero (current year only). Is there any mechanism (such as a prototype plan?) than can effectively establish different eligility requirements for current versus future employees? The intent would be for any and all employees on date of adoption to be immediately eligible but going forward require 2 or 3 years of service.

If no mechanism to accomplish this, what is legal exposure if adopt SEP w/ zero service requirement this year and change to one year on next January 1st (assume no employees other than partners until after January 1st)?

Does your Welfare Plan provide Domestic Partner Benefits? What is your eligible population count and industry?

Is a change in status from union to non-union a qualifying event, if both employee groups are covered by the same cafeteria plan with the same eligiblity requirements? The non-union group has one additional health plan option, but employee would not lose the plan in which currently enrolled as a union employee. The employee contribution is not signficantly different.

A public employer allows employees with accrued sick leave to

donate up to 3 days per year to a "sick leave bank." The bank is

used to help fellow employees who may have run out of paid

leave and are facing a serious or lengthy health problem.

A question arose concerning the effect of the HIPAA privacy

regulations. In order to apply for leave, the person must submit

a letter from a physician explaining (in general terms) the health

condition and likely duration of incapacity. The letter is sent to

an employee committee that administers the bank. This has some

concerned about the potential ramifications under HIPAA.

My view is that the committee need not be concerned since

they are not a "covered entity" as defined by the law. (Health

Plan; Health Clearinghouse; Provider) While

they certainly want to use common sense, I do not believe

HIPAA applies to this type of arrangement. Additionally, the

bank is wholly voluntary and no employee is compelled to

use the bank or turn over PHI to the committee.

Thoughts???

Is an accountant's opinion required for an ESOP that must file Form 11-K and is not getting its financial statements audited for 5500 purposes because it has a short plan year of seven or fewer months? It's the initial plan year.

A Canadian citizen and resident will receive a lump sum distribution from a U.S. defined benefit plan maintained by a U.S. plan sponsor. Can the Canadian citizen transfer the funds to a U.S. IRA maintained by a U.S. custodian?

Our Canadian affiliate has determined that the employee cannot directly rollover the funds from a U.S. plan to a Canadian IRA. However, transfers from a U.S. IRA to a Canadian IRA are permitted. Therefore, the issue is whether a U.S. IRA can be established on behalf of the Canadian citizen and used as a conduit to transfer the funds to the Canadian IRA.

Does Change in Status Due to Spouse's Enrollment in Medicare Permit the Employee's HCRA Changes?

Or does it only permit changes to premiums for medical insurance, e.g., from family to single?

I never contributed to my company's 401K plan because they did not match contributions, however, after 1 year of service I was automaticly enrolled in the company's profit sharing plan. After 5 years of continous service then I become 100% vested. I reached my 5th year, last year. The profit sharing monies has been transferred to my 401K account (just recently) but I was told that I cannot take out a loan on this money.

My question is, why not, if I am 100% vested? Isn't this now my money to manage?

A defined benefit plan had a top-heavy ratio of 62% as of 8/31/03. The plan terminated during the 8/31/04 Plan Year and top-heavy minimums were provided. A 401(k) plan was established in 2004 with a calendar plan year. Two employees, who had not received any benefits under the DB, since they had not met eligibility, were allowed to participate early in the 401(k) by the client. The client wanted to keep them in the plan and amended the 401(k) plan to allow the early participation.

For the first year of the 401(k) the employer only intended to allow employee deferrals. Would these two employees be entitled to a top-heavy minimum in the 401(k) based on the DB ratio of 62% as of 8/31/03 or could the 8/31/03 DB values be combined with the 12/31/04 401(k) values for determining the top heavy status? The second option decreases the ratio to less than 60%

2 employers in a CG. Company A elects not to make a contribution. Would company B's maximum deductible contribution be 25% of coverred comp of both companies?

How about:

Document requires a profit to make a contribution and company A does not have one. Max Ded. contribution for Co. B (made a profit) 25% of coverred comp of both companies?

Do most NQDC plans provide full payout to the participant upon termination? Since participants are not eligible to roll funds over to an IRA or another NQ Plan I would suspect this is the case, however was wondering if some NQDC plans make participants stay in the Plan until their elected distribution date rolls around?

What constitutes the Board of Directors? Is its stated in the plan document? I have a client asking me who makes up their Board of Directors and I don't believe I would have the answers for that....any thoughts?

DB plan provide safe harbor formula of X per year of service is later amended to provide that employees hired after date G instead get a lower benefit, still a safe harbor. Each group has been tested under the ratio/percentage test and determined to pass, so since each passes 410(b) and is a safe harbor, the plan as a whole qualifies for safe harbor treatment.

Now the ratio/percentage test does not pass. Can the Average Benefits Test be used to restructure? IMHO the question comes down to whether someone is hired befor or after date G is a reasonable classification within the context of the NCT requirement of the ABT. Opinions?

Client wants to pay out a bonus to employees that will be based on the stock held in the ESOP. This is an S corp ESOP, 100% ESOP owned. The calculation would be basically a factor times the shares held in the ESOP, with a possible adj for new employees that have little stock. It would be a taxable cash bonus paid through payroll, and considered eligible compensation for year end ESOP allocations.

Any issues with this? My thoughts:

1) No separate class of stock issue as 100% ESOP owned.

2) Could this be considered a disguised S corp earnings distribution that would be subject the notice and consent requirements of 411(a)(11)?

3) Are there potential exclusive benefit issues here? This is like a dividend that instead of being paid to the plan is being paid to employees as current compensation. Would this be using plan assets for other than the exclusive benefit of providing retirement benefits to participants?

4) Should be no 409(p) issues as not a future payment, but a current payment.

Thanks for any input!

In this situation, the QB had a qualifying event due to a layoff on March 31, 2005. He elected Cobra coverage and paid the first two months' premiums (for April and May) with one check which he gave the employer on April 14. In May, the employee went back to work with the employer on a part time basis. According to the terms of a collective bargaining agreement, this employee's company paid healthcare coverage was reinstated retroactively back to April 1.

Since the employee was ultimately covered under the employer paid health plan for the entire period, is he entitled to a refund of the premium that he paid? If so, is he entitled to a refund for the entire period, just the month of May, or pro-rated to April 14?

Code section 403(b)(9) permits churches to set up "retirement income accounts" that sound like 403(b)(7) accounts without the 403(b)(7) restriction to mutual funds. I have church clients thinking and talking about 403(b) and this seems like an option to discuss. But has anybody seen a live one?