Recently I meet with the new owner of a DC plan client. He surprised me by saying he wants to create a private security and bring it into the plan as an investment option for the HCE / owner group. These are shareholders. His plan seems to be a form of arbitrage using a life insurance policy on the life of an 82-year-old ex-owner who has agreed to this. I'm still trying to understand and get details on the structure, but I am asking the forum if anyone has experience with this in the plan document area, filing for determination, basic operational questions, pension law, etc. THANKS

Is a Waterpik system reimbursable from a health FSA? All the information that i can find pertains to a battery powered or electric toothbrush, but I don't know if this would fall under the same guidelines. Any opinions??

Just curious what this is, why it is constantly on the Boards (the Google site say it roams and you might see it once in a while) and why it might be viewing a user's profile right now.

This is a short plan year question. I found the other threads but they did not appear to have a definitive answer (probably because there is not one).

Plan year 10/1/2004 through 12/31/2004

My thought is that the only payment date is 1/15/2005. This is 15 days after the first quarter (kind of).

Alternatively, the full plan year would have been 1/1/2004 to 12/31/2004 and therefore dates of 10/15/2004 and 1/15/2005 would fall after the initial effective date.

What about if the plan year was 9/1/2004 through 12/31/2004??

a) 12/15/2004

b) 10/15/2004 and 1/15/2005

Any opinions??

we have a client that made a nondeductible contribution to his DB plan, well in excess of 25,000. the only way i can see to get the money out and avoid the excise tax is to follow rev proc. 90-49 and get a Private Letter Ruling. is this the only way to do this?

Does anyone know of any web site or publication that may list all locales that have registration for domestic partners other than California, Massachusetts or the Vermont civil union act?

I have a plan with a fully subsidized joint and 100% survivor annuity for married participants. Participants can elect single sum distribution option which is equivalent to this subsidized form of benefit. Participant claims that spouse abandoned him 3 years ago. We intend to have him provide the plan administrator with the police report and proof of the use of a professional locator as evidence of his good faith attempt to locate her. We also intend to have him sign off that he is responsible for claims made against the Plan for the survivor annuity and court costs. He has indicated that he intends to roll over his distribution to a qualified 401(k) plan. I am trying to determine if his single sum distribution should be equivalent to the straight life annuity or the joint and survivor annuity (which would yield an increase of nearly 30%). Is anyone aware of any case law or legal authority to justify the amount of his distribution? Thank you very much!

Client is adopting a new SEP plan with an effective date of 7-1-2004 to coincide witrh beginning of fiscal year. 2 employees who would have been eligible for the plan have terminated employment. Is the employer required to make a contribution for them? Didn't know if the fact that the plan is being adopted retroactive had any bearing.

the safe harbor contribution plus discretionary profit sharing calculated for 2003 was handled by accountant as a payable (which is ok) and told TPA it would be paid in before 3-15-04. Now it appears this payable was overlooked and just now noticed it still on the books, and of course never paid in.

what is to be done? can employer just send in contribution anyway? should there be a reasonable interrest rate added to the contribution? is this something that needs to go to correction? (and which one, if so)

We have an employee named Jim that had family health coverage. He terminated employment and elected COBRA for his family in July 2004. He was on active military duty Oct 2004 through February 2005. During the time of active duty, the health insurer took Jim off of the plan and placed the coverage in Jim's wife's name, who continue family coverage. Jim has returned from Iraq and is no longer on active duty. He wants to be included on the family coverage.

The health insurer has asked if they should just put him back on the Plan and the 18 month period continues to run (from July 2004)?

OR

Is Jim entitled to additional months of COBRA coverage for the time he was on active duty?

Thanks.

I have a DB plan that has an asset smoothing method in practice for the valuation assets. This has only been in effect for 3 or 4 years. Can I go back to Fair Value without consequence and how often can you jump between asset valuation methods since they are all categorized as automatically approved?

Plan covers employees who are also subject to Puerto Rico tax law. Since these employees are not able to make catchup contributions under Puerto Rico law, does this mean that when they are tested in the US plan (US plan allows for these contributions), they cannot have catchup contributions apply to correct any excesses (e.g. - adp refund, plan limit excess)?

A DB plan provides that if the present value of a participant's vested accrued benefit does not exceed $5,000, then his/her benefit shall be paid as a lump sum distribution; otherwise the participant's benefit is paid as an annuity (the DB plan does not permit lump sum payments other than cash-outs). Even though this is not a distribution option (i.e., the participant cannot elect this form of distribution from a menu of distribution options), can the DB plan remove the cash-out provision without violating the 411(d)(6) anti-cutback rules?

If eligibility is more liberal for 401k contributions than (X-tested)profit sharing contributions, and a participant is eligible for 401k but not for PS, does that participant need to be included in the rate group (midpoint) testing for the profit sharing portion?? I know the participant must be included in the avg. bfts percent test. Thanks.

Without notice or warning, I received a forceout distribution (<$1,000) from a 401(k) plan from a former employer's plan. The check was dated 1/3/05. Today is approximately day 66 (since the date of the check, not since received).

The check was rendered uncashable due to the actions of a pet. I intend to request a replacement check from the issuing trustee.

Will I be able to roll the funds into an IRA within 60 days of the reissue, or am I out of luck due to the passage of time since the original distribution.

My gut feeling is the IRS will have no way of knowing as the successor custodian of the funds will only see the new check date and the prior custodian will only report the year of the distribution. But what is the official rule here?

Also, I have not yet contacted the check issuer. Should I expect any kind of resistance to a request to recut a check? I can provide the remnants of the initial distribution check if asked.

Thank you for your thoughts,

Jonathan

I have a calendar year plan with one participant where Normal Retirement is age 68.5.

As of 1/1/2005, he has more than 10-years of plan participation and is age 67. His high 3-year compensation average is $200,000.

Plan assumptions are:

Mortality: 83GAM Post-retirement only

Interest: 5% (pre and post interest)

I am preparing the 1/1/2005 valuation and I have the following questions:

1) Do I use $170,000 as the 415 dollar limit (which will need to be adjusted for payment past age 65)?

2) To calculate his accrued benefit at 1/1/2005, do I compare the accrued benefit calculated without limit using the plan's benefit formula to the 415 dollar maximum adjusted to 1/1/2005? Or do I compare it to the 415 dollar maximum adjusted to age 68.5?

Thanks!

Plan year closes 03/31/2005. Our company has employees in several states, including CA and the DPRRA that went into effect 01/01/05 has raised many questions. The first is, (1) can we require an employee to supply a copy of his/her CA State registration, if he/she did not complete an affidavit as required under the former guidelines? If a DP does not obtain registration, advise the ER that registration had been filed and the Employer does not request an affidavit is the Employer in violation? Many of our DP sign-up for life insurance for their DP, however, we do not have validation on file for all dP stating he/she is eligible...who is ultimately responsible 0 EE/ER? Lastly, should we track CFRA and FMLA separate or is a registered or unregistered DP not entitled to the State provisions of FMLA?

Many thanks

If you stop the SH match I believe you need to give 30 days notice. But if you are stopping both the match and the deferrals (effectively terminating the plan) is there any reason you can't stop the deferrals immediately, effectively end-running the match notice requirement?

Plan year end is March 31, 2004. There are ADP/ACP returns.

Client chose to wait till after the 2 1/2 month deadline to have the refunds processed, and they will absorb the 10% excise tax.

Refunds were processed August 1, 2004.

When do you report the excise tax? When is it required to be paid?

Should it have been filed with their March 31, 2004 5500 filing, or with the March 31, 2005 filing?

Thanks.

I am trying to get my new employer to purchase the 5500 filing guide that I have used in the past, especially for help with the Schedule H. I can't remember the actual name of the book or the author. The book was in the paperback style like the ERISA Outline books, but not 4 volumes (!) and was green with yellow print on the cover.

Anyone out there know the name and/or author? I have found this book to be better than the one that they offer here in the bookstore (by Corbel, I think).

Thanks for your help!