Our cafeteria plan has a health FSA. What are the impacts on the FSA if an employee's spouse has a HSA? Are there any impacts on the spouse's HSA?

I assume that an eligible expense cannot be paid by both the FSA and HSA.

I have seen information regarding a change in the code for corrective distributions. According to the information I have read, uder the corrected instructions, the plan would use code 2 for a corrective distribution. Does this seem correct? How would you indicate in which year the corrective distribution was taxable? I would appreciate any comments from individuals that have seen/heard any information regarding the corrected instructions.

Thank you.

Are ERISA 403(b) plan subject to the full content requirements of summary annual reports?

Is a Non-ERISA 403(b) church plan subject to ACP testing?

Local Government has a money purchase plan and a 457 plan. The money purchase plan provides a fixed % of pay for only grandfathered employees and a match for only new employees. The match formula is based on deferrals in the 457.

Does this sound ok? It doesn't seem like a money purchase plan should have a match.

I'm considering opening a Roth IRA sometime in the next few months and so I've been doing quite a bit of homework on it. I've never invested in anything other than my savings account so I'm pretty "green." One thing that I haven't really been able to find out is what exactly is an IRA invested in? Is it the stock market? I'm not at the point where I feel I could successfully juggle my own portfolio if such is the case. I've heard it's good to get a ROTH IRA from a discount brokerage firm. Do they handle the IRA and where the money is invested or do you? Thanks for any help you can offer.

Hi, I'm new here. I'm 18 and thinking of making a small investment sometime in the near future. It seems to me that time is one of your best friends in saving. Anyway, I just wanted to get something started because I will probably go to grad school as well and want to get an early start. I was thinking about Roth IRA's in particular. What is the minimum to open one? I wouldn't have much trouble adding to it, but because of my age and earning level it is somewhat hard to come up with a very large amount at once. Thanks.

I am embarking on a research project and need to acquire (hopefully in tabular form) a schedule of mid-term and long-term applicable federal rates for the periods December, 1993 and earlier. Does anyone have this or a link to where I might find them?

Regards

William J. Stecker

wjstecker@wispertel.net

I am embarking on a research project and need to acquire (hopefully in tabular form) a schedule of mid-term and long-term applicable federal rates for the periods December, 1993 and earlier. Does anyone have this or a link to where I might find them?

Regards

William J. Stecker

wjstecker@wispertel.net

An employer is adopting an existing plan as an Adopting Employer. His plan will have the same name as the Plan/Trust he is adopting. In completing the SS4 to apply for the EIN for his pension trust, will it be a problem if he reflects the name of the Plan/Trust he is adopting (which already has its EIN)?

my background is not in Healthcare. But i am asked by my compnay to work on a project for a customer who is in the business of providing Healthcare benefits to the retirees. This is a state retirement agency.

I am trying to understand how the whole retirement helathcare works. So far, this is what i gather.

State Retirement Agency provides HC benefits to all their retirees. They can either enroll in their Traditional HC Plan or enroll in their Cafeteria plan depending on the eligibiity; Health care Plan is a PPO (or HMO in some cases), provided by a third party carrier (like Aetna) that state agency negotiated contracts with. Depending on the service credits, retiree receives a fixed amount of money every month. Retiree uses this money to buy Health Plan.

here are some fundamental question:

1. now say the retiree sees a doctor in the PPO network; to my understanding, 80% is paid by carrier and 20% retiree. But one of the business requiremetn says, Agency will pay medical and pharmacy claims on a daily basis (while agency receives the claims tape every 2 weeks from carrier); I am confused as to why state agency is paying any claims. I thought Carrier pays 80% and 20% by retirre; And that Aetna gets paid on a monthly basis from State Agency for providing the PPO plan to the state retierees.

Can somebody please help me understnad this. Is it anything to do with state retirement agency being "self-funded" (i am not sure if they are self-funded, i am just guessing);

2. I am trying to comprehend what is the role of stage agency in providing Health plan to retirees other than the fact that they negotiated a better deal for retirees through Aetna. Who is administering the plan, who is administering claims, who is processing claims;

3. also when medicare starts, who is processing the claims;

Appreciate any response as you can tell i am yet to learn the basics.

thanks

.

A plan with just one employee (thus must file 5500 and not 5500EZ) has $0 compensation and $0 funding in its first year. Is it necessary to file a 5500 with all 0's or can they wait until their first year of actual funding?

Thanks.

I know that all the advisors say go with no-load funds verses loaded funds and the importance of being diversified but all the mutual funds minimum requirements are $1000, so it would take several thousand dollars to get started into 3 or more funds. What's a person to do when you don't have several thousand $$$? I was thinking about investing through my Ins. agent that offers sub-accounts through American Funds. She even helped me select 3 funds with only $300 to start followed by monthly DCA to be divided equally among the funds. I backed out after finding out about the 5.75% front-end load. Needless to say, the sales person was my daughter-in-law. My husband has a 401K and is pretty much diversified but we're wondering where to fund a Roth IRA into one fund since we're not going with the sub-acounts offered though the Ins. Co. The

only good from this is being able to diversify into 3 or more different funds each month for the price of one. What I want to know is are there any no-load mutual funds out there that one could purchase into three different funds for $1000 like the Ins. sub-accounts?

I'm new to 457s. Is there any coordination of 457(b) plans w/ 411(d)(6)? In other words, can protected benefit be taken away, such as mandatory in-service distributions?

Hi All,

Long time lurker, first time poster!

I have a client who wishes to exclude the bonus from their plan. For compensation purposes, I can do this because they are on a non-standardized prototype. But, they also want to exclude the deferrals on this bonus from their match calculation (they do a flat % of deferrals, no cap.)

Is this allowed on a prototype document? I've tried Sal's books and found nothing; maybe I'm just a horrible researcher.

My opinion is that they would not be allowed to exclude the deferral, but then again, you can exclude catch up from the match calculation......

Thanks for any help you can give!

Vicki

I am confusing myself with rational thoughts.

A plan has calculated numbers for FASB in the past and they were:

Ignoring all assumptions for the moment

Projected benefit 6,000

Service at retirement 20

Therefore, let's assume the service cost will be determined from the 300 earned benefit.

Let's further assume that the past service is 5 years.

This produces a PBO from the 1,500 earned benefit.

The actual accrued benefit is 5/20 * 4000 = 1,000.

This benefit will be used for the ABO.

Now, the client decides to terminate the plan.

Does the PBO immediately get determined using the 1,000 benefit??? Therefore, the service cost would go to zero. That seems to make logical sense but FASB 88 is confusing me during the readings.

Thanks to all for comments.

I'm trying to put together a general profile of the type of small client that might benefit from a cash-balance plan (assume it's primarily for max tax purposes). I have the following thoughts and would appreciate any comments and additions.

1. Multi-owner situations where partners want same contribution level above 41k.

2. Plans where there are employees who might better understand and appreciate the cash-balance structure.

3. Situations where a cross-tested profit sharing plan would work well a cash-balance plan (general tested) may also but with higher contribution potential.

Other thoughts ? Thanks.

5% Owner reaches age 70 1/2 in 2004 and elects to take his first RMD in 2004 - and there is a QDRO which stipulates that 1/2 of his benefit is allocated to his spouse as alternate payee: is the alternate payee also required take an RMD by the Participant's Required Beginning Date, even though she is only 65? What if the alternate payee rolls over her entire share before the participant's Required Beginning Date - would that avoid payment of the RMD to the alternate payee? Thanks for all input.

Affiliated Service Group of companies A, B, and C

Company A Profit Sharing Plan has a short year from 4/1/04 - 12/31/04

Company B Profit Sharing Plan has a short year from 7/1/04 - 12/31/04

Company C Defined Benefit Plan has a full year from 1/1/04 - 12/31/04

Can these plans be aggregated for coverage and non discrimination for the years ending 12/31/2004?

Reg §1.410(b)-7(d)(5) Same plan year requirement - Two or more plans may not be aggregated and treated as a single plan under this paragraph (d) unless they have the same plan year.

Does anyone see an wiggle room to argue that have the same plan year end is the same as have the same plan year for purposes of aggregating plans?

Or are the 1/1/05 - 12/31/05 plan years the first years that can be aggregated?

A client is insisting on excluding employees, on LOA (including maternity) at pye, from receiving a profit sharing contribution. Their agreement allows them to exclude those not "actively employed" at pye from sharing in the allocation. They are defining actively employed as anyone not working at pye.

The individuals in question were covered under the company's health coverage during their leaves and their jobs were held for them.

We have strongly advised them not to do this, but they are insistent.

We would like any opinion or advice you would like to share.