Does anyone know where to get a current list of state withholding requirements for qualified plans? I need to update our files.

The links from the Sept 2000 posts no longer work.

Thanks all.

I am working on allocations from 1999 through 2003. For 2001 the Employer contributed more than the deduction limit (21% of comp). For 2002 and 2003 they contributed 25%. How do you handle the excess from 2001? Should the excess be returned to the employer???

Thank you for your help.

Help. Seems I should know this (or be able to find the answer) but can't.

Plan is failing both ADP and ACP tests. Can a QNEC to be made to pass the ADP test and then another QNEC made to pass the ACP test. The same QNEC would not be used twice. It seems so but just want to be absolutely sure.

Thanks for the help!

An employer would like to make a payment to the surviving spouse and children of a deceased key employee. Employer has no plan in place to otherwise provide death benefits. Given the IRS tendency to reject characterization of employer payments as gifts, are there any other means to provide a nontaxable payment?

What period of compensation should be used in the ADP test for a calendar plan year in which the 401(k) plan is terminated as of 9/30? Should the comp be for the period of 1/1 - 12/31 or 1/1 - 9/30?

First, FSA distributions are limited to Sec. 213 deductible medical expenses plus over-the-counter drugs [sec. 105(b)].

Second, prescription drugs are deductible medical expenses -- legally-procured substances that require a prescription for use by an individual [sec. 213(d)(3); Reg. Sec. 1.213-1(e)(2)].

Third, cosmetic expenses -- surgeries or procedures to improve appearance, not to promote wellness or prevent or treat a disease or illness -- are nondeductible [sec. 213(d)(9)(B)].

Ok...the law's very clear so far. But, what's your opinion about medications prescribed by a physician for cosmetic reasons? Common examples include drugs to improve skin tone or to stop or prevent hair loss.

These medications are certainly prescription drugs, but are they also nondeductible cosmetic "procedures" and, therefore, nonreimbursable under a FSA? I've been unable to find an answer to this question. Certainly, my instincts scream that Propecia isn't tax-deductible, but does the letter of the law suggest otherwise?

I read an article in a recent issue of the ASPA Journal which encourage small plan filers, with late deferral contributions, to include an attachment detailing the late deposits and corrections.

Does anyone actually forward an attchement with the 5500? I thought you were not suppose to submit attachments.

A few years ago I used a 5500 program which allowed room for a one sentence comment at the bottom of schedule I. I used this one sentence comment section to disclose the plan had deposited the late deferrals with earnings.

Any comments would be appreciated.

We are working witth a non-profit foundation with an ERISA 403(b). As an option

for them(to avoid third party admin), does a paired non-ERISA 403(b) (for deferrals) and a SEP-IRA (for employer contributions) have merit? Can the existing ERISA 403(b) assets be transferred to the new non-ERISA 403(b) without any triggering event?

The previous post brought up an interesting question. Reading the ASPA info under PA-2 Section 11.

"QNECS, QMACS, and SAFE HARBOR 401K DEFERRALS are never allowed to be withdrawn for hardship."

I am aware of the QNEC and QMACS, but I was not clear about the distribution of Safe Harbor 401(k) deferrals. Does this mean that a safe harbor 401k plan that consists solely of deferrals and or the safe match / safe harbor non elec cannot offer hardships?

Thanks for the clarification.

I am looking for information on administering a fringe benefit plan for prevailing wage employees. Any help would be greatly appreciated.

Brian? AndyH? PATA? Calling all Red Sox fans...

I'd love to chat about this past weekend, including the lamest bench-clearing brawl in baseball history.

I've put this message in the "Inspiration" forum because I think that the Red Sox are pretty darned inspiring.

IRS Notice 2004-62 extended the minimum funding deadlines - for a calendar year 2003 plan, to 10-15-04.

Does anyone know if there is any additional extension contemplated? Or has one been issued and I missed it? Thanks!

can you have hardships for something other than the safe harbor reasons (funeral expenses) from deferral source?

Relius is acknowledging that Relius Government Forms (5300 program) will not print if your computer has been updated to Windows XP Service Pack 2. Workarounds are to either uninstall SP2 (you do not want to go there - several people have reported problems with the uninstall) or run the software on an older computer. They do know this is a problem (and will also affect the 1099-R software) and have contacted Microsoft to see why there is a conflict.

A word to the wise...

Our solution is we have one computer on our network that is still running Windows 98 for compatability. You can do all of your data entry on your XPSP2 box, but you need to print off the older box. Hopefully this will be resolved by January for 1099R processing.

I follow with great interest the releases from Treasury, DOL, and other agencies on the efforts to assist individuals with financial education (and as I call it, financial empowerment through education). However, I am an individual, not a nonprofit. I keep looking for ways to assist and become involved in this effort in a professonal manner-this is a passion of mine. Any ideas on how to get involved with the federal, state, and local governments with these efforts? How do I lose my invisibility and let the powers know that there actually is an individual who is a financial planner (CFP certificant), lawyer, and financial educator/writer (and thus qualified professionally) who wants to do this professionally (for modest pay) and is not interested in the multi-millionare client.

thanks!

Theresa Lynn

Help. Employer is on a volume submitter plan document and several related participating employers have also adopted the plan. Each participating employer decides whether to make a match each year and picks from three different formulas, one being 0% (or no match for the year_.

Since I have never seen this before it makes me question whether it is possible. If the plan is able to pass the ACP test, the NDCT for the different rate of matching and, and 410(b) coverage treating the 0% EES are nonexcludable, are there still document design issues or the existence of many single employer plans being packaged as one plan?

Any thoughts are greatly appreciated.

If it is determined that the QJSA under a plan is not as valuable (in actuarial equivalence terms) as other optional forms of benefit, meaning that the plan's actuarial assumptions must be changed, how should this be done so as not to cause 401(a) disqualification problems. Is this something that should (or even can) be amended on a retroactive bases? How is this best accomplished?

I know you can't but I can't find it in the Code or the Regs. For example, 401(k)(12) clearly states that the SHNEC's can't use integration. Further, 1.401(l)-(1)indicates that contribtuions described in 1.401(k)–1(g)(3) are not eligible for integration, but this defintiion does not include QNEC's?

I'm driving myself nuts trying to find it...

We have a participant that was out on disability & not contributing to her FSA Medical. She was out of work for over 30 days & opted to change her election to a lower amount. Will this change also effect her annual election? She went from contributing $92.31 to $20 per pay. It is a biweekly pay schedule. Prior to the leave she had spent a good amount of money. Since she has changed her election amount, her annual election is very low. She only has about $3 left. Any help would be great!

Thanks!

I am in PA and am talking with a public school district that is looking for options for its administrators. They are trying to retain these folks and are willing to look at district funded options. The admins are not part of the teachers union so I am thinking that they could be excluded. Has anyone have any experiance in this? You coments are greatly appreciated.