Does anyone know what "MMO" refers to and can explain what it is? I believe it has something to do with a municipal obligation, but am not sure.

A company has a self-insured health plan and currently allows employees to sign up at open enrollment each October. The company wants to eliminate the open enrollment period that would otherwise occur next month (and in all future years). Employees would have to sign up when they first become eligible or wait for a HIPAA special enrollment period.

Although open enrollment is not required for welfare plans, I imagine that care must be excercised when a company that allows open enrollment later eliminates it. The employer plans to inform the employees asap that there will be no further open enrollment periods.

The employer did not inform the employees that the 2003 open enrollment period would be the last open enrollment. Could there be an ERISA or other violation if some employees are shut out as a result? Employees could allege that they did not sign up last year but planned to sign up this year, perhaps arguing detrimental reliance or breach of fiduciary duty.

Thanks in advance for any thoughts.

My question is: Does this constitute a distributable event? Can the employees of this company take a distribution rather than rollover to acquiring company?

Any insight would be appreciated

Thanks

Looks like I'll be working with 403(b)s and I have very little experience with them. Can anyone point me to some good resources to star educating myself--preferably free/internet.

After reaching retirement age, select employees and directors (some of whom were outside directors) are going to receive monthly distributions from a general company account (not a qualified plan). We would like to know if these individuals are to receive W-2s or 1099s to reflect the amounts?

Could someone provide some guidance on when a W-2 is appropriate, and when a 1099 is appropriate.

Also, where can we find the official word on the correct document to issue?

Thank you.

Brokerage firm notified in writing on 12/23/2003 to transfer IRA account to a new ROTH rollover account. However actual rollover conversion transfer did not actually happen until 1/4/2004 due to fault of brokerage firm which they have admitted. In which year should the rollover conversion be reported??

A person took a loan for 5 years for a primary residence. Can he refinance it for an add'l 15 yrs? (Plan allows for 20 yr mortgage loans)

Does a small employer (less than 40 employees) need to modify their fully insured HMO summary of benefits to put in HIPAA privacy language. How about ancillary benefits such as LTD, STD, life etc.

Are there any issues with amending the plan to change the definition of compensation that states whether to consider comp for the non-elective portion from date of entry or entire year? I have a client who has had his plan for 2 years and wants to change from entire year to from date of entry. Thank you.

Linda Michals

PSP currently provides for forfetures to occur after 5 one-year breaks in service. Plan is to be amended such that forfeitures occur upon the distribution of a terminated participant's vested benefit. Was considering making said amendment effective as of first day of current plan year, i.e., Jan. 1, 2004. Anyone see any issues here re the effective date? It's clearly easier from the plan administration perspective than having to track the amounts for 5 years.... From a practical standpoint, the amendment would cause participants to receive a greater amount of $$ quicker, i.e., allocation of a larger number at year end. I could see a difference if the amendment were going the other way...from immediate forfeiture to 5 one-year breaks.... The only possible issue might be discrimination in favor of HCE's, however, there are far more NHCE's in the plan who would benefit from the amendment.

I've been trying to find information on how broadly FSA forfeiture funds can be used by the administrator to offset admin costs - the consideration is both pre and post "wrap plan" implementation and if and how funds be used beyond the scope of specific FSA admin costs (funding othe radministration costs of a program with a govenrmental entity [e.g., personnel costs])?

Were there any IRS or tax court decisions on this subject, or other federal court decisions, or simply other guidance publications that might be available either through IRS or other sources on this topic? I'll take any information I can get for review...

I've been trying to find information on how broadly FSA forfeiture funds can be used by the administrator to offset admin costs - the consideration is both pre and post "wrap plan" implementation and if and how funds be used beyond the scope of specific FSA admin costs (funding othe radministration costs of a program with a govenrmental entity [e.g., personnel costs])?

Were there any IRS or tax court decisions on this subject, or other federal court decisions, or simply other guidance publications that might be available either through IRS or other sources on this topic? I'll take any information I can get for review...

I deal with qualified retirement plans, so my question here is purely as a consumer. The 11th circuit U.S. Court of Appeals barred a participant's state malpractice claims, and instead said that it falls under ERISA.

The physician recommended treatment was denied by a CIGNA HMO "approval nurse," who allowed the use of the recommended antibiotic, but denied hospital admission and said that it must be treated on an out-patient basis. Bad things then ensued.

For regular people - what are the implications of this? If justified, who could you sue, and for what? Is this decision sort of anti-consumer, or is it relatively neutral, and just requires a suit in a different venue? Does it really limit your recourse, or just sort of change it?

Just curious - not planning on any lawsuits! Thanks.

A client made late desposits and intended to file form 5530. However, the form was not filed on 7/31 and no extension was filed. Is there a correction program?

An extension was not filed for form 5330. Is there a correction program

A benefit is being paid from a group annuity contract at an insurance company. Because we only have a PO Box for the participant, but do have a valid SSN, they say it is not a 'Legal Address' and must withhold 30%.

I reviewed the only reg I could find on topic - 1.1441-1(b)(3)(iii)© and found no support for the 30% withholding.

I also looked at 3405(e)(13) (no regs found) and still found no support for the 30% withholding.

Also a search of RIA using 'legal address' did not turn up anything useful.

Does anyone have support for the insurance company, or are we stuck with......

"Because I said so"

Who is responsible for filing form 990T for a qualified plan? Is it the trustee/custodian (in this case they are the same) or is it the plan administrator? Also do you still need to file a 990T if there is a loss?

Hi all,

We have a participant that recently passed away. Beneficiary designation form indicates that part of account is to go to two relatives in BWI. Do we look to the tax treaty with UK? Can you give me a "quick and dirty" explanation of what I need to do to get the money out of the plan and to the benes? (If it wasn't hurricane season in what seems to be one of the worst seasons ever, I'd deliver the money myself!!)

Thanks,

Kathy

The most valuable benefit is generally calculated by converting the account balance into a J&50 annuity payable immediately using the plan's actuarial equivalent assumptions and then back to a life annuity using testing assumptions.

Does this methodology still apply IF a participant is beyond normal retirement age (testing age)?? Or can the most valuable just be determined using the plan's AE assumptions?

To get rid of a few illiquid nonstandard assets, we want to allow in-service withdrawals (age 59 1/2) and will open it up to all participants (not just self-directed), but we don't want it to be permanent (paternalistic to keep retirement savings intact) and don't want to have to grandfather the right for ever.

Can we just offer it during a certain pre-specified window and avoid grandfathering?? How long does the window have to be (one day is enough to get the nonstandard assets out, but one full year sounds less abusive)?? Does it matter if only HCEs end up using it, or will 401(a)(4) be ok as long as it is available to all??