At first I thought this was an easy "no" answer, but the more I looked the more I questioned it.... Does USERRA apply to ALL military service? ie: hired in 1960 drafted in 1965, discharged and returned to work in 1967 and worked straight through to 2004.

Does USERRA, or anything else, require the Plan to credit service for 65-67?

This is kind of an odd question and my gut tells me that it cannot be done.

Can a plan be conditionally adopted? For example, suppose an employer adopts a plan on 7/1 on the condition that a certain event takes place on 9/1? If the event takes place on 9/1, the plan's initial effective date would be 7/1. Would this be any different than contributions being conditioned on their deductibility? References to any guidance would be appreciated.

Is there any problems with payments continuing to the estate of an alternate payee when a QDRO awards the AP a portion of each payment until the participant's death? My concern is that only natural persons can be alternate payees (414(p)(8)). Must payments end on AP's death or may the continue to a designated beneficiary, such as a dependent child? Thanks.

We have various subsets of employees. We have one particular subset that we would like to provide lesser health benefits to. If we completely exclude this group of employees, we will pass the coverage tests. It just doesn't seem right that we can exclude them altogether without running afoul of the nondiscrimination requirements, but that we cannot simply provide them with lesser benefits. Could we incorporate a subplan in our plan specifically for these select few employees? Any structuring ideas and/or suggestions (or if the answer is simply... Can't do) will be greatly appreciated.

Thanks in advance for any insight.

We have various subsets of employees. We have one particular subset that we would like to provide lesser health benefits to. If we completely exclude this group of employees, we will pass the coverage tests. It just doesn't seem right that we can exclude them altogether without running afoul of the nondiscrimination requirements, but that we cannot simply provide them with lesser benefits. Could we incorporate a subplan in our plan specifically for these select few employees? Any structuring ideas and/or suggestions (or if the answer is simply... Can't do) will be greatly appreciated.

Thanks in advance for any insight.

Can anyone point me to Section 89 of the US Department of Labor Relations? Apparently there is a required participant notice under this section related to participant directed investments for all employee benefit plans. Is this nothing more than ERISA 404© requirements? Thanks.

I recently opened a Roth IRA account. I know that if I take distribution, before 5 years and before I reach 59 and 1/2, I will have to pay taxes + penalty on earnings.

But if my roth account is more than 5 years old and I take distributions, then would I have to pay taxes and penalty still (before age 59 & 1/2)? I read somewhere that after 5 years, I will have to pay only taxes, but not the penalty.

I was looking for this info on IRS website, but couldn't find anything confirming or denying it.

Can you provide some info?

In a Money Purchase Plan, alternate payee (ex-spouse) is entitled to more than $5,000. Is her consent required before she can be paid? Thanks for all input!

Does family attribution apply in a partnership? One partner is a more than 5% owner in the partnership. His son is an employee and a participant in the 401(k). Would the son also be considered a Key Employee? Thank you.

Is it possible to have a one person 401(k) plan that is not a simple plan? I had a financial advisor mention that today, and I've never heard of such thing...can anyone give me some imput or tell me where to look.

Thanks

Hi,

I am new to the SARSEP world, so this may be a very simple question.

ER has been making a 6% contribution to all employees but not capping compensation when determining the 6%.

Is this okay?

Help

I have an employee who will be sending his child to preschool about 3 days a week. He will have to pay for these days. Can this be run through the dependent care component of a cafeteria plan or not??

I have always thought that one could not rollover any portion of a 401-k account while still actively employed by the sponsoring employer; nor make withdrawals at all except for hardship or loans. If an employer makes special one-time contributions (profit sharing) to a 401-k are they permitted to allow you to withdraw and/or rollover this amount? If you can withdraw or roll it over, what are the rules for penalty and withholding?

A one-participant plan's one participant (owner) wants to buy a home using pension assets. I am not sure if for the down payment only or to make the entire purchase. Then the owner wants to have the home leased with rent payments going into the plan.

I believe the plan can invest in the home, but I am not sure they can do so if they are to live in the home as primary residence (although I see nothing prohibiting such).

However, I don't believe the rental payments can go the plan unless it is used strictly to meet the plan's funding requirements.

Anyone have any thoughts or experience on this sort of thing?

Thank you.

We do third party admin for 2 clients over 120 participants and need independent audit.

The auditor is requesting an SAS 70 report for our firm

Is a TPA firm required to have a SAS 70 audit done on controls/procedures?

Thank you

Hi everyone,

I am working on an article for HR Magazine on the topic of the state-of-the-art of dental benefits. My understanding is that most companies offer these benefits today because they are expected by employees. Also that they are relatively inexpensive compared to other health benefits. Doesn't seem like there is a huge variety in products and prices out there either. In other words, dental is a "no-brainer" benefit.

Do you agree? Is anyone doing anything to cut their dental benefit costs, or trying out innovative new products and programs that are somehow more competitive?

What's new in DENTAL!?

If you'd like to chat and possibly be quoted in the article, please email me at mfblunt@mindspring.com so we can set up a phone call. You'll have a chance to review the article before publication.

Thanks a million,

Martha Frase-Blunt

HR Journalist

City 401(a) Defined Contribution plan was not amended by 12-31-2003 for 401(a)(9) final regulations. 2 participants terminated service in 2003 and elected lump sum distribution. I believe the recommended course of action should be adoption of model amendment and enter EPCRS VCP for 2003 calendar year. Any thoughts?

Company A becomes an affiliated service group with Company B after the owners of A purchase part stock of B and begin doing business with them in early 2003. Both A and B maintain qualified plans. I know the transition rules allow each plan to pass coverage but don't apply to nondiscrimination. Therefore, when running the cross-testing of A's plan, I need to account for the eligible participants of B as zeroes in A's testing. They plans are not permissively aggregated.

My question is what rules are there in counting prior service for the employees of Company B. If I don't count any of it before they became related employers, then all B employees are not eligible for A's plan and will be excludable in the nondiscrimination testing. Of course, if I need to count service before they became related employers, then they will factor in.

Health Care reimbursement portion of cafeteria plan:

A client is asking about the health care portion of the cafeteria plan :

If spouse has a cafeteria plan and they contribute, if their employer sets up a cafeteria plan, can they also contribute since there is no federally set maximum and the is up to discretion of employer subject to discrimination testing of course. It makes sense to say yes due to the actual regs stating that dependent care plan where annual mandated maximums are set, no double dipping is allowed.

Does anyone know of any reg that specifically addresses this issue? Could you confirm my intuitive response? Thank you. By the way, i have seen employers set no maximum (engineering firm) and another set a 10,000 so this does not appear to violate any policy of dollar maximum so logically it would seem that since there is no prohibition on dollar amount requirement, it is permitted.

I don't know why this has not come up with my groups more often. This would be a very attractive feature with the over the counter medicine component available as well for tax savings available only through cafeteria and not through tax deduction (that they could be dependents on each others account and have access to two different maximums) Any thoughts? Thanks for your input.

A 105 MERP is hovering around 50 participants so may be technically subject to HIPAA. It seems silly because it is such a simple, innocent little plan! The only medical info the plan "sees" is the EOB in order to reimburse a portion of the deductible. Deductible reimbursement is the only benefit.

I want to take the position that the EOB is not PHI--it is only used to substantiate and pay benefits. Can I do this with a straight face? Privacy is the only HIPAA requirement that is bugging me. I feel like we can get out of the other requirements (creditable coverage, nondiscrimination, enrollment, etc.--due to design and affiliation with the major medical plan).

You HIPAA lovers out there... any thoughts or scoldings?