I have a question about something many people haven't heard of yet.

The newest thing now when people have babies, is cord blood preservation.

There is typically a several hundred to over a thousand dollar initial cost depending on the facility you choose.

I have a client that might be doing this, would it fall within the flexible

spending parameters?

Hi,

Trying to find the answer, but struggling.

Doctor participates in medical corps PS plan and is a 14% owner.

Also receives directors fees for a nursing home and established a SEP for his Schedule C income.

Doctor received $40k in the corps PS plan and is told he can't made a SEP contribution because he has already maxed his 415.

I'm thinking that would be a separate 415 limit since the two businesses are not in a controlled or affiliated group.

I know the SE rules get kind of tricky. Can anyone help?

Thanks so much.

The sole shareholder of an S corp wants to set up a SEP to cover himself and his one employee. However, the S corp has already filed its tax return for the year.

If he has the S corp make an employer contribution to the SEP, is there any way that the S corp can still take a deduction for the year?

Could the sole shareholder take the deduction on his personal return? Seems to be that this wouldn't be permitted.

11 pediatricians form a PC and see patients. Through the corporation they also are hired by drug companies to lecture, conduct clinical trials, serve as compensated officers at hospitals. The doctors want to form another corporation to do everything but see patients, and want a qualified plan for the "other" corporation. Assuming the ownership in each corporation doesn't rise to the level of a controlled group, are there any affiliated service group issues? The doctors obviously work for both corporations, but the corporations don't provide services to each other.

I just want to say that everyone has been so helpful, I just want to say thanks to all.

We have an employee with 10,500 in his psp account. He wants to take a loan. I thought the max loan was 50% of his account balance. However, our financial advisor says that its the greater of 50% of his account balance or 10,000 not to exceed 50,000.

Thanks.

Instructions to Schedules H and I (only) include "Round off all amounts ... to the nearest dollar."

Anyone with experience to determine if this is literal? Can amounts be rounded to nearest $100 or $1000? Can I round on other schedules? (especially Schedule B)?

Employer is contemplating converting its existing 401(k) plan in order to satisfy the safe harbor requirements. It wants to utilize the safe harbor matching rules but it doesn't want to fully vest the prior employer match. Rather, it would like to retain its prior vesting schedule with respect to prior matching contributions and use those forfeitures to offset its future safe harbor matching obligation. Anyone see any problems with this?

I am in great need of help in answering this question --

Does the privacy rule apply to the identification of which medical plan retirees have chosen? The context is a request for information from a company in bankruptcy that is threatening a section 1114 filing (that is the section of the bankruptcy code that allows a debtor to modify or terminate retiree medical benefits). The company says it can't provide the information because it is covered by HIPAA.

I don't think that identifying in which plan a person participates (and nothing more) is PHI. I see this as similar to the incidental disclosures allowed under the Rule, like calling out a patient's name, or even sitting in the HMO's waiting room.

Can anyone tell me how stating the fact of who is in which plan is PHI?

I have calls into the legal department at OCR but may not hear from them any time soon.

Some help today would be truly appreciated.

Thanks!

I have 20 years experience in the administration of DC plans and am working for a new employer in a different capacity, managing IRAs. I am finally eligible for their 401(k) plan with the generous $1 for $1 match up to 5% and finally received some written information about the plan. (Do I have to say that no one in HR knew anything about it?) We were given the investment alternatives on 3/23 and MUST make an election by 3/31. But that is not my major complaint. The problem is that this plan is really a 401 Variable Annuity Contract with underlying investment funds. My research shows that all this accomplishes is to enrich the insurance company holding the annuity contract. None of this was explained to us participants although there is information in the "booklet" we were given (not an SPD). No one working here understands what I am upset about.

Does anyone know of a resource I can use to further explore this and perhaps alert management to this bilking of the plan and participant assets?

I can't even select the money market option because with all the fees, it shows a NEGATIVE return for all periods!

Any help or direction is appreciated.

Thanks in anticipation.

Forefitures under plan reallocate. Plan document provides that forfeitures occur upon the earlier of payout or 5 yrs break. Document further provides that if the Former Participant is eligible to share in the allocation of employer contributions or forfeitures in the year the forfeiture would otherwise occur, then the forfeiture won't occur until the first year that the former participant is not eligbile to share.

Participant terminated in June, paid out in July, rehired in September. Generally participant forfeits in July at payout, however, because she is rehired this participant is eligible to share in contribution/forfeiuture allocation. It seems to me that even though participant did not repay vested distirbution amount, she won't forfeit (in affect a restoration with no repayment.)

Just curious if anyone else has different thoughts.

A plan uses high 3 consecutive year avg for avg comp.

If employee earns 50,000 for 2000, 2001 and 2002 can his avg comp decrease?

i.e what plan provisions would be necessary for a decrease in avg comp to occur?

Thank you.

Company X sponsors a 401(k) plan. In 2002 the company's stock is purchased by an individual, Mrs. A, who now becomes the sole owner. Mrs. A's husband also is 100% owner of a similar business, Company Y. Company Y does not sponsor a plan. Company X uses a standardized plan document.

First, does the coverage transition rule apply in this case, and does that mean that for coverage purposes Company Y's employees do not need to be considered for coverage purposes until 2004?

Second, I have always been confused by the fact that the coverage transition rules do not relate to non-discrimination testing. Does this mean that regardless of coverage, the employees of Company Y must be included in the ADP testing for 2002 and 2003 if eligible?

Which brings me to my final question...for plan purposes, is the date of hire for the employees of Company Y their date of hire at Company Y, or the date of the purchase (assuming the document does not allow any predecessor service)?

Really appreciate some help with this one.

Thanks.

A participant defaulted on a loan and loan was deemed distributed.

Subsequently (in the same year), the participant resumed making his loan payments.

Had he not resumed the payments, we would reflect the deemed distribution on schedule H or I and take the loan off the books for 5500 purposes.

Now, because he is making payments, the loan should not be taken off the books, and I assume the deemed distribution should still be reflected.

How do you bring the loan back into the 5500? Would you adjust the regular distributions? I was tempted to do that, but this was the only distribution during the year and I could not obviously enter a negative amount under the distribution (Relius won't let you.)

Does anyone have any insight?

How long should copies of COBRA notices be kept?

An employer has a high deductible health insurance plan. The employer wants to set up a cafeteria plan and contribute various amounts, pre-tax, to the plan for the employees to use towards the high deductible. However, the employer only wants to only make available to the employee the amount contributed to date to the plan on their behalf. Can an employer do that or does that fall under the uniform coverage rules.

If the employee elects to put in their own money, the employer is okay with making the whole year's election available for claims reimbursement...but wants to limit the availability of the employer contributed piece.

401k CT P/S plan that excludes by job classification. Last year(12/31/02) ee was in an eligible job class and received contrib. as of 12/31/02 her job title changed and she is not eligible for any contrib's for 12/31/03. Plan is top heavy for the 2003 plan year. would she be elig for top heavy min ? if so why(i don't think so).

A 401(k) plan is eliminating an optional form of benefit. I thought the 411 regs. required the plan to provide notice to employees at least 90 days before the distribution option was eliminated. I have just been advised that EGTRRA amended the statute and removed this requirement, so the notice requirement in the 411 regulations no longer apply.

Is a Plan still required to provide at least a 90 day notice of elimination of an optional form of benefit. I understand it is good PR, but is it requried ? Anyone know where I can look in EGTRRA to confirm the statute was amended ?

Thanks.

Hyper

i dont know alot about 403(b)'s but i remember doing some research and seeing that you really can't terminate a 403(b) plan. does anyone know whether you can terminate a 403(b) and if so the methodolgy? this particular plan has both employer contributions and deferrals.

Does anyone have a sample letter they have sent to the IRS asking them to abate the 50% excise tax on a required minimum distribution that was late?

Can a nervous adopting employer obtain a private letter ruling for a new 457(f) [inleligible] plan?...under Rev Proc 2003-1? Anyone done this lately?