I have searched the boards and cannot find my exact scenario and I need HELP! Cross-tested safe harbor top heavy plan using safe harbor match.

Eligibility: 12 months of service

1000 hours

age 21

dual (Jan & July 1) entry dates

Calendar year plan

Employee: hired 03/23/2002 & is over 21

2002 worked approximately 400 hours

2003 worked approximately 1000 hours

Client allowed participant to defer late in 2003 (about 1 month) and gave her safe harbor matching contributions on those deferrals. Her actual entry date should have been 01/01/2004. I understand that we can amend the plan and change the eligibility for deferrals to fix that error (we would leave the PS eligibility 1000 hour YOS, age 21, dual entry). The plan is top heavy. Does she need to receive a top heavy benefit for 2003 even if she will not enter the PS portion until 01/01/2004? I think since she is a participant and did not terminate, I must provide her with top heavy benefit. I'm pretty sure I can also apply the SHMAC she received toward the total top heavy contribution. Now - let's move to the cross-tested piece. It is my understanding that since she received a SHMAC and will be receiving a 3% top heavy, she will be required to receive the minimum gateway...is this correct?

Any help is greatly appreciated and I'm sorry if the topic is a repeat........

Client chose a 3% SH contribution when the SH 401K plan was established. He was sure everyone would contribute. Plan has a 3/31 year end. Turns out he would have saved $$ if it was a matching SH contribution.

Can the formula be amended for the 3/05 year end ? and must it be done before the 3/31/04 year end?

I see on many posts "search the boards, that topic has been discussed MANY times before". I thought I was at least average intelligence, but I seem to fall down miserably when it comes to searching these boards and finding what I need. Usually when I try a search, lots of posts come up but many are unrelated because they only contain one of my search words. I tried using more detail in my search to no avail, I then get practically nothing to come up. What am I doing wrong? Any help is appreciated.

I worked for a place for 5 days, then I got in an accident when I was delivering for them. Which is illegal I found out since I was only 17 at the time. He shouldn't have been letting me deliver. I didnt know this since I just started working for him and hadnt got paid yet, but he paid under the table. I was in the hospital for a month, in a rehab for a month, and then went home but was still in therapy until January. He should have helped us, and if he didnt pay under the table social security and workers comp would have helped. I want to inform social security, the people who gave him this business license, and whoever needs to know because it's illegal what he's doing. And also he hasnt paid me for the 5 days that I worked there. I filled out the papers I needed to the day before I started working there so I did what I should have to work there legally. What should I do? How do i get the money he owes me for working there? Shouldnt he help on the doctor bills? Or does he get off scot-free even though he is doing something illegal? Please write me and let me know and pass it on to others who might be able to help me do what needs to be done. My email address is: adale04@juno.com .

Please help me give justice. -April

Is there someone out there that would be willing to discuss with me how they go through daily reconciliation on the AST/Security Trust platform? It takes us so much time on a daily basis to reconcile all positions. It seems as if we have made this harder than it should be. I would appreciate any help on this.

I'm not sure if i put this in the right category, but here goes. A client based in Georgia has a division in San Fransisco where there are participants with same sex marriages. Are those marriages recognized for retirement plan purposes since the employer is based in Georgia?? Thanks.

The company administering our health claims, does the 1st level of appeal

Our company does the 2nd level of appeal

Our Health Plan SPD also indicates a vountary arbitration process addiitonally

Is a 2nd level of appeal allowed by Company or must this arbitration process be the 2nd level of appeal

woudl anyone have language they could share on the 2nd level review process to put in an SPD

thanks

A client of mine merged its money purchase plan with its profit sharing plan. Both plans contain the J&S requirement. The assets were previously kept in several pooled funds with 3 funds being just money purchase money and 3 funds being just profit sharing money.

Is there any reason why they cannot merge all of the money together? To keep track of the balances, I could just use the total rate of return for the plan instead of separating the money purchase and profit sharing rates as in previous years. Is this common practice or are the assets usually kept separate even after the merger?

Flex Plan has two components: Health and Dependent Care Reimbursement Accounts. Participant may elect to defer up to $2,000 towards Health Care Reimbursement. Plan Year is the Calendar Year. Plan sponsor wants to know if they can amend plan mid year to increase the amount of Health Care Reimbursement up to $4,000 and as a result, allow particiapants to increase their salary deferral amounts.

Would someone please be kind enough to direct me to a prior posting (I could not find one that fit my inquiry), or appropriate Internal Revenue Code cite?

Thanks.

What's the latest on the proposal to change the PBGC interest rate for calculating the variable prem? Is the congress even looking at this right now?

The low interest rates starting Jan 2004 is producing a variable prem for some of the plans I am working on.

The plan provides for ER Match of 100% of deferrals up to 5% of compensation. This HCE has compensation of 350,000 in 2003. He made the maximum elective deferral plus cach-up for a total of 14,000. 5% of 350,000 would allow for a match of 14,000. The 401(a)(17) limit on compensation (200,000) only provides for a match of 10,000. I don't see any mention of the 401(a)(17) limit in the regulations for 414(v) so I'm saying that the 200,000 comp limit comes into play and prevents a full match on the 14,000. Am I correct? Any thoughts?

A sponsor has a safe harbor provision in the document with an enhanced match formula (100% of the first 4% deferred.) The SH notice provided to the participants last year said the company will match 100% up to 3%.

Does the typo in the notice take them out of safe harbor status?

A PBGC covered defined benefit plan is winding down. The participants are 2 parents and 5 children over age 21. The parents own the company.

The plan is underfunded, so I have been asked to come up with a creative way to shift more dollars to the parents, something the children are willing to do. Right now the children are not considered owning any of the corporation because of the 1563 attribution rules used for PBGC purposes, so they cannot waive benefit as majority owners.

I have come up with the idea that 2 of the children can be given options to purchase the half of the company each. That would make them majority owners too and they could waive benefits. But that is not good enough, so the search continues.

Any thoughts, no matter how aggressive or ridiculous, that this could be done? It is not something I have to recommend, but rather just come up with as a possibility.

There is a HIPAA/ERISA exemption for on-site medical clinics, but I can't find a definition of what an "on-site medical clinic" is.

The clinic I'm analyzing is physically located away from the employer's offices, but nurse clinicians perform MOST of the services on the employers premises. Some services are performed at the clinic. (e.g., if an employee misses his on-site flu shot or annual physical, then he can go to the nurse's clinic off-site and get the shot/physical, etc.)

There is a HIPAA/ERISA exemption for on-site medical clinics, but I can't find a definition of what an "on-site medical clinic" is.

The clinic I'm analyzing is physically located away from the employer's offices, but nurse clinicians perform MOST of the services on the employers premises. Some services are performed at the clinic. (e.g., if an employee misses his on-site flu shot or annual physical, then he can go to the nurse's clinic off-site and get the shot/physical, etc.)

Is there any significant difference in 401(k) plan design when you jump 10 participants and under to over 10 participants? A friend got some marketing information from a large mutual fund company in which they list have listed different thresholds for 401(k)'s, of 1 life, 10 & under, 11-99, and 100+ participants. She didn't have the details on why they would market them differently and was asking me about the difference. I could explain the 1 life, & 100+ differences, but the 10 life breakpoint had me lost. I suspect there may be a price difference at that point, but I can't think of anything technical in nature that changes. Is there something special about going from 10 to 11 participants in a 401(k)? Thanks for your comments

Self funded group health plan processes claims and appeals in-house; claim appeal process is three step: appeal is first reviewed by claim manager, then by committee consisting of senior benefit managers, then by president of company.

Claim manager and committee can deny claims before passing them on to the next level. However no subsequent appeal can be made.

This is a single-level appeal process, yes? My understanding is that a two-step appeal process requires a complete second shot at claim approval, following one unsuccessful appeal.

And is it appropriate (necessary) to spell out the three-step process in the SPD?

401(k) plan offers participant directed accounts with various fund options with mutual fund company A. employee investment education relative to mutual fund is such that, alone, it meets the requirements for 404© fiduciary "protection."

however, a segement of the participants (2 hce's and 1 nhce) are provided an "expanded" fund menu that inlcudes funds offered by mutual fund company B.

am i correct in assuming that this scenario does not meet the requirements of 404© as all of the participants have not been provided the same investment alternatives?

also, would the participants who have the "limited" fund menu have an argument for requesting the employer to make up any difference between the performance of the "expanded" fund menu vs. the "limited" fund menu?

401(k) plans may accept "direct rollovers" from IRAs/individual retirement annuities beginning 1/1/02 as a result of EGTRRA.

May 401(k) plans also accept "direct transfers" from IRAs/individual retirement annuities? What is the difference between a "direct transfer" and a "direct rollover"?

What is the definition of the account balance for loans. Section 72 dosesn't define. Does the account balance available include outstanding loans?If a participant's account balance is $26,000 including an outstanding loan of $13,000, what is the account balance for a new loan? $26,000 or $13,000?