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?

I think I know the answer, but would like to confirm.

Employer who sponsors a top heavy plan is a member of a controlled group with another company. Some employees work for both entitities.

For the top heavy plan, is the 3% based only on 415 compensation from the employer who sponsors the plan and not on combined comp from both members?

P.S. The plan passes coverage including the the other members employees and the document excludes compensation from the other controlled group member in the regular definition of plan compensation.

If anyone can confirm, I would great appreciate it!

Thanks

I have looked at the Puerto Rico plan threads on these boards, but have been unable to find the answers to the following questions. What are the requirements for qualification under the Puerto Rico tax code? Do you need to submit one qualification application, or do you need to submit periodically (as with the IRS)? Is there are form for a qualification application?

We are having trouble locating some primary authority on the following issue.

Can a government money purchase pension plan make in-service distributions to participants who have reached age 70.5 (if the plan so provides)? We wanted to see if anyone else has any thoughts on this issue. (Our thinking is that such a distibution would be permissible and would not be a prohibited in-service distribution).

TPA has Client X which maintains a qualified plan subject to ERISA. For 2001, the Form 5500 was not filed. The IRS has issued a notice to Client X imposing a penalty of several thousand dollars. Client X has not received a notice from the DOL. If Client X files under the DFVC program, will the IRS penalty be abated?

I have medical practice "A" as a client and "A" maintains a 401(k). Last year the doctors of "A" created their own separate practices. Each doctor receives $40,000 from "A" as well as receiving a K-1 for their own practice. They have not updated the plan docs to reflect the CG/ASG rules, and do not think they have any intention to.

The attorney who drafted the plan says that I can't use the income from the K-1s since they have not updated thier plan to reflect the new entities. The doctors obviously want me to use their K-1s as part of their income so they can get a larger profit sharing contribution.

I am leaning with the attorney since the new practices have not adpoted "A"s 401(k), eventhough they are a CG/ASG. All of the employees are in "A", the doctors are the only employees in their practices.

In addition if I use both incomes, I would assume that I would have to reduce the K-1 income but not the W-2 income.

Thanks

An employer has discovered that one of his employees provided false information (ID, SSN, etc) and is an illegal alien. After the discovery the employee was terminated. The employer sponsors a discretionary profit sharing plan. The illegal alien received allocations in the plan.

In a way, this is somewhat of the reverse of an otherwise eligible employee not having received a proper allocation and the plan sponsor's taking corrective action to provide benefits that the employee should have received.

Does that fact that this person provided false imformation that resulted in his employment and coverage require corrective action to reallocate his account balance to the legal employees who would have otherwise received the allocation or is the plan required to distribute the benefits ?

Thanks,

Thomas Pritchett, CPA

An employer has discovered that one of his employees provided false information (ID, SSN, etc) and is an illegal alien. After the discovery the employee was terminated. The employer sponsors a discretionary profit sharing plan. The illegal alien received allocations in the plan.

In a way, this is somewhat of the reverse of an otherwise eligible employee not having received a proper allocation and the plan sponsor's taking corrective action to provide benefits that the employee should have received.

Does that fact that this person provided false imformation that resulted in his employment and coverage require corrective action to reallocate his account balance to the legal employees who would have otherwise received the allocation or is the plan required to pay him the benefits ?

Thanks,

Thomas Pritchett, CPA