We had a new employee that started employment here in January. Added husband and children to health insurance plan. Husband is not a U.S. citizen, employee thought all the paperwork was going to be approved and he would be in the states in approximately a month. Well, last month received new set of paperwork from the Italian consulate that they have to start the paperwork over. Employee does not expect her husband to arrive for at least another 3-4 months and wishes to drop him from her coverage. Premiums are tax-sheltered. I am not sure if there is a qualifying event that would let her drop him. Any guidance or help would be appreciated.

My city goverment employer offers a 457 plan through Aetna. I am 25 years old and would like to defer a large portion of my income for 2-3 years, quit my job with the city and use the defered income in order to recieve a small income while I work on my masters full-time.

1) I have been told distributions will be taxed as income, will it be taxed at the regular employee FICA rate or will it be taxed at the higher self employment rate (essentially paying both the employer and employee portions)?

2)Are there any hidden problems that may arise with my plan?

Any knowledge you can pass on will be genuinely appreciated. Thanks!

Accruals under a 412(i) plans were frozen and premiums to the insurance contract discontinued from 2003.

Since the conditions of IRC 412(i) A(2) and (4) are breached by the discontinuance of prems, the plan loses its 412(i) status and hence the minimum funding rules apply - correct?

If such is the case, for the first valuation (in this case for 2003), are there any restrictions on the usual actuarial parameters - valuation date, funding method and assumptions or does one treat this as a new plan (except for the accrued benefit service credits, accrued benefits and the available assets) for setting assumptions, method etc?

Hi,

I am trying to understand the Form 5500 filing requirements for medical and dependent care reimbursement plans. Is is correct that a Form 5500 would be required only if more than 100 participants actually participate in the medical or dependent care reimbursement program (i.e. have at leaast $1 withheld) for the plan year AND the plan is fully insured/general assets?

Also, if less than 100 participate, would the plan be required to file because assets are held in trust? It doesn't seem that flex plans would have trusts, but some TPAs say that sending them the pre-tax contributions is establishing a trust which is then subject to a Schedule I. I called the 125 TPA and they admitted they were unclear of the rules but couldn't offer much guidance. I'm concerned about missing a deadline.

Can anyone shed some light??

thanks

Is there a new rule (perhaps as of 2/04) that if the payment of a DB plan benefit is deferred or delayed for some reason that the plan must pay interest on such payments for the period of deferral or delay? I have heard rumblings about this but can't find the guidance. Thanks.

2002 Schedule H did not include auditor's report but all figures were correct.

Should we wait for IRS to ask for it?

File amended 5500 and Sch. H?

Send it with cover letter of explanation?

Nothing?

Thanks for your help.

im currently 26 years old and make 52k per year. i just spent the last year chipping away at all my debts. i am totally debt free(besides utilities, ins. and rent). unfortunately my family history does not include a long lifespan.

i want to setup a plan that would let me retire at 50-55 yrs of age(obviously i wont be wealthy, but im not interested in working my ENTIRE life). would there be any benefit to using an IRA? would the tax advantages outweigh the 10% penalty?

ive just started researching my future and i see there are many different strategys to retirement, unfortunately you have to live past 60 to reap any of these benefits.

am i forced to stick with money markets and mutual funds?

like i said i just started researching so i am open to any and all suggestions.

Does the plan document governing a health FSA (with more than 50 participants) have to be amended if all claims are sent to a third party administrator?

I realize that other HIPAA requirements would need to be met (entering into business associate agreements, adopting policies and procedures, etc.), but if the plan sponsor never receives (nor will it ever recieve) PHI, would a plan amendment be nessesary?

I have been asked to assist a client that participates in a GIA. Since the beginning of time, the client has been particpating in a GIA with a number of other unrelated employers. The GIA trusts established are for Group Health, Group Life, LTD and Dental. The participating employers remit premiums to the individual Trusts.

Until recently, the Form 5500 has been completed as a DFE and filed by the Trust. The client has just been told that the Trust will no longer file as a DFE and that each client must prepare their own 5500. Everything else will stay the same - participating employers will continue to remit premiums to the Trust.

A couple of questions...

1. Has anyone ever experienced a similar set of circumstances? If so, would you please direct me to some guidance?

2. If the employer is now required to file an individual 5500, do they file it as a multiple-employer plan?

3. Is the sponsor required to have an independent audit performed? Note: The participating employer that I am working with has greater than 250 participants in each Welfare plan.

I am sure that there is more information that is needed to make an accurate assessment - anything that anyone can offer in the way of direction would be appreciated.

Thanks.

I need to get up to speed on Safe Harbor plans as quickly as possible. What resources (prefer web based) would you recommend? Thanks!

Traditional IRA created with form 5305. Designated beneficiary is an irrevocable trust. IRA owner is still alive and competent. Can the beneficiary designation be changed?

A Canadian company has one american citizen working for them and would like to set up a SEP for this employee. Can this non-US company set up a SEP for this individual?

Thanks.

Does anyone have any informaton or advice for this information? I have searched the DOL site as well as others, but can not find much.

Do all of the employee deferral deposits have to tested or just a sample? I find it hard to believe that 100% must be tested. Also, do the results have to be reported in the Auditor's report even if all deposits were made as soon as segregated?

I understand that prohibited transactions must be disclosed, but my preliminary readings indicate that the Auditor must disclose (in the report) the results of the testing.

I appreciate any information you can provide.

company wants to put in a leveraged ESOP

stock is of the parent company which happens to be oa European country, and publically traded on the stock exchange in that foreign country.

is that possible, and/or does it even matter which foreign country it is? and are there other ramifications?

hello. i just opened a ROTH IRA account with ameritrade. my situation is that im 18 and i put in $2000 before april 15. what do i do with the ira now? its just sitting there. any feedback would be great. thanks

I haven't seen the answer to this question in earlier posts.

A not-for-profit employer maintains a safe-harbor 403(b) plan (no discrimination testing) under which employees receive a 4% employer match for their elective deferrals.

Inadvertently, the employer over-contributed with respect to the matching contributions for a highly compensated employee. Namely, the employer failed to observe the $200,000 limit.

I am trying to figure out the best correction method.

I'm thinking of:

1) Since the HCE never should have received the excess $$, under the Plan, the Company should forfeit it (and then no-one gets taxed, or has to file an amended tax return, etc.),

2) Treat the excess as after-tax contributions, and leave the excess in the Plan (but I'm worried that might necessitate an ACP test),

I'm hoping that choice #1 can work out. I'm assuming that this can be corrected under EPCRS as an operational failure.

I'm not finding enough authorty on this to feel comfortable yet. Any thoughts? Thanks much!

From what I understand, if someone has a 403(b) account and also is a participant in a defined contribution plan, the 415 limits apply separately. Which means the total to both could be $82,000 ( $41,000 to each).

But what if the 403(b) owner owns a business and has a plan for the business, is the rule the same? Or is it only one limit of $41,000 total to both plans because it is a controlled group?

Thanks very much in advance.

Jane

What are everybody's thoughts on this product, especially with the 'safe harbor' guidance that was just released? Some of the exemptions regarding fees were a bit vague for me...for instance, would annual custodial fees for maintaining the account be allowed or would they be limited to income generated? Maybe its Friday and I can't think straight but depending on when I read it...I get a different answer....

Thanks

We have an old frozen DC plan which has only terminated vested participant accounts remaining. All of the remaining account balances are over $5,000, and none of these participants have or will consent to lump sum distributions.

The §411 regs say that you can terminate a DC plan with a lump sum provision and force out payments without participant consent even if the balances are over $5,000, UNLESS the employer maintains other DC plans, which it unfortunately does.

So, could we add a J&S form of benefit payment to the plan and terminate the plan, then buy commercial annuities to get the assets paid out so we can shut down?

Or are we stuck with maintaing a plan document, trust, 5500s, etc. etc. etc.

husband owns 100% of company, but does not participate in the plan. He's not a w-2 employee. Wife participates in plan. Is she key?