Where can I find the IRS regs dictating what options an employer has for "using" forfeited funds from employees flex accounts?

Thanks!!

This should be an easy one for all of you. If an employer changes medical insurance providers in the middle of the year (in this case as of 4/1/04), is that an opportunity for the employees to change their withholding amounts for the healthcare re-imbursement plan? Also, would this be an event that would allow the employer to increase the maximum (currently it is $1,500) amount an employer can use?

Thanks,

Tim

Is a NHCE, who is excluded from the plan by job description, required to get a 3% SH Contribution ?

We have a 20 year old who wants to contribute $1,500 to a Roth for 2003. Schwab says they will not open an account with less than $2,000. Any suggestions for institutions that will set up this account?

Are wrap plan documents still a viable option with all of the new requirements? What are the pros and cons of using a wrap plan to cover all of your H&W plans? Thanks for your input.

PAL

Has anyone explored the notion that an employee's abuse of the universal availability rule in a medical flexible spending account (e.g., obtaining maximum reimbursement and then terminating employment) could constitute health care fraud under HIPAA?

I think it probably doesn't fall squarely within HIPAA's fraud, theft & embezzlement provisions but I would be interested if there were any discussions out there...

In a Safe Harbor plan, the non HCE's receive 100% of 4% (safe harbor match). The HCE's do not receive this. Would it be ok to allocate a discretionary match (assuming plan document allows it) to the HCE's which is no more generous than the safe harbor match that was given to the non HCE's (such as 100% of 3%)?

How much flexibility do DB providers offer plan sponsors? Is it mostly commingled pools? Or would our company be able to invest in mutual funds as well, or even have assets privately managed? Also, are providers offering investment counseling, meaning will they manage our money for us (discretionary accounts)? We're thinking about Fidelity, NYLife, Mass Mutual and Cigna? Anyone have experience with these providers?

Thanks,

Rob

Terminating db plan has $80000 in excess assets. Plan sponsor wants to first pay actuary's/attorney's fees out of excess, then re-allocate the rest to the plan parts. Plan's atty says IRS has reservations about paying fees out of excess assets. I thought that only applied if the sponsor was reducing a reversion, and therefore the excise tax, by paying the fees from the assets. Is the atty correct?

Two participants have life insurance policies in a profit sharing plan. The plan sponsor wants the participants to buyt he policies and maintain them outside the plan. How is this done? Is this even possible? Wouldn't this be a prohibited transaction? Premature distribution?

Hi,

Help! I need my ERISA outline book and it hasn't arrived yet.

Employer is a member of a controlled group. PS allocation is based on compensation, EXCLUDING compensation paid from the other CG member.

Do I have to test the definition for discrimination with the denominator being all compensation from the CG?

Help is greatly appreciated.

Thanks

Lori

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.