When a participant buys contact lenses online or via telephone, is the shipping and handling charges reimbursable? Thanks

I'm interested in any LAW guidance on this if anyone found any. I spent 15 minutes using the SEARCH function and came up empty (although I did read a lot of interesting stuff!)

Not interested in the "Check your plan document" kind of reply, but actual knowledge of (citation if possible) an IRS position or LAW.

Thanks.

Can health club memberships ever be an eligible medical expense under a 125 Plan, even if it is medically necessary and prescribed by a doctor? Thanks, Joe

Examples of IRS responses to requests for waiver of the 60-day limit on rollovers.

PLR 200401025

PLR 200401024

PLR 200401023

Payroll Admin. at Company has not processed the 2003 W-2's. She wants to know if she can adjust or reduce the amount of deferrals on the W-2 from 13,000 to 12,000????

The 1099-R issued in 2004 for the distribution of the Excess Deferral and income should take care of the adjustment ????

Thanks for your help.

Also, the match on the excess deferral would this be treated as a forfeiture???

we have an individual on COBRA family and has a son who is a full time student. AT what age is he no longer eligible to be on her plan? And if he is no longer a full time student-at what age can he stay on her plan?

thank you

we have an employee that we recently terminated-they have asked to review our 401k documents-are they permitted now that they are no longer an employee?

One 501©(3) entity (entity A) sponsors a 401(k) plan and acquires 100% of the assets of another 501©(3) entity (entity B) that sponsors a 403(b) plan. Entity B will keep it's own tax ID#. Entity A wants Entity B to keep it's 403(b) plan. There is a special rule for coverage that says, "For purposes of the 401(k) plan's coverage, the employees eligible to contribute to the 403(b) plan are excludible if:

1. no employees of the tax exempt entity is eligible to participate in the 401(k) plan and

2. 95% of the employees of the non-exempt entity are eligible under the 401(k) plan."

This rule does not seem to apply since neither entity is "non-exempt". So would they not be able to exclude the employees of the other entity when doing coverage?

Thanks

401(k) PS combo plan year is calendar year. For 2003, is it possible for a catch-up eligible participant with, say, $80,000 comp to have a PS allocation of $40,000 and a catch-up salary deferral of $2,000? (Assume that company 404(a) limit is not exceeded.)

I've seen plenty of examples of $28,000 PS and $12,000 SD + $2,000 catch-up SD, but my reading of the 1.414(v) regs seems to allow the $40,000 PS + $2,000 SD, because Sec. 415 is one of the statutory limits that can trigger a catch-up contribution.

Unfortunately, the 1.414(v) reg examples are not on point.

Has anyone seen the $40,000 + $2,000 in use? Seen any expert guidance?

Thanks,

Dave Peckham

I am interested in how you would handle a QDRO that states that if the plan does not fully subsidize the QJSA/QPSA, then the cost would be charged pro-rata to the participant and AP, e.g., the portion of the cost charged to the AP would be the actual charge multiplied by a fraction: (1) the value of benefits awarded to the AP as of the valuation date on which the award of benefits is measured in the DRO divided by (2) the value of Participant's benefits as of (i) the date of the charge or (ii) the date of distribution (the DRO would include (i) or (ii), not both).

Would you reject it? Any thoughts or comments?

Is the deferral limit still on a participant basis versus a plan basis?

Example- Participant works for 2 different corporations. He/She makes $25,000 at each corportation. The individual is age 40. Is the limit $13,000 or $26,000? (Assume 2004 year).

I have a participant in our Cafeteria Plan whose husband is self-employed and works out of their home. They still take their daughter to a full-time day care operation. Can the participant run the day care costs through our cafeteria plan?

No. Because the husband works out of the home, the child-care option is not available. :angry:

Yes, since the child is sent to a organized child-care facility the employee should be able to run the costs through the plan.

Treas. Reg 1.401(k)-1(d)(2)(iv)(3) states that one of the deemed hardship standards is for the

payment of tuition, related educational fees, and room and board expenses, for the next 12 months of post-secondary education for the employee, employee's spouse, children, or dependants (as defined in section 152).

Does this mean that if a participant submits a past due bill for college expenses, it is not a qualifying hardship because it is not for the payment of tuition for the next 12 months?

I have a client that is asking if she can run her husbands disability insurance through her flex fund under individual premium. I have been told by a coworker that it is allowable, but not benificial as the benefits will be taxed if they do so. Has anyone come across this and seen any difference?

Are non-qualified plans subject to state escheat laws? I was thinking that since the plan assets are not protected, and are subject to creditors, that unclaimed benefits could be infact subject to state escheat laws.

Thanks!

This may not be the right area since the client now has all her $ in an IRA... Its just that you guys are a wealth of knowledge... I figured you might know. I posted this post in the "IRA" area... not many replies... any thoughts.. anybody?

An old pension client of mine terminated her plan and rolled the $ into her IRA. She is on disability and doesn't think she will make it to retirement age before she dies. She asked me if I knew if she could withdrawn funds from her IRA without penalty since she is disabled. I admitted that I couldnt answer that question but would see what I could find out.

Is the answer dependent on the IRA?... or is there a definitive answer with regards to all IRAs?

Also, is there a # to call at the IRS?

Any help would be greatly appreciated!!

If I am not following proper board etiquette let me know and consider me "tought"

An old pension client of mine terminated her plan and rolled the $ into her IRA. She is on disability and doesn't think she will make it to retirement age before she dies. She asked me if I knew if she could withdrawn funds from her IRA without penalty since she is disabled. I admitted that I couldnt answer that question but would see what I could find out.

Is the answer dependent on the IRA?... or is there a definitive answer with regards to all IRAs?

Also, is there a # to call at the IRS?

Any help would be greatly appreciated!!

The question is this: In the case of a company that self-funds several plans, including medical and LTD, if the company ceases its business operations, does state or federal law require any time period during which claims must be processed and paid? Or, does the company's obligation to pay claims cease upon declaring the plans teminated?

What is the source of regulation if this process, if any?

Thanks very much for any help you can give.

I am working on terminating a plan with all of the participants paid out except one. I believe I have tried all avenues to locate this participant but have been unsuccessful so far. I have sent letters to the last known address, sent a letter to the IRS for forwarding, yet no response. Are there any further avenues I could try to locate this individual. I would like to close this plan asap. Any and all suggestions would be helpful.

I have been contritubing to the 457 under the "Savings Plus" program as a California state employee. I am 49 years old, and am in the 15% tax bracket. Would I be better off contributing monthly to a taxable account? I already contribute the maximum to my Roth and will continue to do that.