I am not an expert on the subject of 125 plans but I would think that breast pumps and lactation specialists would still not be a reimbursable expense even with Rev Rul 2003-102 unless it was a medical necessity for the health of the baby. Would you agree with my assumption?

A client that consists of 3 owners and no other employees currently has a self directed profit sharing plan. They are going to start a DB plan effective 1/1/2004 and not contribute to the PS plan. If they merge the PS into the DB, can the PS money still be self directed in the DB plan?? Thanks.

When filing the Final 5500 on a terminated pension plan, are the various schedules required to be filed as well or can you simply file the Form 5500 only? Can't seem to find answer in either the Form 5500 Instructions or in the 5500 Preparer's Manual.

The plan allows married employees to choose a single rate or a family rate. The plan does not allow the employee to elect a single rate and the spouse to elect a single rate (not plan does that I know of). A married participant terminates and has no children. Each qualifying beneficiary has the right to make a separate COBRA election. Can the former employee choose single COBRA coverage and the spouse elect single COBRA coverage (i.e., two single coverages).

I looked at 4980B(f)(2)(A) and 4980B(f)(5)(B), and my answer would be no. The COBRA coverage must be the same as what was offered before the qualifying event (i.e., single for employee only or family rate). If there is one person requesting COBRA, the qualifying beneficiary may elect the single rate (i.e., if the former employee did not elect COBRA the spouse may spouse choose single COBRA coverage). If both the former employee and spouse elects COBRA it must be the family rate.

Please let me know your experience on this issue. If the former employee and spouse can both choose single coverage (two single coverages), can you please provide me with the basis with that conclusion (e.g., reg. code site, etc.)

Thanks!

Is there anything that would restrict the amount of contribution that a "non-profit" employer can contribute?

For example, lets say I have a nonprofit that made lots of money. The min/max (if taxable) is $100K. The entity wants to put in $600K. Is this a problem?

If they don't pay taxes, do they owe any excise taxes?

I recently received enrolled agent status from IRS. I need to find some sources for CPE and would like to hear what others are using for CPE to meet the Enrolled Agent requirements. Any and all suggestions are appreciated.

Participant takes a loan, a few months later takes a leave for disability. My understanding is that loan payments can be suspended for 1 year for a bona fide unpaid leave of absence.

I am being told that because the person has a disability we must suspend repayments indefinitely (the 1 year limit not applicable.) They reason that we cannot ever default the loan because cannot take anything away from a participant on disability per ADA and other related laws.

I doubt that they are correct, but I just am hoping to verify since I'm not up on all the ADA or any other disability laws.

Thanks in advance for any guidance.

An interesting but very disturbing topic was raised on the "Miscellaneous Benefits" Forum by Dave Baker.

I urge and plead with all readers of this Forum to read it and give some assistance.

An interesting but very disturbing topic was raised on the "Miscellaneous Benefits" Forum by Dave Baker.

I urge and plead with all readers of this Forum to read it and give some assistance.

An interesting but very disturbing topic was raised on the "Miscellaneous Benefits" Forum by Dave Baker.

I urge and plead with all readers of this Forum to read it and give some assistance.

I am not sure this is the correct forum for this question but thought this would be a good place to start.

I have recently taken early retirement from a large company because they are

downstaffing and moving some jobs to a temporary service. After a few weeks

I was asked by the temporary service to train their employees and manage the

same job I used to do. When this was presented to my old company they

refused to allow me back into the plant to work stating that I was required

to not work in the plant for 12 months because I had taken a "package".

I believe they set a precedent that would allow this because they also

outsourced all the IT services and every employee immediately transferred to

the outsource company and one of them was allowed to take a package before

she transferred. I went back and reviewed the severance package contract as

well as all the other documentation related to my retirement and can find

nothing indicating I can't work for a different company that happens to be

in the same building as my original company on any timeframe.

Note that I worked for the company for 15 years and retired with all normal

benefits. I did not take early termination and was not asked to leave. I

left for an opportunity for advancement and this definitely would be an

advancement as I would be managing 30+ people.

My questions are: Is this legal? Can the company enforce demands such as

this when I will be working for an entirely different company that happens

to be working in the same building? What would you suggest as a plan of

action?

Thanks for your time.

John C

In checking performances with different sources (scottrade, cnn-money, and yahoo), i have found significant differences in the 1,5, and 10 year return data.

Is one source more reliable than the other? if so, how do i know which one?

I have two Roth IRA's at separate institutions. Can I roll one account into the other so that I would only have one Roth account?

Thanks,

mslish

We just put in a 401k cross-tested plan with a 3% safe harbor. The client just advised us they have many employees subject to Davis Bacon Act. Is there a reason the employer cannot treat the 3% safe harbor as a credit towards their obligations under the DB provisions?

First year of deferrals, 9/30/03. Plan fails ADP.

I want to use a QNEC.

Can you use the deemed 3% + QNEC or are you forced to use actual results + QNEC?

QNEC will be deposited post 9/30/03 so for 2004 I can't use actual + QNEC for 2004 ADP limit as prior year testing, is that correct?

Can I add the QNEC to the 9/30/04 year end deferrals for prior year testing of 9/30/05?

Thanks

Does anyone know if there are penalites and the amount of such penalties for failing to furnish an SPD or an updated SPD to participants? If you know the cite too I'd appreciate it.

Thank you.

Does anyone know if there are penalites and the amount of such penalties for failing to furnish an SPD or an updated SPD to participants? If you know the cite too I'd appreciate it.

Thank you.

Just a quick question, does a disqualified person's cousin fall into the prohibited category.

More spefically- is there any interpretation to mean lineal decendant of the ancestor.

Thanks

TAG

Ok, here's a new one. My company is part of a controlled group with 3 other companies. There is currently one plan that covers 2 of the organizations and a third plan that covers the 3rd organization. No QSLOB, we test the entire group.

Issue: One of the companies now wants to switch to a PEO model. Here's the question(s): (1) if they do that, could they (a) keep those PEO employees in the plan that is currently covering them (the company would be the employer by control, etc.), and (b) if so, would that affect the testing for the plan in any way?

or

(2) could the company using the PEO model terminate their particpation in the plan they are currently in (with proper amendments, corp. resolutions, etc.) and then particpate in the multiple employer plan sponsored by the PEO (per RP 2002-21). And, if they do the second option, how would testing work from the PEOs perspective and from the controlled group's perspective.

Also - (option 3) couldn't the PEO client organization sponsor their own plan, handle testing on a controlled group basis and not worry about the PEO?

Please help! What do you think?

Does anyone know if an SPD for a DB plan must be (or should have been) amended for GUST (and EGTRRA and now RMD) and distributed to participants? (Come to think of it, I think a new SPD may be required to comply with the new claims procedures and ERISA rights statement?) Assuming that an amended SPD (or SMM) was required, is there a penalty for noncompliance and, if so, what is the amount of any penalty (any cite?)? Are penalties imposed only if caught on audit so that if an SPD is amended and distributed before an audit everything should be ok?

Thank you for any assistance.