Can anyone point me to regs that require callbacks to confirm the rate for FX on ERISA accounts to be done prior to booking a trade?

i believe the two PTEs cited above mention only written confirms w/in 5 days.

many thanks

We do not deal with much insurance in pension plans. However, I am taking over a plan that has whole life insurance policies in the plan. The owner is looking to max to the $40k.

Does his premium count against his $40k?

Is there anything else I should I should look for when calculating the % to the NHCE.

Thanks

A company has been withholding FICA on sick pay beyond the six months of such income that is subject to FICA per Code section 3121(a)(4). The Company acknowledges that it was not entitled to withhold these sums and plans to change its program going forward and to offer refunds of monies collected for past periods -- to a point. The company claims that IRS regulations establish a five year statue of limitations for refunding these improperly withheld sums. I know that there are specific limitation periods for claiming refunds from the IRS. Does anyone know of a regulation that applies to the company in a case like this. Perhaps they are saying that if the company has paid these sums to the IRS and if it can't get the money back from the IRS then the company has no obligation to refund these sums to affected individuals? Are the affected employees left to a state claim against the Company? Thanks for your thoughts.

I have been thinking about this and I can't think of a way that Relius can handle this. If I am losing a plan and want to provide an electronic file for everything to the new recordkeeper, is Relius capable of this?

Have recently taken on a plan that definitely is a late amender for GUST and appears to never have been amended for TRA 86 (we're still reviewing files and hope to find a more recent document).

Has anyone looked at the issue of whether the VCP user fee is assessed only once in this situation? In other words, will our $750 cover both the TRA 86 & GUST amendments?

Thanks,

JD

A participant contributes $10,000 in after-tax contributions to a plan. These are the participant's only contributions. The participant elects to receive a distribution from the plan in the form of a life annuity. The participant receives a benefit of $9,000 during his first year of distributions, $1,000 of which is attributed to the participant's basis in the annuity contract and is not taxed. The participant dies after receiving only one year's worth of annuity payments. Under the terms of the plan, the participant's spouse is entitled to a refund of the difference between the participant's contributions to the plan and the amount of benefit received by the participant.

The participant's spouse is only entitled to a refund of $1,000 (total contributions of $10,000 less annuity payments of $9,000). However, as the participant's basis was $10,000, and only $1,000 of that basis was distributed to the participant, the participant has an additional $9,000 of basis in the plan. Clearly, the $1,000 the spouse is entitled to receive is not taxable. But what about the remaining $8,000 ($9,000 less $1,000 paid to spouse) of basis? Is it simply lost? Can it be deemed a loss on the participant's final tax return or on the spouse's return in the year the refund is made?

Please help. I was a participant in a DB Plan. from 2001 to 2003, I was terminated (not laid off). They said the plan has a 5 yr cliff schedule. Is this in compliance?? reason I ask is I kn ow DC plans ( 401k, etc) in 2002 with EGTRRA cannot have a 5yr cliff anymore.

Please help, what should I do? Am i accurate in my EGTRRA assumption with DB Plans?

I am the office manager for a company with three full-time ees. We currently have group health ins (a PPO w/$25 co-pay and $1000 ded) w/AMS and our premium seems extremely high: coverage for male age 67, male age 61, female age 44, plus spouses, will be $4,000/month as of our 8/1/03 renewal.

We have one ee in TN, one in TX, and one in NM (ah, the wonders of the internet!).

I am getting quotes from an independent insurance agent in Texas and another independent agent in Tennessee. Neither seems particularly confident, however, that they will get much of a reduction in premium. Does this premium seem normal? I've found several sources that refer to health care costs averaging $5000-$8000 per year per ee. I know "average" is a very broad term but we're getting ready to pay $16,000 per year, which seems like a huge difference.

We're open to PEOs, employee leasing, etc. but run into brick walls because we only have three ees. ADP does our payroll but has a 10-ee minimum for group health. Does anybody have any suggestions? Thank you!

When testing this report in Admin, I get the following error "error 2147191858. This field name is not known."

I'm attaching the report so you might see what I'm doing wrong.

Thanks for all your help

Heather

BTW, I also couldn't upload my .rpt and the file is only 93k.

A husband and wife are both doctors. Each has their own practice. The husband has a db and the wife has a psp. In addition they share an ee. The ee works part time for the husband and part time for the wife. I don't know if she is covered under either of the plans since she is part time.

I am pretty sure that this is a control group since there is attribution between husband and wife. Not to mention that they share an ee.The doctors disagree with me stating that if it was a control group, their current tpa would have told them.

Any help is appreciated.

Is there anywhere in the regs that say that severance pay is not included for comp in 401(k) plans?

Would a plan amendment that says that participants hired after a certain date are ineligible for a plan be a disqualifying provision under 410(a)(1)(A)(ii) after say two and 1/2 years have passed, even if the group still in the plan passes 410(b)?

This assumes an active, not frozen plan.

Is the only way around this to make this group eligible but give them nothing?

During the recent EBIA tele-web seminar one of the poll questions was "If a spouse or child is dropped from coverage at open enrollment, do you send COBRA information with the HIPAA Certificate?"

Of those responding 50 said yes and 209 said no. Our Company has never COBRA'd those voluntarily dropping coverage because we made them sign a waiver form.

How is everyone else handling this situation. As can be imagined - we're talking about a lot of extra work.

Your responses please. Thanks.

We maintain several self-insured health plans (medical, dental, FSA and EAP) but only one plan met the $5m threshold - our medical plan. We sent the privacy notice to all active employees eligible to particpate or participating in the health plans and to former employees participating in the health plans. The notice was not specific to the medical plan.

Question: An employee who waived medical coverage (in a fully insured plan) and dental coverage (in our self-insured plan) in 2000 has requested access to his PHI. What are our obligations?

Question: Should we change our privacy notice to be specific to the medical plan?

Thanks.

Has anyone upgraded to 8.2? If so, any issues?

Also, any idea when 8.4 is to be released? Or is it 8.3? I can't remember from training. Anyhow, just trying to determine if it's worthwhile to wait for the next or go ahead with 8.2.

Thanks.

Heather

An investment advisor would like to have participants' funds invested in a Default Portfolio if they do not choose available funds. Does this need to be in the Plan document? What other notification may be required?

What are the pros and cons of having a plan decare in their docs that they are 404© compliant?

QUESTION

Can a 401 (k) plan be amended prospectively to exclude a class of

employees that already have participation in the plan?

For example, the current plan has no class exclusions. Effective August

1, 2003, the employer wishes to amend the plan to exclude "clerks."

Currently, 5 clerks are eligible participants in the plan. Notwithstanding 410(b),

is it possible to exclude the 5 participants with the amendment?

I cannot find any cite prohibiting from doing so.

I am working with a client that would like to set up a premium only plan with an effective date of 8/1. Their fiscal year, and plan year for their profit sharing plan is from 7/1-6/30.

Are there any rules stating when a cafeteria plan must start? Does it have to be for an entire year in its first year, and if it does, can it use the fiscal year instead of a calendar year?

Thank you.

If an employee converts his SEP/SARSEP/SIMPLE into a Roth IRA, then learns that he has a failed conversion and wants to recharacterize, do the assets go back into the original IRA type or are they recharacterized into a traditional IRA?