I used to know the answer to this, but now I'm searching all over and can't find it anywhere... when doing the ADP test, do we need to include "eligibles who terminated during the plan year" too, or just actives?

Are Flexible Spending Arrangements still subject to the "use it or lose it" rules of Sec 125 ?

A few years ago, Congress proposed HR 63 and HR 167 which (if passed) would have allowed participants to cash-out (as taxable income) their unused FSA account balance (at the end of the plan year) .... or carryover their unused account balance to the next year.

What ever became of HR 63 and HR 167 ?

"If children are eligible for coverage under the policy, any age limitation for an unmarried child may not be less than 25." This is a TEXAS state mandated provision. We have an ERISA self-funded plan and I am not aware of any mandates of this nature. If someone could point me to the section of the code that outlines dependent/spouse coverage, it would be greatly appreciated.

With regards to the 10 year grant and exercise requirements for Incentive Stock Options, do the 10 years expire the day before the 10 year anniversary or do they expire the day of the 10 year anniversary? For example, if an ISO was granted to an individual on January 1, 2003, does the option period expire on December 31, 2012 or does it expire on January 1, 2013? Thanks.

With regards to the 10 year grant and exercise requirements for Incentive Stock Options, do the 10 years expire the day before the 10 year anniversary or do they expire the day of the 10 year anniversary? For example, if an ISO was granted to an individual on January 1, 2003, does the option period expire on December 31, 2012 or does it expire on January 1, 2013? Thanks.

Are they still required?

I have a client where the employer pays 75% of the premium for his short term disability, and he pays the other 25% of the premium.

Is the 25% of the premium eligible to be a pre-tax deduction or is it a post-tax deduction on his paycheck?

Union currently has a money purchase pension plan, which plan requires the the fund to pick up the tab for any delinquent contributions that cannot be recovered. If the Union were to switch to a profit sharing plan would the fund still be required to pick up the tab for any delinquent contributions that could not be recovered?

Thank you in advance for your thoughts.

My understanding is that when otherwise excludable employees are tested separately for ADP/ACP the coverage test must also test otherwise excludable separately.

Any ideas on how should this be reported on the Schedule T if an exception does not apply?

When does the employer need to adopt the provisions for HIPAA as far as the Plan documents are concerned? Is it by the end of their current plan year?

Thanks for any help you can give.

We have a SH PS 401k plan that only allows for distributions after termination, retirement, disability. Each participant has a self-directed account with a large brokerage company.

One of the participants (still employed) called the broker directly and asked for an $800 distribution from her account. The broker made the distribution directly to the participant without asking for the Trustee to sign any papers. No taxes were withheld.

I found this distribution the following month when I was reconciling the monthly brokerage statements. The Trustee of the plan was furious that the broker made this distribution without any authorization.

The broker has now agreed that his company will give $800 back to the plan since it was their mistake. The broker is wanting to put the $800 into an unallocated PS account. My position is that the $800 should go back into the participant's account to make it whole since she wasn't eligible for a distribution.

Needless to say, this has caused turmoil among the other participants in this plan.

Should this be handled in a different manner?

Does anyone know of a provision which allows a plan to apply for a determination letter, but if a favorable letter is not issued, the plan is null and void (as if it never existed)? Thanks

I am 19 years old and a second year student at the University of Georgia. I understand the benefits of investing early in life and that doing so could pay off significantly in the long run. I have about $3000 sitting in my bank account that I would like to use to get started on investing. I am unsure on where I should invest the money: Stocks, Bonds, Money Market, Mutual Funds, IRA, Roth IRA. I am not afraid of a reasonable risk with the investment and will not be needing the money for anything other than investing.

If you have any advice or knowledge that you could send my way on where I might want to get started and the ups and down of that route it would help me out tremendously. Thanks in advance for you time.

I am 19 years old and a second year student at the University of Georgia. I understand the benefits of investing early in life and that doing so could pay off significantly in the long run. I have about $3000 sitting in my bank account that I would like to use to get started on investing. I am unsure on where I should invest the money: Stocks, Bonds, Money Market, Mutual Funds, IRA, Roth IRA. I am not afraid of a reasonable risk with the investment and will not be needing the money for anything other than investing.

If you have any advice or knowledge that you could send my way on where I might want to get started and the ups and down of that route it would help me out tremendously. Thanks in advance for you time.

If an employer has a safe harbor 401k and for the current year is making a 3% nonelective contribution - and he decides NOT to make that contribution in the next Plan Year - what is required? A Notice to that effect? I assume a Plan amendment would be needed?? Is the safe harbor plan designed so that each year a decision must be made about the safe harbor contribution?

What recourse does a TPA have against a former business owner/plan trustee who has failed to pay the TPA's bills, where:

* The business has terminated; and

* The plan has terminated and plan assets have been distributed?

For purposes of this question, I'm assuming that there are no written contracts which would make the individual personally liable for payment of the bills.

In addition, this question could apply regardless of whether the former business was a corporation, partnership, or other type of business entity.

Thank you in advance for any ideas.

Can I get a yea or nay on whether a terminating volume submitter DB plan needs to have the document updated for the 2002 final and temporary minimum distribution regulations? I can't determine a definitive answer from Rev. Proc. 2003-10 or Notice 2003-2, which clearly suspends the requirement for active plans.

Is there any requirement that you break out unrealized and realized gains/losses on assets that are invested in mutual funds? I am curious as to how other practitioners handle this on the SAR. I have always broken the amounts out but I have recently started to think that since I don't have to break it out on the sch. H or I, why should I have to break it out on the SAR?

Participant in her employer's fully insured medical plan got married on April 01, 2003. She can be covered on her new husband's employer medical plan.

How many days after her marriage does ERISA/IRS allow her to wait before she must inform her employer that she wants to elect out of her employer's cafeteria plan (medical) because she got married ?

Can anyone direct me to the paragraph of IRC 125 that states the number of days (after marriage date) that she has to inform her employer. It is my understanding that if she waits too long, then she is prohibited from electing out of the plan ....until the next regular enrollment date.

ESOP Plan Document states that distributions made to participants with account balances in excess of $5,000 will be paid over a period of time not to exceed 5 years. Also, distributions can only be made in cash. However, the Plan currently does not hold cash. Therefore, in order to make distributions, Employer must contribute enough cash each year in order to facilitate cash distributions.

Q1: Employer is S-corp. Can we restrict distributions to cash only? I thought participants must be given the option to receive stock distribution?

Q2: If participants with an account balance in excess of $5,000 are to be paid over 5 years, and distributions cannot be made in stock, does he or she retain a balance in the ESOP despite having elected a distribution (Employer effectively makes a cash contribution each year for five years until account balance has been distributed)? If so, is the participant's remaining stock account subject to gain/loss while it is being distributed?