What is the ability of the plan administrator of the plan (the plan is the covered entity) to sign the business associate agreement with a TPA? Also, if the contract provides for services other than those covered by the Business Associate agreement (e.g., provides for services for the employer to use for its HR function): (1) may Business Associate portions be part of the agreement - one section, (2) may the agreement be structure to have provisions 1-8 (non-BA provisions) binding on the Plan Sponsor (or employer) and the 9th provision (BA provisions) to be binding the plan with the plan administrator signing along with the TPA, and (3) then make the employer/plan sponsor, plan administrator and the TPA all sign the agreement?

Help!

we have a client with an overfunded DB Plan that is terminating. he is the only participant and has reached the 415 limit. he is no longer in business. does anyone have any ideas as to how to reduce the 50% excise tax on the reversion? someone suggested the amount of the reversion is based upon the assets as of the date of the plan termination and does not include earnings since that date. can anyone comment on this point or offer suggestions?

A participant takes out a three year loan for $5,000 and begins making payments through payroll. The Plan Administrator sets the loan schedule up through their payroll system which is preset to stop payments when a specified amount is paid back, presumably the total amount of principal and interest. The Plan Administrator inadvertantly sets the max payback to only the $5,000 principal amount so payments stop once that cap is met. Since loans are reconciled only once a year the mistake is not found out until after the loan is in default.

What are the options for correction, and please let me know if additional info is needed to determine.

Thanks so much.

I HAVE A 401(K) PLAN WHERE A PARTICIPANT WAS TERMINATED IN 2001 WITH NO BREAK IN SERVICE AND WAS REHIRED IN 2002. THIS PARTICIPANTS VESTED BALANCES WERE IN EXCESS OF $5,000 AND DISTRIBUTED BEFORE BEING NOTIFIED THAT THIS FORMER PARTICIPANT WAS REHIRED AND A PARTICIPANT AGAIN. THE PARTICIPANT WAS 100% VESTED. THE DISTRIBUTION WAS RECENTLY DISTRIBUTED IN MAY AND THE PARTICIPANT HAS NOT CASHED THE NET PROCEEDS CHECK. THE FEDERAL TAX CHECK HAS BEEN DEPOSITED INTO THE COMPANY'S FEDERAL TAX WITHHOLDING ACCOUNT.

WHAT IMPACT WILL THIS HAVE ON THE PLAN AND PARTICIPANT???

SHOULD WE HAVE THE PARTICIPANT REDEPOSIT THE CHECK BACK INTO THE 401K PLAN AS A ROLLOVER???

PLEASE ADVISE!!!!!

tHANKS.....

Does anyone have or know where I may locate a summary of ESOPs, less involved than John Utz' ASPA presentation materials from a few months ago, but more detailed than a simple outline?

I am looking for an insurance company that offers a "Mini - Medical" health plan with low maximum, i.e. $25,000. Please let me know who offers such a plan.

Is there a fiduciary violation if a plan buys software from a mutual fund investment advisor that allows for pension plan enrollment? What if the plan gets the software at a discounted price?

Rev Proc 2000-17 provides for the waiver of the 100% excise tax imposed on an uncorrected funding deficiency for a plan subject to Title IV when it is terminated in a standard termination.

It there any waiver of the 100% tax for terminated plans that aren't subject to Title IV?

12/31/98: Corporation offers 'frozen' pension cash value of $346,992 less $109,797 offset for previous pension payout for 8 years, prior to rolling over previous pension to current pension. Allows employee to defer retirement to some future year without penalty.

05/01/03: Corporation now says only the original cash value of $346,992 was frozen, and that the $109,797 offset must be new FV based on new discount rates?

Is this correct/legal?

I am completing a 5500 for a Taft-Hartley defined contribution plan. I'm referring to 2001 workpapers to guide me in completing the 2002 5500. Last year they did not complete an SSA, and the big note across the SSA was "Not Applicable."

Is it not necessary to file an SSA with a Taft-Hartley plan? Are there any other unique issues in their 5500 filings?

Thanks.

In calculating the S/E maximum allocation do I still reduce comp by the S/E's 401k contributions?

A better way to ask: Can I contribute 25% of my SE Income + the 402g limit?

and Will the SE's 401(k) contributions reduce the basis in which the 25% threshold is calculated?

How is it reported on the Schedule I when an employer uses forfeitures to reduce the employer contribution? For example, the contribution was $10,000 but $1,000 was forfeitures reducing their match. Is the contribution listed in line 2a1 $10,000 or $9,000?

If forfeitures are reallocated instead, how is that shown? It wouldn't be considered an additional employer contribution, would it?

Thanks in advance for your response!

Rachel

If an employee is out on military leave without pay and drops his/her health insurance, then when is he/she eligible to reinstate coverage upon returning to work? Do they have to wait until the plan's annual open enrollment period or can they sign up for coverage immediately upon returning?

i have always used 1000 hours for eligibility, vesting (year of service). i have a new client that has many part time ee's she wants to cover. is there anything wrong with using less than 1000 hours? i would think it is ok but wanted to double check first in case there is anything i am missing. thanks.

Does anyone have or know of guidelines on how long an employer and plan sponsor needs to keep paperwork regrading medical support orders that were never qualified or no longer in effect? Particularly in the following examples:

1. Newly received medical support orders that are not qualified because the parent no longer works for us, or is in a position that is not eligible for benefits

2. Qualified medical support orders that have been rescinded by the court or the child is overage or the parent has left the company

I am currently 18 years old and my dad fills out all my tax returns for me. This year I contributed $1500 to a Roth IRA, my dad never really knew about this. I recently read somewhere that all IRA contributions have to be reported on tax returns. I talked to my dad and since he never knew I made the contributions they were not reported on my tax return. I am just wondering what I should do about this. Thanks for any information.

Does anyone know whether HIPAA's nondiscrimination provision, or any other law for that matter, prevents a health plan from requiring a participant to provide proof of good health before reinstating the participant's lifetime maximum benefit under the health plan?

If you have an existing profit sharing plan that has a 401(k) feature that has never been used, can you add a Safe Harbor feature midyear concurrent with implementing the salary deferrals. Is this stretching too far?

Suppose a corporation adopts a Defined Benefit Plan in 2003 with an initial PY 1/1 - 12/31/2003. Assume the initial formula is 0% of AMC per year of service.

Assume benefits are accrued on a unit basis based upon years of service. All participants meeting 21 and 1 are eligible for the plan. All participants with at least 1000 hours in a year receive a year of service for accrual purposes. Service before the effective date is counted for the benefit formula and accrual.

Effective 1/1/2004, the formula is increased from 0% to 10% of AMC per year of service.

As of 12/31/2004, does a full time employee-participant have:

(a) 1 year of service for 415 $ limit phase in purposes or

(b) 2 years of service for 415 $ limit phase in purposes?

I think most would argue for (a) since no benefits accrue for 2003. However, an argument for (b) could be made as follows:

Paraphrased from Notice 87-25 Q and A - 7: a participant is credited with a year of participation for each accrual computation period for which the following conditions are met: (1) the participant is credited with at least the number of hours of service for benefit accrual purposes required under the terms of the plan in order to accrue a benefit for the accrual computation period and (2) the participant is included as a plan participant under the eligibility provisions of the plan for at least one day of the accrual computation period.

Since the participant has greater than 1000 hours, condition (1) is satisfied and since the participant is an ongoing participant for 2003 and 2004, condition (2) is also satisfied.

Considering 401(a)(26) for the first year, since no participant will have an accrual for 2003, the plan does not benefit an HCE and seemingly would get the free pass under 1.401(a)(26)-1(b).

Any thoughts?

Does anyone know where to find a model document for a Summary Annual Report for a DB plan?

Thanks for your help!