I have a question regarding the filing requirements (if any) when a former MTIA contains only one plan during the year. Does the MTIA have to file a "final" 5500 or should there be no filing at all?

Is it ok to make a retroactive plan amendment to change the plan name and sponsor? Our plan has included the words "long term and temporary disability" in the name, even though those benefits were dropped several years ago. I would like to change the name to just "Welfare Benefits Plan" or something more simple like that. Also the plan is currently shown as sponsored by one of our companies, which now only has 4 employees, I would like to switch it to shown as sponsored by the main company (300 ees). Can we go back and say that this change happened at the new plan year (Nov 1st) or should we wait and make the changes next year? I am just trying to get all of our plan stuff cleaned up.

Thank you for any thoughts!

A friend's daughter was walking and was hit by a car and sustained injuries as a result. The health insurance company is now telling her that it will not pay any of the related medical expenses for her daughter. In order to get the medical expenses paid she has been told that she must go after the driver of the car and/or his automobile insurance for payment. I have not seen the plan yet but this just doesn't seem quite right. What ifit was a hit and run? Any thoughts/comments/suggestions as always are welcome. Thanks.

A plan using a prototype document indicates the plan is a safe harbor non-elective 401(k) plan in the document. However, the employer failed to provide the safe harbor notice to the employees.

The ERISA outline book states that "A failure to provide the safe harbor notice would not necessarily mean the section 401(k) arrangement is disqualified. It would, however, mean that the ADP test would be run for the that plan year. To the extent correction of the failure by providing a late safe harbor notice is not available, it seems reasonable that the plan should be able to protcet the qualified status of the 401(k) arragment by simpy running the ADP test (and ACP test if applicable) even though the plan document might state that the plan is intended to be a safe harbor plan."

Assuming the ADP test is run, will the employer still need to make the non-elective contribution? The document states employer will make sh cont. in the amount of...

Just want to verify this. Participant in 401(k) is deceased. Never married and has his elderly mother as beneficiary. Plan uses lump sum option. Elderly Mother appoints daughter as power of attorney(probably not relevent).

check gets issued Payable to elderly mother(not rolled over) and uses social security number of elderly mother? 20% witholding using SS# of mother? Something is making me question this.

Thanks

How would I ensure that a participant is not going to get her status set as Terminee, assuming the employee has terminated after the eligibility requirements of the plan were met, but prior to entry date?

Having trouble getting this particular fact pattern to set correctly when I'm running year-end eligibility transactions. It could be that I'm just overlooking it and making the error myself, but I'm trying to eliminate the possibility that this isn't user error:) The odd exception in this case may be that I only ran two eligibility transations - one at the beginning, one at the end of the plan year.

The example I have before me is a six month eligibility req't, qtrly entry. Employee was hired 7/16/2002, and terminated 2/1/2002. The entry date got calculated as 04/01/2002, and the Status is set as Term with Break (incorrect).

This is really causing me some headaches - any comments, suggestions, or tomatoes greatly appreciated.

Thanks in advance,

Bill

Is there anything that would prohibit a 401(k) plan from offering former participants,with vested deferred accounts, the opportunity to roll other accounts into the plan such as IRAs?

I realize an employer may not want to deal with former participants, but is there anything that would prohibit rollovers. I know you could have a loan policy that allows former participants to continue or start a loan.

My client has a 401(k) plan with a discretionary match. The match is limited to deferrals up to 4% of compensation (i.e., the cap is 4%).

It was recently discovered that, in 2001, the match allocation was not properly limited to the 4% cap. Rather, no limit was made. ALL deferrals were matched.

Furthermore, the client contributes a flat dollar amount (say, $50,000) which is then allocated to those who contributed 401(k) deferrals, but only up to 4% of comp. So, any correction to 2001 will result in MORE allocation to some participants and LESS allocation to others.

I am trying to determine if a reasonable correction method would include "taking away" the match from some, while increasing the match for others...or if this "taking away" is not considered permissible, even though it is in connection with correcting a plan to comply with it's terms.

Has anyone dealt with this before? Is self-correction even available? Virtually all plan participants are affected one way or another. I assume that we'd have to also correct for gains/losses from time of original deposit to date of correction?

I'm hoping someone has some practical experience to share...

We have a Money Purchase Plan which was terminated and merged into the company's 401(k) Profit Sharing Plan. The Money Purchase Plan had approx. 4500.00 in forfeitures remaining at the time of the merger. The plan document states that forfeitures are to be used to reduce future contributions. Since there will be no future Money Purchase Contributions, what can be done with this money?

Two organizations are in the same controlled group of companies. One company (A) will cease doing business. The other company (B) will continue operating.

Pursuant to regulation and case law, COBRA continuation coverage will be available to the terminated employees of B through A. Problem exists because employees of B are union employees but employees of A are not unionized.

How is this generally handled?

I think this may have been covered fairly recently, but has anyone had any experience as to the IRS' response if a document is submitted without all of the prior documents?

We have a terminating K plan that was established in 1990. The plan has always used prototype documents. It has never sought an individual determination letter. We want to submit it upon its termination for a letter, but cannot find the document in effect originally. We have all documents used since 1992, but not the document in place at the outset. Any experience as to what the IRS will do if we submit without the original document? Will the submission be rejected? Are there potential adverse consequences of submitting, i.e., would the IRS refer the plan for audit?

Does an employer with more than 100 employees that offers a fully insured medical and dental insurance plan have to file a 5500??

Does a company that offers a fully insured health insurance plan (HMO/PPO) and has over 100 participants need to file a 5500 form??

We have an associate who is requesting FMLA time off to care for her 35 year old daughter who is hospitalized. The daughter is not married and has no one else to care for her. The associate indicates that her daughter's doctor will allow the daugher to be released as long as someone is there to care for her. We've reviewed the FMLA child definitions and we are not sure if the 'mentally or physically disabled' statement applies to temporary health conditions. Are we correct in assuming that the dependent adult child must be mentally or physically disabled prior to the onset of illness?

We currently offer vacation accrual rates based on length of service with some exceptions for corp title and/or position. What are the guidelines we should follow when offering a higher accrual rate based on position? Should the exception criteria be formally outlined and published to associates or can we just maintain as an internal HR process. Most surveys only list accrual ranges by service and omit position criteria but I know that many employers adjust accruals for certain levels or grades. Any resources that can be provided would be most appreciated.

Our company currently offers benefits to part-time associates working at least 30 hours per week. We do not charge associates a higher contribution for the healthcare plans but we do have lower accrual rates for time off benefits. We are considering reducing the minimum hours requirement to 20 per week which will require that we change our cafeteria 125 (pop only) healthcare document. Are we required to file this new document with any governmental agency and must we redistribute to all associates? Also, does anyone have a suggestion as to the best place to find national employer survey data on part-time benefits?

I am preparing a 5500 for 2002 year on a small ps plan. I have two defaulted loans (on two active HC participants). The accounts are all participant directed. I am reporting on line 2g of the Schedule I.

It is my understanding I still need to carry the loan until the loans are paid off or the participants quit.

If I deduct them on 2g, how do I keep the value in the plan? Do I show the defaulted loans plus interest as a receivable? I know there must be some easy trick to this.

The valuation report is an issue too. I can distribute the loans within their accounts; but then what-- do I add it back in some way? I realize when I do the final final 1099R I adjust the basis but until then I'm confused has to how to account for it. This is an annual val.

The total amount of the 2 loans is $75,000 so it will stand out with total assets of $325,000.

If anyone has any ideas on how to account for this transaction, please advise.

Thanks!

Is there any guidance out there regarding a plan's ability to increase the plan's compensation limit to the new limit of $200,000 after the EGTRRA compensation limit could have become effective with respect to the plan, particularly whether this causes a 401(a)(4) problem? I seem to recall seeing something saying that changing a plan's comp limit to the EGTRRA limit after the first plan year in which it could have been changed to the EGTRRA limit will be subject to 401(a)(4).

Help.

Separate (both subchapter S Corp.s) companies are 100% owned by only two non-spouse individuals. Information provided to me is that together these two individuals own 100% of both companies.

Question: Because these are S Corp.s is it even possible that the two companies are of the same Controlled Group of Companies?

My confusion is that because of the nature of S Corps. Mr. A and Ms. B each own some percentage of each company (and are bro-sis co.s), but unless A and B form a holding co. they do not each/together own 100% of the corp.s as set forth in IRC Section 1563.

The individuals (A and B) insist that together they own 100% and, therefore, the companies are within the same controlled group of companies.

Any guidance would be appreciated.

Help.

Separate (both subchapter S Corp.s) companies are 100% owned by only two non-spouse individuals. Information provided to me is that together these two individuals own 100% of both companies.

Question: Because these are S Corp.s is it even possible that the two companies are of the same Controlled Group of Companies?

My confusion is that because of the nature of S Corps. Mr. A and Ms. B each own some percentage of each company (and are bro-sis co.s), but unless A and B form a holding co. they do not each/together own 100% of the corp.s as set forth in IRC Section 1563.

The individuals (A and B) insist that together they own 100% and, therefore, the companies are within the same controlled group of companies.

Any guidance would be appreciated.