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long an employer and plan sponsor needs to keep paperwork regrading medical support orders that were never qualified or no longer in effect?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!

We received a request from an employee who wants to inspect and copy the health information contained in his designated record set. Does anyone have a definition of the term designated record set? Is this information we have collected prior to or after April 14th? At this point in time, he is only a participant in our self-insured EAP but was previously a participant in the other "health" plans 2 years ago.

Thanks.

I have a small client who is interested in self-administering a Flexible Spending Account. What would be the disadvantages to doing this?

Just to make sure I've got the testing down right...., I have a client (doctor) who makes well over $200,000. He has establilshed a new comp plan with a last day rule. There are 2 groups: 1.) the dr 2.) all others.

The dr. is set to get $40,000. The employees we're giving 1/3 of his % which is 6.7%. Actually, we giving group #2 7%.

My 410(b) coverage (70%) passes.

My 410(b) average benefit fails

The minimum allocation gateway and safe harbor minimum both pass.

Based upon the above testing, the allocation is ok. I don't need to worry about the average benefit test failing because the gateway passed. Right?

I generally have the new comp plans pass both gateway tests (minimum and safe harbor). Am I being too conservative?

Pat

Can two Taft-Hartley funds (one providing dental and optical benefits and the other providing health, prescription, life and accidental death and dismemberment benefits) be merged?

Can the funds of one plan be transferred from one plan to the other?

Both are funded solely through employer contributions.

A previously qualified Taft-Hartley severance plan lost its qualified status (501©(9)). The trust and fund for this plan were created to provide lump sum payments upon severance or death to eligible members employed by various employers who entered into collective bargaining agreements w/ the Union. The trust is funded solely through employer contributions.

The Plan was terminated as of 11/97. Distributions were made to participants. Subsequently, a tax refund was issued and the assets amount to approximately $100,000.

1. Can these assets be transferred into another fund maintained by the Union, also funded solely through employer contributions?

2. Is there any prohibition on terminating a plan whose assets are above a certain dollar amount?

3. Other than issuing dividends or refunding administrative charges, is there anything else that can be done w/ the $?

Any help is greatly appreciated.

I'm looking for annuirty rates for ages 60 - 70 -- life only and joint and 100% survivor -- 1983 Individual Annuity for Females projectd to 2000 by scale G with 6% interest. Anyone have a clue as to where I could obtain this table?

Thanks,

Pat

If a DB plan requires a participant to obtain spousal consent to name someone other than the spouse as the beneficiary for a post-retirement lump sum death benefit, must a married alernate payee with a separate interest also provide spousal consent to name someone other the the AP's spouse as beneficiary?

My research indicates that an employer may reduce a 100% QPSA to a 50% QPSA with respect to all service without violating 411(d)(6) or giving a 204(h) notice, because the QPSA is an ancillary benefit.

The reduction would apply to deaths occurring after the date of the amendment, to both active and vested terminated participants.

This is a fully subsidized mandatory QPSA (waiver not allowed) in a defined benefit plan.

This answer seems right but leaves me uncomfortable.

Do you agree or disagree with this answer or know of something I've missed?