How does HIPAA privacy regs affect individual employee benefit statements? We're removing all data such as date of birth, dependent info, and considering removing the employee's name from the statement.

Is listing an employee's health plan and employee contribution for health benefits individually identifiable info? I don't think so, but want to check.

Do you see any other problems with employee benefit statements and HIPAA privacy?

Can a participant refinance the terms of his participant loan simply to reduce the interest rate? I think I understand that refinanced loans, to the extent they are maxed out at $50,000 or 50% of the vested balance, must maintain the same maturity date. But ASPA ASAP 02-23 dated 12/6/02 seems to indicate that you cannot change the interest rate of the original loan. If this is correct, is there any workaround, i.e. pay off the first loan then get a new loan?

If a participant is just getting the top-heavy minimum in an integrated profit sharing plan, is he benefitting for purposes of the 410(B) test?

Can the holder of an IRA withdraw funds and roll them back to the same IRA within 60 days of the distribution, or must the rollover be made to a different IRA?

One of our plans has a trustee who until very recently was receiving full-time pay from a contributing employer. This made him ineligible to receive compensation for the time he spent on plan business (meetings, conferences, etc.) This person has now retired and wants to be paid for his time. He is drawing a monthly annuity from the plan in question.

My understanding of ERISA 406 and 408 is that a fiduciary may receive "reasonable compensation" for services rendered so long as he does not receive full-time pay from an "employer, or association of employers whose employees participate in the plan, or from an employee organization whose members participate in the plan." The plan itself does not fall under the definition of "employer, employer association or employee organization." Therefore, it appears to me he may receive compensation for fund business

Am I overlooking anything? Is this analysis correct?

When do you need to run the Non Discrim Classification Test where you use the NHCE concentration %, get the midpoint and compare to the rate group testing(ABT for each group)?

I thought I had a handle on it and now I have confused myself. :confused:

What are the HIPAA EDI transaction requirements for a company administering their group health plan in-house as opposed to using a TPA? Are we required to be able to receive claims electronically? I know the privacy rules apply but what about security and EDI issues? I can not find this addressed. Also, should we be obtaining an authorization when we do not use PHI for purposes other than operation of the plan?

Hello,

Someone told me that you can withdraw $ from an IRA for up to 60 days penalty free as long as you return the $ within 60 days.

Is this true? If so what are the requirements?

thanks in advance!

Flexible Spending Account - Premiums, Medical Reimbursement & Dependent Care. All contributions are from employees. Under 100 participants. There is no trust, employer deducts $ from payroll and leaves $ in general fund. Employer issues reimbursement checks to employees for valid claims.

Does this plan have to file a 5500 now???????? :confused: :confused: :confused: :confused: :confused:

(They have in past years through 2001which was done July 31. 2002)

Participant was eligible for distribution from 401(k) Profit Sharing Plan. Plan Administrator receives Notice of Levy on Wages, Salary, and Other Income. Plan Administrator pays amount of distribution to IRS. Assume distribution amount is $1,000.

Assume distribution proceeds mailed to IRS address on Notice of Levy.

Question on 1099 details:

(A) Should 1099 show taxable income of $1,000 with $1,000 taxes withheld? This would cause potential IRS 945 Notice in future since amount was not sent with 8109 tax withholding coupon. Or

(B) Should 1099 show taxable income of $1,000 with $0 taxes withheld?

In 2001 my wife and I made contributions of approximately $1,200 each to Roth IRA's. When I came to file our tax return in early 2002 I realized that we obtained a significant state tax benefit by filing separately. Of course this means we couldn't have Roth IRA's in 2001.

So I called T Rowe Price (the custodian) and had our contributions (+/- earnings) refunded in February 2002. My Roth IRA had about $50 of earnings associated with it, my wife's had a loss. I understood that only the $50 earnings would be taxable in 2001 and that T Rowe Price would show this on a 2002 1099R.

I have now received my 1099R's from T Rowe Price, but these show gross distributions of the full amount of the withdrawn contributions plus/minus earnings. The "taxable amount" box is blank".

Is this the correct disclosure? Is T Rowe Price not supposed to show the amount of earnings or do I have to work that out for myself?

:confused:

I have a cafeteria plan with dependent FSA and health FSA that excludes part-time on call (PTOC) employees. I have a full-time employee who just went to PTOC status. This participant was participating in the health FSA. Assume he elected $3,000 for the plan year and when he went on PTOC status he had contributed $1500 and had not made any claims against his account.

If he has now had a change of status to an ineligible employee and I guess is no longer a participant in the plan... how would I handle his FSA account? Does he forfeit the $1500 he has contributed even though he is still an employee of the company (assuming that he has no expenses to claim before his change)?

Any help would be GREATLY appreciated!!!!!!

TIGGER

Do you disregard former employees for purposes of calculating ADP for the determination year under the prior year testing method? Our plan has a total of six participants, all of whom have been HCEs for all years the plan has been in existence. However, two of the employees retired in August and September of 2002, and, although each met minimum participation standards for 2002, each had compensation of well below $85,000 (using the limit in effect for the look-back year). In addition, neither employee is a 5% owner or meets any of the other qualifications for "highly compensated employee" under Section 414(q) or the regulations thereunder.

2001

Employee 1, $170,000, 10,500 401(k) deferral

Employee 2, $170,000, 10,500 401(k) deferral

Employee 3, $170,000, 10,500 401(k) deferral

Employee 4, $120,731, 10,500 401(k) deferral

Employee 5, $104,959, 10,500 401(k) deferral

Employee 6, $ 94,268, 10,500 401(k) deferral

2000 NHCE ADP: 100% (i.e., no cap for 2001 HCE ADP because no NHCEs from 1999 information)

2001 NHCE ADP: 100% (no cap for 2002 HCE ADP because no NHCEs from 2000 information)

2001 HCE ADP: 8.06%

2002

1, $200,000, 11,000

2, $200,000, 11,000

3, $200,000, 11,000

4, $132,619, 11,000

5, $ 74,481, 11,000

6, $ 50,850, 11,000

2001 NHCE ADP: 100%

2002 NHCE ADP: 100% (again, no NHCEs)

2002 HCE ADP: 8.03%

2001

2003

1, $200,000, 12,000

2, $200,000, 12,000

3, $200,000, 12,000

4, $100,000, 12,000

2002 NHCE ADP: 100%

2003 NHCE ADP: ?

2003 HCE ADP: 6.76%

The testing for 2002 is relatively straightforward: relying on compensation for the 2001 Plan year and the compensation limit of $85,000 for 2001, all of the employees are highly compensated for 2002 testing purposes. Thus, there are no limits to the amounts that HCEs can contribute in 2002.

Looking forward to 2003 and 2004, I am uncertain as to whether I need to include the former employees for 2003 ADP testing purposes. I assume that the 2003 NHCE ADP is 100% (i.e., there will be no cap as to the 2004 HCE contributions). If not, how do you compute the ADP if there were no contributions for those employees in 2003? Despite all of this, IRS Notice 98-1 suggests that, "under the prior year testing method, the prior year ADP or ACP for NHCEs is used even though some NHCEs may have first become eligible employees under the plan in the testing year because they meet existing plan eligibility requirements, and even though individuals who were eligible employees under the plan and NHCEs in the prior year are no longer employed by the employer or have become HCEs in the testing year." How does this work?

I realize that governmental plans are generally exempt from the requirements of Code section 411, but it is my understanding that due to section 9201 of OBRA 86 governmental plans are subject to IRS regulations on post-retirement benefit accruals. Does anyone have an opinion as to what extent, if any, that governmental plans are subject to the the new proposed regulations Section 1.411(B)-2 - these are the regs that also address cash balance rules? I have not seen anything specifically mentioning governmental plans in relation to that guidance.

Can benefits to the Alternate Payee be made over either the Participant's lifetime or the Alternate Payee's lifetime? In other words, is it acceptable to provide an option to the Alternate Payee where the payments cease upon the Participant's death?

Here is an interesting situation:

A participant terminates full time employment. The employer maintains a standardized prototype. The terminated participant recently entered an arrangement where she works only when needed, such as when someone else is sick. She never works over 500 hours. the plan states that a re-hire can re-enter the plan at the next entry date. Given the sporadic and seldom work of this person, would you consider this person a particpant in the plan at the end of the year? I can see arguments from both sides. I am more inclined to let the employer make the determination for this person.

Is it possible to roll a traditional IRA into employee's SEP IRA?

IRC 106 says that "employer paid medical insurance premiums (for employee)" are not taxable to employee.

Well, what about when the employer is a church and the employee is the church minister (he pays SE tax on his income from the church).

Since he is self-employed for SE purposes ... then wouldn't that mean that he is NOT an employee........ and therefore the medical premiums are taxable to him for both income tax and SE tax purposes ?

Does anyone know if these are available yet? (and if so, where?)I've got the 5500 forms and instructions, and the 5500 EZ, but I can't find the 2002 EZ instructions on the DOL website. Thanks!

We have started our own plan administration firm providing administrative services to corporate retirement plans. We are wrapping our services around Inusrance and mutual fund providers that handle the daily valuation recordkeeping. We are looking to buy E&O Insurance for our firm. Where is the best place to go for this type of insurance for this type of firm. We have spoken to our P&C broker and he informed us this can be expense and it is best to see if you buy it from an association group. Is this something that ASPA or NIPA offers. Appreciate any advice you can give.

thanks