We installed Relius 8.0 last week. This week we need to install Relius Gov't Forms 1099 software for 2002. Has anybody had any issues with Relius Admin after installing the Gov't Forms software? Just want to avoid any pitfalls.

Thanks in advance!

Is psychological testing/evaluation an eligible expenses under an FSA Plan, or does some sort of diagnosis required first. An employee basically told me that they took their daughter in for psychological testing/evaluation without receiving some sort of referral from there primary care physician.

Thanks, Joe

Since QNEC's are allowed to be treated as top heavy minimums, it seems that the reverse should also be true: that a top heavy minimum contribution could also count as a QNEC. The 401(k) regs don't seem to address this possibility. Any thoughts?

You all have been so wonderful considering my level of ignorance (and my inability to remember anything from my programming classes 4 years ago.)

On to my next question.

I need an if/then statement but can't remember how to write one to do what I need. Here's what I'm trying to accomplish:

On a Plan Level, Total Compensation and Deferral Amount for only those participants that are eligible.

I found Category (PLANEE.CATEGCD) and do NOT want to include 8, B, C, or E in my totals. So, if PLANEE.CATEGCD = 8 then not included in total, etc.

Particpant1 $70,000 $10,000 8

Participant2 40,000 1,000 2

Participant3 50,000 3,000 3

Participant4 80,000 11,000 E

Total Eligible 90,000 4,000

Does this make any sense? I've been looking for my Basic programming books but they must be under all the other boxes in the basement.

Any help will be greatly appreciated.

Heather

I have a client that failed to remit loan payments for several employees on 4 separate payrolls in 2000 and 2001. The former TPA did not notify them of this problem in either year, but adjusted the amortization schedules to reflect the missed payments. However, the payments were actually withheld from each participant's paycheck. Therefore, at least one of the participants has finished paying back the loan and actually made 4 payments too many (although those 4 payments were never made to the plan). Is this a prohibited transaction? How should this be remedied? Can the employer reimburse the participant for the 4 payments plus interest or does the employer have to make some sort of contribution to the plan? Thanks in advance!

I'm embarrassed to even be asking this question, but my only DFVC experience has been with non-filers.

Suppose you have someone who filed late, but they have filed. To go under DFVC, do you have them file ANOTHER 5500 form under EFAST, with box D checked, etc., plus the paper copy to Atlanta with the penalty check, or do you just file the paper copy to Atlanta with the penalty check?

I'm assuming it is the former, since I can't see where the instructions say otherwise, but I thought I'd check with anyone who has some experience. Thanks!

New to this board and to Section 125's! Ugh!

We offer Aflac to our ee's and most plans are pre-taxed. Now that I am doing the W-2's, do these amounts have to be shown anywhere on the W-2??

Thanks for your help!

Client has existing calendar year profit sharing plan - and wants to add 401k provisions mid-year. From reading Notice 2000-3 Q-11, it appears that the client can make the 3% non-elective safe harbor contribution for the 6-month period from 7/1/2003 (amendment effective date) to 12/31/2003 for the first year. Is this correct? Thanks for all input!

I have a situation where a plan will initiate a blackout period on January 22nd and it will end on January 27th, a day after the new Sarbanes-Oxley Act takes place. Any comments whether the plan sponsor should push back the blackout to accomodate the new rules or continue with the date the investment company set. They are flexible(investment co.) No guidance from them, they will do what we tell them.

A Teacher in New Jersey wants to roll her balance in her 403(B) to an annuity outside. She is still employed and wants to continue derferring into her 403(B). Her 403(B) annuity administrator is telling her she cannot continue in the 403(B) because by moving it, she has closed out the account. What is true? If there is portability, how does she continue deferring into the 403(B)?+

I'm new at the cafeteria plan game so bear with me please. Am I correct in assuming that Section 125 contributions for medical premiums get reported in box 10? And, am I also correct in my assumption that there is no limitation on this deduction? Seems to me that you can ask the employee to bear as much of the cost as they will take before they look for another job... and Lastly (for now) I am aware of only 1 limitation in this area and that's the $5k dependant care. Are there any others?

I am trying to find out what we can do about an employee that continues to fail to meet what we require to receive full time benefits. This is not quite as cut and dry as it sounds...this employee had a major health problem...she is back at work and is not quite getting 30 hours per week. We have discussed this with her on several occasions and she always agrees to try "and do better". She was also doing this prior to her illness. We pay part of our employees premiums and they pay the rest....she currently pays extra if she is short the 30 hours....A-I am not sure if this is legal. And B-it doesn't seem fair that she gets vacation, and the other benefits that the people who do get 30 hours plus receive. While we don't want to take her insurance away, we have to come to some sort of agreement that is fair to employee/employer. My other concern is if the insurance company decided to audit my payroll records and they find out she is not getting the required hours in....what happens then?

Any help anyone can provide would be great...mroberts and papogi have helped in the past.

We have takeover plan. The Plan needs to be updated, but I can't determine ADP/ACP testing methods for 1997-1999. The Plan Sponsor switches TPA's frequently. The Plan Sponsor doesn't have good Plan records for 1997-1999. Prior TPA's are either unable or unwilling to help.

Any suggestions on how to handel this?

A SEP plan sponsor wants to make a 25% contribution for the eligible employees. However, the owner earns well in excess of the compensation cap of 200K. So is he limited to 20% for the employees since 40K is 20% of 200K, or can he say he chose 25% and was limited to 40K on his SEP but still contribute 25% on behalf of employees below 200K?

Must a Non-ERISA 403(B) plan have an SPD? A document? (I think the answer is no in each case)

Plan is with TIA/CREF. They prepared a "specimen" SPD which is stamped "For review by legal counsel"

They also send the employer checklists about amending for GUST and EGTRRA. What should an employer proving employees with non-ERISA 403(B) do with these?

Would making decisions and revising/issuing an SPD cross the line into ERISA status?

Opinions please.

I have discovered that, due to a change in personnel in our organization (A bank trust department), the distribution of an insurance policy has dropped through the cracks. The plan was a profit sharing plan of a dental practice, terminated in 2001. The policy is on the life of and is to be distributed to the principal.

We were the plan's Trustee. The policy was removed from our trust accounting system when the plan terminated but we failed to request that the ownership of the policy be changed to the participant, and I have found no evidence that we sent a 1099R on the cash surrender value of the policy (Now approx. $50K). The final 5500 was filed for the plan year ending 12/31/2001.

Any thoughts on how I should proceed?

Thanks in advance.

An employer sponsors a DC plan and a DB plan. The DB plan covers one group of employees. The DC plan covers a different group. What are the coverage requirements in such a case? In other words, what are the coverage rules when an employer sponsors both a DB and a DC plan, each of which covers different employees.

What about Top-Heavy contributions.

Are commissions paid for insurance contract coverage by the employer on behalf of the plan reported on the Schedule A? Must the commissions be reported if they were not paid by the Plan itself? (I know the Schedule A must be prepared). Thanks!

Is a DC plan required to disclose a specific "valuation date" in its SPD for those who are to receive a distribution from the plan?

Physician prescribed a bedroom be redone to control allergies. Replaced existing items with wood blinds and non-allergenic pillows, pillowcases, bedsheets, mattress and box springs. May the entire cost be reimbursed from a FSA? Would the answer be different if the existing items were old and ready to be replaced anyway, i.e., only reimburse the excess of the cost of non-allergenic items over the cost of similar-grade standard items?

Thanks,

Ken Davis

Univ. of South Alabama