Can an employer simpy discontinue its "self insured medical plan" or must it jump through a few hoops first (such as inform the employees a certain number of days prior to ending the plan, get IRS approval, etc...).

Anyone know of any literature I can read regarding termination of a self insured medical plan ?

Can anyone direct me to a website that discuses "Amending and restating a MPPP into a PSP" as opposed to merging a MPPP into an existing PSP ?

Can anyone confirm whether or not expenses are offset from the investment income for this calculation.

Thank you.

As y'all know, Earned Income is defined in the Code as Net Earnings from Self-Employment, but only with respect to earnings in which the personal services of the taxpayer are a material income producing factor. I recall reading something several years ago with regard to a self-employed farmer's earnings. It may have been a PLR or some other IRS promulgation. The gist was that a farmer's income was only 30% earned income (or some similiar figure), because of the capital intensive nature of modern farming (I suppose this would change if he only owned a hoe and wheelbarrow, grew his own seed, and was w/o debt?). My fuzzy recollection was that this 30% number was a default used by the IRS, and not a deduced figure for a particular farmer. I now have a DB takeover case in which 100% Sch F income was used to generate AMC for 415, etc. Wondering if I should at least mention this issue in my takeover review. Any thoughts would be appreciated.

I worked for my employer for almost thirteen years (8/14/1989 - 8/2/2002) as a full-time employee, and this employer has a defined benefit pension plan. I was fully vested after seven years of employment with the company. Now, I want to get access to the money that was contributed to the pension plan upon my behalf. The problem seems to be that I am not fifty-five. I am only thrity-five. I have been working for this company on a part-time basis since 9/2002.

Does anyone have any suggestions on how I can get access to my benefits in the pension plan at this time? I am currently a full-time student and this money would make paying for my education so much easier.

Any replys to my question would be greatly appreciated.

I don't get it! Tried this on 401(k) board and didn't get a response - maybe someone here can help me understand:

I must be having a brain freeze. I am looking at the ASPA Journal, July/Aug 2002 edition, at the article titled "Single-Participant 401(k) Plan Sales Strategies for Third Party Administrators". They have a table on Page 16, and I just can't seem to come up with their numbers. For example, I would think that a SP with Net Profits of $10K would have a max contribution of $9,235. If someone could take the time to show me what I am missing, I would appreciate it.

If a plan document is silent as to whether a participant has the right to elect the form of merger consideration for the shares allocated to his account - can the committee administering the plan direct the trustee what to elect for all allocated and unallocated shares?

Has anyone seen a "check the box" Summary Plan Description before? The language is a template, and you check the boxes that apply, and fill in the blanks appropriately.

It seems to me that they could easily be misleading to participants. Any thoughts? Should we recommend that our client get a regular SPD drawn up?

It has been suggested that you can not accurately determine the attributable match on plans that specify that the match contribution is calculated and deposited on a payroll basis. Therefore, when the ADP fails and attributable match is an issue, it cannot be forfeited.

Do you agree/disagree? Why?

Have a plan that defines compensation as total W-2 (including deferrals) for all purposes (Match, deferral, PS, etc.)

Document also allows participant to make a special election in regard to deferring on his bonus.

If a participant chooses not to defer on his bonus, is the 414(s) Compensation Test required?

Thanks for your ideas!

When a client distributes an SPD, do they have to send it to all eligible participants, all employees, or just those with balances? Thank you.

In a 401(k) plan, where all the NHC have chosen not to contribute so their ADP = 0%, what is the maximum ADP the HC can have using current year testing?

The most recent guidance I have says Pennsylvania does not allow for catch up contributions. I also heard this was changed. Does anyone know?

It's that time of year again where my company is getting a lot of requests for proposals for new DB plans. However, a lot of brokers are also recommending installing a 412(i) plan for bigger deductions. I've looked high and low for a nice concise list of pros and cons of 412(i) plans, but haven't really found anything. It seems the readers of benefitslink.com don't like them very much. Can you tell me why?

An employee of a client is a quadriplegic and has to have help getting ready for work in the morning. He has hired people to insert and remove his catheter, get him bathed and dressed and into the van. The hired people are not nurses nor are they certified in anything, they are simply trained by the family to help him get through these morning rituals.

The employee would like to establish an FSA to help offset the cost of this care. I told them that the expense is not eligibile through the dependent care FSA because it isn't a care situation that is required to allow the spouse to work.

I don't believe it would qualify for a medical expense either because 213 disallows reimbursement of medical expenses for general health. Plus, the definition of medical care in section 213 does not include this type of expense.

Has anyone else encountered this? If so, how did you handle it?

Does anyone happen to know of a lobby or group of self employed persons who might have joined together for cheaper health insurance?

or -

Does anyone know of good health insurance for a self employed broker, with wife and one child? Is it better for the group plan, since maternity care seems to come with it vs. carrying a rider for simple self insurance?

Obviously eager to learn if anyone has some insight!

Thanks

We are taking over a 403(B) plan that was drafted with eligibility requirements of age 21 and 1 year of service for the salary deferral and the employer contribution. Does the eligibility on the salary reduction portion cause the plan to lose it's 403(B) status or merely subject them to ADP testing? Can this be corrected in EPCRS?

I know that a MPPP can be merged into an existing PSP ..... but can a MPPP be merged into an existing SEP ?

If yes .... then is there anything that I need to be careful of, or is such a merger performed the same as meger into a PSP ?

Does anyone have any suggestion regarding the following: a 401(k) plan was terminated this past summer. The plan sponsor has been making distributions of all account balances (I know, I know, it is generally recommended that you get a determination letter before distributing plan assets, but we are where we are) and is only now completing the Form 5310 application for terminating plan. The problem is, the plan sponsor already knows that some former employees are "missing participants;" that is, the plan sponsor does not have a currrent address on file for these individuals and has already submitted materials to the Social Security Administration's letter forwarding program so that distribution of their account can be made. So, the question is, how do we send the Notice to Interested Parties to these people? This is a strange situtation, because normally, I would advise the plan sponsor to send the NTIP to the last known address, but if the plan sponsor already knows the last known address is incorrect . . . what do we do? Thanks for any advice.

I'm doing a DB val w/ assumed retirement age of 62 & an integrated formula w/ integration level at CC; I'm projecting the wage base ; in calculating CC at SSRA, would I average the 35 previously determined wage bases before SSRA or would I assume the projected wage base at 62 would continue to SSRA and then average this new array of 35 wage bases ?