Can someone confirm this for me:

When performing the ADP/ACP test the following rules apply:

* To determine an HCE, compensation is used from the previous year

* The ADP is taken from current year to determine what the HCE's can contribute

Thanks!

Insurance agent "A" sold company individual policies for a group of employees defined as "key" employees for $100,000 benefit each--employees are beneficiaries not company--company pays all of the premium. Insurance agent "B" presents group term life insurance quote for blanket coverage of $100,000 benefit---meaning not based on age, gender, etc. for same "key" group of employees for considerably less in premiums. Insurance agent "A" says this is discrimination to have a group term life insurance policy that does not cover each and every employee that works for company--Insurance agent "B" says group is clearly defined and there is no discrimination within this defined group. Insurance agent "A" says only way to avoid this discrimination is by having the individual policies. Who is right?

Can a government entity or employer sponsor a discretionary profit-sharing plan? If so, under what authority?

There's a government employer who currently sponsors a pension plan. The employer would like to adopt a profit-sharing plan instead of the pension plan.

Any advice is appreciated. Thanks.

PLEASE HELP!

If you subscribe to the EBIA COBRA manual, can you provide me with a copy of the December 2002 update that provides sample COBRA notices and election forms incorporating the implications of the TRADE ACT 2002. If not, do you know of any other resource that provides similar information?

Any help will be greatly appreciated! If you have this info., send me an email and I will provide my fax number. Thanks!!!

I'm currently doing research on third party administrators of flexible spending accounts. I was wondering how/where to obtain a listing or ranking of these companies based on volume.

Good places to start are also welcomed

Thanks in advance....

I have an employer who does not have the funds to make his 2001 Safe Harbor 3% elective contribution (due 12/31/2002). I have researched various resources and have not had any luck! Suggestions and comments would be most appreciated.

Can someone please give me a quick overview of HRAs outside of a Cafeteria Plan?

Thanks, Joe

Our client is a small company that employees people of many nationalities. They are setting up a 401(k) plan, but spousal consent has become an issue. Several people left their spouses behind many years ago when they came to America. They were told that in order to name a beneficiary other than their spouses they must get the spouse's consent. These people have said they will refuse to participate in the plan if that is the case. In most cases, they have not had contact with their spouses in several years and probably could not locate them. In some cases, we're not sure if there was a legal marriage.

Does anyone know if there's any relief from the spousal consent requirement under these extenuating circumstances?

For purposes of applying the Rule of Parity, can a Plan provide that it will ignore a Participant's 401(k) Contribution Account?

For example, a Participant performs two years of service and terminates employment, at which point he is vested 100% in his pre-tax contributions but 0% vested in his Matching Contriubtions. The Participant returns to his employer 10 years later.

May the Plan exclude his prior two years of service in determining the vested percentage of his post-break Plan account?

Citations would be helpful (the regulations say that the rule of parity applies if a participant is 0% vested in his "employer contributions"-- does this include 401(k) Contributions?)

Thanks in advance.

I just want to make sure I have this straight and you all seem to be experts.

We currently offer an insured plan (e.g., No. 501) product to all employees. We offer a separate plan that acts as a premium conversion arrangement for the insured plan and contains a health FSA portion (e.g., No. 502).

To date, employer contributions toward the insured product (No. 501) have been the same for all employees (X employer contribution per employee and the employee picks up the rest with the premium conversion).

Now, management would like to consider paying the full cost of the premium for the the executive management employees in the insured arrangement, but leavnig the 125 plan "as is".

I know that insured health plans do not have to meet the 105(h) discrimination tests - but does this structure create a problem? It appears that if it was one plan it could not be done - but if it is two plans, are we able to separate out the insured benefits and pay more for the highs?

Situation-Xtested SH 401k plan satified by non-elective 3% er contribution regarding terminated employees.

Okay, a terminated EE gets the 3% SH contribution and the gateway rules bring him up to 5% (or 1/3). Has anyone read a definitive answer on the vesting allowed for the extra 2%(or so). If the part is 0% vested, is this a meaningful benenfit if we give him or her the gateway, then forfeit the whole thing?

I guess what I am asking is that I have read that some plans are giving upon the employers discretion a qnec for the extra gateway contribution in this situation..some plans do not allow for qnecs and do we have to fully vest the gateway contribution.

Please give any and all input.

Thanks

tag

I have been asked to add a user defined field in Employer Data. We would like a max of 7 fields to house Trustee information. Something like Trustee1, Trustee2, Trustee3, etc.

I have no idea where to add this information. I need to be able to pull this info into a report that goes out to every plan sponsor at the end of the year. It's part of our census data request form.

I am running Relius 8.0 with Crystal 8.5.

If someone could direct me to a good place to start and let me know if this is even feasible.

Thanks

Heather

A client of mine currently has two distinct 401(k) Plans that are part of the same control group. They made a decision to terminate Plan X and merge it into Plan Y as of 1/1/2003. From a recordkeeping standpoint, it is not administratively possible to have the plans merged by that date. From a document standpoint, that date is no problem. Is there a probelm with the client continuing to send in participant deferrals to Plan X until it is possible to merge the two plans from a recordkeeping standpoint? Plan X and Plan Y have the same exact features, just a different plan name. The document, as I mentioned will be updated, the recordkeeping system will be the only "lag." Any insight would be helpful! Thanks!

I just want to make sure I have this straight and you all seem to be experts.

We currently offer an insured plan (e.g., No. 501) product to all employees. We offer a separate plan that acts as a premium conversion arrangement for the insured plan and contains a health FSA portion (e.g., No. 502).

To date, employer contributions toward the insured product (No. 501) have been the same for all employees (X employer contribution per employee and the employee picks up the rest with the premium conversion).

Now, management would like to consider paying the full cost of the premium for the the executive management employees in the insured arrangement, but leavnig the 125 plan "as is".

I know that insured health plans do not have to meet the 105(h) discrimination tests - but does this structure create a problem? It appears that if it was one plan it could not be done - but if it is two plans, are we able to separate out the insured benefits and pay more for the highs?

Does this work for plan year ending 2002?

Husband and Wife have a 401(k) plan with no other EE's.

Plan has been updated with EGTRRA amendment.

Husband salary $250,000

Wife = $30,000

Each are over 50 in age.

Each puts in $12,000 by 12/31/02

Husband gets total contribution of $41,000

Wife gets a total contribution of $29,500

$230,000 X 25% = 57,500.00 + $22,000 = $79,500(Total deductible Cont.)

$2,000 in Catch up contributions

wife gets the $17,500 + the 12,000 in 401(k) contributions ?

I have to roll my 401k over, because my previous employer is changing their 401k provider. I need to move my $4,000.00 and I am not sure where the best place to invest it is. I was thinking of putting it in a Roth IRA. Or is an IRA better. I lost $3,000.00 over the last 2 1/2 years and I'm not sure I want to put it in mutual funds at this time. My other problem is I have to have the form completed and returned by the 20th of Dec.

Please advise me as what the best place is to move my money.

Thank You

Karen

In a govt plan:

Sam retires. A year later, he gets married. Our plan allows him to add survivor benefits for the new spouse.

Does (should) spousal consent apply? If so, can you please provide the applicable IRC reg?

Thanks!!!

Sam retires. A year later, he gets married. Our plan allows him to add survivor benefits for the new spouse.

Does (should) spousal consent apply? If so, can you please provide the applicable IRC reg?

Thanks!!!

Rev. Proc. 2002-73 gives us until "the end of the plan's GUST remedial amendment period" to adopt the good faith EGTRRA amendment (and to amend for Rev Ruls 2001-62 and 2002-27). Reg. 1.401(B)-1(e)(3) provides that the remedial amendment period is automatically extended until 91 days after the IRS issues a determination letter, provided the application for the determination letter was filed by the end of the RAP (determined without regard to -1(e)). I have a calendar year individually designed DB plan, amended for GUST and submitted in February 2002, and the IRS has not issued a determin letter yet. So, doesn't that mean the good faith amendment is NOT due on December 31, 2002?

Plan is not top heavy, and postponing the GAR amendment is not going to make a material financial difference.

I got a call from someone with an individually designed plan who let it slip through the cracks and now is looking at EPCRS.

Can anyone comment if I have the late amender fee correct based on 25 participants and $2.5 million in assets? I think the fee is $2,625 (halfway between the minimum fee of $1,250 and the presumptive amount of $4,000).

Correct? I ask because the figures provided on the Corbel site don't match up.

Tx in advance.