Does anyone have a spreadsheet set up that will do the calculations for the ADP/ACP tests? I have a controlled group that I need to run the tests on, but Relius isn't set up to handle that. They suggested the spreadsheet! Can anyone help??

If a doctor prescribes ibuprofen (actually dispensed through the pharmacy) is it reimburseable? I have been told that it may not because it is also available OTC, although not in the same strength. Since this is not the same as "aspirin" I'm thinking it is reimbursable. Any thoughts????

What is the proper way to handle the following:

Employee elected to salary reduce $90 weekly to pay for child care. In September, the employee had a qualifying change which reduced the amount of the childcare from $90 to $50 per week, however, she did not notify her employer of this until December 1. Therefore she has been paid out more and had more taken out of her paycheck than she should have. The employer has put further deductions from her pay on hold but calculating out to the end of the year she will have overpaid and been over reimbursed $140. Does this amount become taxable to the employee and includible on the employee's W2. Also, does the employer need to calculate and pay payroll taxes on this amount? Who is responsible for paying the employee's portion of FICA after the fact?

Any help would be most appreciated.

I was terminated from my employer in late September and have decided to return to school. I will have to take a distribution from my ESOP or 401K account to do this.

My question is about taxes and penalties from the ESOP. I have been told that I will only have to pay the 10% penalty on the price my employer paid for the shares in my ESOP account. This could make a huge difference as the account is 8 years old and the stock value has gone up quite a bit.

Is this true? If so, how would I get the amounts my employer paid? Is this called the UAM Value?

Thanks very much!

i am trying to figure out if a new comparability formula works for this plan. i have done my calculations and testing, but i am new at this, and would like someone to check my work.

brand new plan, 2 eligible employees. 1 HCE and 1 NHCE.

HCE comp $200,000.

NHCE comp $25,000.

i am using the UP-1984 table at 8.5%.

contribution to HCE is 40,000.

contribution to NHCE is 1,700.

i am calculating the HCE's EBR to be 7.88%

i am calculating the NHCE's EBR to be 5.58%

by my calculations i am showing that this passes the general nondicrimination test "rate group test" by passing the nondicriminatory classification test and passing the average benefit percentage test.

i just want to make sure i'm getting this right before i go any further.

thanks for any help.

A Governmental Agency has a 401(a) Money Purchase Plan in place with a 6/30 plan year end. They are saying in Dec 2002 that they will not make any contributions for the 7/1/2002 plan year at all. Can they disregard these first 6 months and not make any contribution?

Many multiemployer health plans heavily subsidize the cost of retiree coverage until the retiree is Medicare eligible. This is obviously a huge financial burden.

I have recently heard of certain multiemployer plans that

are conditioning the retiree health care subsidy on one's

active membership in the union. The idea is to eliminate the subsidy to those retirees who are no longer supporting the organizing/lobbying efforts of the union.

I know that qualified retirement plans cannot discriminate against retirees (w/ respect to suspension of benefits) based on his union or non-union status. Is there any similar restriction on

this action by a health fund? Thanks for your time.

May an IRA make a loan to an LLC which is managed by the IRA owner and which is owned 49% by the IRA owner and 51% by an unrelated party?

My mother was told two weeks ago that her positon was being cut to P/T. This leaving her with no insurance benifiets. We have reason to believe that this is all about greed not for the betterment of the company. She is 6 months shy of retirement her insurance premium is very high and we feel the boss flat out, just does not want to pay for her any longer. What if anything can be done. She has givin them a check for Januarys premium. They gave it back to her a week later saying SHE would have to re-apply for insurance on her own. She has pre existing conditions (Costly) and no other insurance company will touch her.

Her company is messin' with her and I fear that too much time is passing and she is going to wind up uninsured! HELP! What can we do??

My mother was told two weeks ago that her positon was being cut to P/T. This leaving her with no insurance benifiets. We have reason to believe that this is all about greed not for the betterment of the company. She is 6 months shy of retirement her insurance premium is very high and we feel the boss flat out, just does not want to pay for her any longer. What if anything can be done. She has givin them a check for Januarys premium. They gave it back to her a week later saying SHE would have to re-apply for insurance on her own. She has pre existing conditions (Costly) and no other insurance company will touch her.

Her company is messin' with her and I fear that too much time is passing and she is going to wind up uninsured! HELP! What can we do??

We are a large group health plan with a self-insured component(covered entity - we receive PHI), and a smaller HMO component (we do not receive PHI from the HMOs). We are preparing processes and procedures for the benefits department relative to the HIPAA Privacy Rules. I am curious how other similar group health plans are going to continue to deal with providing its associates, family members, and others who call on behalf of associates, customer service. If your company is similar to ours you provide assistance with regard to everything from enrollment questions, covered services, claims, treatment and appeals assistance and also advocate on behalf of associates regarding claims payment, etc. I am afraid that to just put this in the TPO category will cause our clerks to have to continually make judgement calls as to the minimum necessary when not speaking directly to an individual who is the subject of the PHI; therefore, I am proposing clear guidelines as to when authorization is and is not needed. Thanks for sharing!

I have a client who is terminating a profit sharing plan that has been in existence since 1985. On the Form 5310, they ask for the reason for termination. In this case, the plan sponsor is just tired of dealing with it. Does anyone have any experience with just attaching a statement that the plan has become an "administrative burden"? If so, how did the IRS respond?

The RMD reporting requirements (as stated under IRA Notice 2002-27-attached) provide two alternatives for reporting the RMD.

A paragraph states.

“Under both alternatives, the statement must also inform the IRA owner that the trustee will be reporting to the IRS, beginning with required minimum distributions for calendar year 2004, that the IRA owner is required to receive a required minimum distribution for the calendar year. (See section II below.) The statement can be provided to the IRA owner in conjunction with the statement of the fair market value of the IRA as of December 31 of the prior year that is otherwise required to be provided to the IRA owner by January 31 of a year.”

My confusion is with the sentence “beginning with required minimum distributions for calendar year 2004”. Does this mean beginning with RMDs for 2004? Or does it mean that the sentence must be included in the notification for 2003?

I don't work with SEPs. I have what should be a fundamental question for the experts.

Where in the Code or regs do I find that the definition of employer for purposes of a SEP means all members of the controlled group?

Situation is OWNER A is 100% owner of Corp A with employees, OWNER A also has a sole proprietorship, he is only employee. Account told him he could set up a SEP for sole prop. without covering employees of Corp A. Intuitively this has to be wrong.

Help.

Thanks

When calculating the current liability for PBGC variable premium purposes (general rule), do I use all assumptions used in the valuation or just interest and mortality? I know to use the specified interest and mortality, but if I am assuming early retirement rates, turnover rates, etc., should those assumptions be used as well?

The RMD reporting requirements (as stated under IRA Notice 2002-27-attached) provide two alternatives for reporting the RMD.

A paragraph states.

“Under both alternatives, the statement must also inform the IRA owner that the trustee will be reporting to the IRS, beginning with required minimum distributions for calendar year 2004, that the IRA owner is required to receive a required minimum distribution for the calendar year. (See section II below.) The statement can be provided to the IRA owner in conjunction with the statement of the fair market value of the IRA as of December 31 of the prior year that is otherwise required to be provided to the IRA owner by January 31 of a year.”

My confusion is with the sentence “beginning with required minimum distributions for calendar year 2004”. Does this mean beginning with RMDs for 2004? Or does it mean that the sentence must be included in the notification for 2003?

I've got a question I can't seem to find a difinitive answer to.

I've been contributing to a Money Purchase / Profit Sharing Plan for the last 2 years. It is my understanding I can now (with recent law changes) contribute $40k per year to a SEP IRA (without income limitation). I'd like to scrap my MPP/PSP (and the paperwork) and just contribute to a SEP IRA. My questions are:

1) Can I do this?

2) Can I then rollover my MPP/PSP immediately to my regular IRA?

3) Can I contribute $40k to a SEP IRA even if only make $40k in a year?

Any other issues I should know about?

Thanks.

Jason

We are a large group health plan with a self-insured component(covered entity - we receive PHI), and a smaller HMO component (we do not receive PHI from the HMOs). We are preparing processes and procedures for the benefits department relative to the HIPAA Privacy Rules. I am curious how other similar group health plans are going to continue to deal with providing its associates, family members, and others who call on behalf of associates, customer service. If your company is similar to ours you provide assistance with regard to everything from enrollment questions, covered services, claims, treatment and appeals assistance and also advocate on behalf of associates regarding claims payment, etc. I am afraid that to just put this in the TPO category will cause our clerks to have to continually make judgement calls as to the minimum necessary when not speaking directly to an individual who is the subject of the PHI; therefore, I am proposing clear guidelines as to when authorization is and is not needed. Thanks for sharing!

I am trying to determine if I can impute disparity while doing an ABT if the plan is already integrated. I cannot find anything that says I can't or I shouldn't. Any opinions? Does anybody have anything great they could quote me? Thanks

When a distribution is taken from the Non-Qual Plan (using a Rabii Trust arrangement), it is my understanding that it is taxable as W-2 wages to the employee.

What about the earnings/loss on the contributions ? Are they taxable to the employee?

For example, the employee "contributions" total 10,000. Due to the market performance of the investments, that 10k is now worth 8,000. On what amount is the employee taxed?

Likewise, what about if the 10k is now worth 12k?