I have a participant in one of the 401(k) plans that I service who was eligible to participate in the plan on 7/1/2002. The client forgot to take payroll deductions from the participant for three bi-weekly pay periods. Since the plan is on our prototype document, they have "until administratively feasible" to begin deductions, however, they can not rely on this because they did have a reasonable amount of time. The participant also terminated at the end of August. How can the plan correct this defect?

Is there anything that would preclude an employer from maintaining both a 457(B) plan and a 457(f) plan?

Just thought I'd drop the forum a line to let everyone know about Rev. Rul. 2002-62. It significantly changes the way substantially equal periodic payments are calculated.

- Patrick Matthews

Brentmark Software

I have a participant who is due a refund for ADP failure. He also failed the 402g violation for the year as well. How are these refunds supposed to be treated? I know the total deferral dollars are left in the testing for ADP since he is an HCE, but was confused on how the refunds are to be done.

Once the substantially equal periodic payment is calculated AND assuming ypu have calculated it to be an amount that must be taken ANNUALLY, does it matter how many "distributions" are taken from an IRA to equal the Annual Amount??

I am working on a ADP/ACP test for 12/31/01 year-end. The client is stating that some employees did not make any earnings during the year, although they were eligible employees. Most of them have term dates within the year being tested.

Question is, should they be included in the ADP/ACP testing for the year? I would think not, since they did not have any earnings to defer off of.

Feedback would be appreciated.

How does one go about converting a traditional DB plan to a 412(i) plan?

The plan in question only has 1 participant and a few hundred thousand dollars in assets.

What must be to exempt the plan from the Schedule B filing requirements and everything else that 412(i) gets you out of?

It seems to me that the plan would have to buy an annuity that would cover at least the benefits accrued as of the conversion date.

Does anyone know of anything from the IRS that covers this?

Thanks.

Would anyone have some insight as to when Hawaii Employer Provided Health Care laws would apply to out of state employees on temporary assignment in Hawaii? The employer provided health care is appropriate under the home state laws, but Hawaii has more stringent requirements. At what point would those laws kick in? Thanks.

What is your current recordkeeping platform?

What current current tools or techniques are used by Relius users to convert plan sponsor data for use by the recordkeeping system?

Although there has been movement to establish data format standards (such as the SPARK format), my understanding is that there are still a multitude of file formats that sponsors have to deal with.

415 limits maximum including 401(k) to $40,000 that I got.

If I want to maximumize benefits a lowest salary I think the maximum 415 benefit is 100% of pay including deferals -Right?

Therefore if I pay $14,666.66 to employee and she defers 11,000 and the company can contribute 25% of total salary or 3,666.66

If we pay any less and she defers 11,000 the company cannot contribute the full 25% without violating 415.

I think I got it right - just need somebody to confirm for me

Thanks

I have a frozen Money Purchase plan in 2001. Do I need to file a Sch. R? If so, what information do we put? There were no payouts for the year.

Thanks

I have a husband-wife death, each one with their own account balance. They each have their own contingent beneficiaries. I know they cant roll to a Qual plan or IRA. How about a Roth? Are there ANY alternatives for them other than just taking the cash as a taxable dist?? Thanks for your thoughts...

I am in compliance at a health plan, and we have received our first request persuant to the November, 2000 DOL claims procedure regs for documents relevant to a claim for benefits. How much info have other plans provided in this circumstance? My understanding is that we have to provide pretty much everything generated in making the determination, including consultant reviews and medical records.

What has your experience been?

Thanks.

Plan A is merging into Plan B. Plan A's normal retirement age is the later of age 60 or 5 years of service, while Plan B's NRA is age 65. Plan A's employer contributions are subject to a graded vesting schedule, while all contributions to Plan B are immediately vested.

After the merger, must Plan A's NRA be preserved for Plan A participants? Would it make any difference if the Plan A participants are given full vesting in their pre-merger Plan A contributions?

This question should be easily researched, but I cannot find an answer that I am comfortable with.

A defined benefit plan uses the elapsed time method to credit service for eligiblity, vesting and benefit accrual purposes.

With regard to eligilility and vesting, there are clearly defined break-in-service rules which permit certain service to be either temporarily or permanently disregarded upon rehire. However, I cannot find any break-in-service rules applicable to benefit accruals.

The plan's benefit formula is 10% of average annual compensation times years of service. Participant X has an accrued benefit equal to $350 (10% of her average annual compensation) times 8 (her years of benefit service), payable at normal retirement age. She incurs a break in service and is then rehired. Under what circumstances, if any, can the plan termporarily or permanently disregard her pre-break benefit service for purposes of computing her accrued benefit following rehire? The plan's terms state that because she terminated at a time during which she was not eligible for normal retirement (attainment of age 65) or for a deferred vested benefit (completion of 10 year of service) her pre-break service is permanently disregarded upon rehire--meaning that she starts earning benefit service all over again. This does not seem permissible to me, but I cannot find a definitive answer.

Since I cannot locate any break-in-service rules like those applicable to eligibility and vesting, my conclusion is that all pre-break benefit service must be immediately recredited upon rehire (which is clearly not what the document provides). Does my conclusion sound correct to others? Thanks so much for your suggestions/comments.

I will try this again. I tried to edit the last thread, and somehow, I closed it. Can an (1) LLC member, a (2) domestic partner, or both, receive benefits from a plain vanilla, non-FSA/125, medical expense reimbursement plan under 105(h). I recognize that the benefits may be taxable, but is the inclusion of such individuals fatal to the availability of the plan to the remaining employees.

Can (1) LLC members, (2) domestic partners, or both receive benefits from a medical expense reimbursement plan under a plain vanilla Section 105(h)?