I have several HCEs participating in more than one 401(k) of an unrelated employer plans. Do I need to aggregate contributions for the purposes of adp/acp testing?

I have a Welfare Benefit Plan that provides participants a plethora of Insurance Companies to choose from. As a result, each Schedule A has a sprinkling of participants.

If I were to total all the employees covered by each of these insurances, I could exceed 100 participants in the Welfare Benefit Plan as a whole.

So what am I counting? Individual Schedule A counts, or total employees participating in the Welfare Benefit Plan as a whole?

What is the deadline to file determination letters for plan documents using a volume submitter plan?

Thanks.

One individual is the sole owner and only employee of multiple incorporated businesses - an obvious "controlled group".

Owner wants to adopt an SEP, especially given the new 25% deduction limit. This cannot be done via a Form 5305-SEP due to the controlled group issue.

Does anyone know if this can be accomplished via a non-model prototype SEP?

Thanks!

Does an employer who has made a 414(q)(1)(B)(ii) election to limit the definition of highly compensated employees to the top paid group of employees for the year include participants who would otherwise qualify as "highly compensated employees" under Section 414(q)(1)(A) as "five percent owners" when determining which employees are in the the top paid group?

To illustrate, a group consists of ten employees, eight of which qualify as five-percent owners AND have plan compensation in excess of $170,000 for the 2001 plan year, and two of which who are not five-percent owners and receive plan compensation of $100,000 and $60,000, respectively. Does the employer include the eight five-percent owners in determining the top 20%? If not, does the employee who receives plan compensation of $100,000 qualify as a HCE (i.e., can the employer round up to 1 although 20%x2=.4)? Any help is much appreciated.

Can a final Money Purchase Plan contribution be deposited into a Profit Sharing Plan following a plan merger?

Is a plan exempt from filing an IRS Form 5500 (sole proprietor with less than $100,000 in assets) on an ongoing basis required to file a final IRS Form 5500 when the plan terminated or merged?

In order for a participant to be eligible for hardship withdrawal, the financial need must be one that cannot be satisfied from other resources. Typically, that means taking out loans, exercising stock options, etc.

Does anyone have a plan or know of a plan that requires participants (by its plan terms or hardship procedures) to: (1) withdraw from the company's employer stock purchase plan and use refunded contributions; and (2) use personal credit cards and show that there is no available credit to satisfy the financial need.

Does anyone think plans should require withdrawals from ESPPs and maximum use of personal credit cards?

JP13 posted previously, but for some reason, the thread is closed. I wanted to repost it for him/her to start the responses. The original post:

401K rollover to Roth

I have a 401k from a company that I worked for a few years ago and since then I have stopped contribution to it. I want to roll it over into a Roth IRA if it is possible. How do I go about doing this and is this a good solution.

I have a 401k from a company that I worked for a few years ago and since then I have stopped contribution to it. I want to roll it over into a Roth IRA if it is possible. How do I go about doing this and is this a good solution.

In reading Pub 590 on p54 it discusses the adverse consequences of a failed Roth conversion that is not recharacterized.

I understand #1 and #2 but am not clear on #3.

"The 10% additional tax on early distributions may apply to any distribution".

The section above it states that the "contribution" will be treated as a regular contribution, which as we know is never subject to tax or penalty. So what distribution MAY be subject to the 10% penalty?

I have no substantive knowledge of VEBAs so please excuse the ignorance. Can a VEBA use contributions of active employees to fund the retiree medical benefits of former employees? What if the former employees were never contributing members of the VEBA? Even if the former employees were former VEBA members, can they receive benefits in excess of what they had previously contributed for? i.e., can employer use "excess" of contributions by actives to fund retiree medical benefits? ANY thoughts would be welcome.

Can a government 457b account be rolled over to an IRA if the employee remains employed by the same employer? If so can the employee continue to contribute to the same 457b plan?

Hello everyone--

One of our readers wrote in with this question:

Joe six pack works for a living. He makes 75k per year and contributes to his 401k, and maxes a Roth IRA for himself.

Joe's wife is a new real estate sales person, who only made about $6 in commissions last year. But her expenses exceeded her income.

Question: Can she contribute to a Roth IRA for herself?

Since she's working, does she qualify for a spousal IRA? Can she open a spousal Roth IRA?

Suppose Joe Six Pack is going to inherit a couple of hundred grand. Does that windfall count against the limitations on AGI for the purposes of determining eligibility?

Comments, concerns, and caveats?

Jason Van Steenwyk

Reporter, Mutual Funds Magazine

We have a client of a single-participant plan who mistakenly made his 2000 money purchase and profit sharing contributions to his taxable brokerage account instead of his retirement account. His checks were made out for the proper amount, the contribution type was written on the memo field and the checks deposited before April 15th 2001. He just sent them to the wrong account. Has anybody seen some relief from the IRS on this type of situation and what types of penalties and correction procedures would he be looking at? Presumably this would not fall under DOL and ERISA jurisdiction.

Thanks

What is the time frame that an employer has to reimburse an employee for dependent care expenses? Our company has always issued reimbursement checks on the same day each week, but recently (on more than one occasion) checks have not been issued and employees have been told that there is just no money in the account.

I am aware of DOL regulations regarding the timing of 401k deposits (as soon as the assets can be segregated from the assets of the corporation, but no later than 15 business days following the end of the month in which the deductions were withheld). Do these same rules apply???

Also, because employer has consistently paid claims on the same day each week for years, are they setting a precedence that claims must be paid on that day, especially if employees are relying on the reimbursement.

Any educational help is greatly appreciated. Thanks.

After 2 years away from good ol' FSA, I have been temporarily pressed back into service until a new person is hired...and I need a refresher course !!!

How do orthodontic claims get paid? Do we have to push for actual dates-of-service? Or, can we reimburse based on the payment plan the patient and provider have agreed upon?

We have providers who charge the full fee up front...how do you handle that?

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ANY AND ALL INPUT GREATLY APPRECIATED !

Does anybody know what rules apply to the reimbursement of claims submitted by an employee with a service date concurrent with their FMLA leave period? It's rolling around in my head that if a participant is on paid leave, and deductions are being taken out, they could be reimbursed. What if it's unpaid leave and they've chosen the catch-up option of repayment to their Health FSA? Would only claims prior to their leave date and after their return date be eligible?

Thanks in advance.

DK Ellerson

A PSP is established on 01/01/2001. There is a 2-year service requirement before entey is allowed.

Although the employer has many employees employed on 01/01/01 that will most likely meet the 2-year service requirement on 12/31/02 (and thus enter the plan on 01/01/03) ... the plan will have no participants, nor make any contributions, during the plan's first two years of existence (namely: years 2001 and 2002).

MY QUESTION:

Must a Form 5500 be filed for years 2001 and 2002 ??

Can a Multiemployer plan have completely different benefit formulas for different contributors to the plan? The case Caterino v. Barry, 761 F. Supp. 897 @ p. 902 seems to indicate the answer may be no.