Is there any guidelines on reallocating shares that are diversified? I could not find any instruction in the document.

Does tuition for kindergarten at a private school qualify as an employment related dependent care expense eligible for reimbursement under a dependent care assistance program?

As anyone who has worked with these plans knows, there are a number of nondiscrimination rules that are applicable to 125 plans as well as to the underlying plans (health FSAs, dependent care plans, etc.). Most, if not all, of these rules are plagued with inconsistencies, ambiguities and very little meaningful guidance. Except in certain small employer situations, where the discrimination violation is obvious, I don't believe there is much worry about compliance. And, frankly, I am not sure there is much need to worry because I, personally, have seen no enforcement action whatsoever from the IRS in this regard. This leads me to my question: Has anyone had any experience with the IRS making any effort to enforce any of these rules? If so, please share what you can about your experience. Thanks.

We have a client that wants to invest in an LLC taxed as a partnership inside either his SIMPLE IRA or his wifes's TIA-CREF plan. The ownership will be less than 5% and they will not be actively involved. Can this be done?

We have a client that wants to invest in an LLC taxed as a partnership inside either his SIMPLE IRA or his wifes's TIA-CREF plan. The ownership will be less than 5% and they will not be actively involved. Can this be done?

Are there different filing requirements for a publicly traded company versus a non-publicly traded company?

Our group health plan, EAP (Employee Assistance Plan), Medical Retiree Plans and Health FSA's are subject to HIPAA.

With respect to certificates of coverage, we are providing one for our group health plan. We are not, however, providing anything for our EAP and health FSA's and I'm not certain about our Retiree Medical plans. With the little that I know about this, it seems like we should be providing a certificate for our group health plan, EAP & Medical retiree plans. Any thoughts?

I have a client who has a 100,000 fidelity bond with ERISA inflation guard. Does anyone know what this means? The trust assets are more than $1,000,000. Should I put $100,000 in Sch. I as the value of the bond?

Please help! I am getting conflicting answers regarding the treatment of LLC's in a Cafeteria Plan. Can the owners participate?

Which of the following opinions is correct?

One answer is that LLC's are treated as partnerships no matter how they file their income taxes, therefore, the owners cannot participate at all.

One answer is that it is based on how the LLC files. If the LLC files as a C-corp, there are no exclusions whatsoever.

I have also come across a strange reference that states that owners of 10% or more of the employer are defined as "self-employed". It does not expound. Does anyone understand this sentence?

One of our clients recently acquired another company with a SEP. They would like to merge the SEP into their existing 401(k) plan. Given that SEPs are funded with IRA accounts, is this type of merger possible?

I realize that it is possible if elected by the employee, but does the employer have the discretion and authority to accomplish this merger without employee involvement?

Thanks in advance for any thoughts.

Is the employer contribution to the plan 100% deductible in a leveraged ESOP? I have been told that only the principal portion of the loan repayment is tax deductible as a contribution while the interest portion is excluded. The reason is that the interest expense incurred on the external bank note is already fully deducted. Any help would be appreciated. --Tom

A DC plan has been enjoined by a state family court from making any distributions to a participant pending resolution of the participant's divorce. The plan received the transcript of the family court proceedings and therefore is aware that the purpose of the injunction is to prevent the participant from using the money take his children out of the country.

The participant has terminated employment and is otherwise entitled to a distribution of his account (which consists of employee contributions only). The participant has requested a distribution.

In addition to the injunction, the plan administrator received a draft domestic relations order which entitles the soon to be ex-spouse to 50% of the participant's account.

Does anyone have any ideas on whether the plan is bound by the state court injunction? In other words, the state court has indicated that only 50% of the account will be subject to the ex-spouse's separate interest. We are comfortable with the plan doing a separate accounting and protecting the ex-spouses 50% interest (since there is a pending QDRO). However, can this ERISA plan refuse to make a distribution to the participant of his remainder based on a state court injunction?

Thanks in advance for your responses.

If a Plan has annuities listed as its only option of distribution, can the plan be amended to change to lump sum as its only form of distribution?

Can anyone give me an idea of what interest rates are used to calculate the UVB? How has this changed over the past few years as rates generally have dropped? Does the PBGC put a cap on this rate?

We're setting up our company's first 401(k) plan and merging our money purchase plan into it. Loans will be a new feature for us. I'm looking for some advice on whether to make all sources of funds available for loans, or to limit loans to employee & rollover sources.

The recordkeeper will prorate loan proceeds across all vested money types.

Our first thought was to not let loans be made on employer money, with the thinking behind that being that as an employer we want to make sure the money is there for retirement, not for pre-retirement needs.

All opinions are welcomed! Thanks.

Rick

I have a question about grace periods (run out)- our documents are not clear on this issue: Does a terminated employee get the grace period starting from the date of his termination? Or does he get the grace period starting at the end of the plan year. In other words, assuming a calendar year plan, and a 90 day grace, does the employee who terms in June, have a 90 day grace until the end of September? Or does his grace period extend until March?

Thanks for any help!

Carolynn

Can you only remiburse the amount only for which has been deposited via payroll deductions? Or do have to reimburse the total amount even though it is less than the particpant has had deducted and then have the participant pay back that amount through future deductions?:confused:

can you set up your 125 trust account to make interest ont he monies deposited. If yes, what is the proper methos of distributing the interest? Can you pay fees with the interest?:eek:

I have a top heavy DC plan that adopted a safe harbor plan in 2000. The plan allows for deferrals, has a fixed match that satisfies the safe harbor basic match contribution (starting in 2002) and has a discretionary profit sharing contribution option.

If the sponsor opts to make a profit sharing contribution in 2002, would we need to be sure that all eligible non-deferring participants receive at least 3% of compensation in order to meet the top heavy minimum contribution requirements?

Health plan has received OMSCO requiring coverage of an employee's child. Employee is eligible to participate in the health plan, but does not do so. Can the plan force the employee to enroll as a condition to enrolling the child pursuant to the QMSCO? Or must the plan accept "child-only" enrollment?

Reference to concrete source material, if available, would be greatly appreciated. Thank you.