My employer has a group health, dental and vision plan which the premium is paid in full by the employer for each employee. If the employee elects dependent coverage the employee must pay the full dependent premium but it is paid on a pre-tax basis. We also have a section 125 plan with flexible spending accounts. Our AFLAC policies are paid by the employee but on a pre-tax basis also. We have group LTD and STD paid in full by the employer. My questions is, when completing the form 5500 do we have a welfare and fringe benefit plan or do we just have a fringe benefit plan?

This is our first year and I need some help desperately! Thanks so very much in advance for any assistance you can give me.

I have a law firm with 14 HCE's and 25 NHCE's considering a cafeteria plan. Any names/contact information for TPA firms in eastern North Carolina that set up and administer cafeteria plans. Thanks for your help.

Since 1987, my traditional IRA has grown to over $100k. I don't know if I should convert it to a Roth IRA. I now contribute to a Roth IRA. My current tax bracket is 28%. My spouse and I make less than $100,000 per yr. I'm 52 yrs. old and would like to retire at age 62. I also have savings money to pay the ordinary income tax. Is a conversion right for me? Anything else I need to know? Thanks for any help.

We limit HCE's to 10% 401(k) pre-tax employee contributions in 1 of our collectively bargained plans to pass 401(k) testing. We do not currently match

We are thinking about adding an after-tax feature to our plan due to HCE participants inquiring.

Can we allow a 15% after -tax ? Are there any restrictions/limits on after-tax other than making sure we don't exceed 415 limits which now have been raised to 100% of compensation?

I do understand that we will have more administration as a result of adding this feature.

Can you point me to cite if any restrictions

I'm having difficulty understanding why the after-tax contributions portion of a 401K, when rolled over into a separate IRA from the pretax funds, thusly 2 separate IRAs, and then the after-tax IRA is converted to a ROTH, why is there a tax liability because of the other existing pre-tax IRAs, due to prorata. Could someone explain the prorata, and why other existing IRAs effect the newly converted after-tax IRA to a ROTH.

Is anyone using the Corbel Cafeteria Plan Document Service? It appears to me these documents are way behind with updates, when was the last update to include recent regulations?

Are the documents of any of the Service Providers current, as of today?

Has the income limit for a 2002 Roth IRA increased above $160K (married filling jointly)?

I was told that the income limit for a Roth IRA (filling joinly) has increased above $160K. Is this true?

Plan makes matching contributions on a payroll basis, but requires employees to work 1,000 hours of service in a given year to be eligible for matching contribution. No L/D requirement.

Demographics are such that there is only one HCE, and she will consistently meet the 1,000 hour requirement. Of the NHCEs, some will meet the 1,000 hour requirement later in the plan year than others, so their matching contribution will be based on a lower amount of compensation.

Dois pose a problem with respect to ACP testing? Employees will receive a uniform PERCENTAGE of compensation, but amount of compensation that match will be based on will vary somewhat due to staggered times at which they satisfy 1,000 hour requirement.

Hospital A which was performing poorly financial is now being run a different entity and called Hospital B. Hoptial B retained the employees of Hospial A. Would that constitute a "severance from employment" and be a triggering event allowing a distribution from a Non-Erisa 403(B) ? Any thoughts on any different twists if this was an ERISA 403(B) ?

Thanks everyone.

Are Collectively Bargained plans not subject to minimum vesting schedule laws??

:confused:

We are looking at merging two companies in the near future. Both are wholly owned sub's under a parent company. Company A currently has a 20% ee contribution rate for medical/dental plans for single employees and 25% for ee + 1 and families. Company B is entirely employer paid.

Company B would like to ease their employees into the 20%/25% structure we have by allowing them to pay a smaller percentage and raising it over the years, say 8% year 1, 8% year two, and 9 % year three for families.

Other than the morale issues we'll be faced with (there are employees of both companies that work on the same contracts currently, won't it be great when Joe from Company B says he's getting the same HMO for $10 month and Sam from Company A says, hey, I'm paying $30!!! - I'm not looking forward to that), is this legal under Section 125 (we have both insured and self insured plans) or 105?

Thanks!

Is top heavy minimum (to key employees) a protected benefit?

401(k) Profit Sharing Plan Pre-Gust document provides top heavy minimum contribution to all employees (not just non-keys). For PYE 12/31/01, employer wants to make top heavy minimum to non key employees only.

Considering the remedial amendment period, can the GUST restatement of the document provide the top heavy minimum only to non-keys?

Note, in prior years the Profit Sharing contribution was greater than top heavy minimum for all participants.

Help! I am trying to find out if there is a maximum legal vesting period for part time employees (half time or greater) who participate in a defined benefit retirement plan.

My employer is a large California utility with a 5 year Cliff vesting provision for full time employees. We are trying to get retirement benefits added for part time employees (half time or greater) and the human resource department is saying that one requirement would be prorated vesting. This could take up to 10 years for a half time employee to get any vesting. This long period seems unfair.

If there is a legal maximum maximum vesting period (or a mandated % vesting), it would GREATLY simplify our current effort!!! Thank yo for any help!

Below is a tiddy except from Motley Fool that I thought the "just getting started" readers would appreciate. MF advice varies, but the writing is always crisp and worth reading.

Motley Fool

By Brian Graney

April 25, 2002

Last week we discussed how to start direct investment plans. The more important issue is when to start.

There's an ad floating around the Internet that poses the question, "Is this the right time to invest?" For folks new to investing, this single question often seems about as daunting as the Riddle of the Sphinx.

Here's the situation (insert hypnotic, time-warp music here):

Let's say that you are ready to make the move up from Fool Junior Grade to Fool First Class. The 13 Steps to Investing Foolishly have been read and committed to memory, those pesky credit cards are all paid off, and maybe you've given a little bit of thought to what to do for retirement. Check, check, check.

What's next?

A little bit of dedicated research about stocks and investing might not be a bad idea at this point. You might read some good books, find out what those stock valuation ratios are all about, form some opinions about a few companies that have caught your eye, and share what you have learned with others on the Fool discussion boards. These are all good things to do.

Meanwhile, days pass, weeks sail by, seasons turn, TV sitcoms come and go -- pretty soon, it's months later and still no stocks. Is this what everyone around here means by Foolishness? Is it supposed to take this long to get started on this investing thing? And, more importantly, is there a point to all of this rambling?

What all this boils down to is the following: Take your time when you are getting ready to invest. If you can't tell a balance sheet from a balance beam, then set aside some time to figure out the difference between the two before plunking your money into your first stock. Learn as much as possible about your investment before it actually is your investment. That way, there is much less chance that your first investment will also end up being your dumbest investment.

Second verse, same as the first: Take your time. If you're Foolish and you want to become an owner in an excellent business for a long time, then there is no rush. Great businesses don't just appear and disappear overnight, of course. And, here's a newsflash -- neither do great investors.

I can hear the collective yawn of long-time Fools at this point, but for investing beginners these things are worth emphasizing (and for the veterans seeking new stocks, a little reiteration never hurts). Unfortunately, the Wise on Wall Street often tend to gloss over ground-breaking concepts such as "learning." Sure, learning all this investing stuff takes time and perseverance. But, like trays of meat by-products being ground into a high-quality sausage, all of your learning will form a solid basis for what kind of investor you want to be. It's a messy process, but it's worth it.

If you are struggling to find your "inner investor," there are lots of places right here at the Fool to seek solace.

{witty - would love to write this well, give this guy a scholarship}

Anyone out there know of any literature that compares different types of plans under the new tax laws. For example, a chart comparing SEP's, SIMPLEs, 401(k)'s Safe Harbors etc....

Thanks for the help

I have been asked to research how to establish a 529 business within the Benefit Services Department of our Insurance Brokerage Firm. The first step is to determine how to become a Broker Dealer or if we want to partner with an established financial services firm that can do this. I cannot find any guidance on line on which way to go with this. I understand that we will need someone that is Series 7 and 24 licensed, but cannot determine what else is necesasry.

Also, I can't find what average fees (load) is being charged on these accounts. Any guidance would be GREATLY appreciated.

I have a CT doctor plan that is top heavy. There is only one owner of the practice.

All doctors except the owner waive participation in the PSP. None of the other doctors are officers.

Are the other doctors required to receive the top heavy minimum even though they waived participation in the plan?

Can employees who work at home (part time or full time) use their employer's DCAP if they send their children to a day care institution while they work?

An S-Corp maintains a leveraged ESOP with a set % contribution (set up as a money purchase plan). According to the plan document, the shares to be released at the end of each plan year are allocated based on compensation to the same participants who are eligible for an employer contribution. However, it nowhere mentions that this allocation counts as a contribution or towards the annual additions.

Should this allocation of released shares count toward the set % contribution (to in effect reduce the employer's deposit), or is it just a gains allocation based on compensation?